Source: Wechat official account red and green

I. Investment and decision-making checklist

1. Risk: all investment evaluation should start with measuring risk (especially credit risk).

Measure the appropriate margin of safety

Avoid socializing with people with moral problems

Insist on asking for appropriate compensation for the scheduled risk

Always remember the risks of inflation and interest rates

Avoid making big mistakes

Avoid sustained capital losses.

2. Independence: "it is only in fairy tales that the emperor is told that he is naked."

An objective and rational attitude requires independent thinking.

Remember, whether you are right or wrong does not depend on whether others agree with you or against you-the only thing that matters is whether your analysis and judgment are correct.

Following the crowd will only bring you closer to the average (only medium performance)

3. Preparation: "the only way to win is to work, work, and hope to have a little insight."

Cultivate yourself into a lifelong self-learner through extensive reading

Cultivate curiosity and try to be a little smarter every day

More important than the willingness to win is the willingness to be prepared.

Skillfully master the thinking models of various disciplines

If you want to be smart, the question you have to keep asking is "why, why".

4. Modesty: admitting your ignorance is the beginning of wisdom

Act only within one's own clearly defined circle of ability

Identify and verify negative evidence

Resist the desire to pursue false precision and false certainty

Most importantly, don't fool yourself, and remember that you are the most important person to be fooled by yourself.

5. Strict analysis: the use of scientific methods and effective inspection lists can minimize errors and negligence

Distinguish between value and price, process and action, wealth and scale

It is better to remember the simple than to master the profound.

Become a business analyst, not a market, macroeconomic or securities analyst

Consider the overall risks and benefits, and always pay attention to the potential second-order effects and higher-level effects

Think forward, look back-think the other way around, always think the other way around.

6. Allocation: the most important job for investors is to allocate capital correctly.

Remember, the best use is always measured by the second best use (opportunity cost)

Good ideas are rare-when the time is good for you, bet hard (allocate capital)

Don't fall in love with an investment project-even if you put a lot of effort into it, it depends on the situation and the opportunity.

7. Patience: restrain human's innate preference for action

Compound interest is the eighth wonder of the world (Einstein). Don't interrupt it until it's necessary.

Avoid unnecessary transaction taxes and friction costs, and never act for the sake of action

Keep a clear head when luck comes.

Enjoy the results and enjoy the process, because you live in the process.

Resolution: take resolute action when the right time arises

Be afraid when others are greedy; be greedy when others are afraid

Opportunity doesn't come many times, so when it comes, seize it.

Opportunity favors only those who are prepared: investment is such a game.

9. Change: learn to change and accept insurmountable complexity in life

Know and adapt to the true nature of the world around you, don't expect it to adapt to you

Constantly challenge and actively revise your "favorite concept"

Face reality, even if you don't like it-especially if you don't like it.

10. Focus: don't complicate things, remember what you were going to do

Remember, reputation and integrity are your most valuable possessions-and can come to naught in an instant

Avoid arrogance and boredom

Don't overlook the obvious because of the details of the relationship.

Be sure to rule out unwanted information

Face your big problems and don't hide them.

Second, lifelong learning

Even Warren Buffett has to be a learning machine. The lower level of life has the same requirements. I keep seeing that some people are getting better and better in life. They are not the smartest or even the most diligent, but they are learning machines. They go to bed every night a little smarter than that morning.

Take Warren Buffett, for example, if you watch him with a timer, you will find that he spends half his time reading when he is awake. He spends most of the rest of his time having one-on-one conversations with very talented people, sometimes on the phone and sometimes in person, who he trusts and trusts.

Edit / lambor