Do You Believe, "Passive Investors Make More Than Active Investors?" - page 5.

Kelward

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Quote from: Jennifer000 on January 21, 2024, 01:58:47 PM

I've been watching many YouTube videos on how to make lots of money through day trading.
Those videos are quite impressive and compelling.

However, I've read what Warren Buffet (an American businessman and philanthropist, widely considered the most successful investor of the 20th century) thinks about short-term investing, which is quite negative.
By the way, he also thinks BTC has no intrinsic value and cryptocurrency is just gambling.

https://www.investors.com/news/warren-buffett-bashes-bitcoin-as-gambling-token-bitcoin-price-hovers-near-30000/#:~:text=%22Something%20like%20bitcoin%2C%20it%20is,intrinsic%20value%2C%22%20Buffett%20said.

Passive investments should be more profitable than active investments because your passive investment is working for you without you putting in any physical labor and it won't disturb your day job or any other activities. If an investor has enough capital and is able to invest in reputable assets like Bitcoin, gold and real estate, he can even go on early retirement and leave on his ROI, because these assets will keep increasing in value. Meanwhile active investors like crypto traders are always active monitoring the market and facing the challenges of profit and lose, although there's nothing stopping an investor to merge passive and active investments.

As for billionaires like Warren Buffett, and Jamie Dimon, they're entitled to their opinions about Bitcoin, and it doesn't affect the increasing in value and adoption of Bitcoin.

lombok

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Passive investors buy and hold where they only save and buy at prices that tend to be low. In contrast to active investors, because active trading is buying and selling, the buying price also increases over time. Because it is impossible for him to buy the asset at the lowest price like before if the asset price continues to rise. Let's say Bitcoin, which from its inception has always gone up and up and never returned to its initial low price. Therefore, investors with investment targets get more profits compared to traders (active investors).

Alphakilo

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Quote from: Jennifer000 on January 21, 2024, 01:58:47 PM

However, I've read what Warren Buffet (an American businessman and philanthropist, widely considered the most successful investor of the 20th century) thinks about short-term investing, which is quite negative.
By the way, he also thinks BTC has no intrinsic value and cryptocurrency is just gambling.

Strange to read this from someone who is considered smart. Bitcoin and not any other shitcoin provides an infrastructure to transact internationally without centralized power. The value this provides during the time of localized legislations against the consumer’s individual rights is astonishing and sort of obvious. Yes it’s volatile but the risk can be well managed with some simple tools. Buffet is out of touch or just too conservative for his own good. Either way its a new world out there where next buffet is already making gains

Apocollapse

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It's not 100% absolute, but I tend to agree with that.

Passive investors know they're better to earn money by working instead of beating the market because market is very unpredictable. Since they're can make money regularly from their jobs, they can accumulate more assets.

While traders, they don't have any other source to make money except by trading.

Abu-Naim

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Quote from: Jennifer000 on January 21, 2024, 01:58:47 PM

However, I've read what Warren Buffet (an American businessman and philanthropist, widely considered the most successful investor of the 20th century) thinks about short-term investing, which is quite negative.
By the way, he also thinks BTC has no intrinsic value and cryptocurrency is just gambling.

Everybody is subjected to their own opinion, and everybody have their say on what they feel about bitcoin which will surely not be everybody's point of view.
If Warren Buffet consider BTC as something with no intrinsic value or he consider cryptocurrency as gambling, he is saying his mind on what he feels about bitcoin and cryptocurrency and not what general public thinks about bitcoin and cryptocurrency.
If you did not know anything about bitcoin, try and learn and ask questions here, by doing that, you can analyze what he said by yourself to know if he is saying the truth or just his opinion based on selfish interest.

adaseb

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Yes passive investors do more money than active. Any type of retirement account out there is pretty much passive and the way the stock market has been running the past 20 years or so has made it very difficult to beat active trading.

There are some firms that make more money but most retail investors don’t. Especially in the long time frame. It’s just much easier to buy some index fund and wait rather than jump in and out of positions.

