The truths that Duan Yongping didn't tell you.

Can you use leverage and trade contracts in investments?

Duan Yongping and Buffett already gave the answer.

The conclusion is just two points: if you don't understand investment, don't even touch it; if you truly understand investment, you don't need to.

Leverage is essentially borrowing money to amplify returns, but this double-edged sword cuts risks much more severely than it does returns. If you haven't grasped the basic logic and risk points, just one wrong judgment can wipe out your principal, and you'll also incur debt, forever on the path to recovering your losses. Is this called investing? It's purely a game of luck.

Conversely, if one truly understands investment logic and relies on compound interest over time to make money, leverage is not needed at all. There are many in the market who can triple their investment in a year, but very few who can consistently double it in three years.

The same principle applies to work: when you are clearly focused on long-term projects, refining products, and deeply cultivating a sector, if you obtain funding too early or too much, the nature of your work changes immediately. Financing comes with costs and timelines, which forces you to fixate on short-term fluctuations and revenue numbers. A well-planned long-term strategy can abruptly turn into short-term speculation.

The most critical issue is market volatility, with prices soaring and plummeting, making it easy for people to be overwhelmed by immediate gains and losses. Original judgments get muddled, the risk control bottom line that should have been maintained is broken, and ultimately, the downfall is not due to a lack of capability in the business, but purely a loss stemming from a hurried desire to cash out.