The best performing investors are ones who are dead

[pawel7777]

https://www.bluewealth.com.au/general-knowledge/the-best-performing-investors-are-ones-that-are-dead/

I just came across this article and thought I'd share it as an ultimate reminder that being overly reactive and allowing panic to kick in is usually the worst that investors can do.

Be as calm and patient as dead people are and gains will come 

Yes, you read that correctly. Fidelity, one of the biggest asset managers in the world, performed a study on their best-performing client brokerage accounts. Over a 10-year period, they found that the highest returns came from the ones where the account holder was dead. The second best were the ones that had forgotten they had investments. Of course, I don’t recommend dying as a good investment strategy.

Why is this the case?

Most of the time, the market rewards investors who get into position and then do nothing. While it seems simple, it’s a lot harder than it sounds. Successful investing can be extremely boring, and it can be hard not to watch the news and tinker with your investments to try and squeeze out every ounce of performance from your hard-earned capital. But the market rewards patience and punishes those who give into emotions. 

Dead investors aren’t usually reading the news and panic selling as investments go down, nor are they prone to panic buying as the market is soaring (...)

This is not necessarily related to crypto, but can be useful info for investing/trading in general.
Do whatever you want with this knowledge.

[Wiwo]

Investment grow more when the investor give it a long time without interference from the investors, that is the reason that the dead investor hard more turn over of accumulated profit's compared to those Investors who are constantly interfering with their asset's.

Even in stock share buying, the same mechanism applies to all, the longer you investment stayed untouched, the higher your expected gains along the line.

[Zed0X]

Yeah, that's definitely applicable to crypto and traditional markets. You might not like Warren Buffet's stance on crypto but sitting on a winning horse (investment asset) is one of the best lessons I got from him. When it comes to crypto, just stay updated with what's happening with the development because of potential change in token smart contract or transitions to the main chain.

[akeemqaz]

Before opening this post, I thought, "Is this a story about past investors?"
Now I realize that it's just a quote advising calm for the bull run to come. I agree with you anyway. People who sell in panic, like the German government did, won't have the opportunity to see gains like people who hold. An individual might later own Bitcoin with a higher value than the German government in the future because the government will likely need to buy at the top.

[Sim_card]

Patient is very important when investing, it is just like you invest into bitcoin and hodli for a very long period of time, before you know it your bitcoin investment will generate more profit overtime as the price of bitcoin increases in value. Being patient with your investment means you shoukd allow your money to work for you and don't think that you can do it all alone. Your investment should be like a child that takes a very long time before he becomes an adult, bitcoin gives us that opportunity to invest and grow our investment for years.

[MrSpasybo]

Investment grow more when the investor give it a long time without interference from the investors, that is the reason that the dead investor hard more turn over of accumulated profit's compared to those Investors who are constantly interfering with their asset's.

Even in stock share buying, the same mechanism applies to all, the longer you investment stayed untouched, the higher your expected gains along the line.

Perhaps the most important thing we can realize and apply is that a strategy of holding a valuable asset for the long term can generate greater returns than frequent trading tactics for optimization!

Optimization is often tempting: buying low and selling high to increase the number of tokens, buying BTC and then selling BTC to invest in ALTS and get higher profits in the bullrun, but in the end, most people fail and do not meet their initial expectations. The most important factor for a long-term holder to focus on is identifying assets that are truly valuable and will appreciate over time. BTC is such an asset!

[ajiz138]

Investment grow more when the investor give it a long time without interference from the investors, that is the reason that the dead investor hard more turn over of accumulated profit's compared to those Investors who are constantly interfering with their asset's.

Even in stock share buying, the same mechanism applies to all, the longer you investment stayed untouched, the higher your expected gains along the line.

Perhaps the most important thing we can realize and apply is that a strategy of holding a valuable asset for the long term can generate greater returns than frequent trading tactics for optimization!

Optimization is often tempting: buying low and selling high to increase the number of tokens, buying BTC and then selling BTC to invest in ALTS and get higher profits in the bullrun, but in the end, most people fail and do not meet their initial expectations. The most important factor for a long-term holder to focus on is identifying assets that are truly valuable and will appreciate over time. BTC is such an asset!

From the start we should have known about things like this, I mean we should have known that holding it for a long time is as if we were dead. This has a meaning that we must understand, not just from the words alone.

If we only look at the meaning of the words, it will definitely be difficult for us to understand them. However, when we understand the meaning of the word in depth, we will find out what this means. The point is that investment is something that must be done for a long time to be able to get maximum profits.

