A reader left a message asking: If something new comes along, what factors do you generally consider? I also bought Duan Yongping's investment Q&A and found it very good. NFTs also belong to culture and communication; what books can you recommend?
If something new comes along, my first consideration is whether I am interested in it. If not, I won't pay too much attention; if I am interested, I will invest my energy.
In the article I wrote the day before yesterday, I reiterated that every investor must find an area of interest, and that's the reasoning behind it. Only by finding one's own interest will there be a proactive desire to study and discover one's own opportunities.
Everyone has different backgrounds, resources, and experiences, leading to a vast array of fields of interest. What matters is which one suits oneself.
In my NFT investment experience, I wrote that when I noticed the trend of NFTs, many KOLs in the Chinese field were still engrossed in DeFi mining. My interest in DeFi was clearly not as strong as in NFTs, so I quickly turned to NFTs. However, many players from that batch made substantial income from mining. They seized the opportunity in DeFi, while I had luck with NFTs, and everyone found their own path.
As the crypto ecosystem becomes increasingly complex, I believe the number of niche areas that arise from it will continue to grow. No one person can understand and master all these fields. Therefore, I think it becomes increasingly important to find your points of interest as time goes on. A person does not need to, nor can they, grasp every opportunity; seizing one or two opportunities they excel in is sufficient.
Additionally, if there are multiple areas of interest, one can further consider which of these areas has relatively broader prospects and greater potential to find the most promising field.
For example, in this market cycle, I am most optimistic about AI + Crypto. I believe the combination of these two fields will spark amazing innovations, so my main focus last year and this year has been on this niche area.
However, regardless of the field explored, it will consume considerable time, energy, and financial resources, and these explorations may very likely all fail—this is the inherent risk involved in frontier exploration. So I would like to remind everyone once more: before exploring new fields, be sure to set up your ballast: Bitcoin + Ethereum, which is the most important safety cushion.
Duan Yongping's investment Q&A and other related books (such as those by Buffett and Munger) are excellent, but many contents in the books may resonate differently with readers depending on their experiences, leading to different takeaways.
At least for me, if I hadn't made a lot of mistakes early on, I wouldn't resonate with the content in the books. So I think these books are worth revisiting frequently in the future. The more experiences one has, the more one feels when reading.
In yesterday's article, I quoted Duan Yongping's views on Buffett reducing his stake in Apple. Recently, Duan Yongping also shared another witty remark that has been quoted by many online:
Duan Yongping said: What's so interesting about Apple's financial report?
This witty remark has been used by many to comment on the second-quarter financial reports of Maotai and Tencent.
When I saw this sentence, a similar thought immediately popped into my mind: What's so interesting about Bitcoin and Ethereum?
In hindsight, I thought that without these years of experience in the crypto ecosystem and my learning about Bitcoin and Ethereum, I could not have such thoughts.
Therefore, after setting up a safety cushion, it is also very important to boldly try various investments.
Lack of experience means that even if one encounters golden advice, they may not be able to appreciate it or see its essence.
Regarding NFTs, it seems there aren't many related books on the market; at least I haven't read any book dedicated to NFTs. I think a better approach might be to read more online, engage more, and learn more.