Chat in the style of Club Brother @ BTC_Alert_, which I call 'Club Investment Studies' To put it simply, investing in this matter is like strolling in a club. Don't use those fancy financial terms. Using the most common example, tell the most authentic way 1. Don't risk your life for pleasure (risk management) The core of investment is risk management. By effectively controlling risks, returns will naturally come. Club Popular Version: What is the first iron rule when you come out to play? It's not about who is the most beautiful, it's about not getting sick! You need to first check if this scene is legitimate and if this girl has a green health code. Don't get sick or even run into immortal jumps just for the thrill of pursuing super high returns. Avoiding the pit and implementing safety measures, isn't the rest just for enjoyment? Returns are a natural thing, there's no need to force them. 2. Just nod your head, don't guess the business (refuse to predict) Refusing to predict the market, the key to investment is to study enterprises from the bottom up, guessing the market direction is equivalent to gambling. Club Popular Version: Don't squat at the door every day and guess if the business will explode tonight or if there will be a car inspection (predicting the overall market). That's all gambling, even immortals can't be sure. What you need to do is to open your eyes and pick people after entering the venue: which girl has strong business skills? Which one has more repeat customers? Regardless of whether the venue is cold or hot tonight, as long as the "leader" is there, her value will be there. Focus on specific 'people' (good companies), don't focus on 'the sky' (the market). 3. Only by spending time can one live longer (combination configuration) The combination configuration should follow the "three low principles": low leverage, low correlation, low concentration, and diversify cross market and cross industry risks. Club Popular Version: This is called the principle of 'play for a long time, live for a long time': Low leverage: Don't borrow high interest loans to play. When it comes to luck, not only is it not satisfying, but you also have to bear a lot of debt. Low concentration: Don't put all your family and life on one trump card. If her period comes today or she's in a bad mood (like a black swan), won't you be useless tonight? A few more, the east is not bright and the west is bright. Low correlation: The style of the girl needs to diverge. Don't rely solely on 'imperial sisters' or' fellow villagers'. If the trend of "loli style" is popular tonight, or if their hometown collective holiday takes a day off (systemic risk in the sector), you will be completely wiped out. Singing, dancing, and chatting with each other, this is called cross style dispersion. 4. Look at real strength, not plastic surgery face (core value) The core of value is a company's cash+realizable assets+ability to create future cash (hardcore ROE). Club Popular Version: Cash: Do you have any savings in your pocket? Can you handle the situation at critical moments? (Risk resistance ability) Realizable assets: Apart from faces, do you have any real talents? Music, chess, calligraphy and painting, Tiktok are also moats. The ability to create future cash (ROE): It refers to whether the girl can consistently make customers pay without having to invest too much cost themselves (such as not having to undergo daily major repairs). This kind of 'inherent gold absorbing constitution' is the core asset. 5. Don't be a mommy (role positioning) The success of entrepreneurs is often based on low probability events, while the success of investors must rely on high probability events. Club Popular Version: The owner (entrepreneur) who opens a club is a dead end. To deal with both black and white, one must also prevent fires and crack down severely. Those who can make the store bigger are unlikely to be ruthless. As investors, don't always fantasize about opening your own store and starting your own business. Relying on high probability events - find the already popular top card and support her. She is red, and she is likely to make me happy. What I earn is this certain amount of money. Don't gamble your own money on the 'boss dream' that might succeed. 6. Suppress outdated practices and avoid scammers (short selling logic) The core of short selling is cyclical (industry cycles leading to a decline in profit margins) and structural (companies losing market share) short selling, not short selling fraudulent companies, focusing on targets with unsustainable business models. Club Popular Version: Bullying the elderly: Look for those who are old, pale, and unable to keep up with the times (cyclical decline). Bullying the weak: Look for those who have been taken over by young, beautiful, and well serviced new girls (structural substitution). Don't mess with the scammer who claims to be a "post-00s returnee" despite being ugly and old. This kind of person dares to falsify, usually with a big brother (banker) behind their back, and their methods are very wild. You go and expose her, it's easy to break her legs (force her to empty). Let's stay away from this bad person and let the market slowly deal with her. 7. The core of business: it still needs to be people The core of investment opportunities lies in people: excellent entrepreneurs, young talents, and a large consumer group. Club Popular Version: Why should we still be optimistic about this market? Capable mothers: There is always a group of bosses (excellent entrepreneurs) who try their best to come up with new ideas and improve their services. Newcomers of Shuiling: Every year, waves of highly educated and high-quality newcomers enter the market (talent dividend). LSP like us: There are still so many "gods" (large consumer groups) who have some spare money and want to pursue a better life. As long as these three groups of people are still struggling, the business of this' club 'will not go yellow, and the core asset (girl) will always have value. These 7 mindsets ultimately boils down to one sentence: identify the top asset (good asset), pay attention to your health (risk control), don't join in the fun (unpredictable), and enjoy the process (long-term holding).