War is a sign love is losing.
When hate reaches all-time highs, our empathy and respect for our fellow humans falls off a cliff. That’s when war breaks out.
I hate war. As a kid I used to have nightmares of being conscripted into the Australian Army to fight a Vietnam-style war. That’s what happened to my dad. It still haunts me.
So at the start of the Ukraine war I wanted to do something beyond simply donating money to help those who need it.
Your psychology in tough times determines your future net worth
During the 2020 Coroni-rona Crash, I panicked. I thought the financial system would melt down the way it did in 2008. Wrong.
As a result I missed some of the best investment opportunities of my lifetime.
(I did, however, manage to buy Ethereum and Bitcoin at great prices during the crash.) Fear got the best of me. My mind let me down.
Within a few months markets recovered because governments did what they always do: create money out of thin air to pay for crises or war, a hidden tax on citizens.
The helicopters came in and started metaphorically dropping free money from the sky. What I should have been doing was buying assets.
Tech stocks fell off a cliff
I’m a strong believer tech will be an even bigger part of our future.
Wars will be fought not with tanks, but with drones and internet connections.
We’ve already seen it. Ukraine got more than $100M from anonymous crypto users to help them fight the aggressor.
I’m more optimistic about Web3 companies that use blockchain because power and control is distributed rather than centralized. Still, I buy both traditional tech stocks and Web3 cryptos because I want to be diversified.
You never want to have all your money invested in one asset type.
Leading up to the war tech stocks started to get smashed. I learned from a podcast with Tim Ferriss and Naval Ravikant to always have a list of stocks you’d like to own, handy, in case markets drop heavily one day.
I had my list.
Here are the stocks I bought:
I’ve been an Amazon stockholder for years. Earlier in my career I got to have them as a customer.
I always loved how they would launch lots of tiny experiments and then throw money behind those that work. I do this today with my online business. I don’t bet on one thing because I have no clue what will succeed.
The data tells me what to invest more in.
When tech stocks crashed Amazon took a hit. I bought plenty.
Square (aka Block)
My background is finance. I’ve always loved Square. Their sexy little payment terminals flooded Australia a few years ago.
They made banks look stupid.
I got to have a few dealings with them in my career, too. They didn’t think like other Fintechs. They always wanted an action-based approach, not lots of talking, which my employer was notorious for doing.
A few years back they went all-in on blockchain technology. A large amount of their revenue comes from crypto.
They’re building some of the best solutions I’ve seen. The difference is they have legacy financial services AND blockchain financial services, making them a rare find. This DNA gives them an unfair advantage.
Still, I’ve never owned Square stock. When markets crashed I finally became a stockholder. This is one I’m holding for 10+ years.
Building a website and taking payments is a pain in the ass.
Shopify is one of the smartest options if you want to test a product and see if you can make sales. I have a motto: “If I love the product and would use it, I should own a part of the business.”
That’s how I feel with Shopify. And the founder is a bloody legend. Smart guy, steering the company in many new directions.
I loaded up on Shopify when their price was down 62% from all-time highs. That’s what I call a bargain.
The one asset everybody told me not to buy
When stocks go down, crypto goes down harder and faster. Many people have stopped paying attention to crypto. This is common when markets go down.
While everyone was sleeping and scared of global events I loaded up on Ethereum. Some luck helped me buy at the absolute bottom. Crypto has begun to recover in the last few days, as it always does like clockwork.
I plan to buy more CRO (Crypto.com) and FTT (FTX token) as they’re a no-brainer. They both sell crypto to the masses and are the best in the world. Simple, dumb, cryptos are hard to lose money on.
If I can’t explain a crypto project to a 5th grader, it’s a sign to run for the hills.
Bringing it all together
A global crisis pushes asset prices down.
It’s a great time to buy, but no one can predict when it will happen. Have cash on the sidelines to get an unfair advantage during these times.
The hardest part is executing this strategy. It’s getting your mind right so you can see a fearful event and still be optimistic enough to invest your money and know things will get better again.
It’s taken me a long time to get my investing psychology right. But doing the work has made me a 35% gain in a few weeks.
Market crashes get you to financial freedom faster.
This article is for informational purposes only, it should not be considered financial, tax or legal advice. Consult a financial professional before making any major financial decisions.