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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For investors, the most important thing is not the scope of the ability circle

For investors, the most important thing is not the scope of the ability circle 



Every investor who hopes to survive in the stock market for a long time should keep in mind Buffett's advice: "for investors, the most important thing is not the scope of the ability circle, but how you can determine the boundary of the ability circle. If you know the boundary of your ability circle, you will be much richer than those who do not know the boundary although the ability circle is five times larger than you.".

In the investment community, we often see a lot of differences, such as whether to concentrate or diversify investment? Should we pay more attention to the ability of enterprises to create profits in the future, or the visible value of hard assets at present? In fact, there are successful people on these paths. The problem is not which path is perfect, but what is your ability tendency? When you really understand the advantages and limitations of each method and your own ability traits, you will naturally lose interest in this kind of quarrel.

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