Buying stocks means letting the best people in the world work for our brothers. From the perspective of shareholders, stocks are really amazing when you look at a company. Those companies that you submit your resume to, but others don't criticize you, You just need to buy their stocks, and all their employees will work for you. Look at those state-owned and central enterprises, even those with master's and doctoral degrees can't get in. But you don't have to take a written test, interview, or find connections. Just spend a few tens of thousands or even thousands of dollars to buy their stocks, and you will become their shareholder. They work inside, leaving early and returning late every day, holding meetings and working overtime to create profits for you. As for you, just lie at home. The harder they work, the more the company earns, and the more dividends you receive. You don't have to look at the leader's face, clock in, or worry about being laid off. You are the boss behind the scenes. Someone asked, is it that simple? Yes, it's that simple. But there is one premise, you have to buy it when it's cheap. And then, hold it for the long term, that's all! There are roughly four types of people in the market. 1. A true investor, walking alongside the company for a long time, waiting for value creation. 2. Arbitrageurs correct errors in market pricing. In Graham's words, it is buying from pessimists and selling to optimists. 3. Mainly engaged in speculation, guessing at what price others will buy or sell a certain security, without caring about the value pricing of the security itself or value creation. 4. Securities firms and market makers provide services to other participants. Most people do not purely belong to one category, but rather have some combination of these four elements. Index investment, in a sense, is the average of these components. Value investors focus on correctly identifying prices and waiting for value creation over a period of time. Benjamin Graham is more inclined towards arbitrage; Before buying See's Candy/Insurance/Coca Cola, Buffett=Graham was mainly an arbitrage investor. After encountering Munger, I mainly focused on value creation, but still bought at arbitrage prices. I personally think that Duan Yongping, after realizing the filter of "business model>corporate culture>valuation", is a very pure "real investor" - buying truly great companies at a reasonable price. Arbitrage with sell put and sell call. When buying Vanke and TCL Changhong, Duan Yongping also had a "Graham" style. Munger tends to lean towards "real investors" - buying truly great companies at reasonable prices (not liking buying average companies at cheap prices), but Munger is not actually an entrepreneur and has an intellectual aura, always preferring to make his own judgments. Li Lu leans towards Buffett, but he gives more weight to "undervalued" than to "good business models". Li Lu himself said that it was related to his personality and difficult to change, but later he was able to achieve great success even when the company skyrocketed and did not sell. When buying, he still valued the price. In addition, Li Lu inherited Munger's tendency to make judgments. Li Lu and Munger are intellectuals, and do they always have the impulse to judge right and show off their skills? In addition, Buffett and Duan Yongping are entrepreneurs and doers who have spent a long time running their businesses and are well aware that many things are difficult to analyze clearly. Therefore, they tend to prioritize what they see is what they get and consider whether the business model has been formed as their top priority. Duan Yongping said that the safety margin refers to "your level of understanding of the enterprise." This actually requires you to truly understand. Of course, for companies with a good business model, the probability of you making them very, very knowledgeable through hard work is higher. Companies with poor business models are unlikely to be easy for you to understand (what they will look like in 10 years). Understanding what Maotai will look like in 10 years is much simpler than understanding what BYD will look like in 10 years. Li Lu said that the future is inherently unpredictable, so you need to have a safety margin, minimize the downward space as much as possible, and maximize the upward space as much as possible. This is actually simply emphasizing valuation on the premise of acknowledging that the world is unknowable. The difference in understanding of safety margin between Duan Yongping and Li Lu actually comes from their own personalities. Duan Yongping grew up in a very secure environment; However, Li Lu and Buffett lacked a sense of security during their childhood and were quite strict with valuation. There is a premise that Duan Yongping's heavy holdings only buy companies with established business models, without making predictions. Of course, Duan Yongping's filter for "business model>corporate culture>valuation" dares to put valuation at the end because he really has strict requirements for business models. In addition, he is a person who has worked as a Little Overlord and a Step by Step Tall, fighting in the red ocean of consumer electronics (game consoles, phones, portable players, DVDs, music phones, smartphones are all not missed), and his implicit understanding of business is incomparable to ordinary people. So, for ordinary people to learn value investing, they should start by honestly building their ability circle. First, understand the boundaries of your own ability circle, and then gradually expand your ability circle. Spend 10 years honestly figuring out the core elements of business, and then copy Duan Yongping's homework. Otherwise, it will only be difficult. I personally think that learning from Buffett's journey starts with picking up cigarette butts and then delving deeper into tracking the evolution of the company. If I could immerse myself in the company for a few years and then learn from Duan Yongping, it would be better. In fact, the difference between us and Duan Yongping is nothing more than that he has been doing business for more than ten years and has been a consultant for OPPO vivo for more than ten years, which I don't have! So, if I want to learn Duan Yongping, I have to make up for this class. In the process of tutoring, the key is to be yourself.