If you don't understand it, don't touch it
Duan Yongping has a principle in investing:
He only buys companies that he can understand.
He understands NetEase because he has worked on game consoles;
He understands Apple because he has worked on mobile phones;
He understands Moutai because all his friends love to drink it.
Someone asked him, what do you think of Bitcoin?
He said:
I don't understand it, I don't touch it.
Someone asked him about various trends.
He said:
I can't understand it, I don't invest.
People like him seem like "outliers" today, right?
What is our habit now?
We chase whatever is popular, afraid of missing any opportunity.
But Duan Yongping said:
"Missing is not a loss, making a mistake is."
You don't need to seize every opportunity.
You only need to grab a few that you can understand well enough!
