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š A billionaire's advice
PLUS: where in the cycle are we?
GM everyone. This is 2036.
Letās be real - itās been a boring couple of weeks.
Bitcoinās taking its sweet-ass time to make a new all-time high.
And investors are impatient.
Altcoins are bleeding because people who were looking for quick gains arenāt getting them.
Some retail indicators - like YouTube views and Twitter activity - are in decline š
So, where does that leave us?
Weāre at the stage now where:
itās boring again
weak hands get shaken out before a big move higher
i.e. weāre here:
No one knows how long this boring time will last. As long as Bitcoin doesnāt confirm a big breakout to the upside, everything else is on standby.
People will get restless. That means your altcoins can bleed longer (and lower) than you want them to.
But worry not, my long-term investor friend - Bitcoin is just doing its normal thing:

this price action is similar to every previous all-time high
at this point in the cycle, itās usually always followed by a sizable move up š
(By the way, charts repeat because they represent patterns of collective human behavior over time. Like clockwork, people alternate between fear and greedāalways have and probably always will.)
Weāre no longer early, but still very far from ādangerousā (red zone) territory:

So, staring at charts wonāt do you much good.
But some good opportunities have popped up in the markets, and you can prepare for the next leg up.
To do that, letās bring in billionaire Chamath Palihapitiya.
Chamath is the founder of Social Capital, a VC fund with ā¼$6 billion in assets under management.
Recently, he had some interesting things to say about investing on the All-In podā¦
āThe most important thing that fund managers get wrong is not having appropriate reserves for your winners.
The biggest investment dollars I leaked:
was NOT when I didnāt invest enough upfrontā¦
ā¦.but when I didnāt have enough funds to buy more of my winners later.
You need to reserve 40-50% of your total fund size for follow-up investments.
If you have $40 billion to invest - take $20 billion off the table immediately. This money is reserved for your future winners.ā
Ok, hot shot, so how does this apply to us?
Most of us probably donāt run a $6 billion fund.
But if you invest in ten different altcoins, for example, and five of them go up, you should double down on these five with extra capital.
Itās counterintuitive, but strength begets strength.
Itās not because something has already pumped 10X that it canāt go up another 20-30X.
Donāt fall for the fallacy of āitās already pumped, Iāll go look for something else.ā

Itās the idea of adding fuel to an existing fire rather than investing in stacks of wood all over the place, hoping one day a fire will emerge:

The exponential phase-up is comingāand when it arrives, youāll want to own the rocketships.
The biggest, fattest fires š„

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