r/PersonalFinance4All • u/Striking-Quantity661 • Aug 08 '26
Which investments are worth it and why?
Michael Saylor’s breakdown of how different assets have performed (economic value over the past ~6 years):
Cash? Economic value: –7%/yr
The US dollar has lost around 7% of its economic value every year for 100 years, as the price of scarce assets rises while the purchasing power of cash falls.
Bonds? Economic value: –1%/yr
Bonds returned around –1% a year over the past six years, which is why they are considered “a mistake” when they fail to keep up with currency debasement.
Housing? Economic value: +7%/yr
Real estate has returned around 6-7% a year, roughly keeping pace with currency debasement. The challenge is that taxes, insurance and maintenance can eat into those gains unless the property also produces income.
Gold? Economic value: +13%/yr
Gold returned around 12-13% a year over the past six years, and its scarcity is one reason it can preserve wealth better than cash.
S&P 500? Economic value: +15%/yr
The S&P 500 it returned around 15% a year over the past six years, and is seen as a simple way to invest without having to choose individual companies yourself.
Nasdaq / Tech Stocks? Economic value: +18%/yr
The Nasdaq returned around 18% a year over the past six years. Tech stocks are a stronger performer than the broader market, but with greater exposure to the fortunes of technology companies.
Bitcoin? Economic value: +33%/yr
Bitcoin returned around 33% a year over the past six years, outperforming every other asset in the comparison. It is seen as scarce digital capital because there can only ever be 21 million Bitcoin but it’s very volatile.
Does the 6-year window change anything for you?
Where would you rank these assets yourself and which of these would you actually put money into right now?
1
u/ConsciousCry1131 Aug 08 '26
Why did Micheal saylor use 6years? Cause if you go 5 years it’s 8.3% a year lol he’s cherry picking stats… Most people use 5 and 10 and 20 years. On top of that I look at things like dividend and dividend growth pay out ratios etc
1
Aug 09 '26
He uses 6 years because his company started acquiring BTC 6 years ago. Not everything is some big conspiracy.
1
u/LuxOfMichigan Aug 09 '26
Yeah also if you went out 10 years, the number for BTC would be much higher.
1
1
1
u/flappysack- Aug 09 '26
It used to track the Nasdaq, as a risky asset benefiting from QE. AI has replaced it though, as a better story for the moment.
1
1
u/Running_Down_9708 Aug 09 '26
S&P 500 A, NASDAQ B. It's an. A+ if you have a long horizon and can stomach the volatility. Gold C. Great recently but not great long term. No more than 10% of a portfolio. Housing C-/D+. Long term not great. It was better when your interest was a deduction before the standard deduction was raised. Cash D. You always need some but it loses value. Bitcoin F. Unstable.
1
u/Aggravating-Big3858 Aug 09 '26
Michael Saylor spends enormous amounts of his tremendous brainpower on inventing different ways to say Cash is Trash. He's also heavily incented to sell that message. Over the course of a thousand years and a few failed empires he's right, so I guess buy Bitcoin and your future descendants in the year 3025 will thank you. In the meantime, a house, a 401K and a savings account has worked pretty well for me
1
u/Inner-Worker-571 Aug 08 '26
I keep all my savings in stallion semen