$XIAOMI-W(01810.HK) The morning's high open and low close was still a bit disappointing, but understandable. After all, not being in the red is already an extraordinary performance for Hang Seng Tech 😂.

I. Understanding the Stock Market

Reading more books might not be as effective as actually experiencing a few events and fluctuations to deepen understanding:

1. Short term is a game of speculation: Price fluctuation ≠ Value change

The rise and fall of short-term stock prices is essentially the result of a game between buyers and sellers. Whether it's major news like state visits or various macro hotspots, as long as their impact is limited to the short term, it's essentially a game of news sentiment. At this level, trading is a zero-sum game; for someone to profit, someone else must lose. It's actually no different from a casino, just that using opinions and logic to guess seems more elegant.

2. Long term is an investment market: Value appreciation takes time

Whether it's tree growth or vast changes in the world, it seems extremely slow in the short term, but over a longer cycle, it's dramatic change. The core of stock appreciation lies in being a good company that increases value over time, making the pie bigger.

The subtlety of the stock market is that it's a combination of speculation and investment, satisfying the need for short-term speculation to increase liquidity while also aligning with long-term investment capabilities. The underlying rules and risks are different; investors need to be clear about what game they're playing.

II. Feelings on Holdings

Although the heat and liquidity of AI stocks have been high recently, if the high surge doesn't come from fundamentals but from investment hype, a large part of the stock price increase comes from short-term sentiment. It's hard to overcome human nature and keep money in such volatility.

After the hype around Xiaomi's car manufacturing subsided, it started emphasizing a hardcore technology path. Many of its moves, whether certain layouts or the open-sourcing of multiple large models, are short-term commercial investments that are well-received but not commercially successful. Coupled with cost pressures this year, it's hard for the stock price to have explosive growth in the short term. However, as one wanes, another waxes. Relatively speaking, because it's doubling down on long-term strategy, it has more long-term potential and resilience. Investing requires enduring volatility and having patience.

My current mindset is also no longer what it used to be:

1. One is a more mature understanding of money. I've found that money, except when there's a lot or very little of it, mostly just feels like numbers. I don't regret converting money into stocks, another form of asset, because the real world is one of fluctuating value. Accepting that volatility is as normal as ocean waves means not letting short-term price movements dictate personal emotions. Nowadays, many apps highlight short-term gains and losses, which is somewhat deliberate.

2. Finally, looking at the East's major trends, it's important to know that the US has a rich arsenal of diplomatic tools. $Donald Trump(TRUMP.US) is no stranger to us, being very business-minded, fickle, and flexible. So, choosing to visit China rather than continue confrontation is entirely based on the law of the jungle, a cooperation of interests built on a foundation of strength. Even if there are many subjective thoughts and opinions, at least currently, two points are objective: first, the East's strength has indeed increased, leading to a change in diplomatic attitude; second, the East itself is likely expecting and actively supporting the cultivation of world-class tech companies similar to those in the US. So, if Xiaomi's fundamentals are good and the major trend hasn't changed, even if it's a bit slow, going with the flow, this story is just beginning.