Duan Yongping's top 10 fatal investment mistakes, 90% of retail investors are dying in the fifth one, have you been hit? The secret to success is not doing something right, But rather giving up on something and not doing anything. The following are ten basic warnings from Teacher Duan: 🔺 1. Don't do it if you don't understand: "Investment is simple, but it's never easy. 'Simple' means the principle is simple, just don't do it if you don't understand." "Buying stocks is buying a company, buying a company is buying its discounted future free cash flow Duan Yongping emphasized that when investing and operating a company, it must be done within the scope of one's own understanding, and anything that one does not understand must be resolutely avoided. 🔺 2. Do not speculate: "Speculation invests in zero sum games, investment invests in profits brought by enterprises." "Investment should be based on long-term value, not short-term market fluctuations." (repeatedly emphasized) He opposes speculative behavior and believes that investment should be based on long-term value rather than short-term market fluctuations. 🔺 3. Don't borrow money to invest: "It's best not to borrow money to buy stocks, you will understand after a long time." "Our company doesn't even need bank loans to operate, and the results will come out after decades Duan Yongping suggests not borrowing money for investment to avoid financial risks caused by market fluctuations. 🔺 4. Do not short: "Short selling carries extremely high risks and does not conform to the value investment philosophy." Just avoid companies you don't like, and never go short, because if you make a mistake once, it will make you feel uncomfortable for a long time or even a lifetime, especially for those who are already wealthy. No one wants to become rich twice. He opposes short selling, believing that it carries extremely high risks and does not conform to the concept of value investing. 🔺 5. Non frequent trading: "Long term holding is the core, frequent trading increases costs and deviates from the essence of value." "Investing is like getting married, requiring long-term trust rather than being fickle He advocates long-term holding and opposes frequent trading, believing that frequent trading will increase transaction costs and reduce investment returns. 🔺 6. Don't expand your ability circle and take risks: "Investment should stick to your ability circle and never get involved in things beyond your cognitive scope." "The essence of the margin of safety is the recognition of the boundaries of your ability circle He suggested not to easily venture outside of one's own ability circle, emphasizing investing and managing within one's own ability circle. 🔺 7. Making money without taking advantage of others is one's duty. To achieve a win-win situation, one must first not take advantage of others. Making money that should not be earned will harm the future, only by taking advantage of others can one sleep well Duan Yongping believes that making money that should not be earned is not fulfilling one's duties, and emphasizes the need to maintain one's duties in business activities. 🔺 8. Do not ignore corporate culture: "Corporate culture is the core of the moat, and companies without culture are difficult to sustain." "When choosing a company, first consider the culture and business model, and companies that do not identify with culture are directly excluded He emphasized the importance of corporate culture, believing that companies without a good corporate culture are unlikely to have sustainable competitiveness. 🔺 9. Don't ignore the safety margin: "The safety margin is a reflection of the ability circle and requires a clear judgment of the future cash flow of the enterprise." "Before buying stocks, it is necessary to evaluate them from a ten-year perspective, and short-term price fluctuations are not important Duan Yongping believes that there should be sufficient safety margins when investing to cope with future uncertainties. 🔺 10. Do not blindly innovate: "Innovation should be carried out under the premise of user orientation, rather than being different for different reasons." "Differentiation is something that users need but others cannot meet, and blind innovation can easily deviate from its essence Duan Yongping emphasized that innovation should be carried out under the premise of user orientation, rather than being different for different reasons. Blind innovation is dangerous. Revelation of the Coin Circle: Brothers, especially Article 5. In the cryptocurrency industry, or rather in the past, there are too many opportunities on blockchain, and it seems that every opportunity can make a lot of money, and every opportunity should not be missed (the same goes for the stock market). So often it's like a bear breaking corn, some of them haven't even warmed up yet, they start chasing the next hot spot, and finally calculate, it seems like they have participated in every opportunity, but in reality, they haven't made much money, and even including transaction costs, they still lose money. Buffett once said to invest with a mindset of only "punching 20 holes" in his lifetime, and emphasized that if the 10 best decisions are eliminated, Berkshire Hathaway is a joke. When running a business, Duan Yongping also adheres to the principle of not making products too complicated, "Apple can solve problems with one product. At that time, Nokia produced about 50 models a year, how could there be no reason for it to not die?! In terms of investment, the stocks that have been heavily invested in over the past twenty years are those few. Whether it's running your own business, learning certain skills, or investing to make money, always cherish the resources you have, focus on understanding things, and obtain excess returns through compounding over time. If you admit that you are not a first-class "born knowing person", then you should pursue the "no wrong" in life. Many objective factors can make people know that they are right but cannot do it, so at least if they know it is wrong, they should not do it. Encouragement together!