Let's talk about the recent Pinduoduo: Holding is buying.

Before the Q1 earnings report, Pinduoduo's stock price had been hovering around 100. I thought it was too dull, and my thought at the time was, regardless of whether it goes up or down, just bring some volatility.

Unexpectedly, Pinduoduo's stock price fell back to 80, and then just lay there at another level, just like it did at 100 before, as if it had just changed positions and gone back to sleep.

Holding is buying. This is a very simple fact.

Although everyone is trapped by their own cost basis and so-called opportunity cost, based on Occam's razor, these are actually concepts that can be eliminated.

Because the "cost basis" is false, and opportunity cost is the most beautiful path your mind automatically backtracks to among thousands of thoughts.

Micron, SK Hynix, and SanDisk are incredibly tempting, making you feel like you've missed countless opportunities. In reality, looking at today's gainers and losers ranking, there are dazzling opportunities of all kinds every day.

Of course, there are also traps.

Holding is buying, so the starting point of thinking should always be whether this company is worth buying at the current moment.

Forget your own cost basis, just like that particularly popular saying goes.
Sunk costs should not participate in major decisions.

In fact, the lowest point in a round of decline, like the highest point of SpaceX, is the result of extreme market sentiment and is unpredictable.

Recently, I've been researching option Gamma Exposure and studying the impact of market makers on the market. It's very interesting.

When the market is stable, market makers dampen volatility; when the market panics, market makers amplify volatility.

Even market makers, as neutral parties, act this way, let alone all kinds of human nature.

So who can predict the lowest and highest points of a stock price? No one can.

So the only way is not to use leverage, not to borrow money, and not to sell naked PUTs.

Even if you win many times, if you lose once, it's over.

With leverage, it's very difficult to maintain a good mindset.

Because the rise and fall of a stock price never affects the number of shares you own. But after adding leverage, you know the stock price cannot fall below a certain point.

How can you not be anxious? After all, the brokerage interface has already turned red.

Even Duan Yongping would feel pressure, so don't make things difficult for yourself.

Let's compare these two companies, Meituan and Pinduoduo.

Over the past year, Meituan's basic factors and moat have been fiercely attacked. Its stock price has continued to fall, and its profits have become unviewable. Looking to the future, I really can't see clearly.

Pinduoduo, in terms of stock price, has also enjoyed Meituan's treatment.

But has there been any major change in this company's basic factors?

I don't think there has been any change. The basic factors are very good, and the moat continues to deepen.

Of course, you could say policy is the biggest basic factor.

Here, I tend to believe that policies are universal and not targeted.

Just like how the policy penalized Huolala again today. Including Sam's Club during this period, it's also in the spotlight.

The business model of internet platforms is really very good.

But as the saying goes, above the platform is the state. Platforms govern goods, and the state governs platforms. This is as it should be and should be normal.

In short, holding is buying. This is my current personal view on this company.

$PDD(PDD.US)