Patiently Waiting for Opportunities - The Most Important Things to Invest in Series 11

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Starting this week, we will begin updating the “The Most Important Thing to Invest” series, which is also updated every Wednesday, so I hope everyone will pay more attention! If you have anything you want to know, you can also leave a comment in the comments section. We will try our best to provide you with the investment content you are interested in.

“The Most Important Thing to Invest” was evaluated by Buffett as “a rare and useful book”, and he read it twice himself. This book condenses the author's own investment ideas and personal experience over the years, incorporates the opinions of several other well-known investment experts, and summarizes the most important investment issues through reverse investment. This book is of great practical significance. You must be patient when investing. If you don't want to eat hot tofu in a hurry, you should always be aware of risk prevention. I believe investors will benefit greatly after reading this book.

Waiting for investment opportunities to arrive rather than chasing them often makes us do a better job. The investment environment at any given point in time is specific, and we have no choice but to accept it and invest in it. Identifying the market environment and making appropriate action decisions is essential for successful investment. It is wise to invest appropriately in line with the environment in which you are located. One of the greatest advantages of investing is that you will only suffer losses when you actually make a failed investment. If you do not invest, there is no loss, only a return. Even the negative consequences of missing out on winning are tolerable. Cycles have ups and downs, things come and go, and the environment is changing in ways that are not under our control. Therefore, we must acknowledge, accept, cooperate, and respond. This is the essence of investment. All we can do is objectively understand the environment and presuppose it so that we can make the best decisions. One of the greatest advantages of investing is that you only lose money if you actually make an investment that fails. Investments that don't fail have nothing to lose, only returns.

We should do our best to figure out whether we are in a low- or high-yield environment. The pattern of taking on new and increased risks in order to continue earnings is often repeated over the cycle. You can't create investment opportunities that don't exist; insisting on high returns is the most foolish thing to do — this process will drain your profits.

The investment climate has a significant impact on investment results. Achieving higher returns in a low-yield environment requires the ability to go against the current flow and find relatively few winning investments. This must be based on a combination of skill, high risk taking, and good luck. On the other hand, high-yield environments offer high-yield opportunities that are realized by buying at low prices, and are generally low-risk. Generally speaking, excellent buying opportunities occur when asset holders are forced to sell, and from time to time during economic crises. The real goal of active investment management is to buy at a price below value, and the effective market hypothesis thinks we can't do this. In the face of the crisis, we must stay away from the power of forced selling and position ourselves as a buyer. To meet this standard, investors need to do the following: believe in value, use little or no leverage, have long-term capital, and tenacious willpower. If you wait patiently for opportunities, backed by a reverse investment attitude and a strong balance sheet, you can reap amazing benefits from the disaster.