I. Theme of the Session#
This session’s theme clearly states that waiting for the market to fall before buying is the dumbest strategy in investing. The core idea is “Buy immediately at market price with any available funds, and never sell.” Investors should not try to predict the market but should take the simplest, most direct action. Furthermore, James once again emphasizes the immediate cancellation of all insurance products, as their opportunity cost is extremely high, far inferior to investing the funds in an index fund (like QQQ) for the long term.
II. Presentation Content#
Core Investment Principle: Buy Immediately, Don’t Wait#
- The Only Strategy: The investment principle James repeatedly emphasizes is “Buy immediately at market price with any available funds, and never sell.” These eight words should be the sole guideline for investing, with no other options or questions.
- Simplicity is Supreme: Complex investment strategies lead to endless questions, such as “Which one to buy?”, “When to buy?”, “What’s the allocation ratio?”, ultimately resulting in confusion and failure. The correct answer in investing must be simple.
- Waiting is Foolish: No one can predict when the market will fall. Trying to wait for a better time (like waiting for a market drop) is the dumbest strategy in investing. The market trends upward in the long run, and any waiting can lead to missing out on huge growth.
- Block Out Market Noise: News about international situations, market volatility, etc., is irrelevant to long-term investors. After buying, you should “go to sleep” peacefully, unmoved by external disturbances.
A Firm Stance on Insurance#
- Cancel Immediately: All insurance, especially savings-type and investment-linked life insurance, should be canceled immediately. Don’t hesitate, and don’t consider options like policy loans.
- Huge Opportunity Cost: If insurance premiums were invested, their long-term returns would far exceed the policy’s value. James gives an example: a seemingly small premium, after decades of compound growth, could turn into a huge fortune (e.g., 100,000 turning into 1 billion). Giving this money to an insurance company is extremely unwise.
- The Nature of Insurance: Insurance companies are “vultures that pick your bones clean.” The future potential value of the premiums you pay is far higher than the death benefit you might eventually receive. For example, paying 2,000 yuan annually could grow to 20 million in 60 years, while the policy only pays out 2 million, making it a terrible deal.
- Draw a Line with Insurance Agents: It’s recommended to clearly tell your insurance agent friends that you will no longer discuss insurance, even at the risk of severing the relationship, to avoid being persuaded or disturbed. When canceling, you can go directly to the insurance company’s counter to avoid being talked out of it by the original agent.
Personal Health and Mindset Management#
- Health is the Ultimate Wealth: Longevity is the best investment strategy. Living ten or twenty years longer has a wealth accumulation effect that far surpasses any high-risk operation or leverage.
- Regular Health Check-ups: James shares his compiled list of recommended health checks, emphasizing that prevention is better than cure. Early detection and early treatment are key. Don’t neglect self-funded check-ups to save money, especially for those over 30 or 40. Specific checks like eyes, teeth, low-dose chest CT, blood tests for high cholesterol, blood pressure, and blood sugar, and colonoscopies should all be done.
- Face Death, Stop Worrying: When a person faces a life-or-death situation, all daily worries (work, finances, relationships) vanish instantly. We should adopt this mindset in our daily lives, realizing that the vast majority of things are not worth our excessive worry.
- Live in the Present: Learning from Steve Jobs’ attitude of “living each day as if it were your last” can help us overcome fear and anxiety. But we must also learn from his tragic lesson: when Jobs discovered his early-stage cancer, he refused surgery due to his belief in alternative therapies, ultimately leading to his condition worsening and his death. This warns us that when facing serious health issues, we must trust science and evidence-based medicine.
Other Important Points#
- Companies are Ruthless: Don’t invest too much emotion in your company. Companies are cold and ruthless during layoffs (like the recent ones at Google and Meta). Employees should plan for their own financial future (build their Noah’s Ark) instead of working themselves to death for a company.
- Become a Capitalist: The future society will be dominated by AI and robots, and human labor may be eliminated. The only way out is to become a capitalist, i.e., a shareholder of companies, to be the master of the machines, not the obsolete laborer.
- About Loans: A safe loan is one where you have a stable cash flow (like a salary, rent, or pension) to cover the monthly payments.
- Don’t Co-sign for Others, Don’t Lend Money to Others: If you want to help someone, either give them an amount you can afford to lose and tell them they don’t need to pay it back; if you can’t do that, don’t lend money or co-sign.
III. Q&A Session#
Cad#
- Sharing: She recently noticed that many friends feel anxious after James released the “1 Billion Dollar Investment Lecture,” feeling that the goal is too distant and they can’t be at ease. She believes this goal is meant to motivate everyone, showing that anyone can reach it with persistence. Investing is a comparison with yourself, not with others. It’s like a baby learning to walk; it’s a process, and you can’t rush it. Everyone should first solidify their foundation, understand their own situation, and hold on to their assets without getting anxious about others’ progress.
