胜兵先胜而后求战，败兵先战而后求胜。
Investment Interpretation
This principle emphasizes that successful investing is premeditated, not reactive. Just as a skilled general wins battles through preparation, an investor secures victory by ensuring that every investment meets rigorous criteria before committing capital.
Key insights:
- Success comes from thorough analysis, planning, and risk assessment—not from chasing market trends or speculation.
- Entering the market without preparation exposes capital to unnecessary risks.
- Winning in investing is about positioning yourself where the odds are in your favor before making a move.
Investment Application
Million Leaf applies this principle through disciplined pre-investment preparation:
- Thorough Fundamental Analysis
- Examine financial statements, profitability metrics, cash flows, and balance sheet health.
- Evaluate the durability of competitive advantages and the sustainability of business models.
- Intrinsic Value Assessment
- Calculate intrinsic value using Discounted Cash Flow (DCF) or comparable valuation methods.
- Only invest when the market price offers a sufficient margin of safety.
- Risk Assessment & Scenario Planning
- Model downside scenarios, stress test assumptions, and consider macro and micro risks.
- Prepare exit strategies and risk mitigation measures before deploying capital.
- Investment Checklist & Decision Protocols
- Use a structured checklist to ensure all key criteria are satisfied before investment.
- Avoid impulsive decisions; capital is only deployed when all conditions are met.
- Market Timing Awareness
- Consider macroeconomic cycles, market sentiment, and sector trends.
- Use market insights to time entries prudently while maintaining a long-term perspective.
Summary
By securing “victory” before deploying capital, Million Leaf ensures that each investment is backed by preparation, analysis, and risk control. This proactive approach reduces mistakes, maximizes potential upside, and builds consistent long-term success.
Million Leaf 