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

V alue investing, no matter where it is practiced, must be closely tied to the era we live in. While value investing emphasizes bottom -up fundamental analysis, the companies we invest in exist in a specific era and are inevitably influenced by various macro factors. Thus, we cannot escape the times we live in

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

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

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.

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

our fundamental attitude as a value investor is that the macro environment exists objectively; we can only accept it, while the micro level is where we can make a difference. The world exists objectively and does not change due to our desires, imaginations, or subjective judgments. In investing, we must take the world as it is, not what we wish it ... See more

The essence of wealth is for consumption. The total size of an economy ultimately comes down to its total production or consumption. Thus, wealth is the proportion of your purchasing power within the entire economy. In the agricultural era, unit economic output barely grew, and there was a "ceiling" on the total economic size. Under such circumstan... See more

In transitioning from an agricultural to a modern science-technological economy, governments worldwide have evolved from command-and-control roles to collaborative, consultative, supportive, and service -oriented roles. This transformation aligns with the scale and complexity of modern economic systems.