Source: Smart Investors, “Munger's Way”
Authors: Charlie Munger, RanRan

01. I was successful because I mastered several ways of thinking and used them over and over again when I was young

1. Human society is complex. There is always an ensemble effect behind great success or failure, and Warren's success is no exception.

The first factor: the mind.Warren is a very smart person. He's not smart enough to be blind to a chess wheel fight, but he's actually naturally smart. Warren is an intelligent person, but his achievements have surpassed his level of intelligence.

Second factor: Warren has a strong interest in investing.Sir William Osler said, “No matter what kind of career you do, the first step on the path to success is to fall in love with it.” Success is impossible without intense interest.

Third factor: Warren started early.Warren has had a keen interest in investing since he was about 10 years old. Success comes from time. Starting early certainly has an advantage.

The fourth factor, and a very important one: Warren is an efficient learning machineHe lived and learned until old age.

The fifth factor is trust.Being able to gain the trust of others will surely create a sense of pride in people's hearts.

2. Berkshire has an open secret, the kind we like the mostThe profit at the end of each year is a company that makes a lot of cash.

3. When valuating a company, do not distinguish between the nature of the profit, whether it is a cash profit or a machine lying in an open space.If you take profit figures and calculate them directly, the valuation you get is definitely not accurate.

Profits are machines piled up in open space. They are accounts receivable that are difficult to recover. No matter how much profit a company like this has, no matter how much it makes, it's not worth the money. With a steady stream of cash profits, this kind of company is worth the money.

4. There is one in psychologyReinforcing effectThe concept. No matter what they do, with constant strengthening, everyone can do better.If you get rewarded every time you do a good job, people will do better and better, and Warren Buffett is no exception.

5. I think it's very useful to make a list when facing difficult problems. On the list, all questions are clear at a glance, the questions can be considered more thoroughly, and nothing is left out.

6. When I answer questions, I answer whatever you ask; I always choose the answers I want to answer. It's my way of thinking.

I benefit a lot from this way of thinking about what I don't want and how I can avoid that kind of outcome.

7.If I were to manage a business school, I'd follow the same way Harvard Business School used to do.

In the past, Harvard Business School always taught students about American business history first. I will present the history of large companies such as GM to students in the form of a “value line” chart, so that students can first familiarize themselves with the company's history, build a good foundation, and then continue to learn anything else.

Why did GM start? Why is it declining? Why were railroad companies successful in the beginning? Why did it fail later? Why did railway companies make investors lose a lot of money in the past? Is it worth investing now than in the past? If you understand these questions, you can learn a lot. These questions cannot be explained by the average person; they are much more difficult than using a formula to calculate the beta coefficient.

8.I've done a lot of stupid things, and I've always fought against my own preconceptions.Eliminating false ideas is a good thing, and I make eliminating false ideas one of my pursuits.

In life, many people are crippled. Their minds are full of old thoughts, and new ideas simply can't get into them. There's a German proverb that says, “We always get old too fast and smart too late.” Everyone has this problem.

9. How can we not be one of the most insane people and stand on the side of the few who stay awake? We must keep Kipling's instructions in mind --Stay awake when everyone around you is losing their minds. This is an invaluable quality for investors and company executives alike.

10. Fully understand the limitations of objective conditions and fully understand the limitations of one's own abilities,Being careful and operating within limits is a trick to making money.This trick is not so much “humility” as “restrained greed.”

11. Warren and I are very aware of our shortcomings, and we know that there are many things we can't do, so we carefully stay within our “circle of ability.” We all thinkOur “circle of abilities” is a very small circle.

When I was young, a friend of mine said, “Munger only studies things in his business, things that have nothing to do with his business; he doesn't know anything.” Between what we know and what we don't know, we draw a clear line, and we only move within a known circle.

12. There are very few outstanding people, and there is an opportunity to follow them,WALK WITH THEM,It may be worth paying the premium, and you may be able to reap great rewards in the future.

13. I have said in several speeches that to think correctly, you must establish a multi-model way of thinking, and you must be proficient in all major models.

There is no shortage of important models. The most important model, not many,As long as you master everything, you can thoroughly analyze 98% of the world's events.

14. In the face of difficulties, many people choose to escape. We chose to send troops. At least this attitude is positive. We are willing to endure immediate pain in exchange for long-term peace.

Many people just run away and don't want to endure short-term pain. Find your own bitterness to eat,Taking the initiative to bear immediate suffering is the right attitude to live in the world.Investing is the same principle,Short-term pain in exchange for long-term benefits.