- James’s Comment: Proposing a goal like “1 billion” is a form of subconscious hypnosis, meant to implant the mindset of “I am a wealthy person” in everyone’s mind. Regardless of your current capital, you must believe you will have immense wealth in the future. This belief brings happiness, not anxiety. The competition in investing is longevity; living a few more years is more important than any investment technique. Health is the real wealth.
Lai#
- Sharing:
- He shared the original intention behind establishing the Taiwan 00662 community, which is to use the power of the community to encourage each other to achieve financial goals. He quoted “Wealth is a gift, happiness is a human right” and the “B-Do-Have” concept (first Be, then Do, and finally Have), encouraging everyone to first become a wealthy person in their mindset.
- He reminded everyone that while offline community gatherings are increasing, it’s crucial to pay attention to personal safety and privacy, be wary of scams, not disclose personal assets, and avoid private one-on-one contact.
- He advised everyone not to spend too much time chatting in the community and to refocus their attention on their own lives.
- Question: He wanted to ask James why he is willing to spend time with everyone every week. What is James’s mission and vision?
- James’s Reply: He doesn’t have any grand vision. Firstly, this is a simple and effective investment method that he is happy to share, hoping that people will no longer be troubled by money. Secondly, for him personally, it’s a “retired but not idle” pleasure. It’s “sentient beings enlightening the Buddha”—everyone has given him a stage to leave a record of his life. Everything he does is for himself, which is the most efficient way. He lectures for himself, and in doing so, he also learns and grows, thinking about how to speak universal truths that can withstand the test of a century. Even if only one person listens, he will continue to speak.
Tboss#
- Sharing:
- She has been retired for six months and has experienced the state James described as “being happy even when doing nothing.” She found that she really can’t spend all her money, has started enjoying life, and is trying to become a teacher to do what she loves.
- She shared a counterexample: after selling a house in 2023, she had a sum of money she wanted to invest in QQQ immediately. However, her husband insisted on waiting for the price to drop back to $290. The market soared, and that price never returned. Now, she just has to tell her husband, “Today’s $700 will become $7,000 in the future,” and he no longer objects.
- Her children have also started to accept her investment philosophy and have invested all their account funds in QQQ.
- James’s Reply: He congratulated her on her retirement and encouraged her to do what she wants, practicing the art of “governing by doing nothing.”
Peter#
- Sharing: He is a new student from mainland China, 38 years old, and has only recently been exposed to James’s philosophy, feeling it’s a bit late.
- Questions:
- He is currently conflicted. His wife wants to buy a house in a good school district, but he wants to invest. He finds it difficult to persuade his wife, who doesn’t understand investing.
- Considering China’s rapid technological development, should he allocate his positions to Chinese tech ETFs (like the STAR 100) and the CSI 300, in combination with QQQ, to cover both sides?
- James’s Reply:
- Both can be accommodated. You can buy a school district house that isn’t overly expensive to meet your family’s needs, but ensure that after paying the mortgage and living expenses each month, you still have at least 10% of your salary left for investing. Even if you only invest 1,000 yuan per month, it will become a huge sum in the long run. Buying a house and investing are not necessarily in conflict; it might just delay retirement.
- Currently, the best-developing economies in the world are the US and China. But from an investment perspective, the vast majority of the world’s top ten companies by market capitalization are still American. James’s advice to his daughter is: when American companies make up less than half of the world’s top ten, then consider slowly shifting funds to the markets where the other half are located. For now, it’s too early to invest in other regions.
Cindy#
- Sharing: She is very grateful for the health knowledge James shared, which made her aware of many check-ups she had previously overlooked. She has already scheduled the relevant examinations.
- Question: Her son was in a car accident in Los Angeles two years ago. At the time, because it was work-related, the insurance didn’t cover it, and they paid for the car repairs themselves. Recently, the other party’s insurance company (Sub-IQ) contacted them again, demanding $85,000. She is very scared and wants to know if she should find a lawyer.
- James’s Reply: Ignore phone calls or informal letters; this is very likely a scam. Any claim should go through proper legal channels. First, you should contact your own insurance company to handle it. Even if your insurance company doesn’t cover it, do not settle privately. If you receive a court summons, then find a lawyer. James shared his own experience of being pursued for a non-existent debt; he chose to simply ignore the other party’s calls, and they stopped contacting him after six months.
Doris#
- Question: She has a Pledge Loan account with total assets of 1 million, of which 500,000 is QQQ and 500,000 is QQQI. For the 2% annual borrowing limit that James recommends, should it be based on 1 million minus the 500,000 in QQQI, i.e., 2% of 500,000?
