The key to ‘miracle investments’ that generate extraordinary returns often lies in the vision and conviction of investors who are passionate about certain industries or trends. By spotting opportunities early and investing in alignments with their beliefs, these investors transform ventures into thriving enterprises and reap lucrative rewards. However, balancing passion with rational analysis is crucial – blind faith without due diligence can lead to disastrous losses.
Embrace early-stage investing with foresight and moderate position-taking
As Boquan He of Invest Today stated, the key to his investment success is to ‘invest very early when valuations are low’. However, he balances vision with restraint by ‘investing small amounts’ initially. This prevents overexposure while allowing large upside if the investment thesis plays out. For instance, early investors in leading tea-drink chain HEYTEA or dental service provider iKang have seen over 100X returns on their initial investments.
Let passion and instincts supplement rational analysis
Rather than exhaustive due diligence, Boquan He relies more on passion and ‘tingling sensations’ when evaluating early-stage deals. His instincts have led him to invest in multiple breakout companies. However, he likely tempers his excitement with rational analysis – without fundamentals like product-market fit and founder pedigree, passion alone cannot sustain high returns.
Strive for quality of life alongside investment returns
Boquan He highlights the importance of life quality and just ‘doing what he wants’ after leaving Robust. He admits entering a ‘bored’ state at Robust prior to selling it. This suggests a desire for self-actualization beyond purely financial motivations. Investors should note that eternal vigilance in investing can lead to fatigue without sufficient life balance.
Set asking prices for investments to avoid emotional attachments
Intriguingly, Boquan He compares companies to products like ‘bottles of water’ that he would be willing to sell at certain prices despite initial reluctance. This avoidance of emotional attachment possibly eased his decision to sell Robust. For sustainable investing, setting theoretical selling prices can mitigate biases and anchor on rational valuations.
In conclusion, ‘miracle investments’ require visionary yet balanced investors who spot opportunities early but temper convictions with diligence. However, quality of life should not be sacrificed for investment returns. By emulating such balanced approaches, retail investors can also systematically build extraordinary portfolios.