道天地将法，凡此五者，将莫不闻，知之者胜，不知者不胜。

Investment Interpretation

Million Leaf’s investment approach is rooted in the “道天地将法” framework, emphasizing that sustainable investment success is achieved through structure, discipline, and strategic foresight. Each pillar represents a critical element that ensures resilience, minimizes risk, and enhances long-term returns:

• 道 (Strategy) – A clear, philosophy-driven approach provides direction and coherence to all investment decisions.
• 天 (Market Environment) – Understanding macro trends, economic cycles, and market sentiment helps identify both opportunities and risks.
• 地 (Company Fundamentals) – Deep analysis of financial performance, competitive positioning, and operational landscape ensures informed investment choices.
• 将 (Leadership) – Decisions are made by experienced professionals with expertise, discipline, and accountability.
• 法 (Discipline/Process) – Governance, risk controls, compliance, and operational rigor maintain consistency and protect against errors.

Together, these pillars form a robust framework that transforms investing from guesswork into a structured process where success is more likely and losses are controlled.

Investment Application

Million Leaf operationalizes the five pillars as follows:

1. 道 (Strategy)
   • Develop and follow a philosophy-driven investment strategy rooted in value and competitive advantage.
   • Ensure all investment decisions are aligned with long-term goals and overarching principles.
2. 天 (Market Environment)
   • Continuously monitor macroeconomic indicators, sector trends, and market sentiment.
   • Identify favorable entry points and potential risks by interpreting market cycles.
3. 地 (Company Fundamentals)
   • Conduct thorough fundamental analysis: revenue growth, profitability, ROE, cash flows, and balance sheet strength.
   • Evaluate the durability of economic moats, management quality, and operational efficiency.
4. 将 (Leadership)
   • Leverage the experience and judgment of the investment team in decision-making.
   • Maintain accountability, ensuring that decisions are disciplined and supported by rigorous analysis.
5. 法 (Discipline/Process)
   • Implement governance and risk management frameworks to enforce consistency and compliance.
   • Use structured processes to reduce errors and maintain operational excellence.

Summary

By rigorously applying the “道天地将法” framework, Million Leaf ensures that investment decisions are strategic, informed, and disciplined. This structured approach builds sustainable success, where long-term victory is deliberately secured rather than left to chance.