0 1. People who are good at chess, "there is no magic hand in the whole game"
When I saw the title, I thought it was a book called Teaching People How to Get Rich. When I saw the preface: "I would like to dedicate this book to you who are willing to get rich slowly", I strengthened this idea, but … it finally became a book with temperature and rich philosophy of life.
As the ancients said, a good soldier has no merit, and a good doctor has no honor.
In other words, a man who can really fight will not have a prominent reputation, because he has made full preparations for the coming war, and even nip in the bud. Even if he starts a war, it will be a hit, and it will not turn into a fierce battle, nor will it be a blockbuster because of the victory of a fierce battle.
Similarly, doctors with good medical skills stopped patients who might get sick in time. If there are no natural minor diseases and major diseases are small, terminally ill patients will have no chance to be saved.
What about value investment? This book tells you that there is no magic hand in the whole picture.
"No magic hand in the whole game" comes from the chess term: "A good chess player has no magic hand in the whole game".
In other words, a person who can play chess often can't see the magic that leads to death or saves the day in a whole game of chess. Because he has laid out the whole and strategized.
The book "The Almighty Magic Hand" is a book about value investment, but not only that, it also talks about career investment, habit investment and life investment through many articles.
Author Liu Hong is the CEO of Wonder's strongest private equity fund company in the past three years, and a steady female private equity fund manager. After five rounds of bull and bear, 26 years of investment experience.
02. About this book and its author
"There is no magic hand in the whole game" is the investment sentiment of Liu Hong in 26 years. Liu Hong pursues snowball balanced value investment and has strong ability to build a cost-effective portfolio; He has won many industry awards such as the second "New Wealth Private Investment Manager".
This book is divided into four parts: ten thousand taels of gold; Read thousands of books; Know everything; Take Wan Li Road.
Each part, such as the title, talks about the mentality, norms, skills and feelings of value investment.
Reading thousands of books is about the author's experience and feeling through reading, combining investment and life.
"Understand everything" is about some gains and feelings in work and life.
A Tour of Wan Li Road is the most cost-effective travel strategy and travel income from the perspective of value investors.
In this article, I will only interpret my two favorite parts, "Finish Jin Liang" and "Read thousands of books" for readers' enjoyment.
As a big coffee in the industry, we thought that Ms. Liu Hong practiced "three words without leaving the line" better, but it was not obvious that she did not leave the line, but sneaked into the spring rain at night, inadvertently inspiring some knowledge and experience about Lu Bao and value investment in thousands of feelings.
03. Part I: Twelve thousand gold
This section includes 18 articles. As far as investment mentality is concerned, it involves the standardization, system and predictability of investment. Investment is not speculation, so we should make full preparations, not keep a normal mind, and we should integrate knowledge with practice.
In this part, the author has contributed his accumulated experience for many years without reservation through more than a dozen articles. This kind of experience is not a real professional skill, but as a professional engaged in investment funds, it can last forever.
The author dabbles in many things, not only reading and yoga, but even watching fighting, and has learned from these aspects.
For example, in the book, the author and her daughter watched Bo Meng, a female player from Xi 'an Tiger King Fighting Training Center, play the ONE championship, and Bo Meng won the championship in 86 seconds, because Meng Bo hit KO's opponent with one punch. "I haven't seen it clearly yet, so did it win?" ! "
Afterwards, the reporter interviewed Bo Meng, and Bo Meng said very easily that the game was similar to what she had expected, which was the sentence hanging on the wall of the coach team: "Hard training, easy game".
Yes, champions always favor self-disciplined people who train hard every day, rather than speculators who sharpen their guns at the last minute.
"One minute on stage, ten years off stage" is like this, and so is investment.
Investment is not speculation, nor can it be done overnight. Only long-term investment can accumulate profits.
Just like a friend's comment on Liu Hong: No matter what you do, yoga and fighting have only one purpose, which is to serve her investment.
What can't be done with such concentration? "Do your best in what you do" means that a person can concentrate on one thing and do it to the extreme.
Most of us, when we encounter problems in our work, often think of choosing a quick solution, not the best and most suitable one; Even sometimes, problems will be hidden and cannot be prevaricated. At the last minute, I will try to find a solution in a hurry.
