VOLATILITY

The real key to making money in stocks is not to get scared out of them.

You do not need to predict direction to make money in options. You just need to be right about volatility being overstated. That is a much easier bet.

Implied volatility is almost always higher than realized volatility. That is not a theory. That is an empirical fact. Sell premium. Let the math work.

If you have trouble imagining a 20% loss in the stock market, you shouldn't be in stocks.

Volatility isn't risk. Permanent loss of capital is risk. Know the difference.

Our stock went from $300 to $4. Then back to $150. If you sold at $4, I understand. If you held, you believed in what we were building more than the market did.

Our market cap went from $4 billion to $200 billion in three years. Then back to $25 billion. The rollercoaster didn't change the business. The business was always the same. The market just stopped paying for growth.

Our stock went from 15 to 370 to 40 and back to 100. If you cannot handle that volatility you should not own growth stocks.

Crypto is volatile. Get used to it. If you can't handle a 50% drawdown, you don't deserve the 500% upside.

A 97% stock crash and a 10x recovery. Root's chart looks like a heart monitor.

From $25 billion market cap to $700 million. One clinical trial result changed everything.

We do not view volatility as risk. Risk is the probability of a permanent loss of capital.

Most investors fail because they move. They see volatility and panic. The market rewards patience, not activity.

The market has taught me to continually stay the course even though I do believe that prices of businesses in public markets and, maybe, even in private equity, fluctuate and that volatility is much higher than the actual long term value of a business.

Volatility does not scare me. Missing the important networks does.

Stablecoins are really interesting and really important to this ecosystem to hedge against that volatility.