1, the most important thing is not to blindly believe that the stock market will always be effective or invalid, but to clearly understand that the stock market is quite efficient and difficult to beat, and only truly excellent investors can beat the market for a long time.

Most of the time, the stock market is very efficient and rational. In order to obtain excess returns, we must seize the rare opportunity that market irrationality causes the stock price to deviate greatly from its value.

The most important thing is not price orientation, but value orientation.

When making investment decisions, don't just decide your investment behavior based on the historical price trend of the stock price. Instead, we should deeply analyze the company's fundamentals, make a "fuzzy and correct" estimate of the company's reasonable value, and compare it with the current price according to our own estimate, "buy high and sell low": underestimate buying, hold in a reasonable area, and overestimate selling.

The most important thing is not only to buy well, but also to buy well.

Finding a good company is not enough. You have to wait for a good enough buying opportunity before you can make a buying decision or even bet heavily.

The most important thing is not the risk of fluctuation, but the possibility risk of permanent loss.

The stock price fluctuates every trading day, every week and every month. Due to the large liquidity of the market, water waves are common and stormy waves are not uncommon. It is not uncommon to see 20% up and down in ten days and a half months and 30%-50% up and down in a year and a half.

The most important big risk is not when everyone is afraid, but when everyone thinks the risk is small.

This sentence is similar to Buffett's "others are afraid of my greed, others are greedy and I am afraid." From my personal experience of entering the stock market in less than ten years, this kind of reverse thinking is really magical and effective, although my level of individual stock analysis is still limited, especially when I first entered the stock market.

6. The most important thing is not to pursue high risks and high returns, but to pursue low risks and high returns.

In the eyes of the public, risk and return are often positively related, but when considering assets comprehensively, in fact, when we invest, high risk and low return often coexist with low risk and high return.

The most important thing is not the trend, but the cycle.

Trend refers to the short-term trend of stock market, macro-economy, industry fundamentals and company performance in a few days to several months, and cycle refers to the long-term trend of market, industry and company in several years.

8. The most important thing is not the midpoint of the market psychological pendulum, but the reversal of the end point.

The key to determine the stock value is based on the fundamentals of financial analysis, but the factors that affect the stock price are not only the stock value, but also the market psychological factors have even stronger influence on the stock price in many cases.

9. The most important thing is not to follow the trend, but to go against the trend.

Good investment opportunities are often the result of reversal, but we must remember not to reverse for the sake of reversal.

10, the most important thing is not to think of reverse investment, but to realize reverse investment.

Charles Munger once said, "Investment is not simple. People who think that investment is simple are fools. " It's really hard to invest. It is difficult to really understand the investment concept, that is, the so-called "learning". What is more difficult is to practice the investment concept, which is called "doing". Investment is a "harder to know than to do" thing.

Reverse investment is a more difficult thing to practice-when the price of a stock continues to fall, most people will panic and cut their losses. Even people who have never cut their meat are mostly afraid that they will just die with luck and hope that the market will rebound, rather than taking advantage of the low valuation area after the stock has fallen sharply.

When the stock keeps rising much higher than its value, most people will only look at the K-line chart happily and secretly feel proud of their wisdom. Instead of selling in time, they hope that the stock price will continue to climb to the peak, sometimes, but most of the time, the consequences are always tragic.

1 1, the most important thing is not the price or the value, but the relative cost performance, that is, the margin of safety.

As far as value investment is concerned, I think the most important criterion is the margin of safety.

12, the most important thing is not to actively look for opportunities, but to wait patiently for opportunities to come.

Perhaps we have all heard the story that Buffett often only needs to talk to the original owner of a company for five minutes when he buys a company. Because Buffett is a stock god, he has such a gift. Can he see through a company's business model and prospects in five minutes?

No, absolutely not. This is only because, before this five-minute conversation, Buffett had spent countless hours reading materials and analyzing thousands of corporate information. When the opportunity comes, Warren Buffett can naturally negotiate with the seller at the fastest speed.

What is hidden behind this is Buffett's massive research and analysis, which makes the research of hundreds and thousands of enterprises in his own ability circle transparent, then waits patiently for the right time to buy companies or stocks, and then makes appropriate decisions quickly. Hard work and patience always leave opportunities for those who are prepared.

13, the most important thing is not to predict the future, but to realize that the future is unpredictable but can be prepared first.

14, the most important thing is not to pay attention to the future, but to the present.

15, the most important thing is to realize that short-term performance depends on luck and long-term performance depends on investment skills.

16, the most important thing is not attack, but defense.

17, the most important thing is not to pursue great success, but to avoid major mistakes.

Great success is hard to come by. Since its listing, Tencent's share price has increased by 100 times, and Netflix's share price has increased by 300 times in just seven years. Not everyone can grasp the huge increase of Maotai and Wuliangye in the past five years 10 times. However, some big mistakes, such as all-pass education, Storm Technology, LeTV, etc., are obviously extremely high valuations, but they are mistakes that mature investors should not make.

18, the most important thing is not to beat the market in the bull market, but to beat the market in the bear market.

Buffett once said something similar: "Our goal is to keep up with the pace of the market in the bull market and outperform the market in the bear market."

Why do value investment masters realize the importance of a bear market outperforming the broader market? Probably the madness of bull market often makes experts flinch, so they give up the dream of bull market outperforming the market and pursue the opportunity to buy high-quality and cheap equity in the bear market in order to achieve the goal of outperforming the market for a long time.