Hunter and Farmer 🎯 Core Investment Philosophy: The Division Between Hunters and Farmers • The author categorizes investors in the Asian market into two types: hunter-type investors and farmer-type investors. Combining his 30 years of investment experience, he shares his journey of transforming from a hunter to a farmer. • Hunter-type investors: Guided by macro or market top-down perspectives, they seek ten baggers (10x stocks) across different industries/markets. This type of investor is predominant in Asia, with high volatility in returns; sometimes they feast, sometimes they go hungry. • Farmer-type investors: Focused on long-term deep cultivation of specific industries/commodities, they engage in long and short trades based on cycles. They do not experience moments of high glory with huge gains but maintain stable returns with little to no losses. They are a minority in Asia. 📌 Fenghe Asia’s Farmer-Style Investment Practice • Fenghe Asia centers on farmer-style investing, with 15 analysts continuously covering about 400 stocks, operating based on the individual cycles of the targets, unaffected by market style rotations or macro trends. • Characteristics of this investment approach: It’s rare to find ten baggers in the portfolio, nor does it aim to hold hot stocks of the year, but since its inception, it has never suffered a loss, nor has it achieved market-beating performance. • Portfolio construction logic: Simultaneously allocate across different style categories, allowing both bullish and bearish markets to generate alpha returns, eliminating worries about market style shifts and rotations. 💡 Fenghe’s Underlying Investment Logic • Does not recognize a strict division between value and growth; believes all investments are value investments, with growth being a type that has a higher future weight in value calculations. • Uses a cycle-centric research framework, considering that companies are driven by multiple cycles—product, industry, macro—and each has its own development lifecycle. • Farmer-style investing also needs to evolve; it involves analyzing past trading data to identify strengths and weaknesses, continuously optimizing investment methods. 📝 Reflection on Reading The author’s vivid analogy of hunters and farmers reveals the fundamental differences between the two investment models. The hunter mode pursues high returns but with high volatility, while the farmer mode seeks stability at the expense of high elasticity gains. Fenghe Asia’s practice demonstrates that farmer-style investing is a prudent choice that can navigate both bull and bear markets. It does not require investors to precisely predict market styles but instead to deeply cultivate their areas of expertise and understand the target’s cycle. Meanwhile, the author emphasizes that “farmers must also evolve,” which is very insightful. Stability does not mean stagnation; through data-driven review and continuous optimization, this low-volatility investment approach can go further. For ordinary investors, this “guard your small plot of land” mindset may be more practical. Instead of chasing hot stocks and reacting impulsively, it’s better to focus on familiar fields and accumulate steady returns.