Serving the World

Philosophy

We see ourselves businesses owners.

Buying stocks means buying businesses; buying businesses means buying the discounted future cash flows of those businesses.
Every stock has only one true buyer: the company itself. If a company continues to be profitable, it will repurchase all its shares over time. We have no need to worry about market fluctuations.
When purchasing stocks, the returns we expect stem from the company’s future dividends—not the spread from buying low and selling high. Even if profits from price arbitrage ultimately contribute to our earnings, this is never the purpose of our investment. Whether it’s business operations, share repurchases, or investing in new ventures, the essence is to enhance shareholders’ future dividends.

Investing is simple, yet not easy.

Forecasting a company’s future cash flows is an extremely challenging task. Therefore, we ensure we stay within our circle of competence and maintain an adequate margin of safety.
We also believe that what we choose not to do is more important than what we choose to do. Buying stocks is like buying a bond—the only difference is that the future rate of return on debt is predetermined, while the rate of return on equity must be determined by ourselves.

In times of crisis, what is needed is not courage, but cognition and rationality.

Buying gold at the price of straw requires no courage—you only need to confirm whether it is indeed gold.
Fuzzy right is better than precise wrong. Valuing a company is a rough estimate range, just like seeing a 150-kilogram fat person approaching: you know he is very fat without needing a scale.
The compound interest of money is only a lagging reflection of the compounding of cognition and actions. Investing is essentially the compounding and monetization of cognition.