Charlie Munger is Buffett’s partner. He is an extremely low-key figure who has also achieved considerable achievements.

His achievements are entirely due to his unique learning and thinking methods. This series aims to reveal the wisdom of Charlie Munger!

Day 1 of reading "Poor Charlie's Almanac"

1. Only a few people can seize opportunities.

No matter whether they bought a house in 2000, started Taobao in 2005, started a WeChat business in 2010, or started a subscription account in 2015, only a few people could seize the opportunity and benefit every time.

Because the benefits of opportunities are limited, once more people enter the market, the blue ocean turns into a red ocean!

One opportunity has limited ability, and you can only make a few people rich first!

2. Opportunity, high risk.

The opportunity was not favored by most people at the beginning, just like Ali and Musket back then.

Therefore, in the eyes of most people, this opportunity is high risk.

What outsiders see as opportunities is not an opportunity, but a risk!

3. Landmine expert.

Landmines may appear dangerous to outsiders, but to landmine experts the danger is greatly reduced.

The more unknown, the more dangerous!

4. Prophet.

Those who can accurately judge the future are called prophets. They can seize the opportunity to make valuable things worthless and worthless things become valuable!

A prophet is an expert!

5. Cognition is productivity.

Why can the Trisolarans defeat the people on Earth? Because technology is leading! Why Internet companies can beat traditional companies is because they have a more advanced understanding of the market.

The more you know about a field, the better you can seize the opportunities here!

When you understand the competition rules of the entire market, you can defeat those who do not understand the rules!

6. Masters of playing games

When playing games in college, such as Warcraft, there are two types of masters, one is the operation flow, and the other is the flow of consciousness, which is actually a kind of details. Well done, the first-class strategy is good for the overall situation! In the end, the real master is stream of consciousness, because he can play any game well!

Once I went to see a stream-of-consciousness master play a game. He was looking at the explanations of skills and equipment. His mantra when playing games was that this route is unscientific. In fact, he is an expert in the game. He wins because of his understanding of hero skills and equipment.

7. Two types of people.

One type is followers, and the other type is opinion leaders.

Followers can only follow others to drink soup, or even be cheated, because they have no brains!

Opinion leaders, being unique, this is the first step to success!

8. Only believe in facts

There are two types of information in everyone's words - one is facts and the other is judgment.

9. Logic

There is a saying in Kindaichi, if all other possibilities are eliminated, the remaining ones will be the truth no matter how impossible they are!

The skills used by many detectives are: 1. exhaust all possibilities, 2. rule out other possibilities, and 3. arrive at the truth.

10. Understand the rules

The invisible hand of the market is the driving force behind the comings and goings of people in the market!

Laws/rules exist among all things in the world. If you don’t understand them, you can only be confused by the appearance!

11. Be at ease.

When I went home during the Chinese New Year, I chatted with Fa Xiao and asked his cousin what he was doing. He said he was cashing out.

I say, break the law.

Fa Xiaoxiao said: Don’t worry, he is very clear about the boundaries of illegality. With ease.

360 lines, every line is number one.

The safe and profitable field has long been crowded with people.

Only those places that are somewhat dangerous and unknown are blue oceans!

Danger is a kind of barrier!

12. Eight anti-traditional medicines

Inside the mansion gate, there are several types of traditional Chinese medicine that cannot be used together. They will usually cause problems. Except for special patients, they have miraculous effects.

Anyone who dares to use this dangerous formula is a master.

13. Dangerous tactics for soldiers

Leading troops into battle is a fine line between life and death.

The key is to take things by surprise and attack them unprepared.

If everything is under the control of others, then you have already lost before you take action!

14. Talented people are bold

The juggler breaks a big stone on his chest; the magician locks himself and jumps into the water tank.

Everyone exclaimed: Artists are brave! Because he dares to do things that seem dangerous to ordinary people.

But in fact, for him, these are all common and very safe! Because they are experts in this field!

In fact, everyone has the same courage!

15. Opportunity = Wind

Standing on the wind, pigs can reach the sky. This is the power of opportunity.

A rabbit is flying on a plane, and a pigeon is sitting next to him. He saw the pigeon with its legs crossed and said to the stewardess, "Bring your best wine!" The stewardess brought it. Rabbit thought it could still be like this, so he did it!

Then Pigeon said, call your most beautiful stewardess over to dance for me, and the stewardess came and danced. Rabbit thought it could still be like this, so he did it!

Then Pigeon said, call your captain over and ask him to light a cigarette for me. Rabbit did as he was told without thinking.

