---Many people believe that value investing simply means holding excellent companies for the long term.
But after entering the stock market, I've come to realize that true value investing doesn't just change investment outcomes—it also transforms a person's emotions, mindset, and decision-making ability.
What truly distinguishes mature investors isn't short-term returns, but whether they have built an investment system capable of enduring bull and bear markets and consistently executing over time.
If the market can easily disrupt your emotional state, it means your understanding is not yet strong enough to support your investments.---
Why do investors exhibit such vastly different states?
A few days ago, I met two friends.
Both have spent many years in the stock market, yet they displayed completely different attitudes.
One friend immediately began complaining whenever we discussed the stock market.
He said, "This company has such strong earnings—should have seen at least three consecutive days of gains—but it only rose one day and then stopped. The market is just not normal."
His emotions constantly fluctuated with market movements.
The other friend was entirely different.
He said that the government is now encouraging capital market development—an opportunity worth cherishing.
He didn't discuss daily price increases or which stocks would double.
Instead, he talked most about his own portfolio of over ten carefully selected stocks.
How he researches industries, analyzes companies, and screens potential investments.
When opportunities arise, he gradually builds positions; when reaching predetermined targets, he slowly exits.
Throughout the entire process, he strictly follows his own investment discipline.
His account performance is solid.
But what truly impressed me wasn't his returns.
It was his state of mind: optimistic, proactive, calm and composed.
This naturally made me think of the YouTube vlogger "Lao Li Plays Money". Their investment style is quite similar to...
At that moment, I suddenly realized:
An investor's mindset often reveals more about their level of investment maturity than their actual returns.
I've finally come to understand what true value investing really means.
In the past, I always thought that value investing simply meant holding an excellent company for the long term.
Later, I realized that was just the outcome.
True value investing gradually transforms a person's way of thinking.
- When you truly understand a company's business model，
- its industry's development trends,
- why it makes money,
- and its competitive advantages and moat,
your attitude toward stock prices will change.
You'll feel happy when prices rise,
but won't panic when they fall.
Because you know:
prices fluctuate every day.
What truly determines long-term returns is a company's ability to create value—not the daily ups and downs of its stock price.
I increasingly believe:
the true value investor isn't the one who predicts most accurately, but the one whose emotions remain the most stable.
Why is emotional stability more important than return on investment?
This year, the semiconductor and optical module sectors have surged dramatically.
Many investors greet each other with the same question:
"How much did you make this year?"
"What's your return rate?"
But I'm increasingly tired of this question.
Because making money this year doesn't necessarily mean your investing ability has improved.
You might simply be riding a winning trend.
The real question we should ask is:
If the market enters a correction next year, can you still maintain your current mindset?
Markets change every day.
What truly determines investment outcomes isn't the market itself, but how investors respond to it.
In the same market conditions,
some people panic,
others get excited,
while some simply stick to their plans.
Ultimately, what separates one person from another isn't market conditions—
it's congnition.
When you master this, you gain not just returns,
but growth.
I finally understand why Buffett remains so calm.
Previously, I always thought Buffett was naturally a calm person.
Later, I realized that wasn't the case.
His composure isn't about personality.
It's about understanding.
Because he knows why he buys.
He understands why a company earns money.
He grasps the logic behind future growth.
That's why he doesn't question his judgment over a single day's market fluctuation.
What truly brings stability to a person is never stock price.
It's understanding.
This is also why he said:
"If you can't hold a stock for ten years, don't hold it for even ten minutes."
Before, I understood "ten years" literally.
Now, I understand it as "confidence."
And confidence has never been blind optimism.
It comes from deep, long-term research and a true understanding of a company's value.
In the end, investing is about who grows faster.
I've come to realize this more and more.
The market is actually a mirror.
Some people enter the market for years,
yet every day they complain about the market,
about market manipulators,
about policies.
After several years,
their way of thinking has hardly changed.
Others, after entering the market,
begin studying industries,
analyzing companies,
reading financial reports,
building their own investment framework,
and continuously refining their understanding.
They strictly follow their discipline.
Gradually,
their emotions become calmer,
and their circle of competence expands.
I myself am no different.
Once, I would feel anxious all day over a single drawdown,
or constantly doubt my judgment while chasing hot trends.
Only later did I start dedicating more time to researching companies, understanding industries, and improving my investment framework.
Then I realized that what truly changed me wasn't my account balance—
it was my mindset.
The account is just the result.
Growth is the real reward.
In closing
I finally understand.
True value investing isn't about buying an outstanding company.
It's about gradually becoming a better investor through the continuous process of investing in businesses.
Before, I always thought that returns determined one's investment skill.
Now, I prefer to observe a person's state of mind.
Because someone's gains might come from market conditions,
but their inner calm always stems from personal growth.
A truly mature investor is not one whose account makes profits every day.
Rather, regardless of whether the account makes a profit or incurs a loss, they will never lose their rationality.
Because they don't believe in the market—
they believe in their own investment framework.
- A system brings discipline.
- Discipline brings stability.
- Stability shapes mindset.
And only a sound mindset ultimately leads to long-term returns.
Therefore,
returns are actually the final link.
When a person stops obsessing over stock prices each day and instead begins refining their investment system,
what he is truly investing in is no longer stocks,
but himself in the coming decades.