15. People should continue to improve themselves. We should learn more about the main knowledge of each subject rather than getting bogged down in the details.

I'm specialFocus on drawing on the main knowledge of each subject,In this way, you can't just see the trees, not the forest. Integrating the main knowledge of various subjects can exert great power.

16. I've been talking to the ancients all my life.The wisdom of the pioneer Seong-cheol is beyond the reach of many modern people.If you want to see them very simply, you don't need to worry about it; just open a book and they'll come to you. I recommend everyone to make friends with Seonhyun Seong-chul.

I've benefited a lot from my dealings with them. I can't learn anything from many of you here, but Adam Smith isn't the same; he taught me a lot.

17. In the face of difficulties, I have another opinion. Life's difficulties one by one,Every difficulty is a test for us, an opportunity for us to express ourselves.

I recommend that everyone face difficulties with this attitude. Especially when you get older, this attitude is very useful.

18. There are no shortcuts to learn model thinking. On the one hand, we have to store a large number of models in our minds; on the other hand, we need to be able to use each model at our convenience.

There are no shortcuts to learning to model this way of thinking. Maybe there are, but I don't know.My approach is just two words: persevere.

19. Thomas Carlyle has a famous quote: “Instead of worrying about a hazy future, it's better to be down-to-earth and do what's in front of you.” This statement is quite right. Most of the time, weYou should do what's in front of you, do your best and listen to fate.

20. I'm not a Jew, but I really like Jewish humor.

Jews make up only 2% of the world's population, yet they create 60% of the world's humor. It's amazing that the Jews have experienced so much suffering and are still able to laugh at life. I really appreciate the Jews. I suggest you do the same as me,Learn about the Jewish attitude of laughing at suffering.

21. How to be a smart person with a happy life?Insist on doing meaningful things; insist on being a valuable person; insist on pursuing sanity, integrity, and honesty.

One day, you will definitely be successful. Teaching in person is better than teaching in words. If you're successful, others will be more willing to learn from you. If you stick to the right path, you're more likely to succeed. You're on the right path; all you need to do is stick with it.

22. PutI want to fully understand the problem,That's half the problem solved.

23. I have a way to think about problem classification, and I'll teach it to you. There are a lot of really difficult questions. I've created a special category for them. The name of this category is “Too Hard.”

There are a lot of things that are too difficult for me, and I don't want to just throw them into the “too difficult” category. There are few simple things, but IJust do the simple things.That's how I think about classifying the problem.

24. Remembering the past, there are always things that could be done better. However, there are times when everyone misses an opportunity. I've always thought that if you can't change something, don't get too tangled up.Being full of complaints and grievances is a big taboo in life.

25. If you learn my methods, you too can succeed. I was able to succeed becauseWhen I was young, I mastered a few ways of thinking and used them over and over again throughout my life.

First, I walked along the street because there were few people on the street.It is only by walking the street that one has great wisdom.

I also pursue rationality. One is the influence of genetics, and the other is the influence of my family environment. I have developed a habit of pursuing rationality since I was a child, and this good habit has benefited me for the rest of my life. That's a huge advantage. There are countless foolish acts in politics and business.

26. Of the people I met, the ones that ultimately succeeded were those who were patient and kept sane. They measure income and output and live their lives on their own.

They were careful and did things right. When the opportunity presented itself, they rushed up and grabbed it.You, the new generation of young people, can also succeed by living like I said.

27. No matter what happens, we shouldKeep a positive mindset. No matter how difficult it is, we should all find a way to get out of it.

28. In the long run,People who can delay gratification live better.Some people couldn't control themselves from an early age, and when they grew up, they even spent money indiscriminately buying unreal things like Rolex and Patek Philippe. An adult should be thrifty and thrifty, delay gratification, and not extravagantly.

Delayed satisfaction of this quality is essentially innate, and this conclusion has been confirmed in psychological research. If you have some talent to delay gratification, and you can cultivate that talent, you're on your way to success and happiness.

29. If you want anything, you have to get it right away. Not only will this kind of person fail, but they may also fall into the abyss.

30. Lee Kuan Yew has a mantra that he often says:”Find the right way and do it the right way.”This principle is very simple; everyone understands it, but few people can put it into practice.

31. My standard is this: I have an opinion, and others hold the opposite opinion. Unless I can refute my opinion more strongly than others, I have no say on this issue.

Continuously practicing this way of thinking, you are constantly proving falsification and always torturing yourself, which can reduce your ignorance.

