Where You Invest Matters
It is often neglected, yet one of the most basic and powerful principles of investing: asset allocation. It’s about where you place your money. It’s not about stock picking or timing the market, but about how you weigh different assets.
Take the past ten years as an example. Gold has roughly tripled. The U.S. stock market has also delivered about a 3–4x return, depending on the index. Bitcoin, however, is up around 25x. Even Silver, which surged nearly 3x in a single year, is “only” up about 6x over the past decade. Allocating everything to Gold or Stocks clearly came at a significant opportunity cost.
In the short term, certain assets will always outperform. But for investors, that shouldn’t be the main focus. What matters are long-term results, because, as Charlie Munger famously said, the big money is made in the waiting. So while Silver and Gold may look shinier than ever today, it can still make sense to allocate to other assets—because over the long run, they may well turn out to be the better performers.
Where have you allocated your money?
