I've talked about Warren Buffett extensively in my posts. I've always been fascinated by him, his investing philosophies and his historical performance.
Some people are surprised to hear that I share a lot of the same philosophies and tend to have a Buffett-style approach to investing. Being in Crypto and investing in growth / tech companies will make it seem - on the outside - like I behave in exactly the opposite way that Buffett would.
In my opinion, this is the new age of opportunity. To be both like Buffett and entirely unlike Buffett.
Let me explain...
Buffett on Investing, Risk and Doing Nothing
Buffett has long-term views on the market. I've read many of his shareholder letters, countless articles about him and I've watched hours of his shareholder meetings and interviews.
A common theme he holds - and practices - is that a good investor makes very few decisions. He credits his success on making just 1 good decision every few years.
That is an incredible philosophy and one that I think our generation needs to hear more of.
We are stuck in an age of thinking fast and doing faster. We all want faster, better and more of the same. We are impatient as hell and we don't want to wait more than 7 seconds to get what we want.
The ability to make a few great decisions throughout your lifetime actually boils down to the smaller decisions you make on a daily basis.
Feeding your mind good content from books, podcasts, audiobooks, articles, social media etc. Keeping your body and mind in good shape, etc. etc.
HBD: Buffett Returns by Doing Nothing
HBD or the Hive-Backed Dollar is one of the best opportunities out there in the market right now.
There is a lot of controversy circling the 20% APR that HBD pays to people who save it in their Hive wallet, but I find this controversy to be healthy.
This APR is designated by the witnesses who are elected by the community.
I've noticed that more and more people are staking HBD into their savings to earn the 20% APR. This is a great thing.
Despite the debate that HBD might be overpaying, we still see a tiny fraction of HBD versus the overall Hive market cap.
The supply of HBD has actually decreased most of the time.
While many say that the chain is overpaying, all other indicators of the actual data show the opposite to be true.
We want a lot of HBD in circulation. We want to see more people staking more HBD. We also want to have more HBD in circulation, then get out and get HBD listed on more exchanges.
All of these things will bring money into the Hive ecosystem. But all this talk of why HBD and the 20% APR are so good for the Hive ecosystem is the topic for another post.
Today we're focusing on the individual investor and why they should consider HBD Savings.
How to Make $91 Million Dollars
a chart showing $10,000 compounded at 20% per year for 50 years
The power of compounding eludes our brains. It's insane to see what long-term, compounded returns can achieve.
Look back to the featured image of this post and you'll see that Buffett beat the S&P500 from 1965 to 2022. Averaging a 19.8% compounded annual return.
That is a ridiculously good return. He is already in the history books as the most legendary investor of all time with one of the longest and most profound investment track records.
Yet, 20% is exactly what HBD pays. So you can mirror Buffett's returns from 1965 to 2022 that made him a legendary investor simply by buying HBD and staking it in your wallet?
A decision and action that takes but a few minutes?
Incredible.
What Buffett often talks about in terms of decision making is mirrored here as well.
Yes, all it takes is a decision and a short action to save the HBD and make 20% but what comes before that?
Before that, you have to learn about HBD. You hear about it somewhere and discover the 20% APR.
But then you have to dive in. You have to understand what the Hive-Backed Dollar is. If it's backed by Hive then what is this Hive thing?
Hive is an ecosystem and a blockchain. It has applications that build on its technology and need it for resources.
If HBD is backed by Hive, then Hive needs to be healthy in order to warrant holding HBD. Okay, dive into that.
The decisions you make on the way to the big decision are what defines you as an investor. Many of us have already done a deep dive on HBD to understand what it is, the mechanics of it and how it works with the Hive ecosystem.
If you've done this research and come to the conclusion that HBD is:
- Going to maintain its peg now and in the future
- Backed by a growing ecosystem of applications that will support the value of Hive
- Going to pay 20% APR now and for the forseeable future
....
Then you may be considering HBD as an investment vehicle. That being said, it takes constant repetition and research. Far too many people jump before they've gone through these motions.
I believe HBD to be a huge opportunity both as an individual investor - giving you the power to mirror Buffett's legendary 20% APR - and as a community member/investor in the HIVE ecosystem.
HBD is the gateway to users, investors and a healthy economy.
About LeoFinance
LeoFinance is a blockchain-based Web3 community that builds innovative applications on the Hive, BSC, ETH and Polygon blockchains. Our flagship application: LeoFinance.io allows users and creators to engage & share micro and long-form content on the blockchain while earning cryptocurrency rewards.
Our mission is to democratize financial knowledge and access with Web3.
Twitter: https://twitter.com/FinanceLeo
Discord: https://discord.gg/E4jePHe
Whitepaper: https://whitepaper.leofinance.io
Our Hive Applications
Join Web3: https://leofinance.io/
Microblog on Hive: https://leofinance.io/threads
Delegate HIVE POWER: Earn 16% APR, Paid Daily. Currently @ 3.8M HP
Hivestats: https://hivestats.io
LeoDex: https://leodex.io
LeoFi: https://leofi.io
BSC HBD (bHBD): https://wleo.io/hbd-bsc/
BSC HIVE (bHIVE): https://wleo.io/hive-bsc/
Earn 50%+ APR on HIVE/HBD: https://cubdefi.com/farms
Web3 & DeFi
Web3 is about more than social media. It encompasses a personal revolution in financial awareness and data ownership. We've merged the two with our Social Apps and our DeFi Apps:
CubFinance (BSC): https://cubdefi.com
PolyCUB (Polygon): https://polycub.com
Multi-Token Bridge (Bridge HIVE, HBD, LEO): https://wleo.io