巴菲特致股东信

Buffett's investment philosophy is centered on value investment, integrating long-termism, risk control and business insight, forming a philosophical system that has been verified by the market. The following is a summary and interpretation of his core concepts:
1. Core Concept: From “What to Buy” to “How to Buy”
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Value investing: looking for undervalued high-quality companies
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Buffett advocates
Price below intrinsic value of the business
When buying stocks, pay attention to the fundamentals of the company (such as profitability, cash flow, liabilities, etc.) rather than short-term stock price fluctuations. He believes that the essence of investment is to "buy excellent companies at reasonable prices", such as long-term holding of companies such as Coca-Cola and American Express, and achieve wealth growth through the company's continued profitability.

1. Invest in Yourself, Increase Your Value
Buffett believes that the best investment is in oneself. While investing in oneself requires spending some money, money can depreciate, but one's talents cannot be taken away by others and can ultimately bring immeasurable wealth. Throughout a person's life, only a small amount of potential is tapped. For example, my friend Nana, who graduated and started working in a year when the pandemic hit, had a meager salary and was introverted, yet persisted in learning public speaking and planned to do live sales. After failing her first speech competition, she did not give up and practiced for a year. Now she speaks fluently and even does live sales of local specialty products with her mother, greatly enhancing her abilities. Therefore, there is no such thing as a one-time job in life; there is only a self that steadily appreciates. Investing in oneself while young is the most valuable wealth.