In-depth analysis, capital security, and appropriate returns. Who are the "intelligent investors"? Graham defines them as "those who make in-depth analysis, ensure the security of capital, and obtain appropriate returns." Otherwise, those who do not meet the conditions are all speculative.

Among them, there are three levels of definition: in-depth analysis, capital security, and appropriate returns.

——In-depth analysis: Investors should conduct in-depth research and analysis to understand the fundamentals, industry trends, competitive environment and other key factors of the investment projects. This includes evaluating the company's financial situation, the ability and reputation of the management team. Only through sufficient analysis can investors better understand the value and potential risks of the project and make wise investment decisions. ——Principal safety: Investors should put the safety of principal first. This means paying attention to controlling investment risks and avoiding concentrating all funds on a certain project or asset. Investors can protect the safety of principal by diversifying their investments, adopting risk management strategies and regularly evaluating their investment portfolios. Maintaining a moderate risk tolerance and reasonable asset allocation are also important factors in ensuring the safety of principal. ——Appropriate returns: Investors need to seek appropriate returns, that is, strive to obtain a reasonable return on investment under the premise of taking certain risks. The definition of appropriate returns varies from person to person and depends on factors such as the investor's risk preference, investment goals and time period. Investors should set reasonable expected returns based on their own circumstances and goals, and choose investment opportunities that meet the expected returns.

1. In-depth analysis

Both Buffett and Duan Yongping’s views emphasize the principles that investors should follow in their investment decisions. They believe that investors should focus on areas or industries that they understand and only invest in projects that they can understand. This strategy can help them avoid investing in projects that they do not understand or are not clear about, thereby reducing investment risks. In investment, it is crucial to understand and know the value of a project. If a project cannot explain its advantages and value in simple and easy-to-understand language, it may be because the investor himself does not know enough about the project, or the project itself does not have enough investment value. This view emphasizes the importance of in-depth research and understanding of investment projects. Buffett missed some successful investment opportunities in the early stage, but he still became a successful investor because he adhered to his investment principles and made wise investment decisions in areas that he understood. Duan Yongping also achieved success by insisting on not investing in things he did not understand. In general, these four words "Don't invest if you don't understand" remind investors to be cautious and focus on areas that they understand. Investors should avoid blindly pursuing short-term gains, but should make wise investment decisions through in-depth research and understanding. Such a strategy can help investors reduce risks and improve long-term investment returns.

For example: When Bitcoin was first being promoted, there were some concepts including limited total amount, digital gold, and fighting inflation. Perhaps some of these concepts were not so accurate, but they have been deeply rooted in people's minds.

Ask yourself: Can you explain in three sentences what you think of a coin you want to invest in, and gain widespread recognition now or in the future?

2. Independent thinking

In the field of investment, it is very important to start from practice and maintain independent thinking. Indeed, investors should not be superstitious about anyone or any theory, including Buffett. Everyone has his own investment style and views, so investment decisions should be based on his own independent judgment. Buffett's views on Bitcoin may be limited by his personal background and understanding. He admitted that he did not understand Bitcoin, and his evaluation of digital currency may be biased due to age and technical limitations. Therefore, when evaluating Bitcoin or other assets, investors should make decisions based on their own research and understanding, rather than relying entirely on the opinions of others. The importance of in-depth analysis and independent thinking is also worth emphasizing. Investors should conduct sufficient research and understand the characteristics, potential risks and prospects of investment projects in order to make wise investment decisions. At the same time, maintaining independent thinking means not blindly following market hotspots or the advice of others, but making decisions based on your own judgment and understanding. Regarding the market value of Bitcoin, you mentioned that the current market value is about 380 billion US dollars. It is true that the market value of Bitcoin is still small relative to other asset classes in the world. However, the size of the market value does not represent the value or potential of the asset. Investors should evaluate the investment value of Bitcoin based on their understanding of Bitcoin and its technology, market and risks, and make decisions based on their own investment objectives and risk tolerance.

