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How I Play the Investing Game
My investing playbook
Reading time: 3 min
Last week, I talked about the importance of playing your own investing game (if you missed it, you can catch up and read last week’s newsletter).
Today, I’ll be sharing my playbook:
What I invest in
How often I invest
Why I invest this way
Before we get started, one important note: I’m not a financial advisor.
I’m just a dude on the Internet sharing what works for me and helping normalize talking about money.
Alright, let’s dive in.
What I Invest In
I follow the barbell strategy, an investment strategy developed by this dude named Nassim Taleb.
The barbell strategy is simple: Invest in either extremely low-risk or high-risk assets. Nothing in between.
Barbell Investing Strategy
Unlike a real barbell, this one doesn’t have to be an equal 50/50 split.
It all depends on your personal risk tolerance. You can do 90/10, 30/70, or whatever works for you.
Here’s what I do:
55% — Index funds (low risk)
45% — Crypto and NFTs (high risk)
Now, some may think I’m insane for investing that much into crypto. Let me explain.
Index Funds
I love index funds because I can be completely hands off.
Owning a single index fund gives me exposure to thousands of stocks. I get peace of mind because I don’t have to worry about a single company going bankrupt. If crypto goes to zero then I have something to fall back on.
And if index funds go to zero? Well, there’ll be way more shit to be worried about in the world if that happens.
Crypto and NFTs
I follow the same strategy within my crypto and NFT investments and invest in the extreme ends:
65% — Bitcoin and Ethereum (“low” risk)
35% — Small-cap tokens and NFTs (high risk)
A barbell within a barbell.
I’m young, have a higher risk tolerance, and I have a strong conviction in crypto so I’m willing to take the extra risk.
When Do I Invest
I’m a boring investor.
No watching charts.
No trying to time tops and bottoms.
No trying to catch the latest pumps.
I invest on the 1st of every month—No matter what. Rain or shine. Market up or down.
This is called dollar cost averaging which is a fancy word for: investing a set amount on a consistent basis.
It can be every week, 2 weeks, a month, whatever. I choose to do monthly.
And to make things easier, I’ve set up automated investments so my money is deposited and invested for me. I don’t even have to lift a finger.
Why I invest This Way
Instead of optimizing my portfolio for the most gains, I optimize for “good enough”.
In the short term, the market is going to do whatever the fuck it wants. Up one day, down the next day, up again.
But in the long term?
I believe crypto and the shift toward decentralization is inevitable.
I believe human behaviors never change so there’ll be plenty of ups and downs along the way.
Instead of worrying about day-to-day movements, I zoom out and focus on the long term.
By keeping my investing strategy simple, I free up my time, focus, and energy to invest more efficiently elsewhere like writing and building this newsletter.
Is this plan perfect? No, but it’s good enough.
Personal finance is personal. This is what works for me, fits my risk profile, and aligns with my goals.
Hope this helps you figure out how to play your game.
See you next Friday,
Fifty Sat
P.S.
Check out the new poll section at the bottom of this newsletter. And if you got a sec, please let me know your feedback.
Song of the Week
Shout out to Mrs. Fifty Sat for puttin’ me on Blxst.
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