1. My success can be attributed to mastering a few mental models when I was young and applying them repeatedly.

1. Human society is intricate and complex; great successes and failures often result from a confluence of factors. Warren Buffett’s success is no exception.

The first factor: intellect. Warren is an exceptionally intelligent individual, though not to the extent of playing blindfolded chess simultaneously against multiple opponents. Nonetheless, he is naturally gifted. While Warren is smart, his achievements surpass what mere intelligence could account for.

The second factor: Warren’s profound interest in investing. Sir William Osler once said: 'The first step towards success in any profession is to fall in love with it.' Without a strong passion, success remains elusive.

The third factor: Warren started early. From around the age of 10, he developed a keen interest in investing. Success is built over time, and starting early certainly provides an advantage.

The fourth factor, which is also highly significant: Warren is an efficient learning machine. He embraces lifelong learning, continuing to acquire knowledge well into old age.

The fifth factor is trust. Earning the trust of others instills a profound sense of pride.

2. Berkshire Hathaway has an open secret: we favor companies that generate substantial cash profits at the end of each year.

3. When valuing a company, failing to differentiate between types of profits—whether they are cash earnings or machinery sitting idle on a vacant lot—and simply using the profit figures as they are will inevitably lead to inaccurate valuations.

Profit is like machinery piled up in an open yard, difficult to recover as accounts receivable, and cash never seems to appear. A company with such characteristics, no matter how much profit it reports, is not worth much. What makes a company truly valuable is the continuous generation of cash profits.

4. In psychology, there is a concept known as the reinforcement effect. No matter what one does, continuous reinforcement can help everyone perform better. If good performance is always rewarded, people will continue to improve. Warren Buffett is no exception.

5. I find making a checklist particularly useful when facing complex problems. Listing everything out allows all issues to become clear at a glance, ensuring more comprehensive consideration without omissions.

6. When answering questions, I do not simply respond to every query; instead, I selectively choose to answer only what I wish to address. This is my way of thinking. I contemplate what I do not desire and consider how to avoid undesirable outcomes, which has greatly benefited me.

7. If I were to run a business school, I would emulate the approach once adopted by Harvard Business School. In the past, Harvard always began by teaching students the history of American commerce. I would present the histories of major companies like General Motors in the form of Value Line charts, allowing students to first familiarize themselves with corporate history before moving on to other subjects.

Why did General Motors rise and then decline? Why were railway companies initially successful but later failed? Why did railway companies cause investors to incur substantial losses in the past but are now more worthy of investment? Understanding these questions can teach us a great deal. These are not topics that ordinary individuals can easily explain; they are far more challenging than calculating beta coefficients using formulas.

8. I have done many foolish things, and I have consistently battled against my own prejudices. Eliminating incorrect ideas is a positive pursuit, and I regard it as a personal goal. Many people cling to outdated beliefs, leaving no room for new thoughts to enter. As a German proverb aptly states: 'We grow old too soon and wise too late.' Everyone faces this issue.

9. How can one avoid being part of the irrational majority and instead stand with the clear-minded minority? We must heed Kipling's advice—remain calm when those around you lose their composure. Whether for investors or corporate executives, this is a rare and valuable quality.

10. Fully recognizing the constraints of objective conditions and understanding one’s own limitations while cautiously operating within these boundaries is the key to making money. Rather than calling this approach 'humility,' it might be better described as 'restrained greed.'

11. Warren and I are acutely aware of our limitations and recognize that there are many things we cannot achieve. Therefore, we operate cautiously within our 'circle of competence.' We both believe that our 'circle of competence' is a very small circle indeed.

When I was young, a friend of mine said: 'Munger only studies what is relevant to his own business; anything unrelated, he knows nothing about.' We draw clear boundaries between what we know and what we do not know, and we operate strictly within the circle of our known knowledge.

Outstanding individuals are rare. Having the opportunity to follow them and associate with them may be worth paying a premium for, as it could lead to substantial returns in the future.

