What is volatility - Global cryptocurrency exchange platform compliance

The confidence to invest comes from a belief in the investment philosophy.

In today’s era of social media,

24/7 nonstop news,

current events,

social hotspots,

plus the secondary processing of the same event by various bloggers,

the information flow always floods over each of us in an overwhelming manner.

However,

we need to understand that,

most of the information you encounter is noise,

not signals.

For useful signals,

they are signals that can guide you to take the correct action.

If you can adhere to value investing with a long-term perspective on information,

then short-term market fluctuations may present opportunities rather than dangers.

Graham, the founder of value investing 1.0, said: Price fluctuations have only one important meaning — they create opportunities to buy wisely when prices fall sharply; and opportunities to sell wisely when prices rise sharply.

If investors panic or become overly worried due to unreasonable declines in the market value of their stocks,

then they are turning their fundamental advantages into fundamental disadvantages.

Therefore,

true investment wisdom lies in identifying value mismatches amid volatility,

maintaining rational discipline in emotionally flooded markets,

capturing high-quality assets that are mispriced during panic,

and being alert to the bursting of valuation bubbles during euphoria.

Every intense fluctuation

is a test of investment faith,

and an opportunity for wealth redistribution.

Only by traversing cycles

can one reap the compound benefits of time and value.

So,

calm your mind,

block out external noise,

return to the essence of investing,

buy stocks as buying companies,

for the sake of future substantial investment returns,

you must proactively accept the “risk” of market fluctuations,

within your circle of competence, understand the companies well enough,

cleverly utilize the volatility brought by Mr. Market,

buy low when the company’s market price is weak,

and sell high when the market is strong.

In 2013, Yuangping always bought Moutai when its PE was as low as 10 times,

including October 2025, when the PE was 20 times (I believe these two prices are the same,

see “Reanalyzing Guizhou Moutai from a PE perspective” for details),

when Buffett bought Coca-Cola in 1988,

it was about 12 times PE.

Mr. Market’s emotions are never rational,

but it is this irrationality that creates room for excess returns.

The key lies in whether you have the ability to recognize a company’s intrinsic value,

and the courage to act when the price is below that value.

Volatility itself is not risk,

not understanding a company’s value and following the tide blindly is the greatest risk.

True investors do not predict the market,

but act based on valuation,

being greedy when others are fearful,

placing bets within the bounds of common sense.

Time will ultimately reward those who see through volatility,

and stick to value.

Therefore,

if you buy a company,

and cannot accept its price dropping by 50%,

please do not hold it for even a minute.

Volatility is the price you pay in this market to earn investment returns.

And this price,

is precisely the necessary path to long-term compounding.

Only investors who truly understand a company’s value

can see market fluctuations as friends rather than enemies.

When prices deviate far from value,

opportunities quietly emerge.

What you need to do is not follow the trend,

but continuously recalibrate your understanding of the company,

and dare to take contrarian positions at extreme emotional points.

Every decline filters out those who lack faith in investing,

and only those who traverse cycles

deserve the gift of time,

and may stand out in long-term investment cultivation.

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