无恃其不来，恃吾有以待也。

Investment Interpretation

This principle emphasizes that crises and market downturns are inevitable, but they also create opportunities for disciplined investors. By preparing in advance, an investor can convert potential risks into sources of value, capitalizing on mispriced assets and distressed opportunities while others are paralyzed by fear.

Key insights:

• Market volatility and crises are recurring; readiness is essential for survival and success.
• Those who anticipate and plan for crises can act decisively when opportunities arise.
• Risk management is not just defensive—it is the foundation for strategic offensive advantage.

Investment Application

Million Leaf applies this principle through proactive crisis preparedness and opportunistic positioning:

1. Scenario Planning and Stress Testing
   • Analyze worst-case market scenarios and their impact on portfolio positions.
   • Develop contingency plans to manage liquidity, leverage, and exposure during downturns.
2. Capital Reserve and Flexibility
   • Maintain cash reserves and liquidity buffers to seize opportunities when others are forced to sell.
   • Avoid over-concentration or excessive leverage that could limit ability to act during crises.
3. Opportunity Identification
   • Predefine criteria for distressed or mispriced investments.
   • Monitor sectors, companies, or assets where temporary crises create long-term value potential.
4. Timely Execution
   • Act decisively during periods of market stress, guided by valuation and risk controls.
   • Leverage preparedness to enter positions at favorable prices, converting risk into opportunity.
5. Continuous Learning from Crises
   • Review outcomes after each market stress event to improve strategies, risk frameworks, and decision-making.
   • Build institutional knowledge that strengthens future crisis readiness.

Summary

By preparing for crises, Million Leaf turns market volatility and risk into a strategic advantage. Discipline, planning, and readiness allow the firm to act decisively, capturing opportunities that arise from uncertainty while protecting capital against downside threats.