[Investment Philosophy (5)] - Real Investment

The key to successful investment lies in optimism, creativity and imagination about investment targets and markets, rather than in calculation ability and rigid technical analysis.

When you use iPhone Siri to compose an email, (I am using it) what impact will it have on our investment? Think about how much impact iPhone Siri will have on future business models. iPhone Siri's voice recognition is information sent back to the cloud for computing. The accuracy has been improved to the point where users are satisfied. This is very different from the voice recognition in the past. How to imagine future business models and applications is an important factor in investment success.

Therefore, the success of enterprises and investment lies in imagination rather than technology and computing power. The success of a business lies in the cash flow created by creativity and the ability to solve user problems and needs, and successful investors can see the future business model from it, imagine its impact on the company, and invest in the companies with the most potential.

Simply put, the profit of a company depends on the growth of cash flow and profitability while providing solutions for users, while the success of investors lies in recognizing the potential and future development of its business model and investing early to make long-term profits.

So as an investor, when you use Apple products, when you use Google Search engine, when you drink coffee at Starbucks, when you place an order for shopping on Amazon, your feelings and imagination determine the success of your investment.

I hope our investors will use their imagination more and less computers.

Date of writing: June 24, 2016