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The issue of "idle funds" and "arbitrage" in investments - Secure and compliant withdrawal in cryptocurrency trading platforms
In the previous discussion about Moutai, I said, "Instead of blindly criticizing the unfairness of the world with lofty ideals,
it’s better to be down-to-earth and work hard.
" Many fellow investors don’t understand,
what’s the relationship between making money by “moving bricks” and investing.
In the world of investment,
besides finding good companies,
waiting for the right price,
buying with patience and holding,
there’s another point,
which is diligent “moving bricks” to make money.
Only by having a second income,
saving more bullets,
can you, during bear markets or big drops,
add positions,
continue to buy the companies you believe in,
and acquire more shares at a lower cost,
which is accumulating stock count.
Buffett in his early years was buying undervalued stocks,
while also roadshowing to raise more money to invest in funds and make profits.
Later, at Berkshire Hathaway,
he continued to use the massive float from GEICO and other insurance companies as his ongoing cash flow bullets,
constantly buying his favorite stocks when the market was undervalued (for example, during the 2008 financial crisis,
he had a large amount of cash to buy at lows),
truly crossing cycles,
and accumulating enormous investment wealth.
When I first started learning about investing,
I was still in entrepreneurship,
with a few hundred employees in my company,
after studying value investing for a while,
I thought I had just gotten started,
and was eager to do full-time investing,
so I planned to sell my company and switch to investing.
Fortunately, I met a mentor,
who advised me to keep the company,
and continue investing,
because having a steady stream of cash flow is one of the factors that keeps my mindset positive in the stock market.
Even true value investors,
often encounter black swan events and big drops when fully invested,
if they can’t raise new funds, they can only stay put and wait.
Conversely,
since my company operates well,
and continuously provides me with bullets,
I can maintain full positions normally,
and when the market offers golden opportunities,
jump in to add positions, pick up gold,
and accumulate stock count.
The reason I can get used to 10-bagger stocks,
besides deep understanding and research of industries and companies,
is also because my company’s revenue and dividends are important factors,
allowing me to have bullets to invest under pressure.
Investing in the stock market requires a premise,
which is that the money should ideally be idle funds,
what are idle funds?
Fellow investors can think of it as money that won’t be needed for 10 years,
this might discourage many full-time traders,
who need to withdraw large sums from the stock market annually for living expenses or major expenditures,
but in reality,
Buffett, Duan Yongping, and others have all lived this way,
if you treat the stock market as a casino, then it’s another story.
Regarding idle funds,
it’s a profound but potentially painful issue,
but these are questions every rational,
long-term earning, lifelong investor needs to face.
If you have a stable job and income,
congratulations,
your success rate is higher.
**$VTHO **$SAFE **$ZBCN **