It is a very simple idea to use the power of compound interest

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It is a very simple idea to use the power of compound interest  Smart people are easily attracted by complex things, and underestimate the great influence and importance of simple ideas. But Monish Pabrai is a full pragmatist, and he will not fall into this trap. "It is a very simple idea to use the power of compound interest, a very simple idea to imitate, and a very simple idea to be honest." He said. However, when you apply some powerful ideas with great enthusiasm, the cumulative effect is "incomparable".
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How to manage well and keep the investment unchanged is also crucial for long-term investment?

 


How to manage well and keep the investment unchanged is also crucial for long-term investment.

For individual investors, there are some good skills.

One of the best skills is to list your investment plan on paper before making an investment.

A good investment plan includes:

How to allocate stock funds and incremental funds;

When to buy;

Under what circumstances is the surplus stopped;

What level of fluctuation risk may be encountered in the middle, and if so, how to deal with it.

Before the screws, we wrote the corresponding asset allocation articles. We will introduce the asset allocation in the official account dialog box.

For example, use "100 age" to allocate stocks and bonds.

If the age is 40, you can allocate 60% to stock assets and 40% to bond assets.

Stock assets can be allocated in undervalued areas or 4-5-star stages.

At the same time, even underestimating regional investment will encounter short-term fluctuations.

It is also common for stock funds to fluctuate at the level of 20% - 30% in a bear market. It is better to invest with idle money that has not been used for a long time.

Make a detailed plan and list it on paper.

When there is a corresponding situation, this scheme is an "anchor" in our hearts.

Avoid the deformation of investment behavior in the case of panic and greed.

After a round of bull and bear markets, with the experience of facing fluctuations, it will be easier to stick to it in the future.

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