Zero Sum World
The concept of a zero-sum world originates from game theory and refers to a system in which one party's gain is equal to the other party's loss. Overall, the total gain and total loss of the system are zero. In economics, this is often used to describe certain market behaviors, such as stock market trading. In the stock market, buyers and sellers are the main participants in the market. When a buyer purchases a stock, the seller gives up ownership of the stock. The buyer's gain comes from the seller's loss, and vice versa. From this perspective, the stock market appears to be a zero-sum game.
However, this view ignores the dynamic and innovative nature of the market. The market is not always static. The emergence of new technologies, products and business models can break the zero-sum framework and create new value and growth opportunities.
Infinite World
The opposite of a zero-sum world is the idea of an infinite world. Infinite World emphasizes the expansion and innovation of markets and opportunities, believing that the market can continue to grow and create new value. In this concept, one person or company's success does not have to be at the expense of others. For example, the rapid development of the artificial intelligence (AI) industry is a vivid example of the idea of an infinite world. The AI market did not exist in the past, but now, the size and value of this market are rapidly expanding, and resources are not simply reallocated among participants.
This change in concept is also reflected in investment strategies. Shift from focusing solely on market transactions to focusing on the creation of market value. Investors began to look for values that were undervalued by the market and participated in the infinite game through long-term holding in the hope of obtaining extraordinary returns.
An investment strategy that combines two concepts
In the actual investment process, combining the concepts of the zero-sum world and the infinite world can form a more comprehensive and balanced investment strategy. In certain periods, especially when the market is in a period of volatility or adjustment, the strategy of a zero-sum game may be more effective. Investors can profit from market fluctuations through precise market analysis and timing.
Over the long term, however, Infinite Games' strategy is more likely to deliver solid and sustained growth. Investors should pay attention to companies with innovative capabilities and growth potential, and share the dividends of corporate growth through long-term holdings. This strategy can not only bring economic benefits, but also promote the development and innovation of the entire market.
In short, the market economy is a dynamically changing system. Investors need to flexibly use the concepts of zero-sum world and infinite world to formulate an investment strategy that suits them based on the actual situation of the market. While pursuing individual interests, we must also focus on contributions to the entire market and society to achieve common development of individuals and society.
