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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Value investing is a personality trait

 Value investing is a personality trait



Value consumers will indeed look for opportunities to buy at a low price or find alternatives at a lower price, but we must not regard these behaviors as greed for small and cheap. On the contrary, they reflect the idea that they are unwilling to pay more than the fair value for goods.

Many people think that value investing is just a method, but they don't think it is also a personality trait. This is a psychological state formed by experience, knowledge, and desire to invest and make profits. A simple value investor must be a simple value searcher, which is reflected in the consumption concept. No matter whether it is dinner, clothing, a house, or a new car, it will not pay excessive prices.

Timothy Vick, the author of how Buffett chooses growth stocks, once listed the differences between value investors and nonvalue investors from the perspective of daily life:

Value investors will rent a $3 videotape instead of going to the cinema to buy a $7.50 movie ticket;

Value investors will wait for Toyota or Ford to change cars when they are on sale, but they won't pay $2000 more when everyone wants to buy them;

Value investors will buy a box of $3.50 non branded cereal, but not a box of $4.99 branded cereal;

Value investors will buy winter clothes at a 50% discount in spring, but they will not rush to the store to buy them at a high price like everyone else in winter;

Value investors won't buy a $30 Benny stuffed toy, but they will buy an ordinary toy that also makes children happy.

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