Value Be a friend of time and adhere to first principles

Mondo Science Updated on 2024-01-31

Be a friend of time

Correctly understand the span of time. The study of human history requires the scale of 10,000 years, the study of the history of civilization needs the scale of 1000 years, the study of business history requires the scale of 100 years, and the study of an industry and a company requires the scale of decades. People are more accustomed to focusing on the present, however, truly effective research is often long-term and takes time to precipitate.

Time creates the value of compound interest. Albert Einstein once said, "Compound interest is the eighth wonder of the world, and its power is greater than that of the atomic bomb." Compound interest, commonly known as "interest rolling", is the interest generated by the original principal, which becomes the principal in the next calculation period, and this part of the principal generates interest, so that the cycle, in the case of insisting on value investment, increases over time, and the wealth will increase exponentially.

Time is a choice. The most expensive thing in investing is not money, but time. Allocate time to things that bring value, and compound interest will work. The most important thing in making an investment is time management, and what kind of problems, what kind of projects, and what kind of people to invest time in are the basic factors that determine whether the investment can be successful.

Time is the best review. Time is an important criterion for testing whether an investment decision is correct or not. All lies, stories, and assumptions do not stand the test of time. Investors must constantly review and constantly test the results brought by time, in order to judge whether the company or entrepreneur is still a friend of time in real time in the high-speed dynamic changes, so as to consider whether to exit in time. Long-termism and being a friend of time are not the same as holding for a long time.

Follow first principles

First principles were proposed by Aristotle, emphasizing that any system has its own first principles, which is a fundamental proposition or postulate that cannot be defaulted or violated. To put it simply, in a logical system, there is a fundamental principle that cannot be deduced from any other principle, the most essential law that determines things, and it is a natural axiom.

Adhering to the first principle means not to guess the problem by analogy or reference thinking, but to look at the problem from the perspective of "what it is" and "how it should be", believe that there is a principle behind everything, peel back the surface of things layer by layer, and see the innermost essence. Both: tracing back to the source, this source includes the basic axioms, the philosophy of life, the nature of human beings, the laws of all things, etc. To make an investment, we must start from the phenomenon, grasp the key elements that can be grasped, and understand the underlying logic of business.

The core building blocks of business are: people, business, environment and organization. Investment research always emphasizes the understanding of the nature of people, business, the environment and the organization, based on the in-depth understanding of people, business, environmental changes and the genes of the organization. Look for relevance where it doesn't matter, seek insights where it relates, and build solutions after insights. Adhere to long-term investment and long-term research to achieve "understandable", "expected" and "prospective" investment projects and markets.

If you want to know more about Zhang Lei's investment style, I highly recommend you read Value. Because in addition to Zhang Lei's value investing methods and philosophy, this book also explains the importance of who to walk with. Through a combination of investment cases and hand-drawn mind maps, readers can easily understand value investing while reading the story.

Since then, Zhang Lei has done a lot of philanthropy to support education in China. He believes that education is where the value lies. In 2011, he funded Renmin University to establish the Gaoli Research InstituteFunded the construction of a century-old vocational school in his hometown of Henan;He is also a founding donor to Westlake University;In 2017, Zhang Lei donated 300 million yuan as a gift to celebrate the 80th anniversary of his alma mater, the National People's Congress.

This book is very thick, ** just a cup of coffee money, can read the essence of Zhang Lei's wisdom precipitated for many years, in addition to Zhang Lei's life path, there are also Zhang Lei's investment values, spend time reading, is a low-pay, high-yield reign, Zhang Lei also said frankly that the proceeds of this book will be donated to China's education and charity, praise for Zhang Lei.

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