Tuesday, April 27, 2021

Passive Investing for Passive Returns

The funniest thing about index investing and passive investing becoming so extremely popular among retail investors is that it has completely normalized the cucked 6-8% long term annual returns of a risky investment portfolio.

If you can figure out why tradfi markets behave this way and why crypto markets do not, you're one step closer to enlightenment.

In crypto, it is one of the few areas in the world where studying publicly available free for all to access information gives you a massive investing alpha, but of course, you need to not be a lazy bitch, so that you can seize it for yourself.


The reason why massive alpha exists is simple - the majority of the current players in crypto are extremely stupid.

Like, really really fucking retarded.

For an example, see myself.

(I can swear now since I removed adsense cos fuck adsense revenue lmao I don't give a shit)


People ask me why I hustle so hard in crypto.

The truth is that I genuinely feel that it is one of the few places where time and effort correlates with returns.

The lazy people don't bother.

The stupid people don't understand.

All you have to do is not be lazy and an idiot, and it's easy pickings.


As more tradfi bois enter the space, the alpha will get eaten away. 

It definitely will. 

It's literally free money at the moment in crypto. 

All you have to do is to be present.

Talk about being at the right place at the right time.


As the alpha gets eaten away and the yields compress, with objectively smarter tradfi players coming into the space, I fear that the easy returns will slowly dwindle away.

The window of opportunity for random retail "making it" is quickly closing.

As each cycle progress, the absolute multiplier you can achieve in each cycle gets lower and lower.

And finally

One day

It becomes just another asset class that academics backtest and debate how much % of a portfolio should be allocated to it.


Have fun,

Staying por.

6 comments:

  1. Do you think we have 1 or 2 more cycles left (not counting the current one) before all the alpha gets eaten away?

    ReplyDelete
  2. Hi Anon

    I know gmgh is an oracle but can u pls dont ask questions that he can't ...

    Oh wait

    ReplyDelete
  3. Of course he can, G is the reverse oracle.

    ReplyDelete
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  5. Ultra high net worth in 2021
    :handshake:
    Reading a tweet from G and bought his bags in 2019

    ReplyDelete
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