As the title of this documentary says, how did Buffett become Buffett?
One, believe in the power of time compound interest.
Buffett said his mentor taught him two principles of investing. Rule one, don't lose money; rule two, remember rule one. What is compound interest? An example is given in the documentary. A king promised a young man to give him food. How to give it? That is, put grain in the chess grid, put one bean on the first grid, two on the second, four on the third, and sixteen on the fourth, then when the last grid is placed, the whole The country does not have enough food for this young man. This is compound interest.
Another example. There are two investment paths, the first one, you can earn 50% in the first year, 50% in the second year, and lose 50% in the third year; the second one, you earn 5% in the first year, and 5% in the second year. %, and earn 5% in the third year. Which one would you choose? On the surface, it seems that the first plan earns more, and 50% seems to be a large number. Most people will think that they will earn more first and then talk about it! But as long as you do the math with a pen, the second one actually earns more than the first!
This is compound interest, you take your time and earn it slowly, don't think about getting rich overnight, long-term flow will bring you greater success.
Two, build your own moat.
What is the concept of a moat? It is something unique to you, your "specialty". Such as brand, such as user habits and switching costs. For example, many people have a savings card from Bank of China, and then maybe they will only deal with Bank of China in their entire life. The credit card he holds is also from Bank of China, and his loan is also from Bank of China. This is a switching cost.
What kind of product is a good product and what kind of company is a good company? This requires the company's product to have its own moat. Keep this in mind when picking investments. (Similarly, in life planning, the person I have always wanted to be is someone who has "one skill". I really hope that I can have a unique place where I can do a good job in a certain area, even if I am very good at cooking. , It is very good to play Werewolf, and it is very good to play Mahjong.)
"Life is like a movie, you can't be like sleepwalking. You have to find a job that you are willing to do not for the money, then life will be good, and you wake up every morning because you are looking forward to it. One day. I tap danced to work for over 60 years because I love what I'm doing. I feel so lucky."
I'm really lucky to do something I love and are good at. Buffett said the most important thing is focus, he doesn't know art, he doesn't like cooking, he doesn't understand physics and the universe, but in the world of business he is very good at it. He has a far above-average talent, just found a job he loves, and has the patience to take it slow, and he became Buffett. As an ordinary person, if you can love what you do, be patient and willing to succeed slowly, without anxiety or rush, even if you don't have the huge success like him, at least you can become a happy person.
View more about Becoming Warren Buffett reviews