As I have mentioned in several speeches, to think correctly, one must develop a multi-model mindset and become proficient in all major models. No important model should be overlooked. The primary models are few in number, but mastering them all allows one to analyze 98% of worldly matters thoroughly.

Faced with difficulties, many people choose to escape. We choose to confront challenges, at least maintaining a positive attitude, willing to endure temporary pain in exchange for long-term peace. Many people consistently evade difficulties, unwilling to bear short-term suffering. Willingly embracing hardship and enduring present difficulties is the correct approach to life. The same principle applies to investing: trading short-term pain for long-term gain.

One should continuously improve oneself. We should focus on learning the main body of knowledge from various disciplines rather than becoming entangled in minor details. I place special emphasis on absorbing key insights from each field so as not to miss the forest for the trees. Integrating the core knowledge of multiple disciplines can unleash tremendous power.

Throughout my life, I have engaged in dialogue with ancient thinkers. The wisdom of sages and philosophers is something many contemporary individuals cannot match. Meeting them is simple; there is no need for travel—just open a book, and they will come to you. I recommend befriending these great minds. Through my interactions with them, I have gained immense insight. From many of you present here, I learn little, but Adam Smith is different—he has taught me a great deal.

Regarding difficulties, I hold another perspective. Life's challenges come one after another, each being a test and an opportunity for us to demonstrate our capabilities. I suggest adopting this attitude when facing hardships. Especially as you grow older, this mindset becomes extremely valuable.

There are no shortcuts to mastering model-based thinking. On one hand, we must store a large number of models in our minds; on the other, we need to be able to apply each model skillfully. There is no shortcut to learning this way of thinking through models. Perhaps there is, but I am unaware of it. My approach consists of just two words: 'perseverance.'

Thomas Carlyle once famously said: 'Instead of fretting over an uncertain future, it is better to focus on doing what lies before us.' This statement is profoundly true. Most of the time, we should concentrate on fulfilling our current tasks, doing our best while leaving outcomes to fate.

Although I am not Jewish, I deeply admire Jewish humor. Jews comprise only 2% of the world’s population, yet they create 60% of the world’s humor. Despite enduring so much hardship, they can still laugh in the face of life, which is truly admirable. I hold the Jewish people in high regard. I suggest you emulate my admiration for their ability to face adversity with laughter.

21. How can one become a wise and happy person? Persist in doing meaningful things; persist in being a person of value; persist in pursuing reason, integrity, and honesty. One day, you will surely achieve success. Actions speak louder than words. If you succeed, others will be more willing to learn from you. If you stay on the right path, it will be easier for you to succeed. You are already on the right track, and all you need to do is to persevere.

22. Thinking through a problem thoroughly solves half of it.

23. I have a way of categorizing problems that I will teach you. For many particularly difficult problems, I have created a special category for them, called 'Too Hard.' For me, there are many things that are too hard, and I don’t even think about them; I directly place them in the 'Too Hard' category. There are very few easy tasks, but I only focus on simple ones. This is my method of categorizing problems.

24. Looking back, there are always some things that could have been done better. However, everyone inevitably misses opportunities at times. I have always believed that if something cannot be changed, one should not dwell on it excessively. Complaining constantly and blaming fate is a major taboo in life.

25. If you master my methods, you can also succeed. My ability to succeed stems from learning a few mental models when I was young, which I have repeatedly applied throughout my life.

First, I take the main road because fewer people walk it. Taking the main road requires great wisdom.

I also pursue rationality. On one hand, this is influenced by genetic factors, and on the other hand, it is shaped by my family environment. From an early age, I developed a habit of pursuing reason, which has benefited me throughout my life. This is a tremendous advantage. In politics and business, countless acts of foolishness occur.

26. Among the people I’ve met, those who ultimately succeeded were patient and rational individuals. They lived within their means and led honest lives. They proceeded with caution, ensuring they did things correctly. When opportunities arose, they seized them with determination. Younger generations, if you live as I described, you too can achieve success.

