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.

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

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.

practice is the criterion for testing truth

n my book, Civilization, Modernization, Value Investing and China , I divide the evolution of civilization into three stages: 1.0 (hunter -gatherer civilization), 2.0 (agricultural civilization), and 3.0 (modern science-technological civilization). The transitional phase between stages 2.0 and 3.0, which I call stage 2.5, is where China currently... See more

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... 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... See more

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.