The siphon principle is the first principle of investment
Water flows to low places because water in high places has potential energy. If the high-level water is directly introduced into the low-level, impact force can be generated. The greater the water level drop, the greater the impact force to the bottom. The siphon phenomenon is this mechanism. The flush toilet is an example of the use of the siphon principle.
Investment is based on the principle of siphoning. An undervalued stock is like a reservoir at a low point. A lot of money will flow in like water, pushing the stock price higher. The undervalued investment targets are often emerging industries, such as Amazon 20 years ago, Tesla Electric Vehicles 10 years ago, and cryptocurrencies today.
These destiny-changing investment targets have common characteristics. First, the value is difficult to be discovered during the low tide period, the second is the unlimited market space, and the third is the high operating cost. The vitality lies in the expansion of the market scale, and if there is vitality, capital will enter. There is one thing in common. Those who invest will not use it, and those who use it will not invest.
In the investment market, there are only two principles, except for the siphon principle, which is the leverage principle. The siphon principle is the first principle for discovering investment targets. The principle of leverage is a tool to amplify investment gains or losses.
The current investment environment is very beautiful. Economic development is stagnant and money supply continues to grow. The key is to find undervalued targets. Both real estate and cryptocurrencies are in a bull market. Both have anti-inflation functions. The key is market space. The larger the space, the more attractive.