Did you know that many people treat investing like a whack-a-mole game? Busy all day long, yet they find their wealth not growing, but instead being consumed in the process. There is a harsh reality here: frequent action is actually the biggest enemy of wealth.

The truly wealthy do not rely on doing more than others, but on the ability to focus intensely and have enough patience. Even those with high IQs often fall into this trap because they are unaware of the simplest mathematical logic — doing more does not mean earning more.

Imagine a scenario: if you only had 20 investment opportunities in your lifetime, what would you do? I dare say, you would become a smarter investor. This is not just a poetic metaphor but real wisdom. When opportunities are limited, you are forced to research deeply, to wait patiently, and only act when you are truly confident. But the current financial environment is different; it gives us an illusion — that trading opportunities are endless, and you can operate at any time. This illusion is so deceptive that it traps countless people in the strange cycle of "action equals progress."

So, how should you invest? First, you need to find businesses that are simple, understandable, and have sustainable competitive advantages.

What is the most basic rule? Stick to your circle of competence. Only invest in what you truly understand. A very practical criterion is: if you cannot explain a business clearly to a ten-year-old, then don’t touch it. Guard your circle of competence like a fortress, firmly refusing to step into unfamiliar fields.

What is a simple business? It is a business model that is straightforward and can last a long time. For example, Coca-Cola, which satisfies humanity’s eternal craving for sweetness, year after year. Another example is Arrow chewing gum, which meets the deep human need for chewing — a fundamental human trait. What are the common features of these businesses? First, they are within your understanding; second, their moats are clearly visible and not based on luck; third, even without disruptive innovation, they can continue to generate profits.

Conversely, what should you be wary of? Beware of the temptation of the "next miracle." There are always people chasing the "next Amazon" or "next Apple." This mindset has already stepped outside the circle of competence. Simply put, that’s gambling, not investing. The fundamental difference between investing and gambling lies here — investing is based on deep understanding and solid research, while gambling relies on luck and intuition.

Therefore, if you truly want your wealth to grow, instead of constantly watching the markets and frequently adjusting your portfolio, think carefully: what business do you really understand? Where is the boundary of your circle of competence? Find that answer, then focus, be patient, and wait for the most certain opportunity to arrive. This is the most straightforward and effective wealth rule that ordinary people can learn.