100-Day Reading Sharing Plan - Summary of 15 Suggestions from "Long-Term Value"

Spent a week sharing the book "Long-Term Value" and summarized the 15 key points from the book for everyone.

1. Three keywords for long-term investment—"physical assets," "high-quality enterprises," "intrinsic value of enterprises."
2. The purpose of value investing—to conduct rational investment behavior over the long term, analyze the target company's ability to generate future returns, and provide competitive offers for these companies.
3. Diversification—even when we are fully convinced by our own beliefs, we may still make mistakes, which makes diversification particularly important. Diversification is the clearest way to prepare our portfolio for any possible scenario, and holding at least 10 stocks provides reasonable diversification.
4. End of a bull market—retail investors start teaching professionals how to invest.
5. Reasons to buy—knowing whether a stock is expensive or cheap is enough; the timing and reasons for stock price increases are hard to predict.
6. Three reasons not to short—we believe the economy will improve in the long run; time is against short sellers; short-term trends are unpredictable.
7. Tuition—investment isn’t always successful, but these failures help improve our long-term investment skills and provide lessons for the future.
8. Portfolio weighting—for high-risk stocks, we should maintain a more cautious weighting ratio.
9. Capital—invest using excess savings that aren’t needed for daily life. Leverage should never exceed 15%-20% of stock value. This way, we can withstand market volatility.
10. Sources of information—we often rely on hearsay from those around us rather than seeking truly professional guidance, nor do we spend time researching and thinking about important investment decisions.
11. Protecting principal—any investor’s primary goal should be to maintain the purchasing power of their capital. The idea of increasing asset purchasing power should at least come after preserving asset value. Buffett noted that the first rule of investing is not to lose money, and the second and third rules are also not to lose money.
12. Leveraging volatility—volatility is the best friend of long-term investors, offering opportunities that wouldn’t otherwise exist. Greater short-term volatility means more investment opportunities.
13. Four key points—first, in-depth research to determine a company’s correct valuation; second, the conviction and courage to go against the tide; third, maintaining confidence over time; fourth, patience.
14. Know yourself—confusing a bull market with investment ability leads us to take on excessive investment risks.
15. The folly of prediction—the biggest mistake we make in cycles is trying to predict the exact turning point, which is a complete waste of time.

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