After a while, the pigeon and the rabbit were thrown out of the plane at the same time. The pigeon asked the rabbit: Brother, why are you following me?

Rabbit said: Is there any problem?

The pigeon flapped its wings and said to the falling rabbit: It's okay!

There is really a vent, do you dare to enter? The wind outlet looks like a disaster that can destroy everything. Others can get in because they have a parachute, do you have one?

16. Leeks

There is a word in the stock market called "cutting leeks", which means that the public is misled/seduce by a few traders and then loses money.

The stock market is a zero-sum game. Some people make money while others lose money. So what they are fighting for is professionalism and understanding of the stock market.

So, who is Leek? Non-professional players are all leeks!

17. If you don’t understand, don’t touch it

Buffett has invested in many fields, but there is one principle: don’t touch what you don’t understand. For example, if the Internet is so popular, he doesn’t even invest.

Why?

Because you don’t know how to reinvest, that’s gambling, and you will lose sooner or later!

18. Take only what you deserve.

An important reason for failure in life: greed. Wanting to take what you don’t deserve.

How much investment can be earned depends on luck in the short term and strength in the long term!

The market economy is very fair. You get whatever you are worth, and no extra penny will be given to you! If you give it, it will make you spit it out.

19. Choice is system capability.

You only see others winning championships, but you don’t see him working from dawn to dusk to prepare for 4 years;

You only see others making money, but you don’t see his countless days of hard work, frustration, and suffering. Day and night;

Any ability is built by a long-term system!

Choice is also a kind of ability, which requires systematic investment of time and resources to build!

What you see is just a moment, but there is a thread behind every moment to support it!

Behind the sunshine, there is bitterness!

20. House

Many people regret not buying a house in 2000; many people regret not buying more stocks during the bull market.

There are only two types of people who can seize this opportunity, one is lucky, and the other is the one who predicts this opportunity!

Your luck will run out, but your judgment can bring you benefits again and again!

21. Is content the outlet?

In the era of paid knowledge, is content entrepreneurship a hot topic?

22. The Tragedy of the Hand-in-hand Party

The Hand-in-hand Party lives very easily, because like most people, they are more than better than others.

Because they don’t have to worry about it because someone has already arranged their life!

However, their fate can only be the poor majority, harvested leeks, other people's tools, and the world's fertilizer!

23. Noise

There is too much noise in the world. Everyone is speaking out, everyone has a point of view, and the truth is hidden in it.

24. Data does not lie.

The standard of good and bad is uncertain, and anyone can say it randomly.

Only data is real and will not lie. Even so, others can explain it blindly!

25. Everyone has a purpose when speaking.

Why don’t people like to talk to salesmen? Because every word he says has a purpose, to make you like it, to make you trust it, to make you use his products and make money from you!

Those successful people are just bigger salesmen!

26. Someone tells you there is a good opportunity

Someone tells you there is a good opportunity.

At this time, think about this scene, friend, do you know Amway?

If there is such a good opportunity, I will quietly invest all my worth in it, and I will tell you!

27. Chaoyang period.

It is in its budding stage and has not yet become popular. It may take 10 years to invest and there will be no response.

It’s the sunrise period and it’s already starting to get popular. Let’s get in the car first!

28. Opportunities appear randomly

The emergence of opportunities is a black swan event. You can only wait for it to appear quietly and try to discover it early!

But no one can control it because there are too many related variables!

29. A chance to make a comeback

Chatting with Fa Xiao, a primary school classmate is worth tens of millions and is now engaged in real estate.

If you seize an opportunity, you can turn over. This is the wonder of fate!

30. The first group of people

In any outlet, the first group of people benefit the most. Who are they?

The prophets discovered this opportunity.

Operators, invest in the industry and cultivate brands.

Professionals, immersed in it for a long time, enter directly.

Investors, professional investments.

Other people enter accidentally and specialize in jumping in!

31. Choice is greater than effort

From Beijing to Shanghai, would you choose a bicycle or an airplane?

Choice is far greater than effort!

32. Opportunities

Every time a trend emerges, it is a subversion of the old pattern and a redistribution of wealth.

In the small case, it’s the industry, in the big case, it’s the society!

33. Not taking action is the secret to winning.

Thinking is also a kind of action, and taking action at will will only distract your attention.

Use resources to research big trends, and then take action!

34. Stubborn.

Those who can seize the opportunity must be a minority.

The characteristic of this type of people must always be skeptical and always have their own independent opinions, because they only believe in facts, data, and logic!

They understand that ordinary people just follow what they say!

Xiao Wan said: Just follow what others say, but you won’t be able to do it in your lifetime!