Let me repeat these six basic principles of value investing: 1. A stock is not just a tradable piece of paper; it represents part ownership of a company. 2. Mr. Market is here to serve value investors, not guide. 3. Investments must have sufficient margin of safety. 4. Investors should have a clear circle of competence. 5. Fish where the fish are. ... See more

I have been obsessively thinking and researching the phenomenon of modernization for over forty years . I have come to realize that what each country has experienced over the past few centuries is not a unique phenomenon but part of a broader paradigm shift in human civilization . This shift is not influenced by any country, individual, or small gr... See more

The sixth principle is what I'm sharing with you today, a conclusion based on the paradigm shift in civilization: the essence of wealth is the proportion of purchasing power in the economy, and the goal of value investing is to hold shares of the most dynamic companies in the most vibrant economies, thereby preserving and growing wealth

Thus, Mr. Munger summarized the fifth principle: investing is like fishing; you must fish where the fish are. He says there are two rules to fishing: the first is to fish where the fish are , and the second rule is to never forget the first rule.

he concept of circle of competence is an important contribution from Mr. Buffett and Mr. Munger. Indeed, Keynes had already practiced this principle in his era.

Buffett and Munger, through sixty years of practice, further contributed to the concepts of value investing, offering another principle for value investing: long -term investment returns largely come from the value created by excellent companies through their long-term operating performance

Ben Graham outlined three key principles. First, a stock is not just a tradable piece of paper; it is a legal proof of ownership in a company. As we discussed earlier, during sustainable economic growth, equity can protect your purchasing power, which is essential because the goal of investi ng is to protect and grow purchasing power. Second, the m... See more

No market is completely efficient because the market is not an abstract concept but composed of many individuals

Thus, the fundamental purpose of investing is to preserve and increase your purchasing power. The measure of wealth is your percentage share in the economy, not the absolute number. One person is wealthier than another because their share of purchasing power in the economy is larger