May 3(rd), 2020

1, Charlie has developed an extremely rare character-willing and even eager to prove and admit his mistakes and learn from them.

The weakness of human nature is that it is difficult to accept your own mistakes, because self-esteem can't or don't want to see your own mistakes. If you can really find your mistakes and admit them at any time, then you have really achieved the ultimate in any field.

2. Charlie's multiple thinking model can analyze the universe related to each investment project, and the analytical structure provided by his model enables him to simplify complex investment problems into some clear basic elements. The most important examples of these models are: redundant backup model of engineering, compound interest model of mathematics, critical point of physical chemistry, overturning moment, autocatalytic model, modern Darwinian comprehensive model of biology and cognitive misjudgment model of psychology.

It is not easy to get a variety of thinking modes from various fields. In addition to patience and strong learning ability, how to transform a subject into one's own field is the most test, so the smarter people are, the more they will read widely, and the result of reading widely is getting smarter and smarter.

Charlie believes that taking precautions, being patient, being strict with yourself and being impartial are the most basic guiding principles. No matter what people around him think, no matter how his mood fluctuates, he will never deviate from these principles.

Now I understand that this book is not only to teach you how to invest, but also to tell you the reasons for his success from this person's style, and these styles are his investment style.

These four guiding principles stand out in any environment, among which patience and self-discipline are my shortcomings. I am patient with people, but I want to be short and quick about things. Although I have some self-discipline, I can't be strict, introspective or introspective.

4. An attendance card improves your final financial situation: there are 20 squares on this card, so you can only punch in 20 times-this represents the amount of investment you can have in your life. You can't invest any more after you finish your card. Under such rules, you will really think carefully about what you do, and you will have to spend a lot of money on projects you really want to invest in.

Efficient strategy: only focus on the most important projects and only consider what you want most. Too often, we are influenced by other unimportant things and only do the most important and core things.

Personally, I have formed the habit of using dual-track analysis. First of all, rationally speaking, what factors really control the interests involved; Secondly, when the brain is in a subconscious state, what subconscious factors will make the brain automatically form useful but often ineffective conclusions in various ways?

Seeing this, I suddenly realized that I have little time to think rationally and absolutely analyze the influencing factors and practical interests.

6. Quickly annihilate what should not be done, then launch a skilled interdisciplinary attack on what should be done, and then take decisive action when the right time comes-only when the right time comes.

Try to cultivate and stick to this method, train yourself to be more objective and have more subject knowledge, then you can surpass those who are much smarter than you when considering things.

7. The most important concept is to regard the stock as the ownership of the enterprise and judge the holding value of the enterprise according to its competitive advantage. If the discounted cash flow of an enterprise in the future is higher than the stock price you buy now, then the enterprise has investment value. It is very basic to take action when you have an advantage. You must know the odds, train yourself, and only bet when the odds are good for you. We just keep our heads down and try our best to cope with the headwinds and headwinds, and the results will come every few years.

Not really. When I think about stocks, let's learn to feel it.

8. With regard to investment, we have three choices: we can invest, but we can't, which is too difficult to understand. In order to determine the potential projects that can be invested, Charlie first chooses a mainstream industry that is easy to understand, has room for development and can survive in any market environment.

Always find the most important and understandable.

May 4(th), 2020

9. Charlie usually pays attention to what to avoid first, that is, he has to figure out what not to do before he thinks about his next move.

This is a very effective action strategy, because my thinking habit will be to think about what I want to do first, then how to do it, and finally find that these things are meaningless.

10, Charlie tried to simplify all kinds of complicated situations into some basic and objective factors.

I have been pursuing simplicity, but I have never achieved it. I got some inspiration from it, simplified my life, work and study to the most basic, and then figured out what not to do.

1 1. If you are really capable, you will know exactly where the boundary of the competence circle is. If you ask (whether you are beyond your ability circle), you are outside your ability circle.

Determine your own range of abilities.

12. Complete the evaluation in a short time. The items on the list are as follows: What is the current price and turnover? How's the transaction going? When will the annual operating report be disclosed? Are there any other sensitive factors? Is there any strategy to withdraw from investment at any time? Is the money used to buy stocks used now or later? Do you have enough liquidity on hand? Still have to borrow money? What is the opportunity cost of this fund?

Obviously, this meticulous screening requires strong self-control, and to make this almost perfect investment requires continuous learning and thinking.

