Warren Buffet: parting words of wisdom
There was an interesting post on LI this morning from Ken Kuang Entrepreneur, Author & Wall Street Journal contributor
🔥94-year-old stock oracle Buffett confirmed that he will step down as CEO of Berkshire Hathaway at the end of this year. The 10 rules he left behind in his life are the bible of the investment world and the beacon for ordinary people to lead a wise life:
1. The most cost-effective investment in this life is to invest in yourself.
Core revelation: Knowledge, health, and character have the highest compound interest, and are tax-free and loss-free. First let yourself appreciate, then talk about external assets.
2. Don't let the principal be damaged; Rule 2: Always remember Rule 1.
Core revelation: Keeping the bottom line is more important than anything else. Whether it is investment or life, keep risks out of the door, and other goals can be achieved.
3. Others are greedy, I am afraid, others are afraid, I am greedy
Core revelation: Only by going against human nature can you go against the cycle. In the emotional tsunami, rational people can pick up value at low tide and avoid traps during the carnival.
4. The stock market is to transfer money from impatient people to patient people.
Core revelation: Frequent operations often just pay taxes on emotions. Wait for the value to be realized, and the benefits often accumulate quietly.
5. The price is what you pay, and the value is what you get.
Core revelation: Don't be confused by labels, learn to see the inner meaning of things. Whether buying stocks, buying a house or choosing a partner, first ask "is it worth it" and then talk about "is it expensive".
6. Instead of buying a mediocre company at a very low price, it is better to buy an excellent company at a reasonable price.
Core revelation: Excellence will increase its value, and mediocrity will only waste time. The same is true for selecting people and projects - it is better to have nothing than to have something bad.
7. Risk does not come from volatility, but from ignorance.
Core revelation: The real danger is not understanding. Stick to the circle of competence, continue to learn, and gradually turn the unknown into the known, and the risk will naturally be controllable.
8. Our favorite holding period is - forever.
Core revelation: Time is the engine of compound interest. Assets, careers and relationships that are willing to accompany you for a long time are worthy of your attention.
9. You don’t need to swing the bat every time, patiently waiting for the easy ball.
Core revelation: A true master is not about how fast he swings, but knowing when not to swing. Whether it is investment, career choice or life choice, waiting for the "most suitable opportunity" is more important than anything else.
10. If you can’t find a way to earn money after sleeping, you have to stay awake for money all the time.
Core revelation: Let capital or system work for you, then you can truly own time. Active becomes passive, efficiency beats diligence.
