Core Viewpoint - The investment philosophy of Yu Long emphasizes a "hold to maturity" approach akin to bond investing, focusing on patience and value realization over time, contrasting with the prevalent trend of chasing market fads and short-term gains [1][3][4]. Investment Strategy - Yu Long's strategy is characterized by simplicity and a contrarian nature, relying on a long-term internal rate of return as the sole investment decision metric [3][4]. - The sources of investment returns are categorized into three areas: value distribution (dividends and buybacks), value creation through reinvestment, and value discovery from market mispricing [3][4]. - The target internal return rate for the investment portfolio is aimed to be above 15%, allowing for price fluctuations without concern as long as the quality companies are purchased at low prices [3][4]. Stock Selection Criteria - The selection criteria prioritize both "cheap" and "high-quality" companies, with a preference for leading and state-owned enterprises due to their stable dividend capabilities and capital returns [3][4][6]. - Yu Long typically maintains a concentrated portfolio of around 10 stocks, believing that fewer holdings can effectively control risk and enhance returns [6][7]. - The focus is on companies with strong competitive advantages, growth potential, safety margins, risk pricing, sound governance, and transparency [7][9]. Market Approach - The investment approach is fundamentally bottom-up, avoiding reliance on macroeconomic trends or industry rotations, and instead focusing on individual stock valuation [6][7]. - Yu Long seeks opportunities in underappreciated sectors, where companies may be undervalued despite having solid fundamentals [7][9]. - The strategy involves buying when market sentiment is low, capitalizing on the fear and panic of others to acquire undervalued assets [9][10]. Long-Term Holding Philosophy - The holding period for investments is generally long, with a low turnover rate, reflecting a willingness to wait for value to materialize over time [7][10]. - The philosophy underscores that true investment success comes from maintaining a rational approach and resisting the urge for immediate gratification [4][10].

Core Viewpoint - The investment philosophy of Yu Long emphasizes a "hold until maturity" approach, akin to bond investing, focusing on patience and value realization over time [2][4]. Investment Strategy - Yu Long's strategy is simple yet contrarian, relying on a long-term internal rate of return as the sole investment decision metric, which requires patience and discipline to ignore market noise [4][5]. - Investment returns are categorized into three sources: value distribution (dividends and buybacks), value creation from reinvestment, and value discovery from market mispricing [4][5]. - The focus is on acquiring high-quality companies at low prices, aiming for an internal return rate of over 15%, regardless of short-term price fluctuations [4][5]. Stock Selection Criteria - The selection criteria prioritize both "cheap" and "high-quality" companies, favoring leading and state-owned enterprises for their stable dividend capabilities and capital returns [4][5]. - Yu Long typically maintains a concentrated portfolio of around 10 to 15 stocks, believing that fewer holdings reduce risk and enhance returns [7][8]. Research Focus - During company research, six key aspects are emphasized: competitive advantage (moat), growth potential, margin of safety, risk pricing, corporate governance, and transparency [8][10]. - The investment horizon is long, with a low turnover rate, as Yu Long is willing to wait for value to materialize, even if it takes years [8][10]. Market Approach - Yu Long adopts a bottom-up approach, avoiding macroeconomic predictions and focusing on individual stock selection, particularly in underappreciated sectors [7][10]. - The strategy involves buying undervalued stocks during market downturns, emphasizing the importance of understanding the intrinsic value of companies [10][11]. Risk Management - The concept of margin of safety is crucial, with investments made based on worst-case scenario valuations, ensuring that even in adverse conditions, the investment remains sound [11]. - The philosophy is to leverage common sense over emotional reactions, maintaining a disciplined approach to investing [11].

Group 1 - Woodside, Australia's largest LNG exporter, plans to sell 20%-30% of its stake in the Louisiana LNG project, which has a value of $17.5 billion, following the project's final approval [1][2] - The company aims to achieve a target investment capital of around 50% by selling its wholly-owned holding company in the project [1] - The project is expected to deliver its first gas by 2029 and generate $2 billion in annual net operating cash in the 2030s [2] Group 2 - Woodside has previously agreed to sell 40% of the project infrastructure company to investor Stonepeak, which will contribute $5.7 billion towards the expected capital costs [2] - The company's target for reducing its stake aligns with analysts' expectations, who believe that further divestment is crucial for mitigating project risks and validating project value [2] - Discussions with potential partners are ongoing, with increased interest from various parties following the project's approval [3][4]