In the field of investment, there are indeed some disputes and different views on the distinction between investment and speculation. Generally speaking, the following aspects can help us understand the difference between the two: ——Investment is based on in-depth analysis: Investment is based on in-depth research and analysis, and a comprehensive assessment of the investment object, including understanding its fundamentals, competitive advantages, market prospects, etc. Investors seek long-term appreciation and returns through research and understanding of the project. ——Investment focuses on principal security and appropriate returns: Investors focus on protecting the principal and reduce risks through moderate diversification, risk management and reasonable asset allocation. At the same time, they seek appropriate returns and pursue long-term stable growth based on their own risk tolerance and investment goals. ——Speculation focuses on short-term profits and market fluctuations: Speculation is a transaction based on short-term profits and market fluctuations, and often relies on short-term price changes to make profits. Speculation is often risky and lacks in-depth research on fundamentals and long-term investment considerations. However, it should be pointed out that the boundary between investment and speculation is not always clear and may sometimes be blurred. Some investors may engage in short-term speculative transactions at certain times, while some speculators may also invest based on in-depth analysis at certain times. Therefore, there is no absolutely accurate definition for the distinction between investment and speculation, and their boundaries often depend on personal wishes and behaviors.

3. Beware of speculation

It is very important for investors to distinguish between investment and speculation, because speculation is usually accompanied by higher risks and potential huge losses. When investors do not clearly understand this, they may continue to engage in dangerous speculation and suffer heavy losses in the financial field, while failing to learn from experience and grow. However, we must also recognize that in actual investment, many investment products have some speculative attributes to a certain extent. This is not a moral issue, but a reflection of the actual market situation. Speculation is not necessarily completely avoided, but investors should be aware of its risks and be financially and psychologically prepared.

Beware of three types of hidden speculation:

One is that you think you are investing, but in fact you are speculating.

Is there in-depth analysis? Is the principal safe? Is there a chance to get a decent return?

As the saying goes, "If you don't understand, don't invest." Buffett is an investor. He doesn't understand Bitcoin, so he doesn't invest. This is the practice of his life philosophy. Similarly, you understand Bitcoin and are optimistic about the future of blockchain, but if you don't do a thorough research on a coin you invest in, and only decide to enter the market based on some so-called favorable factors, then the final result will be the same as all speculative results: you will suffer heavy losses in the end.

Second, they do not have sufficient knowledge and level to treat speculation as a serious matter rather than a pastime.

From a conservative perspective, all leveraged transactions are speculation, and most people who rush into hot new projects are also speculators. There are many fun things in this kind of thing, including using a certain message in contract trading to "easily" make tens of thousands of dollars with a 10x leverage, so that some people jokingly say that making money is as easy as breathing; including a surge of dozens of times in a new coin in one day, etc.

But as a smart investor, please remember at all times that if you participate in these activities, you must treat them as an entertainment, a pastime, control your positions, and participate with a zero-sum mentality.

Trust the judgment of the masters, and don't trust any teacher who leads contracts, or any expert in playing with local dogs or new coins. Don't pay group fees, and don't try to achieve financial freedom in this way. It is absolutely impossible, and the faster the money comes in the early stage, the greater the damage to your investment system.

Therefore, if you want to try this kind of fun, you might as well use a separate speculative account and take out a little money. Please remember one thing: never increase your investment due to market growth and profit surge. You should leave or at least withdraw the principal to your investment account.

The third is to invest heavily and work hard, and once a loss occurs, you will not be able to bear it.

As mentioned before, any investment behavior may inevitably contain more or less speculative factors and may result in losses. Even Buffett has a lot of losses in his life. If he loses a lot of money in any loss, he may never be able to recover.

Readers are advised to be especially vigilant. The cryptocurrency market has experienced huge ups and downs, and myths of getting rich overnight are everywhere. We need to stay alert and never invest heavily at any time. The more opportunities there are, the more traps there are.