How to make value investment? The book uses Buffett's words to explain:
First, "I'd rather have an enterprise with a scale of only 10 billion dollars and a return on investment as high as 15% than run an enterprise with a scale of 10 billion dollars and a return on investment of only 5%".
"Black cats and white cats are good cats if they can catch mice." In value investment, the most important thing to consider is value, not face.
Second, if the probability of doing something is 50%, don't do it. What you see is 50% success, but it also includes 50% failure.
Buffett said, "Why don't you jump off the plane with a parachute that has a 50% chance of opening?" Who dares to risk only a 50% chance of survival to do the experiment? Value investment is not allowed to do this.
This leads to the third rule:
"First, don't lose money. Second, never forget the first principle. "
After the above three points are achieved, can you invest? Of course, but it is not enough to follow these three points if you want to do it well for a long time.
Value investment needs to avoid all kinds of misjudgment psychology of human nature, which is difficult for ordinary people to adhere to.
In view of this, the author lists many detailed cases in Buffett's career.
From Buffett's life experience and his long investment career, this paper describes in detail the success of "escaping from the peak" and spending huge sums of money to buy Buffalo Evening News, and gives his own conclusion: Buffett, who is strong inside, has all his experiences, tempering and final achievements.
Through the case, it can be seen that Buffett's success, in addition to his self-discipline to adhere to his own principles, is also a necessary condition for internal strength.
Real value investors are mostly lonely and retrograde people. Besides courage, they also need resilience and extraordinary patience.
04. Part II: Reading thousands of books
This part is the most attractive part of the book.
This section contains 19 articles, and each article contains the sentiment of at least one book. "Opening books is beneficial" has been interpreted by the author to the greatest extent.
The author got the truth about value investment from every book he read, "three words don't leave his line", which shows his love for work, concentration because of love, professionalism because of concentration, and success because of concentration.
There are not only "A Golden Room with a Beautiful Woman" but also "Yan Ruyu" in the book.
But Yan Ruyu is different in everyone's heart. For Liu Hong, a stock fan, her Yan Ruyu is naturally related to value investment.
From "One Billion Dollar Mistakes", she realized that "learn from others' mistakes, because you can't make all your own mistakes", and all investments are risky, no matter how smart, sophisticated and successful investors are, "so what we need is to be the best ourselves forever!"
From baruch's autobiography, she acquired the habit that baruch never gave up: analyzing the reasons for her failure, realizing where she was wrong, not making excuses for herself, not making the same mistake again, and so on.
From the perspective of investment, it means that "retaining and managing money requires more determination and professionalism than making money itself". Therefore, value investors need to adhere to their own value investment beliefs.
The hospital's overtreatment of patients and the cost mentioned in The Best Farewell are all related to investment. The author thinks about the problem of social aging, and how to find the investment opportunities brought by aging has become the focus of continuous attention in the future. Real entrepreneurs need a sense of social responsibility.
In addition, in this part, the author also mentioned the film Andhadhun, and the author's interpretation of it is very wonderful, so I won't go into details here.
In the rest of the articles in this part, at the end of reading the book Output Emotion, the author is always related to value investment, but only Andhadhun has nothing to do with investment, but is related to human nature.
The third part "Understand Everything" (including 16) and the fourth part "Take Wan Li Road" (including 7 travel notes) tell the gains and feelings related to investment and life with case stories of individuals, colleagues and friends around the industry, which are not repeated here.
05. Summary
This is a book written by the author who is engaged in value investment. It involves value investment, but it is more about the author's feelings in life. From investing in work to studying, to realizing the truth, and then to what she saw on the road in Wan Li, it was warm but not boring. Combining the investment experience with the income from life experience is not only conducive to investment and financial management, but also conducive to starting a self-cultivation life.
As the author said in the book, it is impossible to make all mistakes, so we should learn from others' mistakes.
"The more successful people are, the more pain they suffer, especially mental pain" is the truth here.
For each of us, it is impossible to experience all the experiences, so read more books, absorb the lessons and experiences experienced by others, avoid similar mistakes and enrich our future life.
Liu Hong said: "Don't worry about investment, slow is fast! Please firmly believe in the value of compound interest! "
Investment is so, in fact, the investment in life is not so!
After setting your goals, don't be impetuous. You need to work hard step by step to contribute to your dreams and make contributions to your future.
Go back to the past bravely and invest in your future life. Once you start, it's not too late.