Source: Qilehui

One

"The broader your sources of lessons, rather than just learning from your own bad experiences, the better you will become."

In fact, there is a phenomenon we need to pay attention to: many people find it difficult to learn even from their own lessons, let alone absorb lessons from others.

What are the reasons behind this? There are many possible reasons, perhaps because of cognitive laziness, or it could be due to excessive confidence, among others.

Two

"You must have a strong interest in understanding the reasons behind what is happening."

This is a kind of curiosity, and it is a useful curiosity; in other words, it is a thirst for knowledge.

Many times, curiosity is used in the wrong places, wanting to know meaningless things. The various Short Video platforms we see now also make money by exploiting human curiosity.

Moreover, curiosity can have different levels; general curiosity is just wanting to know what happened, while deeper curiosity seeks to understand the reasons behind 'what is happening.'

Additionally, the interest in the reasons behind events that have already occurred holds much less value.

Three

"Our game is that when a good project appears, we must be able to recognize it because good projects do not happen often. Opportunity only favors the prepared. "

Recognizing good projects is the core point; most people in the world often miss opportunities without even knowing it.

Why does this happen? Simply put, it is due to a lack of preparation, and this preparation mainly comes from understanding, which is derived from long-term practice. For example, Xiang Yu and Liu Bang; Xiang Yu's social experience and grasp of human nature cannot be compared to Liu Bang.

To seize the opportunity, merely recognizing it is not enough; preparation also involves human and material resources.

Four.

"Beta coefficients, modern portfolio theory, etc. - these seem to make little sense to us. What we want to do is purchase companies that have a sustainable competitive advantage at low prices, or even reasonable prices."

Buffett and Munger often express criticism of the financial theories taught in schools. Back in graduate school (I studied engineering for my undergraduate degree), the focus was often solely on the theories themselves, which appeared to be very challenging. However, considering the practical significance of these theories is another matter.

This theory, which seems esoteric, can indeed easily deceive people. After all, obtaining a high salary and participating in social distribution always requires a justification.

Five.

"What you need is not a lot of action, but rather great patience."

Of course, for ordinary people, there tends to be a "lot of action", followed by a lack of "great patience".

"A lot of action" itself is not inherently wrong; at the beginning, some "trial and error" is necessary. Through this trial and error, we can understand that we need more "patience."

Six

"Short selling stocks and then seeing the stock price rise due to certain factors is a frustrating situation. One should not engage in such frustrating matters in life."

This kind of experience is something every stock investor likely encounters.

First, it is important to recognize that this is a frustrating matter and then to avoid engaging in such actions.

Sometimes we may adopt an "ostrich strategy" in the face of frustration, simply forgetting this frustration, then forgetting it this time while continuing to act the same way next time.

Seven

"If you truly have the ability, you will clearly understand where the boundaries of your capability lie. Ability without boundaries cannot be called ability at all."

This can also be illustrated with the examples of Liu Bang and Xiang Yu. Liu Bang knew his capabilities, so he asked Zhang Liang for advice, let Xiao He handle administration and logistics, and let Han Xin lead the troops; while Xiang Yu lacks this understanding of his abilities, believing he can do everything and boasting about his achievements.

Eight.

"People always like to invite others to predict the future for them. Long ago, some kings would ask people to interpret the entrails of sheep. Those pretending to know the future have always had a market."

I often see people setting up stalls to tell fortunes by the roadside on my way to work, and for a while, I could see two or three fortune-telling stalls.

From ancient times to the present, people have had a desire to know their own "fate." They are willing to pay for this.

Regarding fortune-telling, the most memorable thing is the segment from Dawn's "True Heart Hero," where he says, "Great master, you are so powerful and can predict anything. Can you predict that you will be shot today?" "No," he replies, and then shoots the "great master" in the right foot.

Editor/lambor