Personal Investment Bible: Book Notes

I. Content Summary

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The core concept of this book is that everyone can achieve financial freedom through investment, not just the wealthy or high-income earners. Through thirteen Investment Iron Laws, it emphasizes the importance of correct financial management concepts and long-term investment, encouraging readers to start managing their finances early, invest primarily in high-return investment tools such as stocks and real estate, and hold them for the long term, ultimately achieving financial freedom through the power of compound interest. The book uses numerous real-life examples and simple language to help readers understand and master correct financial management methods, while abandoning common financial management misunderstandings, such as short-term trading and over-reliance on bank deposits.

II. Chapter Summaries

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Correct Concept of Personal Finance

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• Personal investment can lead to wealth: The author believes that personal investment is not only a means to improve financial status but also an important path to wealth. Even if the monthly investment amount is small, as long as you persevere, you can accumulate considerable wealth by relying on the power of compound interest and ultimately realize the dream of becoming a billionaire. The book illustrates the power of compound interest with the example of investing 1200 Yuan per month with an annual return of 20%, resulting in assets exceeding 100 million Yuan after 40 years. It also cites the financial stories of the Lien Chan family and a postman to prove that even ordinary office workers can accumulate huge wealth with proper financial management.
• Increasing income and reducing expenditure treats the symptoms, not the root cause: Although diligence and frugality are traditional virtues, it is difficult to achieve financial freedom solely by relying on them in the era of rapid economic development. The author believes that financial management is more important than increasing income and reducing expenditure. The core of financial management lies in “making money with money” by achieving higher returns through investment, thereby enabling wealth to grow exponentially. The book uses the Lien Chan family’s financial management methods as an example to illustrate the importance of investing in stocks and real estate. It points out that the Lien family did not start with huge wealth but accumulated astonishing wealth through long-term investment and financial management.
• Financial management methods cause the wealth gap: The author believes that the main cause of the wealth gap is not external factors such as family background, personal effort, or luck, but the difference in financial concepts and methods. The rich tend to invest their assets in high-yield investment tools such as stocks and real estate, while the poor tend to deposit money in banks, resulting in a slow rate of wealth appreciation. The book uses the example of two classmates who joined the same company after graduation to illustrate how different financial management methods eventually lead to vastly different wealth outcomes.

Investment Iron Law 1: Don’t Save Money in the Bank

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• Saving is equal to wasting resources: The author points out that keeping money in the bank seems safe but is actually a waste of resources. This is because bank deposit interest rates are low, and under the influence of inflation, the real rate of return is close to zero or even negative. This means that money deposited in the bank not only fails to appreciate but also depreciates. The book uses biblical stories and the example of the Nobel Prize Foundation to illustrate that not making good use of wealth, even without loss, is a waste.
• Deposit interest rates do not have compound interest benefits: Although bank deposits also enjoy compound interest, due to the low interest rate, the effect of compound interest is very limited and difficult to withstand the erosion of inflation. The author compares the final returns of two investment methods after 40 years, using a 5% bank interest rate and a 20% stock/real estate investment return rate as examples, illustrating the importance of the rate of return on investment.
• The invisible killer of currency value - inflation: Inflation is the “invisible killer” that causes money to depreciate. The author vividly illustrates the impact of inflation by comparing the price of red bean ice 30 years ago and now. He points out that in an inflationary environment, depositing money in the bank actually means “the more you save, the less you have”.
• The way to wealth of Zhang Pingsan, former chairman of Chang Hwa Bank: The author tells the story of Zhang Pingsan, the former chairman of Chang Hwa Bank, who achieved tremendous wealth growth by continuously borrowing money to buy Chang Hwa Bank shares and holding them for a long time. Those who sold their shares and put the money in the bank missed the opportunity to become wealthy. This once again proves the point that “don’t save money in the bank”.
• The money deposited in the bank should not exceed living expenses: The author suggests that the amount of money deposited in the bank should be limited to meet two months of living expenses, and the excess should be used for investment to obtain higher returns. He also proposes a “two large, one small” investment portfolio suggestion: most assets are invested in stocks and real estate, and a small portion of funds is deposited in the bank for emergencies. He explains the liquidity of stocks and real estate to dispel readers’ concerns about investment liquidity.

