Recently, the price fluctuation of $ACT has drawn market attention, with most people only focusing on its decline from hundreds of times its historical high to the current 0.3 yuan. However, we need to take a more comprehensive view of this phenomenon. Take Pepe as an example; its price also experienced a significant pullback, shrinking to one-seventh of its peak.
Some investors who lack a deep understanding of the market often become arrogant based on just a few simple guesses, even claiming to surpass Buffett, which is clearly absurd.
The primary market and secondary market each have their own operational logic. One of the important roles of the secondary market is to help us filter out higher quality projects that are more sustainable.
The primary market carries many risks, such as project parties suddenly withdrawing or projects going to zero, which are not uncommon. For experienced investors, this may be quite normal, but for newcomers, it can be a significant blow.
Therefore, the existence of the secondary market is of great significance. The primary market relies more on luck and early dividends, while the secondary market places greater emphasis on the investor's own strength and analytical ability.