This week, I read the fourth chapter, the sixth lecture, the investment practice of first-class charitable funds and the seventh lecture, the speech at the charity round table breakfast. In these two speeches, Charlie pointed out the wrong investment culture of charities. In order to make the foundation make fewer mistakes, he taught them how to invest effectively and minimize waste. Generally speaking, I feel that the contents of these two lectures on charitable funds are far from my life, and I don't understand many professional contents, so I made a lot of notes, hoping to understand more when I read them again in the future. But from these two lectures, I still realized a lot of valuable life experiences, which I summarized as "three dares".
This reminds me of a sentence on the title page of this book: acquire universal wisdom and adjust your behavior accordingly. Even if your maverick makes you unpopular in the crowd ... let them go.
This is the same as Li Xiaolai's maverick. If you don't want to step into a new intersection, don't expect to see new scenery. It is obviously impossible to do the same thing and make the same effort with others every day, but expect different results. If you want to be different, don't "think of a thousand ways at night and go another way when you wake up in the morning." Think about it and practice it. Although there will be fear and confusion on different roads, as long as the direction and purpose are correct, there will be gains, and the maverick and correct power will be revealed.
Thought can be maverick, and lifestyle is best to follow the crowd. Maverick is not our ultimate goal. What we want is to do what we want to do right. Even if you look maverick, don't be imprisoned by appearances. Maybe you are a wonderful flower in the eyes of many people, then you will encounter many unnecessary troubles. What should I do? Follow the crowd! Follow the crowd, that is, don't show your unnecessary aggressiveness, and don't prove that your own is better than others. We will keep our minds independent, and only when we meet new friends with similar interests will we open the protective cover outside and touch each other's three views.
Acceptance is a powerful tolerance. Acceptance includes many aspects, such as accepting oneself, accepting others, accepting different values and accepting reality. Only by accepting can we calmly understand and make correct judgments and choices.
What people often do is to fight against things that are inconsistent with their own value system. In the final analysis, this is due to ignorance and lack of tolerance. If you know enough about it and are tolerant enough, you can understand the reason why all this exists. The world is more gorgeous because of its colorful existence. All we have to do is learn more, accept more, and then do what we like.
Doubting yourself is not completely denying yourself. Doubt is based on self-acceptance and self-confidence, courage and courage, and it is a constant revision and enrichment of one's past knowledge system. The purpose of doubt is to seek truth.
Doubt often comes from reverse thinking. Sometimes the truth is hidden in the reverse thinking of common sense. Doubt is the foundation of creation and the source of inspiration, which activates creative thinking, produces the desire to seek novelty and difference, and dares to carry out innovative activities.
Doubt is not to doubt everything. Don't doubt for the sake of doubt. Turning doubt into doubt about everything will only make you fall into suspicion and paranoia, and even make yourself psychologically unbalanced, so you must be sure to some extent.
6- 1, Charlie is so humorous
The sixth lecture helps people understand Charlie's famous saying: "It's sad to say, but not everyone really likes me."
Charlie laughed at himself as always and responded to himself: "The old Charlie Munger provided a terrible career example for these young people."
If I offended you in my speech, you should settle accounts with John Algood. His previous job was litigation, and he might be very happy.
6-2. Accounting statements are not always so reliable.
These costs will not appear in traditional accounting statements. But this is because there is something wrong with accounting itself, not because these costs do not exist.
6-3. All stock investments must endure such a situation:
Part of the money they earn every year falls into the pocket of Lian Guan;
Half of the investors' income will be lower than the average, and this average level (in the future) may fall between the average and the difference.
6-4. What a person wants, he will believe it.
When it comes to the evaluation of prospects and their own talents, people tend to be too optimistic and absurd, as Demosthenes expected.
6-5, excessive professional attitude will often cause great harm.
It is precisely the extremely careful process that makes people overconfident in the results they get.
Smart and diligent people may not necessarily make disastrous career mistakes because of overconfidence.
6-6, it is good to be extra cautious in thinking.
Most good things have unpleasant "side effects", so does thinking. The best way to eliminate the side effects of thinking is to learn from the best physicists, who will systematically criticize themselves.
Feynman summed up the mentality of these physicists well: the first principle is that you must not deceive yourself, because you are the most gullible person.
6-7, focus and long-term
In the United States, if a person or an organization invests most of its wealth in three excellent American companies for a long time, it will definitely make a lot of money.
Wealthy institutions, like wealthy individuals, should do a lot of self-insurance if they want to get the best long-term results.
6-8. If a person doesn't care who gets the credit, then his achievements and status are infinite.
6-9. Just because you don't understand doesn't mean it doesn't exist.
Some factors will not lose their importance because "experts" can't understand them well.
6- 10, index investment method
Although the group growth rate of avoiding cost and tracking index is not enough to curb the growth of total friction cost, more and more shareholding methods are slowly turning to negative and indexed mode.
7- 1, wealth effect
Most economists with doctorates underestimate the power of the "wealth effect" based on common stocks in the current extreme situation.
Now everyone agrees with two viewpoints: first, when the stock price goes up, the willingness to consume goes up, while when the stock price goes down, the willingness to consume goes down. Secondly, the willingness to consume is crucial to the macro-economy.
Traditional economists often miss the factor of "black gold" in their thinking: black gold refers to money obtained from undisclosed corruption. Black gold has a very strong stimulating effect on consumption. After all, corruption costs more, because his money is easier to come by, and his employer's expenditure will continue as before, because his employer doesn't know that his property has been "stolen".
Some things have the same impact on the overall economy as black gold, and the amount is huge, which will not disappear in a short time, that is, "gray gold."
If a fund, or other investors, waste 3% of its assets on redundant management expenses every year, it will not bring any income. Those who get the wasted 3% think that their money is earned through proper channels, even though they are actually "gold diggers".
At present, the behavior of "fishing for grey gold" is very common and has a great impact on the economy.
The total "wealth effect" caused by the stock price is indeed very large. Coupled with the Keynesian multiplier effect related to all the activities of "fishing for grey gold", we think that the "wealth effect" of macroeconomics is much greater than usually thought.
7-2. Recognize some realities even if you don't like them.
People should recognize the reality, even if they don't like it; In fact, when you don't like it, you should know clearly.
People should also be willing to accept the paradox that cannot be solved through careful thinking; We should understand that there are many paradoxes, and whether we like them or not, we must accept them.
7-3. Why are almost all American foundations unwise?
Because they failed to understand the close relationship between their investment operation and the overall environment.
If an institution is not doing well in one aspect in a complex environment, it is very likely that it is not doing well in other aspects, so we need to improve not only the investment practice of the fund, but also the wisdom of fund donation.
7-4. Rational People and Irrational People
Some professors believe too much in the hypothesis of "rational man" in economics, but know little about the theory of "irrational man" in psychology and lack practical life experience. Humans, like lemmings, tend to be "collective irrational" in some cases. This tendency leads smart people to have many unwise ideas and make many irrational behaviors.
What every institutional investor fears most now is that his investment practice is different from others, which is very sad.
7-5, two ancient laws
One is the moral law: from samuel johnson, he thinks that for an official in an important position, it is a dereliction of duty in moral responsibility to keep ignorance that can be easily eliminated.
A cautious rule: it is the truth contained in an advertisement: Warner and Swansea have a machine tool advertisement saying, "The company that needs a new machine but doesn't buy it is actually paying for it." I believe this rule also applies to ideological tools. If you lack the right thinking tools, you and the people you are trying to help have been deeply poisoned by your ignorance, which can be easily eliminated.