Investment is a 'mirror world' where luck often outweighs skill. To invest successfully:
- Capital vs. Funds: Funds only become capital when they possess three elements: Wisdom > Time Horizon > Amount. Use 'idle money' (money with no immediate need) to ensure a long time horizon.
- Risk Management: Never bet everything on a single opportunity. Use the Kelly Criterion to determine the optimal size of a bet based on the probability of winning.
- Safe Strategy: Use 'Dollar Cost Averaging' (DCA/定投) into growth-oriented assets.
- Growth Rate: Focus on the 'growth of the growth rate' (accelerating growth) rather than a fixed growth rate.
- Time Horizon: Define 'long term' as the time it takes for the principal to double twice. Use the 'Rule of 72' to calculate this (e.g., an 8% annual return doubles the principal every 9 years, making the 'long term' 18 years).