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Having the BADLY NEEDED Tenacity to Hold My PSEi Related Investments During INEVITABLE Paper Losses

I decided to do a portfolio review, especially because Christmas to New Year is around the corner. I thought about checking my AXA Chinese Tycoon Fund. For the sake of confidentiality, I wouldn't give out the exact loss. I was tempted to sell my AXA Chinese Tycoon Fund (which was at a paper loss, not an actual loss) and go for cryptocurrency. However, after looking at the ghost of Quadriga-CX Crypto Scam made I said, "I need to stick to what Warren Buffett said about the stock market."

Buffett's advice doesn't require an MBA or even a PhD in business administration to understand them. Instead, I was looking at these lessons that Buffett such as:

  1. If I'm not willing to open to own a stock for 10 minutes, I shouldn't think of owning it for ten years! Definitely no day trading for me!
  2. The stock market is a device that transfers money from impatient people to patient people. I have to be more patient as the stock market inevitably corrects itself, unless the Philippines becomes another Venezuela (hopefully not).
  3. Be fearful when others are greedy and be greedy when others are fearful.

Looking at Bill Bakker video above, the real problem is that Bill hasn't been looking at the stock market. The NAVPU of the equity-based investment is determined by the stock market performance. If the stock market is at a bull market, the NAVPU is going to go higher. Given the events that happened, such as the Global Financial Crisis, Baker wasn't thinking clearly. I also wasn't into stock investment in 2008 either. It's sad but true, but business schools never taught students to invest in stocks when it's not rocket science! 

I realized that if I sold my AXA Tycoon Fund to invest in cryptocurrency, here's what I'm doing:
  1. The paper loss (which was more than half of the invested amount) becomes an actual loss. The value of the investment is dependent on the PSEI score.
  2. If I moved that actual loss to cryptocurrency, I'm actually putting myself at the risk of regambling, which means I'm going to lose more than I win. Cryptocurrency is gambling, not an investment!
  3. In short, it's a massive opportunity loss to fly from the temporary setback with a professional company, to something that the late Charlie Munger compared to an infectious thing. The figures of speech could almost be taken so literally that every time I think of cryptocurrency, I'd ask myself, "Do I want to get infected by an open sewer?"
It's all about patience once again! 
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