In February, I achieved a significant personal milestone: I sailed 2,000 nautical miles across the Atlantic Ocean from Europe to the Caribbean in my red-hulled catamaran. It was an exhilarating and challenging journey, marked by a series of unexpected difficulties. My boat’s autopilot failed, the rudders broke, and we nearly ran out of fuel, leaving us adrift nearly 1,200 miles from shore.
Thankfully, we spotted a 285-foot mega yacht on our radar system. The captain of that vessel, in a display of maritime camaraderie, supplied us with fuel and tools to fix my boat’s rudder. This experience, fraught with danger and uncertainty, offered me a newfound appreciation for life’s simple pleasures and a profound insight on investing – particularly the importance of patience.
Reflecting on my past, I realized that impatience had cost me millions. As a young professional, I had a knack for identifying massive trends but often exited positions prematurely. In 1994, for instance, I sold my tech investments, including emerging names like Microsoft and Oracle, at their lows when the Fed raised interest rates. Had I held on, I could have made over $20 million before turning 30.
In 2003, I made a similar mistake with Apple. After buying the stock, I held on through a downturn but sold far too early after it rebounded. Had I held on, I would have made over $750 million for every $1 million I had invested in the stock. This financial misstep has caused me more regret than any other, even more than the poor decisions that led to my personal bankruptcy in 1998.
During my transatlantic voyage, I had ample time to reflect on these past mistakes and the importance of patience in investing. I was cut off from the world, with no internet, television, or newspapers. This forced me to focus on the long-term trajectory of my investments, particularly in the crypto asset class.
Having lived through four decades of market cycles, I’ve learned that investing in any new technological trend requires a clear roadmap to an outcome. You need to ask, “How beneficial is the technology? And how many people will use it?” The path it takes to get there doesn’t matter.
I saw this firsthand with cellphones. In 1991, I advised my clients to invest in McCaw Cellular, despite cellphones being seen as a luxury for the wealthy. Just three years later, McCaw merged with AT&T in a deal valued at $11.5 billion. Today, there are nearly 6.92 billion cellphones worldwide.
Investing in a transformational technology in its early days often invites skepticism. But just like the internet and cellphones, I believe crypto adoption will go from tens of millions of people to billions. The time to position yourself is now, especially as we could be days away from a mandatory recall on the U.S. dollar, replaced by a new digital version.
Let us know what you think, please share your thoughts in the comments below.