27. Regardless of what happens, we should maintain a positive mindset. No matter how great the difficulties, we should find ways to overcome them.

28. In the long run, those who can delay gratification tend to lead better lives. Some people lack self-control from a young age and grow up spending recklessly, purchasing flashy but impractical items like Rolex or Patek Philippe watches. A mature individual should practice frugality, delay gratification, and avoid wasteful spending.

The quality of delayed gratification is essentially innate, a conclusion that has been confirmed in psychological research. If you possess some natural ability for delayed gratification and can cultivate this talent, you are already on the path to success and happiness.

29. People who want everything immediately are not only unlikely to achieve anything but may also fall into an abyss.

30. Lee Kuan Yew had a favorite saying: 'Find the right way, and do it the right way.' This principle is simple, and everyone understands it, but very few can put it into practice.

31. My standard is this: If I hold a viewpoint and someone else holds an opposing view, unless I can refute my own position more effectively than others, I have no right to speak on the issue. Continuously practicing this mode of thinking—always falsifying and questioning yourself—can help reduce your ignorance.

32. The first rule for achieving happiness is to lower your expectations—a factor entirely within your control. Persistently harboring unrealistic expectations will inevitably lead to lifelong suffering. I am exceptionally skilled at lowering my expectations, which is why I live well.

33. When facing adversity, you need the determination to grit your teeth and work hard. Complaining and incessant grumbling will only deepen your difficulties and hardships.

34. People all aspire to one day achieve high consumption and flaunt their wealth before others. Desire fuels the development of modern capitalist societies. However, I advise young people to avoid excessive consumption—it's not where they belong. Stay away from high consumption and ostentation. The fulfillment of desires does not bring happiness. Nevertheless, humanity’s pursuit of desire indeed propels the progress of civilization.

35. When people ask me how to be happy, I always reply: Lower your expectations—make them more realistic.

II. How to become a qualified manager?

1. I once led a company that dealt in revenue stamps, watching its sales plummet from $120 million to $2 million—a drop of 99%. Despite seeing its performance decline continuously, I was powerless to reverse the trend. I tried various methods to stabilize the situation, but unfortunately, none succeeded.

This experience taught me a profound lesson. There are two main factors that determine outcomes: one is the situation, and the other is the individual. If the situation is overwhelmingly strong, no matter how capable you are, it will be of no avail.

In the past, there was a seasoned veteran in the investment world who, whenever young people advised him to take risks, would always say, 'Those who drown in rivers are usually good swimmers.' When caught in a whirlpool with a strong current, no matter how skilled a swimmer you are, escape is nearly impossible. Thus, fight if you can win; retreat if you cannot.

Warren Buffett has great admiration for excellent management teams, but throughout his investment process, he has never paid more than the value of an asset simply because the management team was outstanding. He always purchases assets at a price slightly below their intrinsic value. An excellent management team is part of the asset, but Warren does not pay above value just because the management is exceptional.

In Warren’s eyes, an excellent manager is someone like this: throw him off a train into a remote town without money, and through honest and diligent efforts, he will become wealthy again in no time.

In Berkshire Hathaway's shareholder letters, Buffett quoted David Ogilvy, saying we should always hire people taller than ourselves, and we will all become giants. Buffett strongly agrees with this idea, and so do I.

In our collaborations with others, both Warren and I first hold ourselves to high standards. It is because we work alongside excellent individuals that we have achieved what we have today.

There is only one way to find an excellent partner: you must be worthy yourself. Similarly, to work with outstanding people, you must first be an outstanding person yourself.

High levels of delegation are part of our style. For me, either I fully delegate and completely let go, or I handle everything myself. In this regard, I don’t know how to compromise. Warren is somewhat better at striking a balance between delegation and supervision, but not by much.

Throughout business history, many companies have enjoyed periods of brilliance and made substantial profits, but once they were overtaken by new technological waves, their foundations were quickly depleted, leading to their eventual demise.