32. If you want to be happy, rule one,Lower your expectations.This is something you can control yourself. Always having unrealistic expectations is bound to be painful for the rest of your life. I'm very good at lowering my expectations, so I'm living a great life.

33. In times of adversity, you have to have oneClench your teeth and work hardThe hard work. Grievances and complaints are constant; they are only getting more bitter and more difficult.

34. People are looking forward to one day achieving high consumption and being able to show off their wealth in front of others. People's desires are the driving force for the development of modern capitalist society.

I recommendYoung people avoid high consumption,That's not where you guys should be. Stay away from high spending and stay away from showing off your wealth. Satisfaction of desires does not bring happiness. However, people's pursuit of desire is indeed driving the development and progress of civilization.

02. How to become a qualified manager?

1. I once led a company that operated printed tickets and watched its sales drop from 120 million US dollars to 2 million US dollars. Sales fell by as much as 99%. Seeing its sales drop steadily, there's nothing I can do. I've thought of all kinds of methods, hoping to stop the decline, but unfortunately they all came to no avail.

This experience taught me a profound truth. There are two main factors that determine the outcome:One is the situation, and the other is the person. The situation is so strong that no matter how capable you are, it won't help.

2. In the past, there was an old senior in the investment industry who had been in the sand field for a long time. Whenever young people suggested that he go on an adventure, he always said, “Anyone who drowns in a river knows how to drown.” When you encounter a vortex, the water flow is so strong that no matter how good your swimming skills are, it's hard to escape. As can be seen from this,If you can hit it, play; if you can't beat it, run.

3. Warren favors excellent management, but in his investment process, he never paid a higher price than assets because the management was excellent. The price he buys an asset is always slightly below the value of the asset.

Good management is part of the asset, WarrenYou don't pay a priceless price because the management is excellent.

4. In Warren's eyes, a good manager looks like this: you throw him off the train, throw him in a remote town, and don't give him money. He runs honestly in this town. It doesn't take long, and he has made his family rich again.

5. In Berkshire's letter to shareholders, Buffett quoted David Ogilvy (David Ogilvy) as alwaysHire someone taller than us to join us and we'll all be giants.Buffett is very much in agreement with this idea, and so do I.

6. In the process of collaborating with others, both Warren and IStart by demanding high standards of yourself.We are able to achieve today's results because of excellent people working with us.

7. There is only one way to find an excellent partner.You just have to be worthy.In the same way, to find great people to work with, you must first be an excellent person yourself.

8. A high degree of decentralization is our style. I, as a person, either completely decentralize power and completely give up my hands, or do everything myself and do everything myself.

In this regard, I don't know how to compromise. To achieve both decentralization and supervision, Warren can be better than me, but not much better.

9. Throughout business history, many companies have been brilliant and made a lot of money, but when they are eliminated by the new wave of technology, their family base will soon run out and eventually die out.

Berkshire's success was a miracle, but the vast majority of companies that were eliminated only died like Kodak. Bill Gates has studied this issue specifically, and his conclusion is,When the main business declines, the vast majority of companies go bankrupt.As powerful as GM, it still can't escape this rule.

10. Recently, I met the CEO of Johnson & Johnson (Johnson & Johnson). He made a great impression on me. He told me,They regularly reflect and summarize their acquisition strategies.

Such a system is very good.If everyone can develop a habit of self-reflection, it can promote the advancement of social civilization as a whole.

Many people always run away and are afraid to face their mistakes. Johnson & Johnson has done a good job and is not afraid to accept criticism or lose face. It's a virtue to learn from failures and mistakes.

11. Any highly leveraged financial institution, no matter how diligent the manager is, may experience unexpected losses.

The key is to be able to solve the problem as soon as possible after the accident. After the problem came to light, the first thing many companies thought about was how to conceal it and how to mix up the past with accounting methods. In our opinion,It should be solved without covering it up and immediately.

12. The method of physics requires us to always pursue the essence of things. In the real world, when we learn to see the essence, we can live more calmly. Exploring the essence is not a matter of day or night; you must have the spirit of sitting on the bench for ten years.

I love this spirit, this is onePersevere and don't stop if you don't achieve your goalsThe spirit.

13. Starting from the actual situation in Berkshire, the business strategy we are adopting now should be very reasonable. We tailor each subsidiary to choose the development strategy that best suits it. Our management approach is full decentralization.

