Circle Layer - Web3 Cryptocurrency Exchange Platform

It’s not about which circle you’re in,

but about recognizing which circle you’re in.

The conclusion is that if your awareness is insufficient,

playing ball and eating are just things you can only muddle through,

not even comparable to the Two Generals of Huhai.

Investing is also about understanding the circle,

many people think stock market fluctuations are very unstable,

but value fluctuations are stable,

my feeling is that neither is stable,

because market changes are very rapid,

and corporate operations also change quickly.

Basically,

developing the habit of thinking about a company’s outlook one year ahead is a good direction,

avoid participating in various short-term events,

basically steering clear of herd mentality,

and continuously planning for the year ahead is like preemptively considering the future safety margin and adapting accordingly.

The reason why long-term thinking is effective,

mainly because few people are in this understanding circle,

it’s not that long-term thinking is lofty,

if everyone adopted long-term thinking,

perhaps the safety margin of short-term thinking would be exploited even more.

Choosing the best is a perspective for value growth,

like an airport conveyor belt,

buying low allows the value to appreciate faster when purchased,

like walking a few more steps on a moving walkway in the same direction,

it’s relatively easier and faster than others.

So why do few people use the conveyor belt? Because the conveyor belt has a certain safety speed limit,

and there are also recognition thresholds for choosing the best low-buy in the circle.

Debt can increase rapidly in the short term, but earning assets are hard to maintain long-term profitability,

this is a common challenge for individuals,

companies,

and countries alike,

lacking financial discipline or aiming to increase revenue scale is just like that.

Retail investors avoiding financial leverage is a prerequisite for accumulating their own funds,

it’s hard to imagine people taking out loans to buy houses and cars for high consumption can think long-term in investments; choosing the best low-buy investment targets for retail investors are likely companies with low financial leverage, good balance sheets,

and high efficiency in earning assets; at the national level,

everyone is printing money,

printing money is a good way to dilute national debt and moderate inflation,

but for ordinary people,

the cost of inflation in investment background increases,

and not investing or managing finances,

the purchasing power of cash savings declines even faster,

in the future world,

the environment for financial management will likely become more difficult,

and overall risks will be higher.

What retail investors can do is deepen their risk recognition ability,

focus on investment discipline and the evolution of their capability circle.

The advantage of value investing lies in utilizing low-risk entry conditions,

good company’s stock prices won’t fall to zero,

because they have reasonable operational value,

asset value,

and discounted free cash flow value,

finding this approximate downside protection point,

makes investment more predictable,

developing an investment system suited to oneself,

and gradually establishing a method,

slow investing is like a never-ending game,

always advancing in the evolution of safety margin and cost-effectiveness.