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)