Independent Thinking in the Crypto World - Web3 Cryptocurrency Trading Platform

How can ordinary people accomplish extraordinary things? Old Bao says that long-term investors almost don’t need a capability threshold,

it’s mainly about calm inner qualities.

In other words,

the threshold lies in focused evolution of investment thinking.

Long-term investing certainly isn’t a herd investment,

where many people gather, there are no good opportunities,

good opportunities also turn into mediocre ones.

But it’s also not masochistic investing,

if a company’s fundamentals are poor, its stock price falls, it’s not suitable to buy.

From a thinking perspective,

everyone says good things are not necessarily right,

everyone pessimistic about something is not necessarily wrong,

but when everyone is optimistic,

there’s definitely no good price gap,

when everyone is pessimistic,

there could be a large price gap,

but it’s also very possible that the situation is indeed very bad.

Investors pursuing higher safety margins are often lonely,

generally indifferent to the wisdom of the masses,

this is different from eating in crowded places to avoid pitfalls,

when everyone is pessimistic,

most people think an industry is very bad,

yet still need to calmly analyze business realities,

is it a temporary economic cycle downturn or a persistent demand disappearance? Next comes your own independent thinking investment rules,

how much safety margin gap does the current price have relative to future assessable value? Continuously consider short-term price risks,

long-term value certainty,

how to value based on future cash flows… and so on,

the direction of safety margin thinking can then be further developed.

The key is safety margin,

but safety margin is not a fixed price,

it’s a hidden risk pricing that can only be obtained through independent thinking and analysis.

The reward for long-term positions with safety margins and evolution is compound interest effects.

The first rule of investing is not to lose money,

the second rule is not to forget the first.

How to avoid losing money? Buy stocks at prices far below their intrinsic value,

and reasonably diversify across several excellent companies,

then you basically won’t lose money.

Long-term investing requires independent thinking,

calm analysis of facts,

judging value,

using price,

under conditions where you have absolute confidence in your investment system,

you must also bravely face future uncertainties,

generally choosing to pick stocks at opportune moments for reasonable concentrated investments,

less frequently timing the market for broad diversification.

Another aspect is not to speculate on future price fluctuations but to make reasonable value return judgments based on value reversion,

current prices do not necessarily reflect the business’s true value,

through securities analysis based on operational facts,

business analysis can evaluate a company’s worth.

Value assessment should avoid being swayed by price to distort your valuation.

Short-term event attention can reduce long-term investment returns.

Deep long-term value insights,

appear within one’s circle of competence,

where you can find the greatest value gap relative to current prices,

the best safety margin companies.

The stock market is vast,

with many investment opportunities,

but investors should focus on a very small number of opportunities,

on one hand, they need to understand them,

on the other hand, they must wait for opportunities with good risk-reward ratios to appear.

The market constantly presents new good opportunities,

it’s normal to give up opportunities you don’t understand.

Waiting until a good opportunity you understand appears before investing,

and only acting once every two years is also normal.

Patience in waiting without action is redundancy for investors with available funds,

professional managers,

fund managers, don’t have this long-term patience to stay on the sidelines.

Old Bao says that long-term investing basically doesn’t require a math calculation threshold,

but the process of focused investment cognitive evolution is essential,

evolution generally takes longer for most people,

excellent individuals improve quickly,

but the level must be high enough to achieve a strong safety margin understanding,

constantly refining a suitable investment system for oneself,

and evolving investment experience to have a solid foundation,

there’s no threshold of intelligence ability,

but the threshold of inner thinking wisdom is actually quite high, right?

**$BAR **$CTSI **$ONE **