Why I, with a net worth over 100 million, do not invest in gold or Bitcoin
“Gold seems to be going up, what do you think?”
“Should I invest in Bitcoin?”
I often get questions like these about investing from my followers.
My answer might be surprising, but…
I do not invest in gold or Bitcoin at all.
I am a former securities company employee who went from 7 million yen in debt to a net worth of over 100 million.
Why, then, do I not buy gold or Bitcoin?
I will explain the reasons one by one♡
The reason I don’t invest in gold is that it doesn’t benefit from compound interest.
Gold is an asset whose value is unlikely to drop.
But I don’t think about buying it.
There are two reasons.
One is that it does not generate dividends.
The most important thing in investing is compound interest.
This is the power of generating new profits by reinvesting the profits already created.
For things that do not pay dividends, this power of compound interest does not work at all.
The other is that it is dollar-denominated.
If the yen strengthens, even if the price of gold rises, you could end up with a loss.
And gold shines when other assets like stocks fall in value.
When everyone gets anxious and looks for a place to escape, money gathers in gold.
But when the market settles down, that money goes back into stocks.
Gold is ultimately a safe haven, not a place suited for growing money.
Therefore, to grow your assets significantly over 10 or 20 years, global stocks are much better.
The reason I don’t invest in Bitcoin… be prepared for the value to go to zero.
I don’t hold Bitcoin for the same reason.
Right now, there is a global surplus of money.
Many people have made money in stocks over the last 10 years and are looking for investment destinations, saying, “I want something more exciting.”
One of those destinations was Bitcoin.
That is precisely why, if the market even slightly falters, capital is the first thing to be pulled out.
That is the scary part about Bitcoin.
Things like this should only be held by people who have money they can afford to lose completely.
I have no intention of engaging in that kind of gambling.
If you want to grow your assets, global stocks and your own income…
I believe these two things are enough.
I cut losses of over 10 million yen on individual stocks and switched exclusively to global stocks
Honestly, I have also had some painful experiences with investing.
Foreign stocks I bought thinking they would go up tenfold dropped from 1.5 million yen to 100,000 yen.
I lost millions of yen on bull and bear funds betting on a falling market.
I studied charts and even tried short-term trading.
Even so, I ended up cutting losses totaling over 10 million yen.
But then, I realized something.
That I was using my time the wrong way.
If you have time to study trading, it is faster to put effort into increasing your income.
That is why I am now all-in on All Country funds.
I have decided not to do individual stocks anymore.
Lump-sum or dollar-cost averaging… Before deciding on how to invest, think about what you want to achieve
I also get many questions about whether to use dollar-cost averaging or lump-sum investing.
I recommend lump-sum investing.
Dollar-cost averaging only grows slowly.
Moreover, as children get older, expenses increase, and there are really many people who quit halfway through.
At what age do you want to achieve what?
How much do you need for that?
I want you to work backward from there and decide if dollar-cost averaging will really be enough in time.
But you know,
there are almost no wishes that can be fulfilled by investing alone.
There is no magic in investing.
Either increase your income or cut your expenses.
You have no choice but to generate money to invest through these two methods.
That is why I invested in global stocks in a lump sum and spent the rest of my time focusing on increasing my own income.
The reason I did not choose gold, Bitcoin, or individual stocks was because I did not want to sacrifice that time.
What is it that you truly want to achieve in your one and only life?
Before you worry about what to invest in, try thinking about that first♡