先为不可胜，以待敌之可胜。

Investment Interpretation

This principle emphasizes that true investment strength comes from preparation and resilience. Before engaging in any opportunity, an investor must ensure that their portfolio, strategy, and risk controls are robust enough to withstand adverse conditions. Being “invincible” does not mean avoiding challenges entirely—it means positioning yourself so that challenges are manageable and opportunities can be seized confidently.

Key insights:

• Success is not only about finding the right opportunities but also about being structurally prepared to exploit them effectively.
• A well-prepared investor reduces vulnerability to market volatility, unexpected shocks, and operational errors.
• Preparation increases the probability of achieving favorable outcomes consistently, rather than leaving success to chance.

Investment Application

Million Leaf operationalizes this principle through disciplined preparation and portfolio readiness:

1. Comprehensive Risk Assessment
   • Stress-test investments under adverse market conditions.
   • Identify potential vulnerabilities and implement mitigation strategies.
2. Robust Portfolio Construction
   • Diversify intelligently while maintaining focus on high-conviction positions.
   • Ensure sufficient liquidity and capital flexibility to act when opportunities arise.
3. Strategic Readiness
   • Predefine entry, exit, and contingency plans for each potential investment.
   • Maintain resources and systems that allow for rapid execution without compromising analysis.
4. Knowledge and Research Preparedness
   • Conduct deep research on companies, sectors, and market trends before capital deployment.
   • Keep up-to-date on macroeconomic factors, regulatory changes, and industry shifts.
5. Process and Governance Rigor
   • Ensure that decision-making frameworks, compliance, and operational procedures are in place.
   • Maintain disciplined review and approval processes to avoid hasty or uninformed engagement.

Summary

By preparing to be invincible before engaging opportunities, Million Leaf ensures that the portfolio is resilient, decisions are informed, and capital is deployed confidently. This principle turns preparation into a strategic advantage, enabling the firm to seize opportunities while managing risk effectively.