"Value investing" is an investment strategy aimed at finding assets whose market prices are lower than their intrinsic value through in-depth analysis and research, and holding these assets for the long term, waiting for the market price to return to or exceed their intrinsic value.
For example, in 1988, Buffett began buying a large amount of Coca-Cola stock. Despite the market not being very optimistic about its prospects at the time, Buffett found through analysis that Coca-Cola's brand value, global distribution network, and strong profitability gave it long-term growth potential. This investment proved to be extremely successful, bringing substantial returns to Berkshire Hathaway for decades.
Value Investing in Web3#
"Value investing in Web3" refers to finding and investing in projects and assets with long-term value and growth potential in the decentralized internet ecosystem. Similar to traditional value investing concepts, "Web3 value investing emphasizes in-depth analysis and evaluation of the intrinsic value of projects, rather than relying solely on short-term market fluctuations and speculation."
For example, Ethereum is an open-source blockchain platform that supports smart contracts and decentralized applications (dApps). Despite Ethereum's price volatility, as the main platform for decentralized finance (DeFi) and non-fungible tokens (NFTs), it has tremendous potential. Ordinary investors can analyze its network effects, the activity of the developer community, and the potential for future upgrades (such as Ethereum 2.0) to determine that its intrinsic value is higher than the current market price when Ethereum's price is low, decide to buy and hold for the long term.