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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We must pay attention to the "vast majority of people" in the stock market

We must pay attention to the "vast majority of people" in the stock market 




Charlie Munger, the partner of investment master Buffett, once said: "I want to know where I will die, so I will never go there. "This interesting idea really has great enlightenment for investment. Most of the time, we think more about how to succeed than how to avoid failure. We have learned too many biographies of successful people standing at the top of the pyramid but turned a blind eye to a large but silent number of losers. There is a huge hidden danger: success may be the resonance of many factors and may contain some accidental factors, and failure often has more Many common factors and inevitability.

So in the stock market, we must pay attention to the "vast majority of people". Their behavior heat is a pointer in the market; Their characteristics are that every successful investor needs to avoid; What they ignore is what investors should pay attention to; What they can't bear is what we need to insist on: what they feel comfortable and happy is what they need to be vigilant; We are far away when they gather in a frenzy: when they are dejected and swear never to touch stocks again, a once-in-a-lifetime investment opportunity is often in front of them.

This sounds cruel, but it is an effective way to avoid failure. For those who are highly in line with the characteristics of "the vast majority of people", the stock market is indeed terrible and dangerous. But for those who can realize this and get rid of the shackles of the "vast majority" behavior, the stock market will begin to show a completely different day.

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