Hold and search - Web3 cryptocurrency exchange platform

Continuously evolve your investment capability circle,

Understand investment logic and business analysis,

Ignore this dream comparison of stocks,

Observe stocks at fair value,

Analyze and evaluate stocks at a discount,

Buy and hold stocks with enough discount.

Because value is not an explicit price,

Nor are the ripe fruits on the tree turning into noticeable colors,

Choosing the best and buying at a low price in most cases is a combination of perceptual ability and market opportunities that meet value investing conditions.

Some people can hold stocks as they continue to rise,

Stocks that keep falling or do not rise cannot be held,

This phenomenon is easily seen on Snowball,

When a single stock keeps rising,

Many people become more excited as they analyze,

Fans gather.

If a stock does not rise for a year,

Or even falls,

Or the style changes,

Those who were extremely optimistic during the stock’s rise will also start anew,

Fans look for the next high-performance stock teacher.

Because in fact, most people’s emotional connection is based on the annualized performance of price and market value growth; in reality,

You can also look at annualized returns,

But roughly over four years,

And holdings should be moderately diversified,

Because the changes in safety margins brought by cycles are not viewed over just one year,

Of course, it’s best to observe the safety margin changes of a company over a period,

So the surface-level annualized or four-year annualized return is just a result,

You can see if your cognitive ability has reached a qualified level.

Everyone talks about cognitive realization,

But most people still rely on market prices to reinforce their confidence,

And contrarian investing is actually buying into companies with high probability of future value realization at current prices, based on market price arbitrage consensus.

Some companies with hidden value are difficult to evaluate due to complex business models,

For example, Alibaba itself has good value,

In recent years, strong competitors have also provided space for Alibaba’s future development,

After all, a big tree attracts the wind,

A prominent tree invites the wind to destroy it.

More big trees globally and domestically,

Can help mitigate some wind forces.

I personally allocate 10% of my cost position,

Feeling okay about it,

If it drops significantly, buying a bit more is also fine.

Some globally competitive companies are obviously undervalued compared to industry or global levels,

But low valuation also indicates increased short-term uncertainties,

In such cases, buying these companies requires a long-term perspective on certainty factors,

Such as asset quality,

Future low-cost capacity,

Asset quality for wealth creation,

Future free cash flow prospects,

These require strong securities analysis skills and in-depth business analysis capabilities; most importantly, patience and perseverance,

Humans are not very rational,

During a holding period of one, two, or even three years,

It’s difficult to prevent sudden strange thoughts caused by inner fluctuations,

Sometimes impulsive buying or selling occurs,

If an investment system is established,

And supported by proper capital allocation,

Impulsive buying can be greatly reduced.

The difference in practice lies in decision-making between action and inaction,

This is hard to explain,

Between dividend payments,

Long-term large-scale arbitrage,

There are also trading decisions based on short-term safety margin changes,

Value investing can look at long-term value for buying,

Or consider short-term risks and exit to cash positions or mostly exit to cash,

Proper application of capital makes it more efficient,

The efficiency of capital reduces costs and brings future resilience.

My feeling is that retail value investors have several ways to adapt,

Dividends are the first straightforward source of investment cash flow,

Short-term value change risks clearly prompt adaptation to reduce costs,

Long-term large-scale arbitrage achieves capital returns,

Cross-cycle holdings.

Cash is a protective shield.

Using all these, long-term capital returns will surely be better,

Cost reductions from adaptation will also improve capital efficiency,

Some retail value investors only focus on one utilization,

Such as focusing solely on dividends or cross-cycle holdings,

And that is reasonable.

Investors pursuing continuous evolution and cognition,

Can continue to think,

Operate more carefully.

The east wind will likely come,

It’s a logical necessity,

It’s just whether investors’ cognitive foundation can further decide if they can wait for the right conditions to adapt to the east wind,

Conservative value investors can only say,

Keep evolving the safety margin of holdings,

In the future, there’s a high probability that capital returns based on safety margin adaptation will gradually increase, leading to good things happening, right?