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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Long-term investment can win

The iron rule of wealth accumulation in the stock market is often that in order to be greedy for speed, it will become very slow, while those who seem to be very slow will be very fast, which is the so-called "fast is slow, slow is fast".

Long-term investment is not a popular topic. Perhaps John Maynard Keynes once said, long-term? Everyone is dead. Therefore, countless people seem to have found a basis here and made short-term "investments". Because they are not popular, people who advocate long-term investment should be very careful.

Edgar Lawrence Smith was criticized for his book "long term investment in common stock" because it was published at the wrong time, just on the eve of the stock market crash in 1929. It is said that it may induce investors to buy at a high share price and hold it for a long time. In fact, this book now looks like a classic.

Why on earth should we invest in the long term? This is because the successful accumulation of wealth depends on compound growth. As long as the annual average increase of 1 million yuan is 10%, it will be 2.59 million yuan in 10 years. This is only calculated according to the average level of the stock market. The mathematical calculation is very simple, but it is difficult to put the real accumulation of wealth in the long-term perspective.

Of course, many people may think that such wealth appreciation is too slow. But they don't know that the iron rule of wealth accumulation in the stock market is that in order to be greedy for speed, they will become very slow, while those who seem to be very slow will be very fast, which is the so-called "fast is slow, slow is fast".

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