I would cash out a large portion of that bitcoin gib. I couldn't sleep at night knowing that I could wake up in the morning and my million may have vanished into thin air.
Thanks man. I understand the sentiment. Yes its all about getting the right balance of risk and % allocation. BTC occupies only a small % of my portfolio. Not that I would like to see it lose value of course. For me its a long term HODL and a critical hedge on the future. I am very comfortable with short term volatile moves, but am believe we may well will see a long term "one in a life time" upward trend. And I will, I expect, keep hodling even as its % allocation of my net worth increases due to BTC increasing faster than other assets over time.
The thing about "cashing out" is what to do with that cash. Cash on its own is not at all a safe or productive long term investment. But yes, if your portfolio gets too heavily allocated to one particular asset it may be prudent to trim and rebalance.
For what its worth, I had my biggest ever loss this year in terms of net worth on paper. During the peak of the covid sell-off in the markets this year I was down 24 mil at one point. Partially due to me being very overweight on one particular stock that dominated my portfolio and was hit very hard (and irrationally hard in my opinion) (* I bet Mr A is creaming in his pants with glee reading this...lol ).
It was not a great feeling, and I had a few "if only I have done x" type days, but all I have learned, read, experienced etc since my beginning as a investor and my rational investment logic, compelled me to hold, and not panic, and to put emotions aside. Its this mindset that got me to where I am now.
Fortunately I put further cash into the markets right into the absolute trough, (although unfortunately I largely avoided "growth stocks" and instead focused on mostly blue chip value stocks, and also a few smaller caps that looked solid to me). So as of now, I am still down around 8 mil from my absolute net worth with only a few days of the year left to go. No regrets at all and I sleep well.
The point being, not to show how much I lost (as money and wealth is all relative) but to show that even with those declines, I overall do sleep pretty well, knowing that the companies I have invested in are solid, my logic is solid, and that over time will continue to produce a nice reliable stable income as well as an adjustment that reflects the fair value of the assets I hold.
