Total Assets🥤Still energetic, willing to talk about these.
Actually, I have thought about some of the points he mentioned, but on one hand, I feel that I am not qualified, and on the other hand, I am afraid of trouble and arguments, so I rarely talk about various 🦀 and 🐘 topics.
But since we are here, let me say a few plain words, not necessarily accurate, as long as everyone understands the meaning:
We are not VC, and we don't have billions in hand. We pursue cash flow and relatively controllable fluctuations to maintain life stability, thereby achieving future wealth and even crossing classes.
Whether the stars and the sea will be realized in 5 years or 10 years may not have much impact on the big shots (10 years might still be a bit much), but for you and me, it is a completely different script.
Now there is a 🔮, telling us that in 10 years 🦀 and 🐘 will definitely become world-class Leviathans 🦖, but they don't pay dividends or pay low dividends, and the fluctuations are large. Would you dare to bet your life on it?
10 years, during which which small investor can guarantee that their work, life, and family health will all be smooth?
Or we can invest a small amount of money to enjoy several times the return in the future, but what can this small amount of money change even if it is realized in 10 years? (But actually, this operation is indeed feasible)
I don't encourage everyone to play penny stocks, and I also try to practice value investing, but
when copying homework, don't forget your own size and asset allocation.
After all, what we pursue is not to outperform the market and win over others, but to make ourselves better and enjoy the process.
Don't reverse the cause and effect just for the result, even if the good result is 100% certain.
Here, we can further consider a question.
First: Some veterans say that the strength of a company lies in its operational capabilities—its management is clear-headed and self-aware, reporting problems rather than boasting, and consistently hoarding cash, preparing for potential crises. On the other hand, another company may seem to have diverse businesses but lacks focus, appearing to have new narratives but potentially harboring bubbles.
Second: The former's stock price often experiences significant volatility, lacks long-term growth, and doesn’t distribute dividends or conduct buybacks. The latter supports its stock price, even driving it up through buybacks, and distributes some dividends to shareholders, sharing a portion of its profits.
From an investor's perspective, which one should you invest in? This, to some extent, reflects the risk appetite differences between primary and secondary markets.
The strength of the former lies at the corporate and venture capital levels. While the latter is often seen as less favorable, it does distribute profits—a less appreciated form of strength. Here, it’s clear that institutional investors and retail investors have different expectations for risk and return.
Most institutional investors or big players I’ve interacted with generally favor the former. Taking a step back, this is just one perspective—their value orientation. From a retail investor’s standpoint, the latter might be better. Retail investors need narratives that fuel hope and companies willing to share profits, offering a more visible, averaged return over cycles.
Ultimately, this highlights one key point: there’s no need to excessively idolize or blindly follow so-called influencers or big players, as everyone’s decision-making context differs.
Here, we can also mention JD.com or Alibaba. They may seem stagnant or less impressive, with their growth often dismissed as “dream valuation.” But one core truth remains: JD.com offers dividends, relatively high among e-commerce stocks. Alibaba regularly repurchases shares to support its stock price—both are profit-sharing behaviors with shareholders. Buffett’s idea that money should be in the hands of smart people is built on Berkshire Hathaway’s continuous stock buybacks.
$Alibaba(BABA.US)
$JD.com(JD.US)
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