Why I Don’t Chase Hot Investments
I’ve lost money in Bitcoin.
I’ve lost money in AMC.
I’ve lost money on a “can’t miss” stock tip from another advisor.
Those losses were some of the best financial lessons I ever learned.
And they’re exactly why I don’t chase hot investments today.
The First Bitcoin Lesson
Years ago, when Bitcoin was trading around $3,000, it suddenly jumped to roughly $6,000.
I thought I was early.
I thought I was smart.
I put in $1,000.
That $1,000 quickly turned into $2,000.
Then it fell to $500.
What did I do?
I sold.
Exactly what most people do.
Emotionally buy the run-up.
Emotionally sell the drop.
That was lesson one.
The Second Bitcoin Lesson
On the next run-up, I told myself I would be disciplined.
This time, I would dollar-cost average. I would buy on the way down.
I started doing exactly that.
But as it kept falling, I couldn’t stomach continuing to put money in.
So I sold again. Around $30,000.
Later, Bitcoin ran much higher. At one point near $120,000. Now it trades lower than that, but the lesson isn’t about the number.
The lesson is about behavior.
Retail investors tend to:
Buy strength.
Sell weakness.
Convince themselves they’re disciplined.
Abandon the plan when it gets uncomfortable.
I did it myself.
That’s not a theory. That’s experience.
The AMC Lesson
Then there was AMC.
I was at a party. Someone was talking about how much money they made. It was “going to keep going.”
If you’ve ever been in that environment, you know how persuasive it feels.
I initially considered putting in $5,000.
My gut told me no.
So I put in $1,000, mentally accepting I would likely lose it.
And I did.
Almost all of it.
The Stock Tip Lesson
Then I received a “you have to buy this” stock tip from another advisor.
Confident. Convincing. Urgent.
I put in around $2,000.
It eventually went to zero after fraud was uncovered.
Later I found out the advisor who recommended it had exited well before.
That was the most important lesson of all.
Never take concentrated financial advice from someone who:
Doesn’t know your full picture
Doesn’t share your downside
Doesn’t have skin in the game with you
Hype travels fast. Accountability does not.
What It Taught Me
The money I lost was not life-changing.
But the lesson was.
If I had simply put that capital into the broad market and left it alone, it would have likely doubled over time.
Instead, I churned it chasing excitement.
That’s what speculation feels like:
Exciting at the top.
Terrifying on the way down.
After losing several thousand dollars across those episodes, I made a decision.
I am done chasing hype.
And I will not allow my clients to do it with meaningful capital.
Investments Are Not for Gambling
Investments are for:
Long-term compounding.
Income durability.
Tax-efficient growth.
Wealth stewardship.
If someone wants to take a small amount of money and “scratch the itch,” that’s a separate conversation.
But that money is carved out intentionally. It is not part of the core strategy.
Core capital is not for entertainment.
That’s what sports betting and casinos are for.
Why This Matters for Affluent Families
In communities like Grosse Pointe, many families have:
$2M–$10M invested
Real retirement income needs
Estate planning considerations
Multi-property overhead
Chasing the next hot investment with meaningful capital can undo years of disciplined saving.
Speculation isn’t always obvious.
It can show up as:
The latest crypto cycle
Meme stocks
Private deals with limited transparency
“Guaranteed” high-yield strategies
They all feel compelling.
Until they aren’t.
The Moral of the Story
The moral isn’t that Bitcoin is evil.
Or that every hot investment is fraudulent.
The moral is behavioral.
If you don’t have a structured plan and the discipline to follow it, hype will eventually win.
And hype is rarely aligned with long-term wealth preservation.
I learned that lesson early.
I’m grateful I did.
Because now, when a client asks me about the latest hot idea, I don’t answer emotionally.
I answer structurally.
And structure beats excitement every time.
