Investment

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. ...

00.20160729 Three Iron Laws of Time Selling ★ Highlight(blue) - Location 163 The Three Iron Laws of Time Selling: Growth is the fundamental key, prioritize value over valuation, and patience is more important than anything else. Highlight(blue) - Location 167 What is called personal financial freedom means that a person no longer needs to sell their time just to meet basic living necessities. Highlight(orange) - Location 203 There is only one standard for selection: Can what I choose help me accumulate more ability? ...

People face trade-offs. The cost of something is what you give up to get it. Rational people consider marginal quantities. People react to incentives as they trade with each other. Trade can make everyone better off. The market is usually a good way to organize economic activity. Government can sometimes improve market outcomes and how the entire economy runs. A country’s standard of living depends on its ability to produce goods and services. When the government issues too much currency, prices rise. Society faces the short-run trade-off between inflation and unemployment.

I never ask if “I like it” or “I don’t like it.” I think “this is what it is” or “this is what it isn’t.”

A lousy way to do memory prediction is “X happened in the past, therefore X will happen in the future.” It’s too based on specific circumstances. What you want is principles. You want mental models.

The one thing you have to avoid is the risk of ruin. Avoiding ruin means stay out of jail. So, don’t do anything illegal. It’s never worth it to wear an orange jumpsuit. Stay out of total catastrophic loss. Avoiding ruin could also mean you stay out of things that could be physically dangerous or hurt your body. You have to watch your health .Stay out of things that could cause you to lose all of your capital, all of your savings. Don’t gamble everything on one go. Instead, take rationally optimistic bets with big upsides. [

Choosing what kinds of jobs, careers, or fields you get into and what sort of deals you’re willing to take from your employer will give you much more free time. Then, you don’t have to worry as much about time management. I would love to be paid purely for my judgment, not for any work. I want a robot, capital, or computer to do the work, but I want to be paid for my judgment.

Value your time at an hourly rate, and ruthlessly spend to save time at that rate. You will never be worth more than you think you’re worth.

Warren Buffett spends a year deciding and a day acting. That act lasts decades.

The business world has many people playing zero sum games and a few playing positive sum games searching for each other in the crowd. Wealth creation is an evolutionarily recent positive-sum game. Status is an old zero-sum game. Those attacking wealth creation are often just seeking status.

The Foundation of Wealth Building Financial freedom is a goal that anyone today can achieve, of course, provided we have the courage to pursue the life we truly desire. As a famous saying goes: “It is not the difficulty that makes us give up, but rather that we give up, which makes it seem so difficult.” If we keep the laws of money in mind, we will find that our financial situation is steadily improving. Nothing can stop a mindset that aligns with the times. This applies to everyone’s life. Nothing can prevent us from enjoying the right we are born with—prosperity. A life of dignity and financial ease aligns with our natural laws. As long as we don’t give up, nothing can prevent us from reaching this goal. ...

I’ve figured out how to allocate my money. I’m going to dedicate 50% of my income to my ‘goose’, put 40% into my dream savings fund, and use the remaining 10% for spending.

“There are many reasons,” the old lady explained to me. “First, because sometimes I like to hold these things in my hands and appreciate them. I really like gold and banknotes.” I looked at her with slight disagreement, thinking that liking money in this way—I wonder if it’s normal—and yet she admitted it so frankly… But then I immediately recalled the scene that day, when Marcel and I looked at the things in the box and counted them one by one. How delightful it was when we touched each gold bar! Shouldn’t an old lady enjoy the same sense of happiness when opening the box? Besides, all these things belong to her. Mrs. Tao continued, “Second, this money is kept for emergencies. No matter what happens, the things I put in the box are enough for me to spend for several years.” “That might be too much!” I said with a laugh. “That depends on how much money you own in total,” Mrs. Tao explained, “If you keep cash at home that exceeds 10% of your total assets, it’s meaningless.” I whistled softly. This old lady must be very wealthy. “Third, I have invested a large portion of the money in stocks, which involves a certain risk. Therefore, it is wise to keep a portion of the money on hand. I will explain this point to you again when we have the chance.”

To live a happier and more satisfying life, one must change oneself. This has nothing to do with money; money itself neither makes one happy nor brings unhappiness. Money is neutral, neither good nor bad. Only when money belongs to a person will it exert a positive or negative influence on them. Money can be used for good purposes, or it can be used for bad purposes. A happy person will be happier when they have money; conversely, a pessimistic or anxious person will have more worries the more money they possess.

“You only incur a loss when you sell the stocks. If you keep these shares, someone might be willing to pay more for them in the future.” “So, during this time, I won’t get anything?” I wanted to know everything. “No, during this period, you participate in all the dividends.” The old lady immediately put my concerns to rest. “Whenever the company makes a profit, it distributes the profit to all the shareholders. This is called dividends.” “Meaning, Marcel has to regularly set aside a portion of his income and give it to us?” Monica asked excitedly. “The company calculates its profit once a year, and then decides what to do with that money. For example, it can use a portion of the money to buy new equipment, which makes the company run better, and the remaining portion is distributed to all the shareholders.”

When the stock market first plummeted, my reaction was exactly the same as yours. I hated myself for buying these stocks, and I was extremely worried that the market would continue to fall. At that time, newspapers were filled with pessimistic predictions, claiming it was the start of a global economic crisis—the eternal winter of the stock exchange.

Almost no profit

So you had better not invest too much. And if the market continues to fall, wouldn’t it be better if you still have funds available to buy in again?

No one knows; all experts attempting to predict future trends always make miscalculations, and there are many unexpected scenarios. For this reason, you should always keep some cash reserves. You absolutely cannot invest all your money in stocks or funds.

Mrs. Tao Mu, however, asked him how he planned to manage this money and how to make it continue growing. Our conclusion was: to invest in the same fund again. Thus, Marcel immediately realized that selling the fund now would be pointless.