Berkshire Hathaway’s success is a miracle, but the vast majority of companies that have been eliminated have perished like Kodak. Bill Gates specifically studied this issue, concluding that when a company’s core business declines, the vast majority will go bankrupt. Even giants like General Motors cannot escape this rule.

11. Recently, I had the opportunity to meet the CEO of Johnson & Johnson, who left a very positive impression on me. He shared with me that they regularly reflect on and evaluate their acquisition strategies.

Such a practice is highly commendable. If everyone could cultivate the habit of self-reflection, it would significantly contribute to the advancement of societal civility. Many individuals tend to evade responsibility and are unwilling to confront their own mistakes. Johnson & Johnson performs admirably in this regard, unafraid to accept criticism or lose face. Learning from failures and errors is indeed a virtue.

12. Any highly leveraged financial institution, no matter how diligent its management, may encounter unexpected losses.

The key lies in whether the problem can be addressed promptly after an unforeseen event occurs. After issues surface, many companies first consider how to conceal them or use accounting techniques to obscure the truth. In our view, problems should be confronted directly and resolved immediately without hesitation.

13. The scientific method in physics requires us to always seek the essence of things. By understanding the underlying nature of phenomena in the real world, we can live more confidently and peacefully. Investigating the essence of matters is not something that can be achieved overnight; it demands unwavering dedication over the long term. I admire this kind of persistence—a relentless spirit that persists until the goal is achieved.

14. Based on Berkshire Hathaway’s actual circumstances, the business strategy we have adopted is quite reasonable. We tailor strategies to suit each subsidiary’s unique situation, selecting the most appropriate development approach for each. Our management philosophy emphasizes substantial delegation of authority. We respect the specific conditions of each subsidiary, allowing them to operate autonomously rather than issuing directives from headquarters. Over the years, this organizational structure has provided Berkshire Hathaway with significant competitive advantages.

15. Whether investing in stocks or managing a business, the ability to assess people accurately is crucial. How can one evaluate others with precision and avoid misjudgment? This question is not as simple as it seems. It can only be mastered through personal experience and deep reflection. For instance, when visiting a Ford 4S dealership, you might contemplate the state of the company's business and the reasons behind it. Similarly, evaluating people requires observation and thoughtful analysis.

16. I prefer to work alongside outstanding individuals and avoid associating with mediocrity. During my time as a lawyer, I always kept a saying in mind: “In the legal profession, if you do your cases well, you’ll never lack clients.” The software division of Daily Journal operates under the same principle. As long as we make consistent, earnest efforts, we need not worry about our future. We will inevitably face adversity and setbacks, but we will not halt our progress.

17. Since we lack expertise in specific software operations, how do we lead Daily Journal Company? Primarily through effective talent management and delegation.

18. Throughout my life, I’ve consistently interacted with individuals skilled in delaying gratification. Such people repeatedly defer satisfaction, postponing it indefinitely until the end of their lives, never indulging in pleasures. This is the kind of person we are. If you practice delayed gratification like we do, you will undoubtedly accumulate wealth and die extremely rich.

19. In running a company, you understand the concept of delayed gratification and can make the business increasingly successful. In life, if you grasp delayed gratification, you can leave this world in great honor.

20. No matter what one does, maintaining an unwavering passion, learning voraciously, and relentlessly refining one’s craft will, over time, naturally lead to achievements beyond the reach of ordinary people. Some individuals are fortunate enough to find their true calling and devote all their energy to it. The accomplishments Warren Buffett has achieved are awe-inspiring. Had Warren not been a keen learner, Berkshire Hathaway might have remained a small company forever.

21. Today's China boasts an extensive high-speed rail network, and its accomplishments have captured global attention. The United States developed by borrowing heavily from Europe, whereas China’s rise has been driven by self-reliance. The Chinese people saved half of their income and demonstrated a particular aptitude for delaying gratification. China’s achievements are commendable, and its approach has proven highly effective. I hold China in very high regard.

