Value Investment Strategy Analogy: Didi Drivers Only Taking Big Orders

1. Define and Stick to Your “Ability Circle”
   
   The driver in the scenario is familiar with specific routes and knows when big orders are available—this is equivalent to investors having a clear grasp of certain industries, business models, competitive advantages. Building an ability circle means: only invest in companies you truly understand, including their business model, core moat, management quality, and ability to respond to macro and industry changes. Conduct in-depth research rather than superficial exploration, and turn information and experience into judgment.

2. Only Take “Big Orders” — Focus on Excellent Companies
   
   “Big orders” refer to excellent companies that meet the value investment principles of “undervaluation + margin of safety”. Investors need to set clear screening criteria (e.g., sustained profitability, cash flow quality, asset-liability structure, sustainability of competitive advantages) and only consider buying when these criteria are met. Even if the transaction frequency is low and the waiting time is long, each investment has a high winning rate.

3. Be Patient and Avoid Short-Term Temptations
   
   Just like the driver in the story waits for big orders instead of taking small ones, investors also need to avoid frequent trading, chasing short-term hot trends, and being disturbed by market fluctuations. Adhere to a long-term perspective: enter when valuations are reasonable or even undervalued, and give time for value to be reflected. By discipline in adhering to the ability circle and “only taking big orders”, emotions will not dominate decision-making.

4. Reduce the Number of Holdings and Increase Concentration
   
   Holding too many stocks will distract attention and dilute returns. Excellent value investors often hold relatively concentrated but deeply researched portfolios, with sufficient reasons for each additional holding. This concentrated strategy is more likely to achieve excess returns with information advantages, and also makes investment management easier and more efficient.

5. Continuous Learning and Review
   
   The ability circle is not static. Drivers adjust based on new road conditions, and investors also need to continuously learn industry trends and update their understanding of companies. By reviewing each investment and reflecting on successes and failures, gradually expand and deepen the ability circle, and improve the accuracy of “identifying big orders”.

Conclusion: An effective value investment ability circle requires in-depth knowledge, strict standards, and discipline. Insist on only investing in targets that clearly meet the “big order” criteria, and let compound interest be reflected in waiting and holding.