A Steady Heart

Feng Jun believed he had a fairly practical understanding of the risks of the stock market—though most people probably thought the same when they first entered it.

Still, he did not make any rash moves. Instead, he selected four stocks he had long been optimistic about and analyzed them again.

After nearly half an hour of analysis, he had all sorts of fundamentals and data clearly in mind.

As a relatively conservative investor, Feng Jun favored left-side trading. In other words, rather than chasing rising prices, he would assess a stock and assign it a relatively reasonable valuation, then consider buying when its price fell below that value.

As a result, the stocks he bought might not show any outstanding performance for a while. However, he did not think that mattered. Holding stocks over the medium to long term was his investment philosophy.

As long as he bought at a sufficiently low price, he did not mind short-term fluctuations. If it did not rise this month, it could rise next month. If it did not rise this year, he could wait until next year, or even the year after.

Moreover, dividends and financing were extremely important considerations when he picked stocks. Even if a stock ended up stuck in his hands, he could collect dividends every year. As long as the dividends outperformed bank wealth-management products, he felt that holding it for three to five years would not be a problem.

Of course, those ideas only held true in theory. No matter how sound a stock's fundamentals were or how favorable its dividend and financing conditions might be, no one could guarantee it would thrive forever. Otherwise, there would be no such term as a "black swan."

Life was already full of unexpected events. No investment could guarantee one hundred