Reading Notes on Buffett and Soros's investment habits

Investment habits of Buffett and Soros

Benefits and risks

• The higher the benefit, the higher the risk, or the higher the risk, the higher the benefit, there is no reason, the risk and the benefit logic are not necessarily positively correlated, but the higher the benefit, the higher the risk people are willing to bear.

• It is not contradictory to reduce risks while increasing profits, but risk control should take precedence over earnings.

• The same thing is dangerous for you, but there is no risk for the experts. Therefore, to reduce the risk, try your best to become a master.

About Investment

• Making money is only the purpose of investment, and investment strategy is the means of investment. it is meaningless to focus on the purpose, because it is only the natural result of your means. therefore, we need to focus on the adjustment of investment strategies.

• Scattered risks cannot be dispersed to be dispersed. you must carefully analyze each stock and make sure that their risks are low and their benefits are high. however, the reality makes it impossible to spread a large number of risks due to (1 ). low-risk and high-yield stocks and their difficulties. (2 ). people's energy is limited, and stock analysis is a very energy-consuming thing.

• Do not change.

• Conducts systematic and meticulous analysis before investment, and performs systematic and meticulous monitoring after investment. Do not worry about opportunities lost due to analysis, and respect the risk priority principle.

• Investment opportunities are rare. If you think it is worthwhile to invest after systematic and meticulous analysis, you can act immediately.

• Reducing unnecessary costs seems to be a small amount of money now. If it is put into the market through compound interest and time blessing, it will become an extremely huge fortune.

• Investment is a long and hard activity, so you need to fall in love with this activity, and pay attention to how to deal with the pressure.

• When making an investment, strictly abide by your investment strategy, rather than be shaken by others, unless you are sure that you are the reason to understand others and make adjustments to your investment strategy.

About Investment Strategies

• Record the reasons and results of each investment, analyze it later, and adjust the investment strategy based on the analysis results. Specifically, you need

  • Take down why you buy it and why you can accept it.

  • Write down the situations where you want to sell it.

  • Unload the expected results

  • Remove unexpected situations.

  • Prepare emergency plans

• The fastest way to establish your own investment strategy is to learn from other masters, but be sure to have your own judgment.

• When building your own investment strategy, consider your existing talent, skills, and capabilities.

• It is said that a complete investment system contains detailed rules for the following 12 questions

1. What to buy

2. When to buy

3. Bidding Price

4. How to buy

5. What is the proportion of the purchased amount to the portfolio?

6. Post-Investment Monitoring

7. When to sell

8. Use of portfolio structure and leverage

9. Investigation Method

10. Preventive measures against the systemic impact of market crash

11. Handling error

12. What should I do when the system is invalid.