Imagine looking back ten years from now—how would you view today's investment decisions? Would you regret following trends blindly, or appreciate your commitment to long-term value? This perspective forms the foundation of an investment philosophy that offers a roadmap through market uncertainties toward sustainable wealth growth.
I. Investment and Long-Term Thinking: Time as the Ultimate Ally
At the core of this philosophy lies the belief that investment means long-term holding, not short-term speculation. Key principles include:
- The decade perspective: If you're not prepared to hold an investment for ten years, you shouldn't consider owning it for ten minutes. This long-term view helps avoid emotional, short-sighted decisions during market volatility.
- Buying at reasonable valuations: "Not timing the market" doesn't mean buying blindly, but rather recognizing that when an investment appears reasonably valued from a ten-year perspective and you have available funds, that moment itself represents an opportunity.
- Investment knowledge: Investing requires serious study and practice. Entering markets with superficial understanding carries risks comparable to diving into deep water without swimming skills.
- Long-term returns: Focus on enduring value growth rather than quarterly performance. Excessive anxiety and frequent trading only impair judgment and make investors miss genuine opportunities.
- The patience principle: Sustainable wealth typically grows gradually. Those seeking quick riches often fall into speculative traps with nothing to show in the end.
II. Business Fundamentals: The Essence of Value Creation
This philosophy emphasizes product excellence and rational thinking in business:
- Differentiation strategy: True differentiation means addressing customers' unmet needs through sustained innovation, not just being different for difference's sake.
- Product-channel synergy: Superior products form the foundation for effective distribution channels, while strong channels enable product reach. They develop in mutual reinforcement.
- Business intuition: What appears as intuition actually stems from accumulated rational thinking. Through continuous learning and practice, judgment becomes increasingly accurate.
- Moving forward: Dwelling on past mistakes hinders progress. The ability to move on represents wisdom cultivated over a lifetime.
III. Human Nature and Cognition: Understanding Ourselves and the World
This perspective offers profound insights into human behavior:
- Self-reflection: People often justify their actions rather than examine root causes. Genuine improvement begins when we stop making excuses and start understanding fundamental truths.
- Reading and thinking: While reading represents a preference, thinking constitutes a habit. Non-readers can think deeply, while many avid readers don't. True cognitive growth comes from combining both.
- Honesty and environment: Children learn dishonesty when it brings benefits. While honesty comes naturally, environmental influences can distort this instinct, making integrity-focused environments crucial.
- Cognitive limits: Everyone has blind spots—about themselves and the world. Acknowledging these limitations enables more humble learning and growth.
- The value of integrity: When dishonesty offers substantial short-term gains, many choose it. Yet over time, integrity proves far more valuable.
IV. Management and Organization: People-Centric, Sustainable Development
This approach to management emphasizes human dignity and rejects employee exploitation:
- Rejecting overtime culture: Systematic overtime should be avoided except for emergencies. Daily work should prioritize efficiency over extended hours.
- Strategic direction: Effort becomes meaningless if directed wrongly. Running fast in the wrong direction leads inevitably to poor outcomes.
V. Finance and Risk: Identifying Dangers and Assessing Value
The financial sector presents unique challenges:
- Banking complexity: While banking models appear simple, they actually involve intricate risk structures hidden within vast loan portfolios, creating high barriers to understanding.
- Brand power: Some corporate declines relate partly to poor branding decisions. Strong brand equity established early might have altered outcomes significantly.
VI. Life and Values: Integrity and Personal Choice
Life principles center on personal responsibility and freedom:
- Personal standards: Integrity represents a personal standard, not a measure for judging others.
- Social preferences: Choosing limited social interaction reflects personal freedom, not pathology. The right to avoid disliked activities constitutes basic liberty.
- Negative influences: Wealthy but harmful individuals exist. Encountering them can disrupt normal life disproportionately, making avoidance prudent.
- Thinking habits: Academic success demonstrates thinking capability but doesn't guarantee habitual critical thinking. Even elite graduates can develop rigid mindsets.
- Learning methods: Books and short videos both offer value—for education or entertainment. In some contexts, videos deliver information more efficiently.
- Family dynamics: While homes aren't courtrooms, rationality still matters. Family members should address issues with mutual understanding and reason.
- Career passion: Many leaders in small or family companies work into their seventies, typically because they love what they do.
This comprehensive philosophy transcends mere investment strategy, offering a holistic approach to life that emphasizes long-term perspective, value investing, rational thinking, and personal integrity. By adopting these principles, individuals can navigate world complexities more effectively, recognize genuine opportunities, build sustainable wealth, and ultimately achieve fulfilling lives.