22. Over the course of my life, I have discovered a truth: the bonds of friendship formed through shared hardships, enduring suffering together, and jointly carving out success are the most intimate. Such camaraderie cannot be forged during times of comfort and abundance.

In adversity, we struggle and endure immense pain, but adversity is what tempers willpower, forges friendships, and nurtures success. Only by striving together in difficult times can people build relationships based on mutual support, which are invaluable.

23. Why has General Electric’s performance plummeted? On one hand, there are external objective reasons; fluctuations in a fiercely competitive business environment are normal. On the other hand, I believe that GE’s executive rotation system is flawed.

General Electric frequently transfers executives between different departments. Is the intention to have them accumulate merits like officers striving to become generals? It would be better to allow executives to manage a single business over the long term, enabling them to deeply cultivate their expertise—similar to Berkshire Hathaway’s approach. General Electric’s decline may be partly attributed to its ineffective management practices.

24. One of the most common mistakes in managerial work is recognizing the need to replace someone but hesitating to make the decision, delaying for an extended period before finally removing the unfit individual. Even those with years of management experience often fall prey to this error.

25. The larger the company, the more challenging it is to establish a proper culture. Look at giants such as General Motors and AT&T—their cultures leave much to be desired. Large companies are particularly prone to the pervasive issue of bureaucracy. Once afflicted, it becomes a stubborn ailment difficult to cure.

Berkshire Hathaway remains highly vigilant against bureaucratic tendencies. By maintaining a lean headquarters, we eliminate opportunities for bureaucracy to take root. The absence of bureaucratic culture, coupled with clear-minded leadership, provides us with a significant advantage.

26. The more successful a company or government department becomes, the easier it is for them to be blinded by success and succumb to the corrosive influence of bureaucratic culture. As bureaucracy takes hold, a class of vested interests emerges, enjoying privileges, indulging in luxuries, and leading extravagant lifestyles. Outsiders detest bureaucracy, while insiders with vested interests zealously protect it. The triumphs of modern civilization have given rise to bureaucracy, which in turn breeds folly and failure—a tragic irony of modern society. Isn’t this true? Bureaucracy is a chronic affliction of modern civilization.

27. Some skills are not something everyone can master. Some people are naturally stronger than you, and no matter how hard you try, it's impossible to match them. In facing this reality, my attitude is 'indifference.'

28. Our success doesn’t come from being good at solving difficult problems; instead, it comes from being adept at avoiding them. We simply look for simple things to do.

29. Our Daily Journal Company also has its principles. We don't sign contracts that make us lazy, so as to avoid heading towards decline.

30. If someone is a habitual drunkard who often gets completely intoxicated, we certainly stay away from him. People can usually judge whether someone is worth associating with based on one or two characteristics of that person. We are quite skilled at identifying such traits in others. Over the decades, this ability to assess people has greatly helped us.

III. Good Opportunities Are Only Two or Three

1. From an investment perspective, we should focus on technological advances that are epoch-making. First, we need to identify technological changes, then examine whether the industry has strong barriers to entry.

2. We must remain calm. When everyone sees an opportunity as promising, reasonable, and exciting — almost too good to miss — people will rush in, leading to severe overcrowding. The opportunities everyone agrees on are the most prone to overcrowding, causing the most devastating losses.

3. Warren Buffett often talks about the difference between a good business and a bad one. He says that in a good business, every decision is easy and requires no thought, whereas in a bad business, every decision is difficult, always leaving one caught between a rock and a hard place, struggling to move forward. Personally, I believe that even when analyzing the rationality of fixed-asset investments, it’s best to choose those investments that require no thought at all.

We like good businesses because they throw us softballs, and we hit them out of the park every time.

4. Through long-term investment practice, we have developed certain standards. The ideal company generates more cash annually than net profit, providing owners with substantial discretionary cash flow. Such companies are rare, easy to describe, but seldom seen in reality.

