There is a famous saying among investment experts about how to survive and earn steadily in the stock market — I truly understand one thing: stocks. And those who make money in the long run rely not on any prophetic ability.

In simple terms, it boils down to two words: return. Return to common sense, return to the core of the business itself. Don’t be fooled by fancy packaging, don’t mistake hype for opportunity, and don’t assume that a rising stock price means your judgment is correct. Most people’s failures stem from these three misconceptions.

So how does this expert choose stocks? He set a standard that sounds simple, but few actually achieve — you should be able to explain in two minutes to a 12-year-old why you want to buy this company. Can’t explain it? What does that mean? It indicates that you’re not really investing in the business; you’re just betting on whether the stock will go up.

He particularly criticizes those "high-end" company descriptions: a bunch of jargon piled together, sounding like future black technology, but in reality, you can’t figure out what they’re actually selling or how they make money. In his view, these stocks are the "never profitable" type.

On the other hand, the most "unremarkable" businesses are where he makes the most comfortable profits — selling donuts, running motels, retail businesses. The business logic is straightforward and transparent, without complex fog. These are the opportunities he can truly grasp. Therefore, the most scarce skill in investing isn’t making stories sound beautiful, but understanding the essence of the business clearly.