The book that had a profound impact on my investment (2)

The books of Buffett and Rogers are the books that completely reversed my investment method and my views on the investment world. These two books established the basic framework and way of thinking of my subsequent investment.

After that, I also read "Cycle" by Howard Marx of Oaktree Capital. This book emphasizes that if a valuable and potential investment product falls in the cycle of market decline, we should not only not be afraid of the fear atmosphere in the market, but also boldly embrace it. This is the same as Buffett's philosophy of "be fearful when the public is greedy, and greedy when the public is fearful".

It's easy to understand the idea, but it takes a lot of courage and discipline to put it into practice. My first practice was to try fixed investment in the bear market of A shares. That feeling is like a year, watching the stocks I invest in fall every day, and I have to grit my teeth and force myself to buy at the time of the scheduled investment. This is to some extent distorting my human nature.

But the good thing is that as long as you have experienced this kind of experience once and succeeded once, and try again for the second time, the psychological burden will be much lighter, and you will even be more confident later.

Later, I read Zhang Lei's "Value" that left a deep impression on me last year. But frankly speaking, that book did not change me too much, but strengthened my thinking and understanding of digital currency investment, because I found that many of my practices were based on Zhang Lei's.

These are the books on investing that I have read and are deeply impressed by.But I think there is another book that has a more profound impact on me, affecting my macro judgment and thinking about investment, and that is "Selected Works of Mao Zedong".

Regarding Mao Zedong, my opinion has undergone several major changes. Before the last change, I reviewed my cognitive process of Bitcoin and realized that I need to understand a thing, a person, and any other people’s comments and statements I am afraid that there is no white paper on this matter, and this person's writings are more convincing.

Therefore, I decided to read Selected Works of Mao, which consisted of four volumes. With that thick book in hand, I stipulated that I would read it through and finish it anyway, but I didn’t expect that I read it twice in a row.

There are many articles in the whole book "Selected Works of Mao" that impressed me the most, and the one I admire the most is Mao Zedong's book "On Protracted War" published in 1938.

The Marco Polo Bridge Incident occurred on July 7, 1937, and China entered into a full-scale war of resistance. When the strength of China and Japan was so disparate and the Japanese army was invincible, the domestic media almost fell to the ground and believed that the outcome of the War of Resistance was pessimistic.

Under such circumstances, Mao Zedong was able to publish "On Protracted War" and asserted that the final result of the War of Resistance would be China's victory, but the process was expensive and took a long time. This requires not only great courage, but also a high degree of macroscopic insight that penetrates time and space and a grasp of major trends.

Mao Zedong's assertion was finally confirmed seven years after he published the article.

How to make a macro judgment on a trend spanning seven years, without being blinded by the trivial details of the moment? Mao Zedong has a detailed analysis in "On Protracted War". He made a detailed analysis of the basic comparison of the forces between the enemy and ourselves, the fundamental characteristics of the two sides of the contradiction, the conversion factors of the two sides of the contradiction, and the influence of the international trend on the civil war.

This method of analysis can also be used to analyze various phenomena and trends in the investment world today.

Looking at the Chinese stock market from such a perspective, with the vitality and potential of the Chinese economy, it is impossible for the Shanghai Composite Index to stay at more than 3,000 points all the time. Then why do we still feel anxious about the short-term market decline?

This is like Japan winning almost all of the battles during the entire 8 years of the Anti-Japanese War, but what does it matter? Because the victories of these battles did not change the fundamentals of the contradiction at all, and could not hinder the conversion of the two sides of the contradiction at all, and could not change the outcome of China's inevitable victory. Therefore, during the eight years of the Anti-Japanese War, Mao Zedong never felt pessimistic when the Japanese army won a big victory, and he never changed his view.

Looking at the field of digital currency investment from such a perspective, it is simply more magnificent than any other field, and it is extremely optimistic. So why should we be afraid of falling? Fear of a bear market?

During our Anti-Japanese War, Nanjing, the capital of the country, fell, and such a big blow did not change the outcome of China's inevitable victory.

So Mao Xuan has improved my understanding and views on investment in a fundamental dimension.

If investment is also divided into tactics and strategy, then the books I read earlier changed my approach in tactics, and "Selected Works of Mao" changed my approach in strategy.