In an interview, Kerner advised that crypto traders should find the Berkshire Hathaways of crypto and HODL for 20 years. It is all about long term wealth creation. The biggest risk right now is timing in getting into the crypto markets.
One of the biggest questions new and seasoned crypto investors ask, is when their initial investment will bring the much awaited returns that have been romanticized by Lambos and Moon landings. Majority of such individuals have never really found sound investment advice prior to crypto trading. Therefore, they are always at the edge of their seat whenever the market drops a bit. Some even capitulate completely, and at a loss, for they cannot stomach the constant volatility.
He would also add that in the current early stages of crypto investing, it is very difficult to know which projects will be the winners or losers down the line. His firm’s approach when investing in these projects is to find which are tackling real life problems, then investing in 30 or 50 of them. Out of this list, the next facebook or Google will present itself.
When asked whether buying and HODLing was a good strategy, Lou stated the following:
If you are a big fan of Warren Buffett, we want to be the Berkshire Hathaways of crypto. We wanna find the best companies and hold for 10 to 20 years and have that value compound.
In 20 years, this crypto is going to be massive. What we do not know, is the path from here till there.
Biggest Risk in Crypto Investing Right Now
In the concluding section of the interview, Lou was asked about what he thought was the biggest risk in crypto investing right now. His response was that:
I think the biggest risk [crypto investors] face, is timing. A lot of investors are trying to time the market. A lot of investors, when they see an opportunity, try to go all in. There is actually something called portfolio science. The right way to optimize returns is to get a diversified portfolio of assets in your crypto basket and buy on a regular basis. It can be monthly, quarterly and annually.
About Lou Kerner
Lou Kerner is a V.C (Venture Capitalist) who started his career as an equity analyst following media companies at Merrill Lynch and Goldman Sachs. He then went on to work for Bill Gross at Idealab! as CEO of The .tv Corporation. He soon went on to acquire Bolt – a leading social networking site before myspace – with another co-founder. Lou then started his own fund which has invested in the likes of Palantir, Facebook, Meetup and more. He is now a co-founder and Partner at CryptoOracle.io.
What do you think about Lou’s approach to crypto investing? Will it really take 10 to 20 years to generate enough wealth for initial crypto investors? Or will it take a shorter time? Let us know what you think in the comments below.
Image courtesy of Signal and Chameleon Collective.
Meet Tim. Tim is a co-founder of The Tokenist. Originally from Kalamazoo, Michigan, Tim is a mechanical engineer by training and has been investing his whole life. He started his career with GE in engineering and operations management where he held various leadership roles before leaving to pursue an MBA (he is a proud former co-chair of the Milton Friedman Group at Chicago Booth). After business school, Tim spent several years with Baird Capital where he made private equity investments in consumer and industrial companies. He left Baird to found Protective Technologies Capital in 2018, where he continues to make private equity investments in family businesses looking for help with succession planning. Tim lives in Chicago, where he enjoys watching Michigan football and basketball and traveling with his wife Kristen. Like Sia, he also likes telling jokes. However, his wife adamantly insists that he not share his “dad jokes” publicly so he reluctantly sticks to writing about finance and technology.