Quality Assets Are Scarce, Long-Term Bullish Strategy Is Key
In today's complex market environment, Catherine Yi, founder of Liquid Capital (formerly LD Capital), points out that the wisest move for ordinary investors is to select high-quality assets and hold them patiently, rather than trade frequently.
Historical experience shows that most traders struggle to outperform institutions, and frequent activity often increases risk. At the same time, investors should avoid shorting blindly, as market fluctuations can be unpredictable.
Buffett vs. Gates: A Tale of Two Investors
Yi used the U.S. stock market as an example to highlight the different paths of two well-known investors. Warren Buffett has long adhered to a long-only strategy, almost never shorting, and only reducing positions during rare critical moments to wait for better buying opportunities.
In contrast, Bill Gates once held a large stake in Microsoft but gradually reduced his holdings and shifted into asset management. During that time, he attempted to short Tesla, which led to massive losses. His net worth, once in the trillions, shrank significantly as a result.
Why the Long-Term Bullish Approach Wins
- Quality assets are limited, while money supply keeps expanding
- Over time, asset prices are more likely to rise
- Satoshi Nakamoto’s untouched BTC holdings are the ultimate example of a long-term bullish stance
Yi emphasized that globally, quality assets are scarce, yet central banks continuously expand money supply. This dynamic makes asset prices more likely to rise over the long run. Satoshi Nakamoto's BTC holdings, which remain untouched, further illustrate the logic behind a long-term bullish approach.