1 Almost everyone has the qualifications and ability for dollar-cost averaging.
Highlight(yellow) - Location 135
The dollar-cost averaging strategy includes the following key points: What exactly is the asset? How long is the long term? How long is the regular interval? What is the minimum amount invested each time?
2 The securities trading market is the ninth great wonder of the world.
Highlight(yellow) - Location 197
People always think that “choosing stocks” is a very difficult thing—but actually, it’s not difficult at all! Because that so-called “difficulty” is entirely caused by habitual thinking. In reality, it is merely the result of people being unwilling or afraid to use the simplest, most direct, and most effective method. This method is so simple, so unbelievably simple: simply choose the stocks that everyone in the market favors the most.
3 Is there really an investment asset that only rises and never falls?
Highlight(yellow) - Location 260
Therefore, Buffett always recommends that ordinary people buy the S&P 500 index fund—in China, the corresponding asset for the S&P 500 is the CSI 300 index fund. The advantage of index funds is that they are essentially equivalent to “following the market.” You don’t have to gamble on the luck of a specific company; instead, you gamble on the luck of the entire nation, or the luck of the entire world—in any case, the human economy is constantly growing in the long run. Look, as long as it’s the long term, it suddenly stops being a gamble, because in the long run, the risk can be diluted to almost nothing.
4 The only correct way for ordinary people to invest.
Highlight(yellow) - Location 359
Those who “go all-in” (bet everything) cannot endure the pain for too long—in fact, no one can endure pain long-term. This has absolutely nothing to do with so-called “strength.” From another perspective, this isn’t foolishness; it’s just ignorance. After the pain of one month, or two months, three months, and even when it seems like you are about to get through it, that is, around the sixth month (or slightly before), many people will exit for various reasons—in the trading market, this behavior is called “cutting losses.” Look, the leeks (retail investors) cut themselves, and what they cut are bloody pieces of meat.
5 Why few people use the dollar-cost averaging strategy.
Highlight(yellow) - Location 387
6 The profound mechanism behind the magical power of the dollar-cost averaging strategy.
Highlight(yellow) - 6.1. Everyone should cultivate their proactive personality > Location 472
Highlight(yellow) - 6.1. Everyone should cultivate their proactive personality > Location 482
Stay away from those who complain all day—they don’t know what they are doing. They complain with righteous indignation and great spirit about unfairness, as if Heaven itself is on their side. They never want to know the truth: this world is unfair. Using a more accurate, unbiased, and neither humble nor arrogant term to describe it, this world is full of asymmetry, just as it is full of uncertainty.
Highlight(yellow) - 6.2. Most proactive people actually don’t know their boundaries > Location 540
Their own future will not improve as parents; their children are unknowingly turned into “passive people regarding themselves.” The correct choice should be: parents should proactively make themselves better and better; thereby making the children desire to improve out of envy, and the children will take the initiative, even if it is merely superficial imitation that is a good start.
Highlight(yellow) - 6.4. The optimal strategy for mastering trends must be proactive passivity > Location 636
Whether a decision is significant or meaningful can be judged by just one standard: Is it a choice directed toward the trend?
Highlight(yellow) - 6.4. The optimal strategy for mastering trends must be proactive passivity > Location 665
Highlight(yellow) - 6.5. Dollar-cost averaging is the best strategy for practicing “proactive passivity” > Location 680
Highlight(yellow) - 6.6. Just how powerful is the passive force of following the trend? > Location 772
The longer the investment cycle, the greater the passive advantage; the larger the investment amount, the greater the passive advantage.
Highlight(yellow) - 6.7. How much space do you still have within the proactive boundary? > Location 818
The truth has no obligation to cater to your emotions.
Highlight(yellow) - 6.8. The long-term perspective determines your results > Location 868
If you feel desperate, it is simply because you are poor right now. If your feeling is very desperate, it is simply because you are truly poor right now.
Highlight(yellow) - 6.8. The long-term perspective determines your results > Location 872
The poorer you are, the more patience you need. What is courage? Courage is the only virtue that cannot be faked.
Highlight(yellow) - 6.8. The long-term perspective determines your results > Location 903
One rise is not a trend, and one fall is not a trend; a rise plus a fall constitutes a cycle; judging the trend requires at least two cycles. After two cycles, the two fluctuations can only constitute one of three trends: rising, horizontal, or falling.
Highlight(yellow) - 6.9. What kind of extreme advantage do ordinary people possess? > Location 992
More than ten years ago, I occasionally heard two middle managers from a large company discussing how to make their subordinates obedient: “Sigh, how did you manage to make them obedient?” “I’m really worried!"—But isn’t it simple? Organize a ‘wife team’ (group of wives) to go look at properties! Let me tell you, don’t look down on them now that they are acting so powerful in front of you. As long as they buy a house and pay the down payment today, tomorrow they are mine! No doubt about it!
7 The difference between stupidity and ignorance, and passive wisdom.
Highlight(yellow) - Location 1068
8 Some people are always on the correct side.
Highlight(yellow) - Location 1147
Highlight(yellow) - Location 1178
For all ordinary people, the dollar-cost averaging strategy is absolutely viable, completely genuine, and relies entirely on yourself. By “ordinary people” here, we mean people regardless of race, nationality, region, gender, age, height, weight, beauty, or ugliness, or sexual orientation… The key is that they don’t even differentiate by IQ and education level!
9 The general condition of sentient beings on the other side of the mirror world.
Highlight(yellow) - Location 1202
Their explanations are always astonishingly consistent: “Sigh, I am just too greedy!”
Highlight(yellow) - Location 1210
Highlight(yellow) - Location 1226
Highlight(yellow) - Location 1249
10 Dollar-cost averaging is the essential choice for ordinary people.
Highlight(yellow) - Location 1296
The three conditions that determine a person’s wealth are: background, luck, and effort; and among these three, effort is the most negligible.
Highlight(yellow) - Location 1337
Conclusion
Highlight(yellow) - Location 1405
Within your proactive boundary, continuously strengthen your psychological construction and desperately find ways to make money outside the market. At the same time, outside the proactive boundary, proactively choose an asset that is absolutely worth holding long-term, and use the money you earned outside the market to invest regularly… Over time, you can harness the magical passive force generated by the trend, not only potentially break free from the shackles of class solidification, but even change your destiny—ultimately, achieve freedom.
Note - Location 1408
The national destiny seems to be an ultimate asset; I should dollar-cost average the S&P 500.