To The Moon

In investing, two roads often diverge: one paved with high-risk, high-reward opportunities—thrilling, fast, and uncertain; the other a winding path of patience, discipline, and compounding returns. Both lead to wealth, but the journeys—and the mindsets they require—are vastly different.

The Dream of the Big Win

Let’s be honest: the idea of a life-changing gain from a single investment is exhilarating. Who hasn’t fantasized about discovering the next Tesla or catching the next GameStop rally early? There’s something seductive about seeing a small stake multiply into a fortune seemingly overnight. The media loves these stories because they tap into something primal—our desire for shortcuts to success.

Ideally, I’d love to be that person who bets big on the right asset at the perfect time. The problem? I know myself. Despite the fantasy, I rarely pursue high-risk plays. I’m not built for stomach-churning volatility or the mental toll of watching a portfolio swing wildly. Emotionally, it’s too expensive.

That internal conflict—wanting the thrill of high returns but avoiding the rollercoaster—defines how many modern investors feel. We're told to “think long term,” but we’re also bombarded by headlines about overnight millionaires. It’s a psychological tug-of-war between instant gratification and delayed rewards.

The Reality of Risk Aversion

In real life, my actions show a clear preference for stability. I avoid meme stocks and FOMO-driven rallies. When a stock is already surging, I ask: Is there any real value left here? Or is this just momentum? I prefer to base decisions on solid fundamentals—looking at companies’ earnings, balance sheets, and historical performance.

I also accept a critical truth: I tend to take profits too early. This is classic risk-averse behavior. Even when I’m right about a stock, I often sell before its full potential plays out. While this limits upside, it also limits downside. For me, the peace of mind is worth it.

The Beauty of Compounding

This is why I embrace the path of compounding—slower, steadier, and often overlooked. I hold assets like TLT and TLH, long-duration Treasury ETFs that generate regular income. I also invest in dividend-paying stocks like Pfizer (PFE)—not glamorous, but dependable. These assets may not offer explosive growth, but they contribute consistent dividend income that add up over time.

Pfizer (PFE)

iShares 10-20 Year Treasury Bond ETF (TLH)

iShares 20+ Year Treasury Bond ETF (TLT)

Albert Einstein reportedly called compounding the “eighth wonder of the world.” It’s not just a math trick—it’s a mindset. Compounding doesn’t only apply to money; it applies to habits, knowledge, and discipline. The earlier you start and the longer you persist, the more powerful it becomes. The gains may seem small at first, but eventually they snowball into something substantial.

Market Reality Check

It’s important to acknowledge that getting rich overnight through the stock market is possible—but highly improbable. For every person who turns $10K into $1M in a year, there are thousands who lose half their portfolio chasing the same dream. Survival bias makes us focus on the winners while ignoring the graveyard of failed bets.

Volatility isn’t just a statistical measure—it’s a behavioral test. If you can’t sleep at night during a drawdown, the asset probably isn’t right for you. What matters isn’t just your theoretical risk tolerance, but how you actually behave when the market turns against you.

Why Not Both?

Interestingly, we don’t always have to choose one extreme. A smart portfolio can blend both strategies—a core-satellite approach. The core consists of stable, compounding assets (like index funds, bonds, dividend stocks), while the satellite allows for controlled risk-taking (such as a small allocation to emerging tech, crypto, or turnarounds).

This strategy satisfies both the rational investor and the dreamer. You build long-term wealth steadily while reserving a small portion to swing for the fences—without jeopardizing your entire portfolio.