A reader left a message asking: "When you come up with something new, what factors do you generally consider?" I also bought Duan Yongping's investment Q&A and think it's great. NFTs also fall into the realm of culture and communication. Are there any books you can recommend?
If something new comes up, I first check whether I’m interested in it. If not, I won’t pay too much attention to it. Only if I’m interested will I invest my energy in it.
This is why I emphasized again in my article the day before yesterday that every investor must find an area they are interested in. Only by finding your own interests will you have the initiative to delve into them and discover your own opportunities.
Because everyone has different backgrounds, resources, and experiences, their areas of interest vary greatly. What matters is which one is right for you.
I wrote about my NFT investment experience: when I discovered the NFT trend, many KOLs in the Chinese language community were still obsessed with DeFi mining. My interest in DeFi was clearly less than my interest in NFTs, so I quickly turned to NFTs. However, many of those investors have reaped extremely lucrative incomes from mining. They seized the DeFi opportunity, and I encountered the NFT opportunity. It's a win-win for both sides.
As the crypto ecosystem grows ever more complex, I believe it will spawn even more niche areas. No single person can master and understand them all. Therefore, I believe it's increasingly important to find your own passion as time goes on. One person doesn't need to, and can't, seize every opportunity; it's enough to seize one or two that you're proficient in.
In addition, if there are multiple areas of interest, you can further try to think about which of these areas has relatively broader prospects and greater potential, and strive to find the area with the most potential.
For example, in this round of market, I am most optimistic about AI + Crypto. I believe that the combination of these two fields will create amazing sparks, so my main focus last year and this year was basically on this sub-field.
However, no matter which field you explore, it consumes considerable time, energy, and financial resources, and there's a high probability that all of these explorations will fail—this is the inherently huge risk inherent in cutting-edge exploration. So, a final word of advice: before exploring new areas, be sure to have your ballast in place: Bitcoin + Ethereum; this is your most important safety net.
Duan Yongping's investment Q&A and other related books (such as Buffett and Munger's books) are all very good books, but a lot of the content in the books will be felt differently by readers due to their different experiences, resulting in different gains.
At least for me, if I hadn't made a ton of mistakes early on, I wouldn't have been able to resonate with the content in these books. So, I think these books are worth reading and revisiting frequently. The more experiences you have, the more you'll resonate with them.
In yesterday's article, I quoted Duan Yongping's opinion on Buffett's reduction of his holdings in Apple. Recently, Duan Yongping also made another witty remark that has been widely quoted online:
Duan Yongping said: What’s so good about Apple’s financial report?
This witticism was used by many people to comment on the second-quarter financial reports of Moutai and Tencent.
When I saw this sentence, a similar thought immediately came to my mind: What’s so good about Bitcoin and Ethereum?
Afterwards, I thought about it and realized that if I hadn’t had these years of experience in the crypto ecosystem and my study of Bitcoin and Ethereum, I would never have had such an idea.
Therefore, it is very important to boldly make various attempts in the investment field after configuring a safety cushion.
Without enough experience, even if you see valuable advice, you will not be able to accept it and see the essence of it.
There don't seem to be many books on NFTs on the market, at least I haven't read any books specifically about NFTs. I think a better way might be to read more and learn more online.
