Many investors have been navigating the crypto world for years, yet they have never figured out one key question: how to achieve stable profits? Actually, the answer has been right in front of us all along—Warren Buffett's value investing philosophy. The words he has spoken are pearls of wisdom, especially worth pondering for all asset allocators.

**1. The Emotional Game of Mr. Market**

Be greedy when others are fearful, and fearful when others are greedy—this phrase has been heard a thousand times, but few truly understand it.

Imagine the market as an emotionally unstable "Mr. Market." He comes to quote prices every day. When he's in a good mood, he's extremely optimistic, overestimating everything, and prices become absurdly inflated; when he's in a bad mood, he becomes extremely pessimistic, wishing to devalue all assets to bargain prices. Smart investors capitalize on these emotional swings to profit, rather than being led by the nose by these fluctuations.

When the market plunges into panic and heavy selling occurs, that's often the best window to buy. Conversely, when everyone is celebrating and rushing to chase highs, it's time for you to stay calm, observe carefully, and manage risks.

**2. Margin of Safety—The True Moat**

The essence of value investing isn't about betting on a hot sector to multiply several times, but about buying "good assets" at "cheap prices." The difference between "cheap" and "good" is what we call the margin of safety.

For example, if an asset's intrinsic value is 100 units, but you can buy it for only 60 units, that 40-unit difference is your margin of safety. It acts as your insurance cushion. Even if your subsequent judgment is slightly off, this cushion can absorb the risks.

Investing without a margin of safety is essentially gambling. Winning temporarily feels great, but a wrong bet can lead to total loss.