We respect the actual situation of each subsidiary and let the subsidiary operate independently, rather than sitting at the headquarters issuing orders to each subsidiary. Over the years, this form of organization has given Berkshire a huge competitive advantage.

14. Whether it's investing in stocks or managing a business, it's important to know people and see people. How do you look at people accurately, and how can you keep your eyes off them? The question isn't that simple. You can only experience and understand more on your own.

Like walking into a Ford 4S store, you wonder if this company's business is good or not, and what the reason is. Watching people also makes the same sense; watch more and think more.

15. I am willing to work with excellent people,People who don't want to be mediocre will join the ranks.When I was a lawyer, there was a phrase I always kept in my mind, “Being a lawyer has completed the case at hand, I don't worry about not having a business.”

Every day's software business also follows this philosophy. As long as we get down to earth and work hard, we don't worry about not having a future. We also face adversity and failure, but we won't stop moving forward.

16. We don't know the specific software business, so how can we lead every journal company? We are mainlyRely on acquaintances to be kind.

17. All my life I have always dealt with people who are good at delaying satisfaction. People like this delay satisfaction over and over again, keep delaying satisfaction until the end of their lives, and never enjoy it for the rest of their lives.

We are just that kind of people. If you delay gratification like we did, you'll definitely be rich and very rich when you die.

If you run a company, you know how to delay satisfaction, and you can run the company better and better. If you know how to delay gratification in life, you can be very beautiful when you die.

18. No matter what you do, you are always full of love. If you study hungry and thirsty, and tirelessly hone your skills over time, you will naturally reach a level that ordinary people cannot reach.

Some people are able to find a career they love and are able to put all their energy into it. What Warren has achieved is impressive. If Warren wasn't good at learning, Berkshire might always just be a small company.

19. Today's China is well connected by high-speed rail, and China's achievements have attracted worldwide attention. America developed by borrowing money from Europe,China's rise depended on self-reliance. They saved half of their income; they are particularly good at delaying satisfaction.

China's achievements are admirable, and China's approach is very effective. I have a very good impression of China.

China also has a problem. The problem with Chinese people is that they gamble too much and are particularly superstitious about luck.People who are superstitious about luck are ignorant. You can't trust luck; you have to trust probability.

20. I have discovered a truth in my life. We have suffered and sinned together.They have forged a world together. The friendship and relationship formed in this way is the closest,This kind of friendship cannot be built on a stable and prosperous day.

In the midst of adversity, we are tired of coping and struggling, yet adversity can best exercise will, forge friendships, and nurture success. Only by working together in the face of adversity can people establish a friendship of common suffering. This friendship is invaluable.

21. Why did GE's performance plummet? On the one hand, there are objective external reasons. In the fierce commercial and maritime competition, it is normal for a company to have ups and downs; on the other hand, I think,GE's executive rotation system is unreasonable.

GE always frequently mobilizes senior management to exchange them between different departments. Is this how they want them to accumulate combat achievements like military officers and eventually become generals? It's better to let executives manage a business for a long time and let them dive deeper into their own business, just like Berkshire did.

22. In the process of doing management work, the easiest mistake to make is that you have discovered that it is time to replace someone, but you have been unable to make up your mind and delay for a long time before replacing the wrong person. It's easy for even people with years of management experience to make this mistake.

23,The bigger the company, the harder it is to establish the right culture.If you don't believe me, look at the big powerhouses like GM and AT&T; their culture is basically lackluster. Large companies are particularly susceptible to the common disease of bureaucracy. This is a persistent disease; if you get it, it won't be easy to treat.

Berkshire is on high alert about bureaucracy. We are singing empty city plans at headquarters, not giving bureaucracy an opportunity to take advantage of. There is no bureaucratic culture, and the upper management is clear-headed, which gives us a huge advantage.

24. The more successful the company and the more successful the government department, the easier it is to be overwhelmed by success, and the more susceptible it is to be corroded by bureaucratic culture.

As the bureaucratic culture develops, a group of vested interests will gradually be created. They will enjoy all kinds of preferential treatment, eat well, drink well, and make good use of it.

Outsiders hate bureaucracy, while those with vested interests within try to preserve it. The success of modern civilization has spawned bureaucracy, and bureaucracy nurtures foolishness and failure. This is the sorrow of modern civilization.

25. There are some things that not everyone can learn. Some people are naturally better than you; no matter how hard you try, you can't compare them to others. Faced with this fact, my mentality is“It doesn't matter”.

26. We are successful not because we are good at solving problems, but because weGood at staying away from difficult problems. We're just looking for something simple to do.