Investment Iron Law 2: Be Patient to Get Rich Through Financial Management

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• How Li Ka-shing accumulated wealth: The author uses Li Ka-shing, Hong Kong’s richest man, as an example to illustrate the importance of long-term investment. Li Ka-shing accumulated huge wealth through long-term investment in real estate. Getting rich through financial management requires time and patience; it is impossible to achieve overnight success. His success was not solely based on luck or hard work; more importantly, it was due to his long-term vision and perseverance.
• It takes a long time to see the effect of compound interest in financial management: The manifestation of the compound interest effect takes time, and it is difficult to see significant results in short-term investments. The author uses the example of investing 14,000 Yuan annually with an annual return of 20% to calculate the investment returns after 10, 20, 30, and 40 years, which are 360,000 Yuan, 2.61 million Yuan, 16.55 million Yuan, and 102.81 million Yuan, respectively. This set of data clearly demonstrates the power of compound interest and the importance of waiting patiently. Financial management is more like a marathon than a sprint.
• As long as you are patient, the money won’t run away: Wealth accumulation is a gradual process that requires patience to wait for the compound interest effect to play out. The author uses the land investment experience of Zhang Yaohongying, Chairman of Hongjing Construction, as an example to illustrate that even if the initial investment return is not obvious, as long as you persist in holding it for a long time, you can eventually get a rich return.
• Getting rich overnight is counterproductive: The author warns readers that getting rich through financial management takes time, and they should not dream of getting rich quickly. Investment opportunities that bring rapid wealth in the short term are often accompanied by extremely high risks, which may eventually lead to losing everything. The author suggests that if you want to get rich quickly, you should choose to start a business instead of resorting to speculation.

Investment Iron Law 3: The Sooner You Start Investing, the Better

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• Procrastination is the main reason for financial failure: The author points out that procrastination is one of the main reasons for financial failure. As age increases, the time available for investment decreases, and the space for the compound interest effect to play out also shrinks. Therefore, financial management should start as early as possible. Do not wait until you are older to realize the importance of financial management, as it is often too late.
• Start investing from today: The earlier you start investing, the longer the time for compound interest, and the higher the final return. The author calculates the monthly investment amount required under the same target amount and investment rate of return with different starting investment ages as examples. The data shows that the later you start investing, the higher the monthly investment amount required, highlighting the importance of starting financial management early.
• Jeffrey Koo Jr. is good at making money: The author uses the example of Jeffrey Koo Jr., Vice President of CTBC Financial Holding, to illustrate that even those from wealthy families should learn financial management early. Jeffrey Koo Jr. invested his savings in the stock market during his university days and obtained substantial returns, indicating that young people can also achieve success through financial management.
• Don’t neglect financial management because of lack of money: The author emphasizes that financial management is not exclusive to the rich. Even if you don’t have much money, you should start as early as possible and let the limited funds play the role of compound interest, accumulating little by little to eventually accumulate considerable wealth.
• Youth is the most appropriate time to take risks: When you are young, you have a lighter family burden and the cost of failure is relatively low, so it is more suitable to take certain investment risks. Moreover, young people have more time to make up for potential losses and learn from their mistakes.

Investment Iron Law 4: Make Money with Other People’s Money

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• Good use of debt investment: The author introduces the concept of “financial leverage,” which refers to using borrowed funds for investment to achieve a small investment with a large return, maximizing profits. He uses the examples of Chen Youhao, President of Eastern Multimedia Group, and Weng Daming of Hualon Group to illustrate how successful entrepreneurs use financial leverage for business expansion and investment. Specific examples are used to calculate the investment return rate under different leverage ratios to help readers understand the principle and role of financial leverage.
• Two major principles of borrowing: The author proposes two major principles for debt investment: 1. The expected return on investment must be greater than the loan interest rate; 2. In the worst case, cash income must be sufficient to pay the principal and interest of the loan. These two principles emphasize the risks of debt investment and remind readers to rationally evaluate the expected rate of return of the investment target and conduct risk assessment to ensure that even if the investment fails, the principal and interest of the loan can be repaid on time.
• Banks are not places to save money: The author points out that for people who are good at financial management, banks are not places to save money but sources of borrowing. He explains the operating model of banks: Banks absorb deposits from depositors and then lend these funds to investors. Investors make profits through investment and pay interest to banks. Therefore, people who are good at financial management can use bank funds for investment to magnify returns.
• Avoid improper debt: The author cautions readers to avoid improper debt. Do not borrow money to participate in high-risk activities such as futures, margin trading, and gambling because the expected return rate of these activities is negative, and long-term participation will inevitably lead to losses. Also, do not over-engage in consumer loans, such as credit card loans and car loans, as high-interest loans will seriously erode personal wealth. Mortgage loans are acceptable, but you should also live within your means and make sure that the monthly repayment pressure is within your affordable range.

