Retail investors initially focus on the buy and sell process, with the logic of long-term thinking investment throughout the entire process. For example, before investing in Longfor, I had already observed for many years, starting to pay attention when the split occurred several years ago. In 2024, the main target to buy is Longfor, and I have received dividends several times. There might be a potential observation point before the 2026 annual report, as the report could be good. For various reasons, adjustments to the position can be considered based on changes in the safety margin. Whether or not a partial sale for arbitrage is ultimately made, I plan to continue following for a few more years. As long as the company is excellent, it’s worth ongoing observation.

Because retail investors only have one set of funds, and as the scale of funds grows, the risk of significant capital loss becomes even greater. Long-term investing can be said to have a natural gravitational pull due to scale, with the foundation of capital support mainly coming from cognitive evolution. Long-term investing isn’t something that can be mastered just by practicing more; the limits of evolution also include the constraints of one’s life cognition. I generally try to avoid copying others’ work, mainly because copying easily turns into trading tendencies. The returns gained from copying are actually superficial due to a lack of risk awareness, which can lead to insufficient capital capacity later on. Of course, retail investors initially lack enough cognition to copy others, which is also a form of imitation and choice. But progression still requires gradually relying on one’s own strength. The best scenario is that cognitive growth precedes capital growth. Although slow, this leads to long-term stability. Of course, this isn’t the mainstream idea—most retail investors hope to get rich quickly, right?

Through learning, reflection, and independent thinking, one can gradually understand the benefits of long-term thinking investment. Conservatively speaking, this approach avoids falling into other high-end financial management routines, because once a person has some wealth, if it’s just sitting in their pocket without specific use, those who seek to profit from capital accumulation will come. In our society, which is a social network, it’s highly probable that friends and relatives will reach into your pocket, and bank wealth managers are also eyeing opportunities. There are countless wealth management schemes out there—prestigious companies in Lujiazui with full licenses, various media forums creating their image, and excellent performance of financial products that guarantee principal and interest. Once careful individuals discern true from false risks, problems arise.

Another benefit is that expenses for clothing, food, and daily needs can be reduced a bit. Investment requires capital, but simple living keeps the body healthy. Staying sober and modest might be better, right? Of course, long-term thinking investment, after accumulating enough various standards, reflects the freedom of self-practice.

One key point to understand about long-term thinking investment is how to achieve the recognition of selecting one in a hundred or one in a thousand over the long term. The relative performance each year might only be one in ten, but under the compound interest effect, over time, the absolute return will gradually surpass the average intelligence, right? This is probably something you’ll realize after long-term evolution of the safety margin. In my world of intellectual competition, I am basically an ordinary person eliminated by the tide of the times. Relying on persistence in safety margin evolution, I can also be considered to have gained a level of financial freedom that was previously difficult to achieve.

Long-term thinking does not seek extraordinary returns; actively evolving risk awareness and reasonable returns are enough. The power of compound interest appears in the practice of long-term, low-risk, reasonable returns. $COOKIE $HMSTR $ARTFI