According to PANews, the recent Berkshire Hathaway annual shareholders' meeting has sparked a discussion about investment performance. Over the past 20 years, Warren Buffett's investment performance has increased by 554%, which is less than the S&P 500's 568%. The S&P 500, which represents the top 500 listed companies in the US, accounts for about 80% of the total market value of the US stock market, also known as 'Beta'.
The harsh reality of investing is that most highly intelligent investment managers spend their entire lives pursuing Alpha (excess returns), only to find that they cannot outperform the market Beta. For most investors, it might be better to buy into the index from the start and passively accumulate wealth.
Turning to the cryptocurrency market, how many assets have outperformed Bitcoin? And how many diligent traders and top-tier fund managers have outperformed Bitcoin in the end? As far as we know, very few have.
One friend, who scrimped and saved during the bear market, finally hoarded 3 Bitcoins by the end of 2023. However, now he only has 0.5 Bitcoin. Like many others, he felt that Bitcoin's market value was too high and not an opportunity for ordinary people. He needed to take risks to gain greater returns, so he gambled most of his Bitcoins on various inscriptions, and naturally lost his Bitcoins, reaping a handful of inscriptions and becoming someone else's exit liquidity.
The same story happened with Solana (SOL), which is a definite big Beta in this cycle. But like Bitcoin, its market value is too high, lacking the temptation of a 10-fold increase, far less sexy than various 'meme' coins. So, many investors couldn't stand the loneliness and exchanged their precious SOL for various 'meme' coins, only to find that they could never exchange them back for equivalent SOL.
Investing is like this, and so is love. Many women/men are dissatisfied with their current boyfriends/girlfriends, always feeling that they can find better ones, only to find that what they once had may be the best. Therefore, don't easily give up the BETA in your hand, whether it's in investment or love.
