Jeremy Lai’s Message

Many investors have heard the saying: “A stock’s long-term performance depends on a company’s long-term results,” and the statement itself isn’t wrong. If a company can continuously increase its profits, the stock price will naturally rise. However, holding a stock long-term requires accurately predicting the company’s future development—and that is not an easy task.

Evaluating a company’s prospects involves numerous factors: industry cycles, management quality, policy changes, capital costs, competitive landscape… a variable change in any one of these is enough to shift the long-term trend. By comparison, learning technical analysis and grasping market rhythm is a more practical and repeatable skill.

This is less of a concern if you hold major blue-chip stocks, as their earnings visibility is relatively high and volatility is lower. But here’s the problem—the average annual return for blue chips is only about 10%. For investors with smaller principal, this return means relying solely on time to achieve results, waiting ten or twenty years to see the true effect of compounding.

My own investment philosophy is simple: the goal is to generate stable cash flow monthly, or even daily, rather than waiting for “future assets” that ripen a decade later. Opportunities exist every day in the market. As long as you know how to seize the rhythm, control risk, and set reasonable targets, you can achieve consistent short-term appreciation.

Long-term investing isn’t wrong; it just isn’t suitable for everyone. Choosing an investment strategy that fits your personality and goals is the true path to sustained success.