Investment Iron Law 5: Relieve the Pressure of Investment Risks

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• Analyze risks and reduce harm: The author points out that risks cannot be completely avoided in the investment process. The purpose of risk management is not to eliminate risk but to analyze risk and reduce the potential harm caused by risk. He emphasizes not to over-rely on forecasting because the accuracy of forecasting is difficult to guarantee, and over-reliance on forecasting may lead investors to lose their risk awareness.
• Forbes’ philosophy of distress: The author uses the example of American billionaire Forbes to illustrate that even risk-averse people can take risks through reasonable risk management. Although Forbes doesn’t like adventure, in order to experience the beauty of life, he will participate in some high-risk activities, such as hot air ballooning and off-road motorcycles. But he will make full preparations before taking risks and take various measures to reduce risks.
• Don’t blindly avoid risks: The author believes that in a changing environment, the biggest risk is not taking risks. In order to obtain higher returns, certain risks must be taken. Blindly avoiding risks may eventually lead to missed opportunities and even failure to achieve financial freedom.
• Overcome risks - start small: For unfamiliar investments, you should start with small investments, gradually accumulate experience, and gradually improve your risk tolerance. Just like scouts, first test the waters with a small amount to understand the situation, and then gradually increase the investment.
• There is no high-return, zero-risk investment: The author reminds readers that all high-yield investments are accompanied by high risks and not to believe in the so-called “high-yield, risk-free” investment scams. If someone recommends such an investment opportunity to you, it is likely that they are trying to deceive you.

Investment Iron Law 6: Solve the Crisis of Being Trapped

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• Diversify your investments and hold them for the long term: The author proposes the investment strategy of “diversification and long-term holding” and believes that this is the key to avoiding being trapped and obtaining long-term stable returns. Diversified investment can reduce the risk of choosing the wrong investment target; diversifying investment timing can reduce the risk of buying at market highs; long-term holding can reduce the risk brought by short-term market fluctuations and fully enjoy the benefits brought by compound interest.
• Principle of risk diversification: The principle of diversified investment is to reduce the overall risk of the investment portfolio by increasing the types of investments so that the rise and fall of different assets in the investment portfolio can offset each other. The author points out that diversification is not the more the better and that management costs need to be considered. Too many investment types will increase management difficulty and cost, which is not conducive to improving profits.
• Diversify investment timing: In order to reduce the risk of buying at market highs, the author suggests spreading the funds over different periods. He proposes two methods: one is “invest if you have money,” and the other is “regularly invest a fixed amount in mutual funds.” “Invest if you have money” means that once you have idle funds, invest immediately and do not try to predict market timing; “regular investment of a fixed amount in mutual funds” means investing a fixed amount every month to buy mutual funds. This method can effectively smooth market fluctuations and reduce investment risks.
• Methods of diversified investment: The author introduces three methods of diversified investment in detail: 1. Diversification of investment tools, such as stocks, real estate, gold, art, etc.; 2. Diversification of investment targets, for example, when investing in stocks, do not just buy one stock, but buy multiple stocks in different industries; 3. Diversification of investment regions, for example, invest some assets in overseas markets to diversify regional risks.
• Reduce the risk of choosing the wrong selling time - long-term holding: Through research on the Taiwan stock market, the author found that the longer the holding time, the lower the probability of loss. For example, the probability of loss when holding stocks for more than 5 years is only 1%, and it is almost impossible to lose money when holding for more than 10 years. This once again proves the importance of long-term holding.

