There is no market trend. I finished this book in half a weekend. The views in it are quite interesting, but overall it is just an introductory reading.
Another point is that the author inherited the common characteristics of American writers in terms of writing style, with a lot of nonsense, verbosity and lack of organization. Half of the thickness of the book is supported by 1.5 times line spacing. So don't blame me for reading at 2x speed.
I bought the physical book for 28 yuan, which is barely worth it. Look, if anyone wants it, I'll give it away in a lottery.
Here is the text:
The trick to prevent failure is to make good financial plans so that you don’t lose everything because of a bad investment. The concept of survival first is very important for wealth management. Compared with huge profits, wealth security is more important.
Many things in the world are not worth the risk, no matter how great the potential gains are. Many people fail because they are too conceited. You must know when to stop taking risks and really stop yourself.
Of Buffett's $84.5 billion in financial assets, $81.5 billion was acquired after he turned 65. There are two secrets to this: one is the good wealth foundation laid when he was young, and the other is his long-term persistence in compound interest investment.
Choose financial management that makes sense, not absolute rationality. For example, when you are unsure, choose the stock that will let you sleep well at night.
Everything has a price, it’s just not written on the label. Likewise, market returns are never free, not now and never will be, you have to find out what the fee is and then pay it.
No one is crazy. The world is diverse, and people with different growth experiences have completely different perceptions of money. Everyone makes judgments based on their own perceptions. Financial management is such a personal behavior.
Luck and risk: Things are not as good or bad as they seem. Things are unpredictable, and you may have good luck or bad luck at any time. Those who are particularly successful must be lucky people. We cannot evaluate how much luck plays a role in their success, so it is almost impossible for us to imitate the success of others. So we should look at the so-called winners and losers in this society calmly. Their differences may come more from differences in their original families and luck. In addition, we should not pay too much attention to the success experience of a certain individual, but explore more commonalities.
Never be satisfied: When the rich make fools. Why do many people who are already rich break the law to get more money and then go to jail and lose everything? Even though there are enough precedents, there are still rich people who continue to do this? Because of greed, because desire is a bottomless pit. The most difficult financial management skill is: know how to be content. Knowing how to be content does not mean having too little (we need to set the line of being content ourselves), and some things, such as family, freedom, and reputation, are not worth risking no matter how high the return is.
Compound interest is magic. Be patient, stick with it long enough, and you'll reap huge rewards.
Becoming rich vs. staying rich. These are two completely different things. A good decision may bring us a fortune, but to stay rich for a long time, we need continuous long-term compound interest and to build a stable but solid asset status: we don’t need big returns, as long as the investment will not be interrupted due to life changes.
6. Long Tail Effect: To get rich, you don’t need to always do the right thing. Often, before a “hit” comes countless failures.
Freedom: Controlling your own time is the highest return on money. Money gives you confidence and allows you to avoid many disgusting people and things. A good lifestyle cannot be matched by any expensive item.
Paradox of people driving luxury cars. We buy luxury goods to gain the admiration or love of others, but when people see these luxury goods, they all imagine how great it would be if they were the ones who owned them, and no one pays attention to what the owners of these luxury goods are like.
Wealth is something that cannot be seen. Spending money on things to show others that you are rich is the fastest way to have less money. Others buy a bag and have 10 properties behind them, but you buy a bag and only have a pile of debts. Can this be the same?
Save money. Luck is unpredictable and the world is unpredictable, but saving money is real. The more you save, the more money you have. Saving money can give us more control over our lives and allow us to choose and change our careers and lifestyles at ease.
The only constant is change, and black swan events always occur.
Margin of safety, room for error. Mistakes are bound to happen, be prepared in advance.
You will change. People always change, and what you want now may not be what you want 10 years from now. So, give yourself some wiggle room and don't go to extremes.
Nothing is free. Financial management also requires fees. Don’t think you are smart enough to always buy low and sell high.
Find your game. Everyone has their own goals and roles, and will make different choices and gain different rewards.
The temptation of pessimism: Optimism always sounds cheap, while pessimism sounds like it really wants to help you. People are particularly pessimistic about the economic situation because: first, money affects everyone, and once something bad happens, everyone will pay attention. Second, when bad things happen, people tend to think linearly about the results and ignore the market's ability to adjust. Finally, improvements and improvements are always gradual and difficult to notice. But bad things can happen overnight.
The illusion of belief. When you are particularly eager for something but there is no clear channel, you will have strange and unreasonable obsessions. For example, rural folk remedies can cure cancer. The world is very large and diverse, and everyone's cognition is limited and insignificant. We always rely on quadrants and conjectures to fill the blank space between the real world and personal cognition. This is also a kind of illusory belief.
Maintain a high savings rate, remain patient, and remain optimistic about the global economy.