foolish investor

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Last week, I watched “Silly Investors”, and the most impressive thing in it was a sentence

When things are good, you win more; when things are bad, you lose less

For the vast majority of us ordinary people, this may be the most valuable investment advice. And, of course, one of the hardest investment advice to come by.

Making a lot of money is hard to come by, but it is indeed possible to lose a small amount of money, for example:

  • Leave a margin of safety for your investment.
  • When doing things, focus on your own niche market niche.
  • Buy when the industry is down, and make money when the industry is booming.

The original words in the book are as follows:

This is the framework of the Handuo investment model, as follows:

  • Invest in an existing business
  • Acquisition of companies with simple business models in slow-moving industries
  • Investing in distressed businesses in distressed industries
  • Invest in industries with durable competitive advantage
  • Take a big bet at the right time
  • Focus on arbitrage
  • Buying businesses that are selling at a discount to their intrinsic value
  • Look for businesses with low risk and high uncertainty
  • Imitation is better than innovation

And, I learned about the Kelly formula in this book, so I should study it carefully when I have time.

In my opinion, being an independent developer on the job can be regarded as a way for a simple investor . The cost is your own time cost, but because you have a Day Job and are not full-time, so even if you fail, you will not As for losing badly. Your advantage is that your cost is low enough.

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