Sou Hu Cai Jing·2025-11-15 04:10Core Insights - The core message emphasizes that investing in stocks is fundamentally about understanding the underlying companies, with a significant majority of retail investors failing to achieve profitability in both bull and bear markets [1][3][9] Investment Philosophy - The principle of "buying stocks means buying companies" is highlighted, with only about 1% of investors truly grasping this concept [3][4] - Understanding a company's business model and future cash flows is crucial, and the notion of "margin of safety" relates more to comprehension than price [3][5] - Segmenting investments into a few well-understood companies is preferred over diversifying into many unknowns [9][12] Core Holdings - The investor's primary holdings include Apple, Tencent, and Kweichow Moutai, chosen for their strong corporate culture and clear business models [4][5] - The investment in Apple was based on its transition from a hardware company to a comprehensive platform [6] - Kweichow Moutai is viewed as distinct from other liquor brands due to its unique flavor and cultural significance [7] Market Outlook - Caution is expressed regarding the electric vehicle industry, with a prediction that many current players will not survive due to minimal differentiation [7] - The investor acknowledges a past mistake in selling Tesla shares but cites personal values as a reason for not investing further in the company [7] Advice for Investors - A straightforward recommendation is made for those unfamiliar with investing: avoid participation [9] - The importance of understanding opportunity costs in investment decisions is stressed, along with the notion that long-term holding should not preclude selling when necessary [12][13] - Investors are advised to be prepared for significant price fluctuations, suggesting that if one cannot withstand a 50% drop, they should not invest in that stock [13]