13, you must have a strong interest to understand the reasons behind what is happening. If you can keep this mentality for a long time, your ability to pay attention to reality will gradually improve. If you don't have this mentality, no matter how high your IQ is, you are doomed to fail.

If you want to be competitive in any field, you must be proficient in all aspects of the field, whether you like it or not, which is determined by the deep structure of the human brain.

This part is about the importance of proficiency and vision.

14. As a securities investor, you can observe the securities prices of various enterprises at any time and regard them as your own. Most of the time, you don't have to do anything but watch. Every once in a while, you will find a slow, straight and positive "strike" in the middle of your favorite grid, and then you will attack with all your strength.

It is important to be patient and have your own investment principles.

15, investment principle checklist:

Risk-all investment evaluation should start with measuring risk, especially credit risk.

Calculate the appropriate safety margin

Avoid dealing with people with moral problems.

Insist on appropriate compensation for predetermined risks.

Always remember the risks of inflation and interest rates.

Avoid making big mistakes; Avoid sustained capital losses.

Independence-Only in telephone conversation will the emperor be told that he is naked.

An objective and rational attitude requires independent thinking.

Remember, your right or wrong does not depend on whether others agree with you or oppose you-the only important thing is whether your analysis and judgment are correct.

This is part of the need to form investment thinking, not only to remember, but also to warn yourself at any time that risks are inevitable, but rational and independent thinking can tell you how to avoid risks better.

16, through extensive reading, cultivate yourself into a lifelong self-learner; Cultivate curiosity and try to be smarter every day.

This is my favorite sentence so far.

Most importantly, don't fool yourself, remember that you are the easiest to be fooled by yourself.

Ha ha ha, yes, admitting your ignorance is the beginning of wisdom.

18. Distinguish between value and price, process and action, wealth and scale.

Remember that simplicity is better than profundity.

Become a business analyst, not a market, macroeconomic or securities analyst.

Considering the overall risks and benefits, always pay attention to the potential second-order effects and higher-level impacts.

Think forward and backward-think backwards, always think backwards.

Allocation-The correct allocation of capital is the most important task for investors.

Remember, the best use is always measured by the second best use (opportunity cost)

Keep a clear head when luck comes.

These are some key points about investment. I don't quite understand how to solve these problems in the process of learning.

19, we make money by remembering simplicity, not mastering profundity. We never try to be very smart, but constantly try not to be stupid. Over time, people like us can gain great advantages.

Looking back on my past, I kept proving how smart I was, but I failed miserably. Why don't you stop being an idiot like Charlie? Because he is too conceited to admit his failure and accept his incompetence, he constantly wants to be a wise man, but such a person is often the most stupid.

What we need to do is to buy those enterprises with sustainable competitive advantages at low prices, even those with reasonable prices.

Don't take the wrong investment course, find the core point of view.

2 1, according to the target assessment. Provide returns according to goals.

Don't deceive yourself, facts are facts.

9 introspection, especially on work and financial issues.

22. Conceptual transformation: (1) Generally speaking, the best way to simplify tasks is to solve big problems with obvious answers first.

(2) Only mathematics can reveal the true face of science.

(3) Positive thinking is not enough, you must think negatively.

(4) The best and most practical wisdom is the basic academic wisdom. But there is an extremely important premise: you must think in an interdisciplinary way.

(5) The real big effect, lollapalooza effect, usually appears under the combined action of several factors.

The importance of thinking

May 5(th), 2020

23. Regarding the brand investment of Coca-Cola, the more you sell, the better you sell. The following factors should be combined:

(1) Pavlov conditioned reflex

(2) Strong social identity effect

(3) A beverage, with excellent taste, is cool and can relieve summer heat, and can cause operant conditioned reflex.

You should also avoid:

(1) Avoid the situation that consumers get bored after drinking drinks, because according to the theory of modern Darwinism, once consumers get bored, their physiological mechanism will boycott our drinks and urge them to stop consuming.

(2) Avoid losing our powerful brand name, even if we lose half of it. Even if there is a Pepsi, we should be the owners of this brand.

Because of our great success, we must avoid the consequences of jealousy. Aristotle said that the best way to avoid jealousy is to be worthy of the name. We will devote ourselves to improving product quality, setting reasonable prices and providing harmless happiness for consumers.

(4) Avoid suddenly making major changes to the taste of the product.