5. As long as I can tolerate the fluctuations, holding three stocks at the same time is sufficient. I arrived at this conclusion through rough calculations and logical reasoning. As a poker player, I know that when the probability of winning is very high, one should place big bets.

I am also well aware that concentrated holdings lead to greater volatility. However, I know that I have strong psychological resilience. I learned from my parents not to bow down in the face of difficulties. My personality is very suited to this approach of concentrated holdings.

6. We are all value investors, but our scale is larger than yours, and the investment environment has deteriorated. While it is difficult for you, it is even more challenging for us. Fortunately, we have already upgraded our thinking: there are companies that, even if we buy them at a high price, are still far below their intrinsic value.

To invest in this way, one must accurately assess the prospects of a company. Not only do you need to recognize that a company’s current business is good, but you also need to foresee that it will remain a good business for a long time in the future. If you can truly screen out the top five most promising companies from the 'Nifty Fifty,' you can still achieve solid investment performance. The key to this investment approach is to strike the right balance.

7. Three 'do-nots' in our investment approach:

We are accustomed to buying and holding for the long term. Using this model to invest in companies producing ordinary commodities may not be appropriate.

The telecommunications and utilities industries are not areas in which we excel.

I would never buy stocks at a price higher than their intrinsic value.

8. Our method is based on very fundamental principles. To invest like we do, you simply need to find mispriced opportunities in the stock market. You should leverage your strengths and search within the areas where you are proficient to identify mispricing opportunities. What we discuss is very basic; mastering these fundamentals is sufficient.

9. Wise individuals are adept at comparing opportunity costs. From the perspective of opportunity cost, many issues can be resolved effortlessly. As I mentioned at the Berkshire Hathaway shareholders’ meeting, when choosing a life partner, you should select the most outstanding person among those you have access to and who are willing to be with you. Those who are willing but inaccessible are not within consideration.

10. Once it is clearly recognized as a good opportunity, what is there to deliberate about? Just act decisively when the time comes; no need to waste words. In investing, the goal is to find such unequivocally excellent opportunities. I truly wish we could have more of these exceptional opportunities.

11. Fundamentally, it is still essential to understand a company’s business, including the threats it faces, the opportunities it holds, and its competitive position. Relying solely on past earnings growth, historical return on capital, or prior sales figures makes it difficult to accurately predict a company’s future. Only by gaining a deep understanding of the business can one make a relatively accurate forecast of the company’s prospects. In investing, one must genuinely comprehend the business.

12. Warren frequently tells business school students that he has a method to help them improve their investment returns. Take a card, and on this card, you are allowed to punch only 20 holes, with each hole representing one investment. After making an investment, punch a hole. Once all 20 holes are punched, your lifetime investment opportunities are exhausted. Warren says that by following his advice, investors can achieve higher returns over their lifetime.

Warren spoke these words earnestly, and I repeat Warren’s words with equal seriousness. For a thoughtful and disciplined investor, making only 20 investments in a lifetime will undoubtedly lead to superior returns. With a limited number of lifetime investments, every decision will naturally be made with extreme caution, and the focus will invariably be on significant opportunities.

13. A common principle in life is that both individuals and companies consider opportunity costs when making decisions. The broader the investment scope, the more investment opportunities arise. While having a wide investment scope is advantageous, it also risks stepping outside one’s circle of competence. Our investment scope is extensive, but we rarely venture beyond our circle of competence. Among the investment opportunities we review, 90% to 95% are deemed outside our circle of competence—we simply cannot understand them and therefore do not pursue them further.

14. Graham introduced the principle of the margin of safety, a concept that will never become outdated. Graham also taught us that the market is our servant, not our teacher—a concept that will also never become outdated. These two principles proposed by Graham form the foundation of investing and will always remain relevant. Additionally, from Graham’s teachings, we learn the importance of maintaining calm objectivity and resisting emotional influences—a lesson that will forever endure.

