Today, I’ll share a small portion of my personal investment knowledge that has helped me become a competitive player in the financial investment industry.

1. Stick to High-Value Investments and Choose Evergreen Industries.

Take the S&P 500 as an example—use the top 2% of companies by market capitalization as a filtering criterion. This way, you automatically eliminate over 98% of low-quality companies. Next, within this top 2%, select companies from industries that have proven to be long-lasting, such as tobacco, insurance, and consumer goods. Within each industry, pick the top three companies by market cap.

2. Prioritize Companies with Strong Dividend Policies.

3. Avoid investing in a single stock. Allow for the possibility of making mistakes and mitigate risk through dollar-cost averaging. Learn to offset losses with gains. For instance, if you have a capital of $1,000, divide it into 10 equal portions of $100 each. Invest each portion in a different stock. Even if three of these stocks decline by 10%, your total loss would only be $30. By using your profits to offset your losses, I believe this approach is more effective than continuously buying a declining stock. Diversification not only minimizes risk but also increases your trading frequency, allowing you to sharpen your investment decision-making skills through real market experience.

That’s all for today. I’ll share more insights in the future.