Student Question:
Master, I’ve been studying investing lately but can’t quite grasp its meaning. I keep chasing price swings — buying on the way up, selling on the way down. What should an ordinary investor really be focusing on?
Master Chi’s Response:
First, don’t fixate on buying cheap.
Buying shares in a mediocre company at a rock-bottom price is far less rewarding than buying shares in an excellent company at a reasonable price. Only excellent companies can deliver long-term, high-quality returns.
Second, when conditions turn against you, cut your losses without hesitation. Conversely, when fortune arrives, you must bet decisively and heavily.
Fortune means actively seeking out exceptional investment opportunities — and that requires patience beyond the ordinary. Waiting for a long time is genuinely difficult. But surviving the long wait is only the first step. Even if you do find that exceptional opportunity, whether you can hold onto it over time is another matter entirely.
Markets are shaped by a vast number of investors acting together. Short-term movements are unpredictable. If you want to hold forever, you must avoid investing with borrowed money — debt will make it nearly impossible to maintain your patience. For an investor, patience is not merely a mindset. It is a long-term strategy forged through rational planning.
Third, investment comes down to two things: value and growth. Value is the essence of investing; growth is the premium you invest for.
For the ordinary investor seeking sustained positive returns: don’t expect a salary to make you wealthy. Put value first — only companies or individuals that genuinely create value have any chance of surviving in competition. And finally, learn to correctly understand the patience that lies behind growth — and the true meaning that patient holding acquires through the actual practice of investing.