15. Most investors act too slowly. In investing, one must vigilantly wait for opportunities to arise and, when they do, act decisively. Always be prepared—it’s as simple as that.

16. Only by adopting a multi-model approach to thinking can we better understand reality. Particularly in investing, where the scope of knowledge required is vast, making sound investments is no easy task. Without the ability to integrate information, one cannot correctly perceive reality.

17. In investing, one needs a certain degree of resilience. Investing is a long-term endeavor. If you are prepared for the long haul, when faced with a 50% decline, you must withstand it firmly and not panic. Drawing from my personal experience, I tell you: cultivate yourself so that when encountering a 50% drop, you remain as composed as if 'a mountain were collapsing before you, yet your expression does not change.'

18. The secret to successful investing lies in recognizing a few major opportunities when they present themselves. When your big opportunity arises, you can see it clearly while others cannot. As I’ve said, capturing just a few of these major opportunities is all it takes.

The widely known Kelly Formula can tell us how much we should wager on each trade when we have the advantage. The greater your edge, the higher the probability of success for the trade, and thus, the larger your bet should be. The investment method I advocate is correct because it is supported by mathematical principles.

Sometimes, an opportunity is so good that it feels like taking candy from a baby, and investing solely in that one opportunity can be entirely reasonable. Good opportunities are rare—there may only be two or three.

Why has Li Lu been so successful? On one hand, he could be considered the Chinese version of Warren Buffett; on the other hand, he is fishing in China. The U.S. market has been combed through countless times, overcrowded and highly competitive. The Chinese market, however, is different—it still offers the chance to capitalize on others' negligence and laziness to uncover highly worthwhile investment opportunities.

The first rule of fishing is to fish where the fish are. The second rule of fishing is to remember the first rule. In an extremely competitive environment, no matter how hard you try, it won’t make a difference.

There are many styles of successful investing. Some people thrive on quick trades and do so very successfully. Rapid trading is not my style. My approach is long-term holding. I don’t focus on planning exits.

The speed at which moats disappear is indeed fast. Traditional moats from the old era can vanish in the blink of an eye. Perhaps this is an inevitable outcome of economic development; in the modern economic system, old moats are bound to become obsolete.

Ultimately, there is only one kind of investment: value investing. Why do I say this? Because every time we invest our money, we do so with the expectation of achieving greater value in the future.

In the process of investing, we cannot multitask effectively—it’s like trying to run marathons in 12 different places simultaneously. Therefore, you need to develop your own method and identify areas worthy of deep research. This area becomes your hunting ground. Regardless of which region you choose to cultivate, what you’re pursuing is value.

In my view, value investing never goes out of style. According to my understanding, regardless of which stock you buy, value investing means paying a low price to acquire high value.

Some people think that value investing is about finding poorly performing companies with substantial cash on their books. I believe this is not the entirety of value investing. In my opinion, all correct investments are forms of value investing. The difference lies in whether people seek value in good companies or in bad ones. However, true value investors always pay a lower price to acquire higher value.

28. Some achievements are simply out of reach for ordinary people. Some individuals hire large teams to manage their investments and have many people make decisions for them. Personally, I believe it is better to concentrate decision-making power in one person—selecting the right person, as I did when I chose Li Lu's fund. It’s not easy for an ordinary person to become an investment master.

29. Many rational investors share a common trait: they invest in what they feel secure about. Warren Buffett is no exception.

30. Investment styles vary from person to person; there is no single investment style suitable for everyone. Some individuals possess a natural talent—they can understand difficult-to-value assets and have the ability to execute complex investments. Others, who may not have such capabilities, should avoid overreaching and stick to what they can comprehend. It is essential to be clear about your own abilities. If you entrust others with managing your money, you need to understand the capabilities of your fund manager. How you invest largely depends on the extent of your own abilities.

AI Portfolio Strategist!One-click insight into holdings,Fully grasp opportunities and risks.

Editor/jayden