27. We have our own principles like every journal company.We don't sign contracts that make us lazyto prevent yourself from becoming depraved.

28. Alone, he's an alcoholic who often gets drunk, so we definitely stay away. People can often determine whether a person is worth dating from one or two characteristics of a person. Over the decades,Good at understanding and observing people,It helped us a lot.

03. There are only two or three good opportunities

1. From an investment perspective, what we should pay attention toIt's that kind of epoch-making scientific advancement.First, we need to discover technological changes, then we need to see if the industry has strong barriers.

2. We should keep calm. Everyone is optimistic about this opportunity. Everyone knows that this opportunity is very real, very reasonable, and the prospects are exciting. It simply cannot be missed. People are bound to flock to it, resulting in a serious stampede.

Everyone is optimistic about this opportunity; a stampede is the most likely to occur.The damage was the most severe.

3. Warren often talks about the difference between a good business and a bad business. He said,In a good business, every decision is simple, no need to think about it; in a bad business, every decision is difficult,It's always going back and forth and struggling.

I personally think that even if a company analyzes the rationality of fixed asset investments, it's best to make the kind of investment you don't even need to think about. We like good business. The balls that good business throws at us are soft, and we are accurate one by one.

4. In long-term investment practice, we have summed up some standards. The ideal company generates more cash than net profit each year and can provide owners with a large amount of cash at their disposal.

There are few companies of this kind. It's easy to describe, but it's rare in reality.

5. As long as I can withstand fluctuations, holding three stocks at the same time is enough. I came to this conclusion through rough calculations and logical reasoning. As a poker player, I know that when the probability of winning is very high, you have to place heavy bets.

I also know very well that centralized shareholding fluctuates even more. I know I'm a very mentally tolerant person. I learned from my parents not to bow down in the face of difficulties. My personality is perfect for this method of centralized shareholding.

6. We are all value investors, but our scale is larger than yours, and the investment environment has deteriorated.It's hard for you guys, it's harder for us than it is for you.Fortunately, we've already upgraded our thinking: some companies, even if we buy them at a very high price, are still far below their intrinsic value.

To invest the way we invest, we must accurately judge the prospects of a company. Not only do you need to be able to see that a company's current business is a good business, but you also need to be able to see that it will still be a good business for a long time to come.

As long as you can select the five most beautiful ones from the “Beautiful 50,” you can still achieve good investment results. The key to this kind of investment idea is to grasp it well.

7. WeThere are three “don'ts” when investing:

• We are used to buying and holding for a long time. Using this model to invest in companies that produce ordinary commodities may not be appropriate.

• The telecommunications industry and the utility industry are not areas we specialize in.

• I never buy stocks at a price higher than their intrinsic value.

8. Our approach is very basic. To invest like us, all you need to do is find the chance of mispricing in the stock market.

You should use your strengths, filter your areas of expertise, and identify opportunities for pricing mistakes. The stuff we're talking about is very basic; doing the most basic stuff like this is enough.

9. Intelligent people are good at comparing opportunity costs. From the perspective of opportunity costs, many problems can be solved. I said at the Berkshire shareholders' meeting that when choosing a life partner, you should choose the best one from the people you have access to and who are willing to work with you.

10. Now that you know it's a good opportunity, what else is there to discuss? The work is over; when it's time to take a shot, there's no need to waste words.To invest is to find this kind of unequivocally good opportunity.I wish we had more good opportunities like this.

11. Fundamentally speaking, it is still necessary to understand a company's business and understand what threats a company faces, what opportunities it has, what competitive position it has, etc.

It is difficult to accurately predict the future of a company by looking only at past performance growth, past return on capital, and past sales. It is only on the basis of an in-depth understanding of the business that the company's prospects can be predicted more accurately. To invest, you still have to really understand the business.

12. Warren often tells business school students that he has a way to help them improve their return on investment. Take a card. On this card, you can only punch 20 holes. Each hole represents an investment. If you make an investment, punch a hole.

Once all 20 holes have been drilled, the investment opportunities of a lifetime have been used up. Warren said that by doing what he said, investors can achieve higher returns over the course of their lives.

Warren meant what he said, and I'm also serious about repeating what Warren said here. For an intelligent and disciplined investor, after only making 20 investments in a lifetime, they will definitely be able to achieve better returns in the end.

Because the number of investments you make in your lifetime is limited, you must be careful and cautious when making every investment, and you must keep a close eye on big opportunities.