Investment Iron Law 7: Make Good Use of Stock Investment

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• Liu Qiude’s secret to wealth: The author uses the financial story of Liu Qiude, Vice President of Cathay Life Insurance, as an example to illustrate the power of long-term holding of high-quality stocks. Liu Qiude worked at Cathay Life Insurance from his twenties. He held his savings and the Cathay Life Insurance shares he acquired from his colleagues for a long time and eventually became a billionaire. This example also reflects the long-term and stable performance growth of Cathay Life Insurance from the side.
• Why stocks have high returns: The author explains the source of returns from stock investment: stocks represent ownership of a company, and shareholders can share in the company’s profits and asset appreciation. Therefore, the returns from investing in stocks come from corporate earnings and asset appreciation, not from the losses of other investors. He pointed out that the long-term rise in stock prices is mainly due to the improvement of corporate profitability and the growth of asset value.
• Carefully select the types of stocks to invest in: The author compares the characteristics of listed stocks, over-the-counter stocks, unlisted stocks, and mutual funds and suggests that ordinary investors should give priority to investing in listed stocks or mutual funds. Listed stocks have good liquidity, transparent information disclosure, and relatively strict supervision, so the risks are relatively low. Mutual funds are managed by professionals and can effectively diversify investment risks, making them suitable for investors who do not have much time and energy to research stocks.
• Stock investment is better than real estate investment: The author compares stock and real estate investment from the aspects of investment threshold, taxation, and trading convenience. He believes that stock investment has a lower threshold, lighter taxes, and is more convenient to trade, making it more suitable for ordinary investors.
• Can stocks still maintain high returns in the future?: The author analyzes and forecasts the future return rate of the Taiwan stock market. He believes that although Taiwan’s economic growth has slowed down, it is still higher than other countries and regions, so the Taiwan stock market still has high investment value in the future, but the return rate may be slightly lower than in the past.

Investment Iron Law 8: Make Money When You Buy and Sell

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• Buy casually, buy at any time, don’t sell: The author once again emphasizes the investment strategy of “buy casually, buy at any time, don’t sell” and points out that this is the highest level of financial management. This strategy seems simple, but it actually contains profound investment wisdom: it emphasizes long-term holding, infrequent trading, and avoiding being affected by short-term market fluctuations, thereby obtaining long-term and stable returns. The author admits that most people find it difficult to do this because they cannot overcome human weaknesses such as greed and fear.
• What to buy - buy casually: The author points out that as long as diversified investment is achieved, the selection of individual stocks is not important. He uses the experiment of “monkeys throwing darts to select stocks” and his own experience of selecting stocks with his children as examples to illustrate the effectiveness of “buying casually”.
• When to buy - buy at any time: The author suggests that investors “buy if they have money”, and do not try to predict market timing. He emphasizes “buying and waiting for a chance to rise” instead of “waiting for a chance to buy”. Because the market is difficult to predict, and time is the key factor in compound interest, the earlier you start investing, the more you can enjoy the benefits brought by compound interest.
• When to sell - don’t sell: The author believes that long-term holding is the key to obtaining high returns. He quotes Jesse Livermore, the author of Reminiscences of a Stock Operator, and the investment strategy of Taiwan’s richest man, Cai Wanlin, to illustrate the importance of long-term holding.
• Random walk and efficient market theory: The author introduces the “random walk hypothesis” and the “efficient market hypothesis” to provide a theoretical basis for the strategy of “buy casually, buy at any time, don’t sell”. The “random walk hypothesis” believes that short-term fluctuations in stock prices are random and difficult to predict; the “efficient market hypothesis” believes that all information in the market is already reflected in stock prices, so it is futile to predict market trends by analyzing information.

Investment Iron Law 9: Grasp the General Trend of the Stock Market

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• Blind spots in prediction and analysis: The author once again emphasizes the limitations of prediction and analysis. He points out that technical analysis and market forecasting cannot guarantee investment success, and may even lead to losses due to frequent trading. Technical analysis is based on historical data, but the market environment is constantly changing, and past performance does not represent future trends.
• The only thing that can be measured is the unmeasurable: Market trends are difficult to predict. Instead of trying to predict the market, it is better to formulate a reasonable investment strategy and hold it for a long time. The author illustrates the unreliability of prediction with an example of a failed stock market prophet.
• Believe in yourself rather than experts: The author advises investors not to over-rely on expert opinions and to cultivate their own financial management capabilities and independent judgment. He pointed out that expert opinions often contradict each other, and ten experts may have eleven opinions. Besides, experts may also be influenced by various factors, such as conflicts of interest, and thus give biased opinions.

