---
title: "Three big tumbles, three lessons"
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/40370941.md"
description: "Seres, KEEP, and Xiaomi are the three stocks with the most severe losses among the stocks I liquidated. I paid a price of nearly 200,000 for three lessons: Seres: First pick the industry, then pick the company. The new energy vehicle industry is capital-intensive, with low gross margins and pre-order marketing. In this new energy vehicle market that is almost a game of existing market share, competition is destined to be fierce and not worth being the first choice for investment. KEEP: Don't buy a company just because it's cheap, especially small-cap stocks. The efficient market theory is a good way of thinking: Why is it so cheap? Don't others think it's cheap? Why is no one buying it even though it's so cheap? Xiaomi: Companies with complex business models are not easy to understand..."
datetime: "2026-05-02T07:26:48.000Z"
locales:
  - [en](https://longbridge.com/en/topics/40370941.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/40370941.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/40370941.md)
author: "[长坡行者](https://longbridge.com/en/profiles/14120321.md)"
---

# Three big tumbles, three lessons

Seres, KEEP, Xiaomi

The three stocks with the most severe losses among the liquidated positions, costing nearly 200k in losses for three lessons:

### Seres:

### First pick the industry, then pick the company.

The new energy vehicle industry is capital-intensive, has low gross margins, and uses pre-order marketing. In this new energy vehicle market that is almost a game of existing market share, it is destined to be fiercely competitive and not worth being the first choice for investment.

### KEEP:

### Don't buy a company just because it's cheap, especially small-cap stocks.

The efficient market hypothesis is a great way of thinking:

Why is it so cheap?

Don't others think it's cheap?

Why is no one buying it even though it's so cheap?

### Xiaomi:

### Companies with complex businesses are harder to understand, and companies with low gross margins have smaller safety margins.

Following the principle of not investing in what you don't understand, you should try to pick companies with relatively simple business structures, which are easier to comprehend. At the same time, asset-light, high-margin companies offer greater safety margins.

The value of the introduction on Da Dao Xueqiu is still rising: A large part of who we are is also defined by the things we choose not to do.

### The 'Not-To-Do List' is really important.

$SERES(601127.SH) 

$SERES(09927.HK) 

$KEEP(03650.HK) 

$XIAOMI-W(01810.HK)

### Related Stocks

- [09927.HK](https://longbridge.com/en/quote/09927.HK.md)
- [601127.CN](https://longbridge.com/en/quote/601127.CN.md)
- [03650.HK](https://longbridge.com/en/quote/03650.HK.md)
- [01810.HK](https://longbridge.com/en/quote/01810.HK.md)
- [81810.HK](https://longbridge.com/en/quote/81810.HK.md)
- [XIACY.US](https://longbridge.com/en/quote/XIACY.US.md)
- [HXXD.SG](https://longbridge.com/en/quote/HXXD.SG.md)

## Comments (7)

- **在中概里惨痛悟道 · 2026-05-03T00:27:31.000Z**: Another naive investor crushed by Xiaomi😂
  - **长坡行者** (2026-05-03T01:09:48.000Z): Fortunately, Xiaomi is the least miserable among the three. I sold at 39, losing less than 10%. Xiaomi's problem is its business is relatively complex and a bit hard to understand, plus its low gross 
- **Macintosh Lee · 2026-05-02T09:34:51.000Z**: 👍Good science popularization, but there are quite a few retail investors who are buried in stock software all day tinkering with outdated data. 😅 It's as if having a VIP "deep analysis" plugin gives them divine assistance in seeing through the mysteries... Another type is those who gather 
  - **长坡行者** (2026-05-02T10:15:45.000Z): Yes, a flurry of actions that look fierce, then check the account... Actually, it's not that complicated, just return to common sense and rationality. A good business model plus good corporate culture
  - **那什么拯救一只垃圾股** (2026-05-02T14:11:46.000Z): A complex business model can be described positively as product diversification, or negatively as a scheme that deceives the gullible, much like a pyramid scheme.
  - **长坡行者** (2026-05-02T14:15:58.000Z): Yes, generally speaking, when the main business shows signs of decline, they start to "diversify".