13. There is common sense in life: when making decisions, both individuals and companies consider opportunity costs. The wider the scope of investment, the more investment opportunities there are. It's good to have a wide range of investments, butThe scope of investment is wide, and it is also easy to break out of one's ability circle. We have a wide range of investments, yet we rarely leave our circle of competence.

Of the investment opportunities we looked at, 90% to 95% were determined by us to be out of our ability circle. If we couldn't understand them, we just wouldn't read them.

14. Graham proposed the principle of the margin of safety; this concept never goes out of style. Graham told us,The market is our servant, not our teacher,This concept never goes out of style.

The two concepts proposed by Graham are the foundation of investment and will never go out of style. In Graham's mind, we can also learn to be calm and objective, not affected by emotions, which will never go out of style.

15. Most investors are too slow to act. To make an investment, one is to wait for the opportunity to appear, and the other is that when the opportunity presents itself, you must act decisively. Always ready, it's that easy.

16. Only by adopting a multi-model mindset can we better understand reality. In particular, when it comes to investing, investors are involved in a wide range of fields, so investing is not an easy task. Without the ability to integrate, it is impossible to properly understand reality.

17. To make an investment, you need to be able to afford it. Investing is a long-term thing. Now that you're ready to invest in the long term, when you experience a 50% drop, you have to stand firm and not be scared to pee.

I use my personal experience to tell you to practice yourself. When you experience a 50% drop, you need to “collapse Mount Taishan and stay the same”.

18. The secret to investing is that you can actually see a few big opportunities. When an opportunity that belongs to you presents itself, you can understand it, but others can't. Like I said, just seize these few great opportunities, and that's enough.

19. The widely circulated Kelly formula tells us how many chips we should bet on each trade when we have our chances of winning. The greater your chances of winning, the higher the probability that this trade will be successful, and the bigger your bet should be. The investment method I mentioned is correct; it is supported by mathematical laws.

20. Sometimes, an opportunity is particularly good. It's just like exploring a bag to pick up something; it's perfectly reasonable to just buy this one.There are only two or three good opportunities.

21. What did Li Lu do well? On the one hand, he is considered the Chinese version of Warren Buffett; on the other hand, he is fishing in China. I don't know how many times the US market has been turned over. It's overcrowded, and competition is heating up.

The Chinese market is different. There,You can still use the stupidity and laziness of others to find great opportunities that are well worth investing in.

22. The first rule of fishing is to fish where there are fish. The second rule of fishing is to remember the first rule. In an extremely competitive environment, no matter how hard you try, it's no use.

23. There are many types of successful investment styles. Some people have a style of fast entry and quick exit, and they are also very successful. Fast in, fast out, not my style.My style is to hold on for a long time and I'm not looking into how to quit.

24. The moat is disappearing really fast. The old, traditional moats are gone in a blink of an eye. Perhaps this is an inevitable result of economic development. In the modern economic system, old moats are inevitably eliminated.

25. At the end of the day, there is only one type of investment that is value investment. Why do you say that? Because every time we make an investment, we put our money into it so that we can get more value in the future.

In the process of investing, it's impossible for us to focus too much, just like you can't run a marathon in 12 different locations at the same time.

So, you need to have your own method to find an area worth your own in-depth research; this place is your hunting ground.Whichever region you choose to dig deeper into, what you're looking for is value.

26. In my opinion,Value investing never goes out of style.According to my understanding, no matter what kind of stock you buy, value investing is to pay a lower price and buy a higher value.

27. Some people think that value investing is digging into broken companies that have a lot of cash on their accounts but are doing very bad business. I don't think that's all about value investing.

From my point of view,Every investment made right is a value investment.The difference is that some people look for value in good companies, while others look for value in bad companies. However, real value investors buy higher value at lower prices.

28. Some achievements are hard for ordinary people to reach. Some people hire a large number of people to manage investments and let many people make decisions for him.

I think it's better to leave decision-making power to one person and pick the right person, just like I chose Li Lu's fund.It's not that easy for the average person to become an investment guru.

29. Many sane investors have one thing in common:They choose what they feel practical to invest in. Warren is no exception.

30. Investment styles vary from person to person, and no investment style is suitable for everyone. Some people have that talent; they can understand things that are difficult to value; they are capable of making difficult investments.

Some people don't have that much skill, so don't do it; it's better to choose what you can understand. You must be aware of how much you are capable of.

If you leave money to someone else to manage, you need to be aware of how competent your fund manager is. How you invest depends a lot on your ability.

Editor/jayden