[Investment Quote] "Risk comes from not knowing what you're doing" ㅡ Day 36

This content is not investment advice for any specific asset or product, but aims to provide psychological inspiration for cultivating an unwavering investment mindset in highly volatile markets. Wishing you successful investing. [Editor’s note]

Risk comes from not knowing what you’re doing.

— Warren Buffett —

Most investors understand risk as “price volatility,” but Buffett’s definition is different. True risk is investing funds without understanding what you’re investing in. Buying Bitcoin without understanding how it works, depositing funds into a DeFi protocol without understanding its structure—that is the real risk. Volatility is an opportunity for those who understand it; for those who don’t, it breeds fear. The first thing to do before investing is not to look at charts, but to check, “Do I truly understand this thing?”

Ignorance is the most expensive risk.

Warren Buffett (born 1930) is known as “The Oracle of Omaha,” and is one of the world’s top value investors. As chairman of Berkshire Hathaway, he has achieved an average annual return of over 20% for more than 60 years, creating one of the most successful long-term compound growth performances in investment history. He bought his first stock at age 11, and 99% of his assets were accumulated after age 50. He has lifelong adherence to the simple principle of “buying good companies at reasonable prices that I understand and holding them long-term.” His patience and discipline, unshaken by short-term market fluctuations, are his core weapons.