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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Financial analysis ability is a foundation and a common language in the investment world

 Financial analysis ability is a foundation and a common language in the investment world

Although I never thought that financial analysis ability is the core ability of an investor, and I also admit that accounting statements do have a lot of room to whitewash, adjust, and even falsify, it would be a big mistake to think that financial statements are useless just because of these. The ability of financial analysis is indeed not the "high-end atmosphere" part of investment and the core competitiveness of investment, otherwise, all senior accountants can become the God of stocks. However, financial analysis ability is a foundation and a common language in the investment world.

Although there are various defects, at least so far, human beings have not invented a means that can reflect the overall business activities of an enterprise in a more detailed and comprehensive way than financial reports. Losing the ability to interpret the financial statements is equivalent to closing the door of enterprise analysis, and you can only enter and exit through the window.

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