New Year's Day, a fresh start
#Investing #AnnualInvestmentReview
Some simple reflections:
1. Believe in the value of time, don't easily sell calls, or you'll miss out on a lot of gains. The breakout of a growth stock is often not linear but exponential, rising until it makes you dizzy. For example, XPeng surged from $7 to $15, and Hesai Technology (HSAI.US) jumped from $4 to $16. During these periods, selling calls resulted in only small premiums while closing out many long positions. So, if you believe a stock has growth potential, the best approach is to buy below the expected price and wait for the value to materialize. This timeframe isn't a quarter but three years. Three years isn't actually a long time in the grand scheme of an investment career. Take Xiaomi (01810.HK), for instance—it retreated from its peak of HK$35 to HK$10 before recently breaking new highs, a process that took three years. Believing in the company's value, buying in batches during dips, and growing with the company will lead to good outcomes.
2. Investing shouldn't conflict with a healthy lifestyle. Investing is meant to improve life, but if you become obsessed with watching the market and frequent trading, disrupting your normal routine and work rhythm, the losses often outweigh the gains. While watching the market and frequent trading might make someone appear diligent, it often leads to becoming a plaything of Mr. Market, losing focus on developing core competencies. A capable person with unique insights and contributions at work can better analyze stocks and industries at their essence, crafting superior investment strategies instead of being distracted by daily fluctuations in returns. In the stock market, those with more capital often have stronger discipline.
3. Finally, here’s my Longbridge signature to share with everyone, hoping to ride the waves in the coming year:
Investing means paying for your knowledge, and knowledge requires constant evolution.
Knowledge is a judgment of trends; mental strength is the persistence in that knowledge.
For products and individuals, in an era of involution, find your differentiated edge.
$Hesai(HSAI.US)$XIAOMI-W(01810.HK)$XPeng(XPEV.US)