[ZAINmalik75]

This is not necessarily related to crypto, but can be useful info for investing/trading in general.
Do whatever you want with this knowledge.

In other words they are saying invest in an asset and forget about it for the next 10 years. That's what investment means. Those who plan to invest for longer periods but due to market conditions they either become greedy or panic and book their investment. Which either costs them more loss and sometimes less profit. Therefore this study shared by fidlity, shows that invest in an asset and play dead like you have no emotions anymore.

I have read everywhere that if you invested in a good coin and asset then hold onto them till you can because investing and holding assets gives more returns than trading. And if we compare trading with investments then both have their own differences some find them good and some do not.

[hugeblack]

The study cannot be generalized, but what is proven is that fear and anxiety lead to making ill-informed decisions, and these decisions are often wrong.
Also, trading in its simple concept is difficult to predict its results in the short term, and trading in the long term is an investment, not a trade. Therefore, trading Bitcoin and cryptocurrencies is more difficult than all types of trading, which can be predicted easier.

[Lucius]

~snip~
People who sell in panic, like the German government did, won't have the opportunity to see gains like people who hold. An individual might later own Bitcoin with a higher value than the German government in the future because the government will likely need to buy at the top.

First of all, it was not sold by the German government, it was done by a German district - and secondly, they did it because they have a legal obligation to do it after a certain time - keeping BTC would be illegal. In addition, there is only one government that publicly admits to investing in BTC, and it is certainly not Germany.

[akeemqaz]

~snip~
People who sell in panic, like the German government did, won't have the opportunity to see gains like people who hold. An individual might later own Bitcoin with a higher value than the German government in the future because the government will likely need to buy at the top.

First of all, it was not sold by the German government, it was done by a German district - and secondly, they did it because they have a legal obligation to do it after a certain time - keeping BTC would be illegal. In addition, there is only one government that publicly admits to investing in BTC, and it is certainly not Germany.

I replied that because I believed what I've been seeing online about the BTC selling. However, I'm not trying to prove you wrong. I believe those selling are mostly Germans. If keeping BTC is illegal, I think they've held onto it for quite a long time, considering it's been illegal since then.
Anyway, thanks for shedding more light on this.

[LogitechMouse]

~
This is not necessarily related to crypto, but can be useful info for investing/trading in general.
Do whatever you want with this knowledge.

When I saw the subject title, what came to my mind when it says "ones who are dead" are the ones who are alive, but not doing anything with their investments for a long time. Well, based on that article, they really are dead - like literally are dead.

Anyway, I think it's self-explanatory as to why the dead are the ones that are getting the highest returns. They're not reacting to what's happening with the market obviously. I guess most of us (or at least me), are falling into the 2nd category which is the ones that had forgotten their investments. As for my case, I don't completely forget it, but I'm not reacting to what's happening globally. I don't make decisions whether there's news that's happening or something positive to the market.

[Yamane_Keto]

I have some tokens that I did not sell in 2021 and their value is now less than 10% of their previous value. The best performance is by choosing the best investment, but a bad investment will bring you a loss if you do nothing or sell at the right time.

[Stompix]

They didn't have that much of a race on their hand anyhow:

If we look at the performance of active fund managers, ...., over a 20-year period, 93% underperformed the index, and 90% underperformed over the last 10 years.

So basically sticking to the index and not trading you would have beaten 90% of fund managers, adding the fact that as the article mentions you would have not paid taxes on gain and fees for trading, yeah, keeping it one place for a long period of time rather than chasing profits would have been a good idea.

Also, it's not like everyone who held for 10 years was profitable, but some of those!

[Fivestar4everMVP]

This is not necessarily related to crypto, but can be useful info for investing/trading in general.
Do whatever you want with this knowledge.

How can you even say that this is not necessarily related to crypto? Of course it is completely related to crypto, and it is actually a very good advice to be honest, can't count the number of times I've been a victim to fomo and panic selling, and at the end of it all, I end up regreting ever making a move.

Even this morning, I read in the news headline that MT-GOX sent some thousands of bitcoin to kraken exchange, and I immediately started watching the market closely, and immediately saw that Bitcoin was beginning to drop, i rushed and sold mine at around $62k, now I regret it because bitcoin is back to above $63k, and if it doesn't drop again, I might end up buying it back at a higher price.

This is what many crypto investors face, and knowledge like this is very important if only we all can read and learn, and practice it.

++ great thread.