Welcome to another Nugget of Wisdom! A free weekly post I send out every Thursday. These are designed to be short and sweet, a quick read to (hopefully) impart some sort of wisdom, or at the very least to get you thinking about something interesting.
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Your portfolio is a reflection of your attention
Something I’ve been thinking about lately as I have done a lot of portfolio reviewing and restructuring, is how does my portfolio get to be what it is before this point? That’s what got me thinking about how my portfolio is actually a pretty accurate reflection of where my attention has been at any given time.
You can track my portfolio back over the last year through many few distinct phases. There was Base season, Virtuals season, Solana memecoin season. A couple of mini NFT seasons. Go back further, there was BLAST season. FantasyTop season. Base season again. Ordinals season.
Of course none of these seasons are anything other than me coming up with an idea in my head that these were areas I wanted to focus on, and then shifting capital around to allocate into them. If my hunch worked out well, it was a great season (Base season end of 2024 was glorious for my portfolio). If it didn’t, it was a poor season (BLAST season early-mid 2023 was less glamorous).
Either which way, attention and focus led the way, and the portfolio came after. First I found something interesting, exciting, and worth spending time and therefore money on, and as a result, I found ways to plough capital into it.
For the vast majority of people, once you start to spend a lot of time and attention researching and looking into a particular area — chances are you’re going to start buying within that area. It just makes sense. You feel like you’re becoming knowledgeable about it, an expert, even. You’re doing research. You know this area better than others. So… you start buying things. Not least of all because buying things is also so much more fun than not buying things. And thus your portfolio starts following your attention.
There’s nothing inherently wrong with this, but I think it’s an important thing to be aware of. Because perhaps you’re not intentionally researching sectors because you want to invest in them, but instead you’re just falling down some social media feed rabbit holes and letting the algorithms take you wherever they want to.
Well, then, chances are your portfolio is soon going to start to reflect the echo chamber(s) and hyped up slop that X is shoving down your throat.
This can be particularly pernicious with all of the incentive-based posting going on lately. It’s always been a minefield with influencers promoting tokens and protocols without any sort of disclosures, but now we have InfoFi creating incentives for people to create content around ecosystems, with an emphasis on grabbing people’s attention and maximizing engagement.
We also have many many many more creaters taking paid content deals and not disclosing them.
The system is quite literally rigged against the individual, but there are a few steps you can take to keep things in check for yourself:
Step one to fighting back is to open your eyes and see what is happening, and not immediately believe everything you see on socials. Lead with skepticism.
Step two is to maintain conscious awareness of what you’re paying attention to, and make the decision yourself to go down a rabbit hole of interest rather than letting yourself get sucked down them by the algo forces.
Step three is to reel your portfolio in when it does inevitably get a bit out of hand, and the best way to do that is regular portfolio review, which I have written about before in great detail.
Do these things and you’ll not only see your investment results become a lot better, but you’ll likely have far fewer moments where you wake up one day and go “how on earth did I get to this point, where all I’m holding is junk from 2 years ago that is down 99%?!”
Thanks for reading! In case you missed it, check out Monday’s post below 👇
This is the third and likely final installment of my Defi & Yield Farming guide. If you haven’t read Part 1 and Part 2, I highly recommend doing that first, as they lay the foundation and groundwork for some of the more advanced concepts we’ll be discussing today.
Disclaimer: The content covered in this newsletter is not to be considered as investment advice. I’m not a financial adviser. These are only my own opinions and ideas. You should always consult with a professional/licensed financial adviser before trading or investing in any cryptocurrency related product. Some of the links shared may be referral links.
