Yi Lihua, founder of Liquid Capital, said in a post on X that investors should avoid spreading capital thinly and instead concentrate on the minority of star companies capable of generating outsized returns. He cited Duan Yongping's 2002 investment of $2 million in NetEase stock, which traded at under $1 and later delivered more than $260 million in profit over eight years, a return exceeding 100 times. Yi compared the current AI cycle to the early stage of crypto a decade ago, when holding BTC or backing quality projects produced numerous 100x outcomes. He sees AI as being at an early explosive phase, with many potential targets across both Chinese and U.S. markets, and said the priority now is to capture the most powerful star companies in this AI wave.
Yi Lihua, founder of Liquid Capital, said on X that investing is not about spreading bets evenly. The key, he argued, is to identify the few star companies capable of delivering outsized returns.
Yi pointed to Duan Yongping's transition from entrepreneur to investor. In 2002, Duan put $2 million into NetEase when the stock traded below $1. Eight years later, the position had generated more than $260 million in profit, a return of over 100 times.
AI mirrors the early crypto cycle
Every round of technological revolution carries large opportunities for excess returns, Yi said. A decade ago, the early crypto market produced many 100x cases, whether through holding BTC or backing strong projects.
Yi believes the AI industry is now in a similar early explosive phase. He sees a wide range of potential targets in both Chinese and U.S. markets. The immediate goal, he said, is to catch the most explosive star companies emerging from this AI wave.
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