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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Long-term holding also has specific prerequisites

 In my opinion, people who choose to hold for a long time are optimists in essence, although they may be very cautious on specific issues. Because a pessimist in essence cannot have any confidence and sense of security in the long-term future, nor can he hold the company for a long time. Of course, long-term holding also has specific prerequisites, which include not only the overall understanding of the overall social development environment but also the key business assumptions of specific investment objects. We will discuss these two aspects in detail later. Of course, investment cannot be separated from some elements of luck, but a person's ultimate height and wealth in investment must be highly correlated with his vision, breadth of mind, temperament, and pattern. From the point of view of mentality, only when you give up can you get something. He who wants to catch everything will eventually get nothing; In terms of the realm, investment is not faster and more energetic than who, but who sees deeper and farther, and who has the least initiative errors. Those who are driven by impetuosity and greed and always add on investment will eventually find that all addition has become subtraction.

When it comes to long-term holding, we cannot avoid psychological problems. But what determines the investment mentality? The mentality does not depend on reciting soul chicken soup and mysterious spells every day, nor on forcing yourself to clean up like a monk. In my opinion, the mentality of investment depends first and foremost on whether we really understand the essence of investment. Specifically, the law of value formation, the law of market pricing, and the law of profit.

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