Core Viewpoint - The article emphasizes the importance of long-term investment in high-quality stocks and warns against the common mistake of selling winning stocks too early, advocating for a patient investment strategy that allows profits to grow over time [2][3][4]. Market Sentiment - Recent market sentiment has improved, with the Shanghai Composite Index reaching around 3700 points and daily trading volume increasing by over 50% compared to the low trading period in early April [1]. Investment Strategy - Investors often choose to cash out once their funds or stocks return to cost price, but for high-quality stocks with a safety margin, holding them long-term is more beneficial than frequent trading [2]. - The concept of "pulling out flowers and watering weeds" highlights the error of selling stocks that have appreciated simply because they have risen in price [3][4]. Historical Examples - Legendary fund manager Peter Lynch achieved a 20-fold return over 13 years, with an annualized return of 29.2%, illustrating the potential of long-term holding [3]. - Warren Buffett's success with stocks that others sold emphasizes the importance of holding onto winning stocks for maximum returns [3]. Investment Philosophy - Lynch argues that investing in stocks can yield significant returns with a low success rate, as long as investors understand the companies they invest in [4]. - The article suggests that investors should build a portfolio of companies they understand and trust, akin to creating an elite club, and avoid low-quality companies [7]. Diversification and Knowledge - Keynes advocated for investing in a few well-understood companies rather than diversifying too broadly, as this can lead to better investment outcomes [8]. - The article stresses that frequent trading often results in underperformance compared to a buy-and-hold strategy, as many investors fail to outperform market indices [8][9]. Fundamental Focus - The article concludes that successful investing hinges on understanding the fundamentals of the stocks held, and maintaining a belief in the long-term potential of those investments [9].