'ByteDance Stock Trading Earns 30 Million' Protagonist's Recap: Discovering AI Storage Opportunities Due to Rising Hard Drive Prices, Suggests Investing in AI Companies to Hedge Against AI Replacement Risks

BlockBeats news, July 5, the protagonist of 'ByteDance Stock Trading Earns 30 Million,' Leto Bao, concluded his review of U.S. stock investments at Binance Square. Some of his remarks are as follows: Around August last year, his investment style shifted to value investing, with major positions allocated to indices, particularly the Nasdaq 100, and some positions invested in companies he actively selected, such as Google. At the time, he wanted to build a database and backtest investment strategies using quantitative methods, so he purchased two hard drives on Pinduoduo. He then noticed that hard drive prices were continuously rising. He stated that the price increase of hard drives was the first signal that drew his attention to the storage sector. Reports at the time already mentioned that AI was driving up memory prices, and hard drive prices were rising simultaneously. The second signal came from his experience as a Data Engineer. ByteDance was then requiring teams to shorten data lifecycles, such as reducing data storage durations from two to three years to one year or six months, and deleting redundant data due to insufficient storage resources. Leto Bao said that based on the rising hard drive prices, AI storage demand, and research report analysis, he initially bought some related stocks but did not heavily invest because he had not yet seen definitive signals. Later, through 13F institutional holdings, he discovered that institutions had been increasing their positions in this direction for three consecutive quarters, which prompted him to increase his holdings significantly and hold them to this day. He stated that he still holds positions related to storage and has achieved substantial returns. Leto Bao mentioned that the CPI (Consumer Price Index) is one of the key indicators monitored by the Federal Reserve. A high CPI usually indicates significant inflationary pressure, while a low CPI may reflect deflationary pressure. The Federal Reserve's long-term goal is to maintain inflation at around 2%, representing a moderate inflation environment where currency depreciates slowly, and investment, consumption, and credit activities remain relatively healthy. Non-farm payroll data also influences market judgment. There is a certain correlation between overheated employment and inflation, but the relationships among macroeconomic indicators are complex and not simply linear. The Federal Reserve is responsible for formulating economic policies related to interest rates and adjusting policies to serve the operation of the U.S. economy. Leto Bao believes that CPI, non-farm payroll data, Federal Reserve policies, and earnings seasons should not be simply regarded as 'noise'; they all have some reference value. He mentioned that when he previously invested in Nvidia, he ignored the broader interest rate environment, leading to significant account drawdowns. Therefore, macroeconomic factors must still be incorporated into investment judgments. Finally, Leto Bao suggested that investment should start as early as possible, and funds should be allocated to relevant assets promptly. In the future, many jobs and positions will be affected by AI. Thus, ordinary people who want to hedge against the risk of being replaced by AI can consider investing their funds in AI-related companies. Leto Bao is a former ByteDance employee, known as 'ByteDance Stock Trading Bro.' By capturing the AI storage sector in U.S. stock investments, he reportedly earned approximately 30 million RMB and resigned. The story originated from his discovery of abnormal hard drive price increases while shopping on Pinduoduo, which led him to research data storage demand and heavily invest in related stocks.