When investing, the most important thing is to judge the value of the target and choose targets that are worth holding for the long term. After that, any book loss or profit will only be temporary.
We divide the selection of the best long-term target into three parts:
1. Balance
2. Anchoring
3. Weights on the left and right
The left end of the scale represents the scarcity and alternative sources of the target; the right end represents the demand that the target can solve.
The fewer targets on the left side, the higher the unit value of the target; the more demands that can be solved on the right side, the higher the overall value of the target.
Therefore, the basis for ordinary people to choose targets is: choose as few targets as possible on the left end and as many targets as possible on the right end.
Take Bitcoin as an example:
From the left side, 1) Bitcoin is limited in quantity and scarce, and its ultimate function is to store value; 2) No other digital currency can replace Bitcoin for the time being;
Looking at it from the right end, Bitcoin currently anchors the entire blockchain, and blockchain serves data security. Big data will become a trend in the future, so blockchain will in turn become part of the trend.
Becoming a trend means that it can provide value to more and more people, and then the right end of the scale will become more and more, thus continuously pushing up the price like a snowball.
Using this formula, you can exchange Bitcoin for real estate, gold, US stocks or any investment products, and then compare and screen to determine whether it is worth holding for the long term.
Buying price, current price, expected price, selling price, the latter two are important, not the first two.
During the holding process, you should only pay attention to changes in the value and logic of the target itself. All personal feelings have nothing to do with the asset value; adjustments should only focus on changes that will occur in the future. All past events have nothing to do with future rises and falls.
Choose the right target, identify the logic, hold it for a long time and don’t move it; work less and make more money.
We are all ordinary people, and the investment market is indeed anti-human. Some people are sad and some are happy. The most powerful thing in the world is not the atomic bomb, but compound interest plus time.
Not everyone can be a firm long-termist, but at least you have to understand that all the results are caused by yourself, and you have to bear the consequences, whether you make a profit or a loss.