Investment Iron Law 10: Make Good Use of Stock Market Offensive and Defensive Weapons

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• Value strategy: The core of value strategy is “buy when the value is higher than the price, and sell when the value is lower than the price”. The author uses the huge difference in the share price of China Development Financial at different times as an example to illustrate the impact of market sentiment on stock prices and the performance of investors’ irrational behavior. He advises investors to learn rational consumption behavior and buy stocks when the “price is discounted”. He also points out that the key to value investing is being able to accurately assess the intrinsic value of a company, which requires certain professional knowledge and experience.
• Growth strategy: The core of the growth strategy is to invest in companies with high growth potential in the future and hold them for the long term. The author uses Peter Lynch’s investment strategy and the investment story of the “Coca-Cola Grandma” as examples to illustrate the effectiveness of the growth strategy. He advises investors to choose companies with high growth potential in the next 5-10 years and focus on choosing the right industry because the growth of the industry will drive the growth of corporate performance.
• Contrarian strategy: The core of the contrarian strategy is “invest when most people are not investing, and sell when most people are eager to invest”. The author uses the business philosophy of Fan Li and the investment strategy of Zheng Zhoumin as examples to illustrate the principle of contrarian operation. He pointed out that market sentiment is often wrong. When the market is excessively pessimistic, it is often a good time to buy; when the market is excessively optimistic, it is often a good time to sell. However, contrarian operation is very difficult, and it requires investors to have independent thinking ability and strong psychological quality.
• Value, growth, and contrarian strategies are suitable for experts: The author summarizes the characteristics of the three strategies and points out that these strategies are more suitable for professional investors. For ordinary investors, the strategy of “buy casually, buy at any time, don’t sell” is simpler and easier to implement, and it is also easier to obtain long-term and stable returns.

Investment Iron Law 11: Don’t Do Short-Term Operations

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• Buy low and sell high is full of crises: The author pointed out that “buying low and selling high” seems to be the secret to making money from stock investment, but it is actually full of traps. Because no one can accurately predict the short-term fluctuations of the market, trying to make profits through “buying low and selling high” will often fall into the dilemma of chasing ups and downs, which will eventually lead to losses. He emphasizes that the main source of stock investment income is corporate profits and dividends, not the difference in buying and selling prices.
• Short-term operation is gambling: The author believes that the essence of short-term operation is speculation and gambling, and it is difficult to make a profit in the long run. Because short-term operations require frequent trading, and each transaction will generate transaction costs, such as commissions, stamp duty, etc. These transaction costs will eat away at investment income, and accumulate over time, will have a significant negative impact on investment returns.
• A game with no chance of winning: The author analyzes the composition of the stock market, including intermediaries (securities companies, governments, etc.), major shareholders, major players, and retail investors. He pointed out that retail investors are at a clear disadvantage in this game of short-term operations because they lack the advantages of capital, information, and resources. Therefore, retail investors should avoid participating in short-term operations and adopt a long-term investment strategy.
• Never participate in futures and margin trading: The author strongly recommends that investors not participate in futures and margin trading because these transactions are extremely risky, and the leverage effect will magnify both profits and losses. It is difficult for ordinary investors to control the risks. He uses the example of the Barings Bank collapse to illustrate the huge risks of futures and margin trading.

Investment Iron Law 12: Land is Wealth

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• Why real estate has high returns: The author analyzes the reasons for the high returns of real estate investment, mainly including three aspects: 1. Limited land supply; 2. As the economy grows and the population grows, the demand for real estate continues to increase; 3. Inflation will push up real estate prices.
• Hong Kong’s richest man, Lee Shau Kee’s real estate investment strategy: The author introduces the real estate investment strategy of Hong Kong’s richest man, Lee Shau Kee: acquire old buildings at low prices, then demolish and rebuild them, or hold land for a long time and wait for appreciation.
• Cai Wanlin’s secret to getting rich in real estate: The author uses Taiwan’s richest man, Cai Wanlin, as an example to illustrate the real estate investment strategy of “buy and hold for the long term.” Cai Wanlin’s secret is to buy real estate and hold it for a long time, only renting and not selling.
• Zheng Zhoumin’s real estate investment technique: The author introduces the real estate investment strategy of the Philippines’ richest man, Zheng Zhoumin: buy when the market is down, and hold it for a long time, waiting for the market to recover and prices to rise.
• Real estate is suitable for debt investment: The author believes that real estate investment is suitable for debt investment because the long-term investment return rate of real estate is usually higher than the loan interest rate. Through reasonable debt investment, financial leverage can be used to magnify returns. At the same time, he also reminds readers to live within their means and avoid the risks brought by excessive debt.
• Brand concept of real estate investment: The author emphasizes the importance of choosing real estate developers with good brands, guaranteed quality, and good after-sales service. He pointed out that buying a property is a major investment decision, and choosing a reputable developer can reduce investment risks and enhance the living experience.

