Daily morning meditation 🧘 is my essential course!
Recently, I shared in a small group about the value and significance of books 📚 in transforming my understanding. Li Xiaolai has a book called "Seven Years is a Lifetime," which essentially revolves around the 10,000-hour rule: focusing on a specific field to become an expert and deriving value from it.
I left traditional brokerage firms in China to focus on cryptocurrency and U.S. stock investments, and today marks exactly my eighth year. Looking back over the past eight years, I can say I only did four things right.
In 2016, I bought around 300 #BTC (in 2020, I sold 100 of them at 312, and I still hold the rest).
In 2019, before Tesla opened a factory in China, I bought Tesla stock.
At the beginning of 2023, I bought Nvidia stock.
When the 10-year U.S. Treasury yield was around 5%, I purchased $2 million in 10-year Treasuries as a safety net, ensuring that even if the crypto market crashes to zero one day, I can still secure my living.
Seven years is a lifetime. If you can be patient and focus on one field, giving yourself seven years, that time is enough to change a person's life. Improving understanding is the core of all wealth and value.
When it comes to first principles thinking in the investment field:
What has benefited me the most is not the books by Buffett or Peter Lynch, but the books by Amazon founder Jeff Bezos, such as "The Everything Store" and "The Bezos Blueprint." They mention a very effective thinking model: there are many choices in this world, and many things are constantly changing, so we should look for what remains unchanged, seek long-term investment logic and thinking, and maintain a long-term perspective.
For example, #BTC has a fixed total supply of 21 million coins, becoming increasingly scarce. The mining difficulty doubles every four years, and the cost of buying mining machines and electricity is significant. The minimum value is the cost of electricity plus hardware, which provides a guaranteed safety net. As long as there is a network globally, it will exist; as long as there is a black market, it will exist. I believe the network will not be fragmented globally. At that time, I also did not foresee the concept of U.S. strategic reserves.
Tesla is similar. Because I was in the brokerage's chemistry and new materials group, I specialized in researching new energy directions and had a deep understanding of future electric vehicle policies and logic. China must develop electric vehicles to break free from oil dependence and achieve carbon neutrality. The best domestic electric vehicle technology comes from BYD, while Tesla leads internationally. It's that simple—uniqueness and irreplaceability.
As for Nvidia, the opportunity arose because we were relatively large #ETH miners, and we had a strong preference for the stability of Nvidia cards. Later, when ETH transitioned to POS, many 1660S graphics cards became useless. At that time, we explored many ideas and solutions (later, we all switched to mining #KAS, but that's another story). A friend from Huawei reached out to us; they were promoting cloud PCs, which allow you to use a cloud PC function as long as you have a network and a display, like a phone, enabling you to work and handle business anytime, anywhere. The biggest demand for cloud PCs at that time was the 1660S graphics card. That’s when I began to understand the value and application of graphics cards in future deep learning and AI fields, and I gradually started buying Nvidia stock. Nvidia's stock price fell significantly due to the oversupply of graphics cards after ETH's transition to POS. I managed to buy at a low point. This has been discussed in previous posts and can be verified.
When assets reach a certain scale, diversification is a necessity. The logic behind U.S. Treasuries is simple: I increasingly perceive the world's uncertainty and instability, especially with the Russia-Ukraine war, the Israel conflict, and so on. The essence of global right-wing movements is class conflict, the conflict between the people and the elite. This inevitably leads to global instability. To find stability amid instability, one can only lock in bonds from the world's number one economy. A 5% annualized return over 10 years, lying flat every year, as long as there is no war on U.S. soil, I believe the U.S. will continue to grow stronger for another 10 years, which is a relatively certain outcome. As a safety net for living, it provides the most effective security in the face of all possible occurrences.
The investment logic behind the above thoughts is fundamentally the deep thinking and cognitive practice transformation brought about by reading books. Reading good books and being a good reader is the most effective way for personal investment. I hope that in 2025, we can read good books together, make good investments, and remember that seven years is a lifetime. Focus, focus, and focus again to achieve a leap in self-worth and wealth value. Grateful 🙏 Merry Christmas 🎄
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