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

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".

From inductive innovation to deductive innovation

 From inductive innovation to deductive innovation

Of all the scientists, Einstein is the one I personally admire most. Before Einstein, most scientific research was based on induction. Scientists concluded theorems or laws from certain things through observation and repeated experiments. As the number of discovered theorems and laws increases, scientists find that these theorems and laws conform to some fundamental first principles.

However, Einstein used the axiomatic way of thinking to find some natural laws from the basic first principles through the logical derivation of the deductive method and then verified these findings by himself and other scientists.

To some extent, the development of things has something in common. Similar to the transformation of scientific research methods, the transformation of innovative methods is also taking place in the business field. Generally speaking, most enterprises use inductive logic in their innovation work. Entrepreneurs or managers summarize a certain innovation model based on their previous successful experience and then promote the development of the enterprise by extending this model to all business links or stores of the enterprise. Many bestsellers on entrepreneurship and innovation management in the market are basically this example.

From a broader and deeper analysis perspective, you will find that all innovation models summarized from experience will eventually conform to a certain first principle. Instead of continuously summing up experience for a long time, we might as well change a perspective, turn this inductive innovation into deductive innovation, and use the deductive method to directly locate a certain primary principle that has a root promoting effect on the development of enterprises, and then derive new innovation models from the primary principle. Finally, we can apply these models to practical work to guide innovation practice.

We believed in inductive innovation of "practice leads to true knowledge" in the past. Now we advocate deductive innovation that is logically correct and in fact must be correct. In a word, it is the first innovation based on the first principle. This innovation can cross-domain dependencies and be common in different fields.


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