Catenaccio

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Quote from: Jennifer000 on January 21, 2024, 01:58:47 PM

I've been watching many YouTube videos on how to make lots of money through day trading.

However, I've read what Warren Buffet (an American businessman and philanthropist, widely considered the most successful investor of the 20th century) thinks about short-term investing, which is quite negative.

It sounds confusing to think trading is investing and investing includes what is called as short term investing.

Investment must be long term to be matched with its correct definition. When you call it is a short term investment, it is no longer investment but speculation. Day trading is different than speculation and let me explain.

Trading has nothing to do with expectation that price will rise more, the project will grow up more. You can trade with long or short, sell high buy low and enjoy short term price bounce.

Speculation has something relates to price growth, project growth but you don't plan to hold a coin too long, just speculate it is time to have the coin because you see price will rise soon. It is still different than investment that relates to strong belief that the project will grow up in long term.

Yamane_Keto

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bing rich and has millions of dollars, this does not mean that you will become as rich as him and thus be affected by his life. If his suggestion was not to buy a car or a house for tens of thousands of dollars, but rather buy for millions of dollars, would you think that this is good advice for you?
No one doubts Warren Buffet's success, but his success should not affect your life. Each of you is completely different, and his stock market advice should not be what motivates you to invest in Bitcoin.
Take the general rules from investors and build your personal experience. One of the general rules is diversification and investing with money you do not need for the next two years.

logfiles

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Sometimes it's just buying the right asset at the right time.

I mean look at people who bought Bitcoin over a decade ago, some even probably thought it would over go this high but some of them now have BTC still in their addresses worth millions of dollars. At the same time, some passive investors who engaged trading didn't make that much after all those years. On the flip side, I have also seen some passive investors make a fortune overnight but just investing in an asset at the most perfect time. So I think there is also some luck in there.

I don't like the idea of following the principles of people who got rich from a different generation and era. The world keeps changing. For example, how many people have watched Warren Buffett's documentaries, followed the same script and become rich like him?

BitMaxz

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If it's a passive investor I think they can make more money since they know where to invest and make a profit I'm sure they would invest a huge amount investing has less risk if you know where to invest compared to trading.

Since crypto is not as stable as local currency there is a huge risk in trading with crypto but to those who already know when to trade with Crypto if a trader can invest more in trading, he can also able to make more profit compared to investors.

Assface16678

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I think it depends on who makes the most money. As passive investors, they invest in something, like bitcoin, but passively, meaning even though they don't do interaction, they earn passively without doing anything. But the thing is, their income will depend on what they are investing in. For example, if an investor lets someone trade for him, that's a passive income, but it would depend on the pilot on how much the investor will earn. While active investors focus more on interacting with the market and doing the work to earn, they are the ones who will decide and take action; their income will depend on their own doings. The only difference is that passive investors have more time to themselves and less stress, while active investors will face the hardships of investing in this field. They both can earn the same amount, but they have different ways of doing it.

blockman

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As for passive investors if they're making more money, for me it's possible and if I'm comparing myself as a trader then I'll probably make less than just simply holding because it's stress free and I like more being passive than active because it's likely that you'll get to lose more and that's proven.

Quote from: Jennifer000 on January 21, 2024, 01:58:47 PM

By the way, he also thinks BTC has no intrinsic value and cryptocurrency is just gambling.

He's always been negative about Bitcoin. We all salute him for being a good investor and one of the wealthiest people alive but if we're going to see him right now, he's just an old man that doesn't like new concepts in investing because he's born on different era.

Jennifer000

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I've been watching many YouTube videos on how to make lots of money through day trading.
Those videos are quite impressive and compelling.

However, I've read what Warren Buffet (an American businessman and philanthropist, widely considered the most successful investor of the 20th century) thinks about short-term investing, which is quite negative.
By the way, he also thinks BTC has no intrinsic value and cryptocurrency is just gambling.

https://www.investors.com/news/warren-buffett-bashes-bitcoin-as-gambling-token-bitcoin-price-hovers-near-30000/#:~:text=%22Something%20like%20bitcoin%2C%20it%20is,intrinsic%20value%2C%22%20Buffett%20said.

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