Source: Brokerage China Author: Qu Hongyan Recently, China Yangtze Power hit a historical high and once again showed the slow bull stock trend of "tripling in ten years". The slow bull market has left behind many passers-by and brought good returns to the steadfast investors. It is "rare for those who triple in one year to be like carp jumping over the dragon gate, while those who double in three years are few and far between." On the other end of the investment world, however, violent collapses are also deafening, with many financial products suspected of "Ponzi schemes" ceasing payments, leaving investors with no hope of recovering their investments. Both positive and negative cases illustrate the importance of forming a suitable mentality towards money in one's lifetime; otherwise, sooner or later, you will divorce yourself from your money. "I call this the money mind, a person's IQ can reach 120, 140, or even higher levels, and perhaps some people's minds are good at doing one thing, while others are good at doing another. They can do things that most ordinary people can't do. But I know some very smart people who make very foolish decisions because they lack the money mind." Buffett once said so. The so-called money mind refers to believing in common sense, believing in compound interest, being cautious and rational, thinking independently, prioritizing security over return, not dealing with people with questionable character, not easily guaranteeing for others, not believing in windfall profits, and not trying to cross legal norms for extra benefits. In today's world of ubiquitous information, everyone's wealth may become the "prey" of those with ulterior motives. Only with the money mind, can one form good behavior habits and shield oneself from separating from one's wealth. Do not entrust your wealth easily. Wealth is easy to lose but hard to accumulate, and trust is a vital reason leading to the rapid loss of wealth. "Do not allow anyone else to manage your business unless you can watch their every move closely and understand their behavior; or you have strong reasons to believe in their character and ability. For investors, this criterion determines when you can let someone else make investment decisions for you." Graham's criterion written eighty years ago is so clear. Almost all the investors who lost their wealth in the financial products have violated the above two criteria. They did not have the ability to closely supervise the whereabouts of their funds, nor did they have sufficient reasons to believe in the character of the product issuers. They easily invested their own wealth solely based on others' glib tongue and a piece of commitment paper. They did not act as gatekeepers of their own wealth and ended up with nothing left even if the government punished the wrongdoers. "An ounce of prevention is worth a pound of cure." This is a phrase Munger often says. Destiny must be in one's own hands, and investors with a suitable money mind will try their best to find suspicious points in their investments to protect the safety of their principal. For example, whether the manager is trustworthy, whether the underlying assets are profitable, whether oneself can timely monitor the risks in the investment process, and whether the sales staff is obtaining large commissions. As long as any unreliable signs are found, these investors firmly will not invest their money. Do not desire to get rich quick. As in the capital market and anywhere else, making money is not easy, and desiring to get rich quick will lead to quick loss of wealth. In the capital market, the desire to get rich quickly often leads to investors over-allocating specific stocks, industries, or assets at the worst time. For example, buying high-risk stocks that can gain huge returns once an adventure succeeds, but the chance of success is very small, also known as "whispering stocks" by legendary fund manager Peter Lynch. "They often tell investors a story with explosive effects. These 'whispering stocks' have a hypnotic effect on people, and it is easy for you to believe that the story the company tells has an emotional appeal that can easily confuse you." This is like hearing a very tempting "sizzling" sound, making you salivate, but you did not notice that there is no steak on the grill. In the eyes of investors who lack the money mind, stable yield provided by blue chips such as China Yangtze Power cannot meet their demands. However, historical experience clearly shows that buying stocks lacking in safety solely based on imagined high yields is unwise. The long-term average investment return of general stocks is 9%-10%, which is also the average investment return of stock indexes in history, a benchmark to measure one's investment performance and the benchmark to measure fund investment performance.
Author: Zhou Le.

On June 28th, Warren Buffett said in a media interview that after he passed away, the remaining of his wealth will be handled by his daughter and two sons and managed through a new charitable trust fund. In product structure, the operating income of 10-30 billion yuan products amounted to 401/1288/60 million yuan respectively, achieving a total sales volume of 18,000 kiloliters, a year-on-year increase of 28.10%.

Buffett, who will celebrate his 94th birthday this August, vowed to donate over 99% of his wealth to charity. When asked by a New York Times reporter what he would leave his children when he had so much wealth and donated most of it, Buffett replied that he has already given his children his most valuable wealth.

Influenced perhaps by the passing of his old friend Charlie Munger, Warren Buffett has been talking more frequently and casually about his own passing, and has increasingly mentioned his plans for the future.

