1. Good companies are mostly similar, while bad companies each have their own problems.

2. They have sustained demand, pricing power, high profit margins or high return on capital, moats, the industry is still expanding, and the growth quality is high.

3. Customers can't leave, price increases won't cause massive churn, high gross margins, high renewal rates, high customer stickiness—all essentially stem from this. This is what we often call stickiness.

4. A good company is a multiplication formula: Long-term value = Industry space × Moat × Profit margin × Growth quality × Management × Balance sheet × Valuation.

5. The explosion of each excellent point can bring huge profit realization.

6. Naturally, you need to see through the surface to the essence. High growth, a big narrative, and the core beneath high profits require us to think a bit; you can't directly 'get' it.

7. High growth but low quality: Relying on price cuts, subsidies, M&A, burning capex to exchange for revenue.

High narrative but low profit: The story is big, but gross margin, cash flow, ROIC show no sign of realization.

High profit but low growth: Cash flow is great, but the industry is already mature, valuation cannot be too high.

High moat but overvalued: The company is indeed excellent, but the stock has already priced in the next 3-5 years of EPS.

High capex AI narrative: Upstream revenue is explosive, but beware that the customer's return on investment is unclear, which may ultimately backfire on demand.

8. Consult crcl to see which one it fits at this stage? High narrative but low profit (the company is not yet profitable), high growth but low quality (subsidizing to grab market share stage).

9. After realizing the problem, the next step is to think about whether there are paths to improvement for these two issues; the answer is yes. Banks won't open an account for an agent, but on-chain it can have an identity.

10. The mutual realization of currency flow between agents is also an irreversible major trend; it's just a question of who ends up with it. As for price cuts and subsidies, they are to achieve scale and quickly capture the market.

11. But for companies in their early growth stages, it's better for everyone to keep positions under 5%, otherwise, it's easy to have a mental breakdown. The difficulty with crcl now is not itself, but whether btc can hold the $60k level.

12. The correlation with the crypto circle is still too strong now. If it can weaken and cut into its own payment narrative, that's when it will be truly recognized by the market. Otherwise, it will just be priced as a linked product of the crypto circle and have no future at all.

13. If you want to buy into the crypto circle, just buy btc directly. Why take the detour?