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

Image
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".
Post a Comment

In investment, there is a strategy called "do nothing"

 There is a strategy called "do nothing"

We are always looking for cheap investments that are both in line with our preferences and understandable, but the deep value will only appear when the market falls or extreme events occur. When there are no attractive investment opportunities, cash should be king. According to Seth Karaman, holding cash is a safe way to do nothing until attractive investment opportunities emerge. It provides a very limited but positive rate of return, complete security of principal, and completely immediate liquidity. In the absence of better investment options, cash with small positive returns and little risk is not a very bad investment object. The reason for this approach is not because investors made a top-down asset allocation decision and decided to hold cash, but based on the result of looking for cheap investment from bottom to top.

However, holding cash is easier said than done. Knowing that you should hold cash without better investment opportunities is one thing, but actually putting this idea into practice is another. When others make a lot of money because of speculation, it is difficult for ordinary people to be indifferent. Seth Karaman found that what drives speculation is not the temptation of speculation, but the desire to do something.

Doing nothing is also a strategy: doing nothing means looking for potential investments and excluding those that do not meet the criteria. The difficulty is that doing nothing seems like having nothing to do, which makes people feel uncomfortable, inaction, imagination, and passion, and may lag behind the market for some time.

Comments

Post a Comment

Top Posts/Right Now

Look ahead to the future and live in the present

Image
 Look ahead to the future and live in the present In short, what investors need to do is to "look ahead to the future and live in the present" -- not only strive to see the trajectory of future development, but also endure loneliness and calm down, and not pay for expensive tickets in advance for a wonderful future that is just a possibility. The fundamental analysis of enterprises must spread to three perspectives simultaneously, namely "the essence of market, the essence of the business, and the essence of investment". It will bring potential risks to investment analysis to only advocate any one of them and ignore the others. Understand the long-term development trend and final pattern of the industry from the essence of the market "supply and demand", and understand the fundamental decisive factors of the industry and the ability to produce differentiated competitive advantages from the essence of the business "competition", Then from the esse
Read more

Spatial induction and temporal induction

Image
 Spatial induction and temporal induction Before explaining the "misunderstanding of induction", we first need to fully understand the specific connotation of this thinking mode. Usually, when people use induction, they often set a certain reference first. From the inertia of human thinking, this reference is often space or time. The so-called spatial induction, in short, means that people will acquiesce to the effective law in one space, and it is also effective in other spaces or even all spaces. Just like an entrepreneur who succeeds in a certain regional market, he will take it for granted that he can succeed in other markets. We can use a more popular example to illustrate. If all the swans people see in Europe are white, all the swans they see in Africa are white, and all the swans they see in Asia are white, people will naturally default that swans all over the world are white. As the name suggests, temporal induction means that some rules that were established in the
Read more

About sales distribution channels

 About sales distribution channels Generally speaking, the higher the added value, the more complex the pre-sales and after-sales work, and the customers must continue to re-educate and explore the business, direct selling is the most appropriate. Although the initial stage is slow, the critical factor for the success of this business is to establish a strong influence on customers. In short, it is to "brainwash" customers. This complex and high-tech work channel is difficult to replace. And in the long term, the success or failure of this business does not depend on who achieved the scale effect through the channel first but on continuous innovation and the differentiation of value demands. Therefore, the temporary slowdown does not affect the long-term competitiveness of enterprises. On the contrary, this work is left to the distributor channel. The longer the time, the greater the hidden interest and the smaller the benefit. However, for businesses with low added value, a
Read more