Buffett sudden incident

On June 28th, according to the Wall Street Journal, in the latest will and testament, Warren Buffett will donate all of his remaining wealth to a newly established charitable trust fund to be overseen by his daughter Susie Buffett and sons Howard and Peter.

Berkshire Hathaway said that Buffett will convert his 8,674 Class A shares into approximately 13 million Class B shares and donate them to the Bill and Melinda Gates Foundation, the Susan Thompson Buffett Foundation, the Sherwood Foundation, the Howard Buffett Foundation, and the Novo Foundation.

Buffett also stated that donations to the Bill and Melinda Gates Foundation will stop after his passing.

Currently, Buffett holds about $130 billion (approximately RMB 940 billion) of Berkshire Hathaway's shares.

Buffett stated in a statement, 'Berkshire Hathaway has not experienced anything special; a long runway, a simple but overall reasonable capital allocation, and the favorable wind and compounded effect in the United States have created my current wealth.'

Buffett's three children are the executors of his will and also the designated trustees of the charitable trust fund, which will receive almost all of his wealth.

Buffett sent a rare letter to shareholders stating that after his passing, over 99% of his wealth will be donated to charity and that Berkshire Hathaway has a suitable CEO successor.

Buffett also said in the letter, "I feel good at the age of 93, but I am fully aware that I am in overtime."

The Bill and Melinda Gates Foundation and four charitable organizations run by the Buffett family have received donations from Warren Buffett each year. According to the Associated Press, since 2006, they have received more than $51 billion (approximately RMB 370 billion) in donations.

Buffett will turn 94 this August. He has stated that he will donate over 99% of his net worth to charity.

What signal?

When asked by a New York Times reporter what he would leave his children when he had so much wealth and donated most of it, Buffett replied that he has already given his children his most valuable wealth.

Buffett has been running Berkshire Hathaway, headquartered in Omaha, Nebraska, since 1965. The conglomerate owns dozens of businesses, including BNSF Railway, Geico car insurance, energy and industrial companies, and well-known consumer brands such as Dairy Queen and Fruit of the Loom.

The latest financial report shows that as of the end of March this year, Berkshire Hathaway holds stocks worth more than $336 billion, with Apple accounting for more than 40% of its holdings.

Donating through charitable foundations is the choice of most American billionaires. On the one hand, it allows charitable funds to flow to different social fields. On the other hand, charitable foundations can help reduce some tax burdens for the wealthy. In the US, for example, the inheritance tax approaches 50%.

At the same time, charitable trusts can also prevent the phenomenon of "rich for three generations", paving the way for future generations to receive quality education, directly employing family members as managers, realizing intergenerational transmission of true wealth, and expanding family reputation and prestige.

Taking the foundation donated by Buffett as an example, the Susan Thompson Buffett Foundation named after Buffett's first wife is committed to reproductive health work; the Howard Buffett Foundation focuses on reducing hunger, reducing conflict, combating human trafficking, and improving public safety; the Sherwood Foundation supports non-profit organizations in Nebraska, and the NoVo Foundation has launched initiatives for girls and women in need.

Frequently mentioned the "afterlife".

Perhaps influenced by the passing of his old friend, Charlie Munger, at the 2024 Berkshire Hathaway annual shareholder meeting, Buffett talked more frequently about his age and talked more frequently about his afterlife, with the hint of indifference in his speech.

When discussing investment in emerging markets overseas, Buffett shifted the topic after discussing some investment principles and judging standards, and said to the shareholders: "We will see how Berkshire's next generation of management will perform, luckily, you won't have to wait too long." Despite feeling "good," the stock god also has some knowledge about life expectancy tables (the probability of living until the next year after reaching a certain age).

What worry shareholders is that Buffett said that he "can no longer accept a four-year employment contract" because he is at the stage where he "doesn't know where he will be in four years" due to his age.

In the following Q&A session, Buffett explicitly stated that after he is "gone," Berkshire's next CEO - 61-year-old Abel - will be fully responsible for the final investment decision.

At the end of the meeting, as usual, Buffett revealed the surprise he had hidden under the table: a sign that read "SHUT UP." At the same time, Buffett expressed his hope that all shareholders can come to the shareholder meeting next year and wished himself to be able to come as well.

At the same time, he still mentioned "Charlie".

A touching moment occurred during the third question (related to energy) in the Q&A session. After giving his own answer, Buffett turned to Abel, the CEO successor beside him, and blurted out, "Charlie."

Editor / jayden