The legendary woman who was reborn from the ashes

Once you have a money-saving brain, you won't have the energy to cultivate a money-making brain, so you will be poor for a long time. Investing in your brain is a sure-win business. -- Buffett

In 1998, in the lecture hall of the University of Florida College of Business, Buffett, with his profound wisdom and unique insights, brought an unprecedented spiritual shock to every audience present. This speech is not only hailed as the most influential speech in Buffett's career, but also regarded as a classic by countless people and has been passed down to this day.

He vividly explained his investment philosophy based on his own experience.

Assuming you have $1 million at the beginning of the year, you can choose to conservatively earn a 10% return, or you can choose to take a risk and increase leverage. Although the success rate is as high as 99%, if you fail, the consequences will be disastrous.

In Buffett's view, whether it is $1.1 million or $1.2 million, there is no essential difference for him and his family, because wealth is not the only criterion for measuring happiness, and taking risks often only brings short-term pleasure, but may pay a heavy price.

Buffett himself is a model of steady investment. He almost never borrows money for investment. Even when funds are tight, he always keeps a clear mind and calm judgment. He firmly believes that only businesses that can be understood are good businesses. Therefore, in the investment process, he always sticks to his principles and never blindly follows the trend or takes shortcuts.

As American economist Henry Kaufman said, "There are two kinds of bankrupt people: those who know nothing and those who know everything." This sentence just confirms Buffett's investment philosophy. Only those who truly understand themselves, the market, and the risks can be invincible in the financial market.

Buffett is such a wise man. He uses his wisdom and experience to tell us: There is no absolute winner in the world of investment, but as long as we adhere to a stable, rational and prudent investment philosophy, we can move forward steadily in a market where risks and opportunities coexist.

In the world of investment, there are two kinds of people, one is ignorant and the other is insightful. The choices made by these two kinds of people determine their completely different destinies.

Buffett said, "For me, I prefer to choose those businesses that I can understand. By screening in this way, I found that about 90% of the companies do not meet my standards. Because I know that for those things I don't understand, I can't easily get involved, which may bring unpredictable risks."

Buffett doesn't like businesses that seem easy, because such businesses often attract a lot of competitors. Buffett likes businesses with protective barriers, which are like castles with deep moats, guarding their unique position.

Buffett often tells his team that we need to constantly strengthen the moat, put in crocodiles, sharks and other beasts, so that competitors are intimidated. This moat may be high-quality service, excellent product quality, low cost, patents or unique geographical location.

So how do we find such a business? Buffett's answer is: look for simple products. Look at the products that we use now and will use again in ten years. The future of such a business is predictable and reliable.

Buffett thinks, if you give me $100 billion and let me compete with Coca-Cola globally, can I shake its position? I believe I can't. This kind of business is the good business I am looking for.

Therefore, no matter what we do, no matter what we invest in, we must know clearly what we are doing. Only in this way can we really make a good investment and remain invincible in the ever-changing market.

This is how Buffett understands investing, and it is also the wisdom that Buffett hopes to share with everyone.

Buffett said that in the ocean of investment, we are not omnipotent and cannot see the secrets of every transaction. However, this does not mean that we are helpless. Whether we are facing large-cap stocks, small-cap stocks, or those little-known ultra-small-cap stocks, we only need to focus on a few core issues.

Do we understand the company's business model? Do we agree with its management's wisdom and strategy? Does its stock price reflect its true value?

Buying stocks is actually buying a part of the ownership of a company. This is not just a numbers game, but also a contest of wisdom and value. If the company itself cannot make a profit, how can your investment bring a return?

Many investors can't wait to stare at the screen after buying stocks, expecting the stock price to rise. However, the real investment wisdom is that you are not just buying a piece of paper, but the future growth and earnings of the company. You are buying a part of the company, not just a number.

When the market falls, many people will panic. However, for real investors, this is a golden opportunity. When prices become more reasonable, it is more likely to find those truly valuable "treasures". This is not a gamble, but a strategy and wisdom.

In the world of investment, we must not only learn how to make money, but also how not to lose money. Because only those investors who can make stable profits are the real winners. We are not pursuing overnight wealth, but long-term and stable returns.

Those companies that make us excited but feel expensive are often the most worthy of investment, because their value has exceeded our expectations. The real investment wisdom lies in being able to discover these values ​​and then taking decisive action.

Finally, Buffett reminds you that investment is not a simple matter. It requires us to constantly learn, explore, and accumulate experience. But as long as we can stick to our investment philosophy and clarify our circle of competence, we can find our own place in this challenging market.

The best way for a person to live is to learn to be independent, no matter whether there is someone who loves you around you or not; you may not be successful, but you cannot stop growing. If you do not grow, no one will always be waiting for you; the best way to manage yourself is to become truly strong and excellent, so that others can’t do without you!