Investment Iron Law 13: Act Now

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• It is better to act than to sit and study: The author once again emphasizes the importance of action. He believes that having knowledge without taking action is equivalent to not having knowledge. The key to financial management is action, not fantasy. He uses the story of a farmer who does not understand stocks but dares to buy and eventually make a profit as an example to illustrate the importance of action.
• Future wealth is in your own hands: The author points out that future wealth is in your own hands, and only active actions can create wealth. He encourages readers to overcome their fear and bravely take the first step in financial management.
• Financial experience - learn from mistakes: The author believes that failure is the mother of success, and you must dare to try and learn from your mistakes. He advises readers to start with small investments, gradually accumulate experience, and gradually improve their risk tolerance.
• The first step in learning financial management: The author suggests that readers start acting immediately after reading this book. They can start by investing a small amount in stocks or mutual funds, or they can buy a self-occupied property. He believes that the best way to learn financial management is to practice, accumulate experience in practice, and continue to learn and improve.

The Ultimate Chapter of Financial Management: Making Money Requires a Goal

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• Don’t be a miser: The author uses the story of a miser to illustrate that money is only a means, and improving the quality of life is the goal. He warns readers not to become slaves to money, to learn to enjoy life, and to use wealth for more meaningful things.
• What is the purpose of making so much money?: The author explores the meaning and values of money. He pointed out that money itself is not good or bad, the key is how to use it. Money can be used to improve lives, pursue dreams, help others, and give back to society. He encourages readers to establish correct values about money, not to blindly pursue wealth, and ignore other aspects of life.
• Three secrets of financial management - making money, managing money, and using money: The author proposes three levels of financial management: making money, managing money, and using money. He believes that making money is the foundation, managing money is the key, and using money is the purpose. These three levels are indispensable, and only by combining the three can you truly achieve financial freedom and live a happy life. He pointed out that how to use money is the most difficult because it involves personal values and life goals.
• American billionaire - Warren Buffett’s view of money: The author introduces Warren Buffett’s view of money and estate planning. Although Buffett is extremely wealthy, he lives a simple life and donates most of his estate to charity. He believes that happiness is a process, not a result. True happiness lies in constant pursuit and creation, not in how much wealth you have.
• Summary: The author summarizes the core viewpoints of the book: Everyone can achieve wealth through financial management. The key lies in having the correct concept of financial management, long-term investment, and positive actions. He encourages readers to set clear financial goals and formulate feasible financial plans based on their actual situations. He emphasizes that the ultimate goal of financial management is not to have unlimited wealth, but to achieve financial freedom, improve the quality of life, and ultimately realize the value of life.

III. Key Quotes

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Don’t keep your money in the bank.

Analysis: This doesn’t literally mean not keeping any money in the bank, but emphasizes not leaving most assets in low-yield bank deposits long-term. Invest in higher-yielding tools like stocks and real estate.

Building wealth requires patience.

Analysis: The compound interest effect takes time. Financial management is a marathon, not a sprint, requiring patient waiting for ultimate success.

The earlier you invest, the better.

Analysis: Youth is the greatest asset. The earlier you start managing your finances, the sooner you can enjoy the benefits of compound interest and achieve financial freedom.

Make money with other people’s money.

Analysis: Proper use of financial leverage can magnify investment returns and accelerate wealth accumulation.

Diversify investments and hold long-term.

Analysis: Diversification reduces risk. Long-term holding yields higher returns and avoids being affected by market fluctuations.

Buy casually, buy anytime, don’t sell.

Analysis: The core of this is long-term holding and avoiding frequent trading to prevent being impacted by short-term market fluctuations.

Knowing and not doing is the same as not knowing.

Analysis: Knowledge without action is equivalent to no knowledge. The key to financial management lies in action, not just thinking.

Wealth lies in land.

Analysis: Real estate is a crucial long-term value-preserving and appreciating investment tool that should hold a significant place in your portfolio.

Money is only a means, improving the quality of life is the goal.

Analysis: Money itself is meaningless; its value lies in how it’s used. The ultimate goal is to improve the quality of life and realize one’s life value.

IV. Guidance and Significance

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This book’s significance lies in helping readers establish a correct financial management mindset, master basic financial management methods, and ultimately achieve financial freedom. It emphasizes the importance of long-term investment, the compound effect, and risk management, encouraging readers to overcome their fear of risk and start managing their finances early, without being misled by short-term market fluctuations. By studying this book, readers can better plan their financial future, enhance their quality of life, and ultimately achieve financial freedom and realize their life value.

Read the Full Book

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