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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The power of insensitivity in investments

The power of insensitivity in investments

In the field of investment, it is good to be flexible and sharp, but it is not only flexible and sharp. The most important ability to survive in the stock market is to be able to "sleep at night" and not be shaken by market fluctuations.


Generally speaking, most people are too sensitive and diligent about investment, and fund managers maybe even worse. They adjust their portfolios within hours, continuously monitor their portfolios, and often change their stocks quickly with surprising frequency to respond quickly to the prices set by the market at every moment. Their costs are so high that they consume any increased benefits. They are completely restrained by the volatile stock price. They buy because of optimism and sell because of pessimism. If they lose 5%, they may go away immediately. Therefore, winning is a great joy, losing is a great sorrow, and you can't sleep every night.

Peter Lynch is one of my most respected investors. He once served as Magellan Fund Manager of fidelity for 13 years. During this period, he created an excellent performance of 29% annual return on investment. Peter Lynch is known for his diligence and dedication. At that time, he traveled around, studied, and traded 15000 stocks before and after. Visit a listed company every day or two, more than 400 a year. Lynch always feels "very tired and stressed" at work, and doesn't even meet his family often. At the age of 46, he retired with white hair and an old face. He took only two long holidays before retirement. It is obvious that in the marathon of investment, especially in the fierce fund management industry, diligence like Lynch is doomed to be difficult to persist for a long time.

What's more, some famous investors, such as Jesse Livermore, who used his speculative methods to achieve great success, but finally failed in the same way and committed suicide because of poverty.

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