兵无常势，水无常形，能因敌变化而取胜者，谓之神。

Investment Interpretation

This principle emphasizes that the market is dynamic and constantly evolving. Investors who are rigid or slow to respond are at a disadvantage. Long-term success favors those who adapt their strategies, portfolios, and risk management to changing economic, industry, and market conditions. Adaptability turns uncertainty into opportunity and ensures resilience against unexpected challenges.

Key insights:

• No strategy remains optimal in all market conditions; flexibility is essential.
• The ability to adjust investments quickly in response to new information reduces losses and captures emerging opportunities.
• Sustained performance requires constant evaluation of assumptions, models, and positions.

Investment Application

Million Leaf applies this principle through dynamic portfolio management and responsive strategies:

1. Continuous Market Monitoring
   • Track macroeconomic indicators, sector rotations, and market sentiment to detect changes early.
   • Identify trends, disruptions, and evolving risks that may impact portfolio positions.
2. Flexible Portfolio Allocation
   • Adjust exposure to sectors, asset classes, or instruments as conditions change.
   • Rebalance holdings to maintain alignment with strategic objectives and risk tolerance.
3. Adaptive Investment Strategies
   • Modify valuation assumptions, entry and exit points, and position sizing in response to new insights.
   • Employ tactical adjustments without compromising long-term philosophy or discipline.
4. Scenario Planning and Contingency Management
   • Prepare alternative courses of action for different market scenarios.
   • Ensure readiness to pivot or hedge positions when conditions deviate from expectations.
5. Learning and Process Improvement
   • Review outcomes regularly to refine decision-making frameworks.
   • Use lessons from market changes to enhance future adaptability and strategic foresight.

Summary

By adapting to changing conditions, Million Leaf ensures that the portfolio remains resilient and positioned to capture opportunities in evolving markets. Agility, combined with disciplined analysis, enables investors to turn uncertainty into advantage and sustain long-term success.