I admire Charlie's psychological analysis of Coca-Cola. I didn't expect psychology to be applied so exquisitely. As he himself said, if a psychological intellectual in an institution of higher learning can't talk and avoid these problems, it means there is something wrong. Psychology is misunderstood because of the lack of masters.

All important books should be reread immediately. -Schopenhauer

This truth is too simple to be useful, but in business and science, having an old code is often very useful. It is divided into two steps:

(1) Find a simple and basic truth;

(2) Act in strict accordance with this principle.

All self-control comes from whether you will respect this simple truth or not. This reminds me of the super learning method I learned before. It's too simple, too many people can't do it, and I need to learn it again.

The last way to eliminate the side effects of thinking is to learn from the best physicists, who will systematically criticize themselves. Richard feynman, the Nobel Prize winner, summed up the mentality of these physicists in the following sentence: "The first principle is that you must not deceive yourself, because you are the most gullible person."

This is too important. The side effect of thinking is that extra caution sometimes leads to extra mistakes. So it's really important to have some important thinking patterns.

May 8(th), 2020

26. Economics always emphasizes interdisciplinary research more than other soft sciences. It always absorbs the nutrients it needs from other disciplines.

Not only economics, but also any discipline that wants to explore and study better needs to expand horizontally, which may be obvious just because economics can see more benefits.

27. Another advantage of economics is that it has attracted the best talents in the soft science field from the very beginning.

This is very recognized.

28. "Hammer Syndrome": If you hold a hammer, everything you see is a nail.

The isolation of disciplines is fatal, and every professor doesn't even understand the thinking mode of other disciplines, let alone integrate other disciplines with his own.

If you have different modes of thinking, you have different tools. If you make a list of them, you will get many answers that you can't get by other methods.

May 9(th), 2020

29. The surest way to get what you want is to make yourself worthy of it.

Whether it is wealth or relationships, many people will shrink back when they pursue it. Why? It's really a good suggestion to make yourself worthy, because you feel that you don't deserve it and you suffer. First, let go of the courage to pursue, and then self-improvement, or self-improvement before bold pursuit.

If you really want to do well in a certain field, you must have a strong interest in it. I can force myself to do many things quite well, but I can't do things that I have no strong interest in very well.

Interest is really a great impetus, and I feel deeply.

May 2020 10

3 1, the influence of various psychological mechanisms:

(1) Incentive mechanism: bias caused by incentive mechanism; The "grandma's rule" is to eat carrots before dessert, and do what you don't like before you like it.

(2) Liking/falling in love tendency: ignoring the shortcomings of the object of love and being obedient to it; Preference for people, things and actions that can remind you of the object you love; Twist other facts for love.

(3) Disliking/hating tendency: ignoring the advantages of objects you hate; Hate people, things and behaviors that remind you of the object you hate; Twist other facts for hatred.

(4) Avoid the tendency to doubt: What causes doubt is confusion and pressure.

So do you need rational and objective facts to avoid doubt?

(5) Avoid inconsistent tendencies:

(6) Curiosity:

(7) Kant's fair tendency:

(8) Envy/jealousy tendency:

(9) Feedback tendency:

(10) Tendency to be influenced by simple association

(1 1) Simple and painful psychological denial

(12) A tendency to overestimate oneself: people prefer people who are similar to themselves.

(13) Overoptimistic tendency: The solution is to habitually apply Fermat and Pascal's probability theory.

(14) The tendency of being deprived of hyperresponsiveness: the loss outweighs the gain.

(15) Social identity tendency

(16) Contrast the tendency of wrong reaction.

(17) pressure influence trend

(18) The tendency to measure usability incorrectly.

(19) Forget the tendency without using it.

(20) Influence trend of chemical errors

(2 1) Aging-the tendency of wrong influence

(22) Authority-error influence tendency

(23) meaningless tendency

(24) Pay attention to rational tendency

(25)lollapalooza tendency-several psychological tendencies * * * jointly lead to extreme consequences.

This part mainly talks about that these psychological tendencies will affect our rational and objective thinking, so we should avoid these tendencies when thinking and analyzing.

May 2020 1 1

Today, I finally finished reading this book. Charles Munger is indeed a legend. Many interesting ideas and ideas are admirable. Finally, he said that all the smart people he knows (smart people from all walks of life) don't study every day, no, none. Really have a deep understanding, and there is no end to learning.