- James’s Reply: Yes, the assets in QQQI cannot be included in the total assets available for collateralized borrowing. This is because QQQI also falls when the market drops, but its gains are far less than QQQ’s when the market rises. Using it as collateral would undermine the model’s safety. When calculating borrowable assets, you should sum up the QQQ assets in all accounts (including retirement accounts), then subtract the QQQI portion, and then multiply by 2% or 3% (depending on your asset allocation risk). Assets are liquid; if the collateral account’s limit is insufficient, you can transfer assets from a retirement account.
- Sharing: She shared her psychological barrier regarding borrowing money for investment and consumption, feeling that it requires a process of learning and adaptation to be as comfortable “spending other people’s money” as James is.
Andy#
- Sharing:
- He shared James’s philosophy with his family. His brother-in-law, who had investment experience, panicked and sold at a loss during a market downturn. In contrast, his sister and younger sister, who knew nothing, made money because they were “ignorant and inactive,” simply buying and holding. This validates the advantage of “ignorance is bliss” in investing.
- After he himself insisted on investing for ten months and earned over 2.5 million RMB, his initially disapproving parents began to proactively ask him for investment advice, proving that “getting results is more effective than persuasion.”
- He shared that the true meaning of investing is to change the fate of a family for generations, allowing future generations to choose their own path in life, not be forced by money.
- He reminded mainland investors not to get too hung up on premiums. Missing out on hundreds of percentage points of gains for the sake of a few percentage points of premium is not worth it.
- He shared the tragedy of a nanny’s family, realizing the preciousness of life. Many of the pains of the present seem trivial in hindsight. Being safe, healthy, and with family is what’s most important.
- James’s Reply: Thank you very much for your sharing. He mentioned that it’s best for parents to personally care for their young children, as this is a critical period for building a close relationship. The meaning of life is to “live,” to live happily. Any experience, including a failed marriage, is a valuable learning opportunity. Regarding online doubters, he suggests explaining once; if the other person is still impolite, just block them. There’s no need to argue.
Duke#
- Sharing: He is a new student from Hangzhou. Looking back at his investment operations over the past few years, he realized it was pure gambling—frequent short-term trading, missing out on the Nasdaq’s significant growth. After being exposed to James’s philosophy in the last week or two, he has completely accepted it logically and has already started taking action.
- Question: He had previously allocated a lot to insurance, including medical, critical illness, term life, and financial insurance (increasing whole life, pensions). He plans to cancel the financial insurance with an annualized return of only about 3.5%, but wants to keep the high-leverage term life insurance (2,000 yuan annual premium for a 2 million yuan benefit). He wants to know if this line of thinking is correct.
- James’s Reply: This thinking is completely wrong. The 2,000 yuan paid annually, if invested, could become 20 million in 60 years. You are giving up this huge sum for a mere 2 million in coverage, which is extremely unwise. All insurance should be canceled immediately. The price of QQQ could reach $70,000 or even $7 million per share in the future; at $700 per share now, it is very cheap.
- Doris added: She shared her own journey of canceling insurance. She suggests doing it in steps: first, cut off the insurance that continuously drains cash flow, like savings-type and annuity policies. For accident insurance, the decision can be based on your own wealth. If your assets are not yet sufficient to cover the risks, you can keep it temporarily; when your assets are large enough (e.g., exceeding the coverage amount), you can cancel it.
IV. Insightful Quotes#
Waiting is actually the dumbest strategy in investing. – James
When discussing investment strategy, James clearly pointed out that trying to predict the market bottom and waiting for the right time to buy is futile and foolish, because no one is a god who can foresee the future.
The company is ruthless, so why would you press your affectionate face against its cold one? – James
Commenting on employee loyalty to companies, James noted that companies show no mercy during layoffs. Individuals should be responsible for their own financial future, not work themselves to death for a ruthless company.
You just need to live ten years longer. Living ten years longer is better than any trading, any leverage, any beta. – James
In response to a student’s anxiety, James emphasized that health and longevity are the most important factors in investing. The compounding effect of time far outweighs any short-term speculative techniques.
Real investing is not just for yourself, not just about making money for yourself, but about considering what happens to your family and how your assets will be passed on if you’re gone one day. – Andy
In his sharing, student Andy realized that the scope of investing should extend beyond the individual to the responsibility for one’s family and descendants, a family plan that spans decades.
First, you must grow yourself into a big tree, and only then will others be willing to believe in you. – James (as relayed by Andy)
Student Andy shared advice James had given him. The best way to persuade family and friends is not with words, but by proving the philosophy’s correctness with your own investment results and prosperous lifestyle.
Making money is important, and investing is important, but I hope everyone can be safe and healthy, and be able to eat with their families and grow up together. – Andy
After sharing a heartbreaking family tragedy, student Andy profoundly realized that compared to wealth, the safety, health, and companionship of family are the most precious things.
You see one dollar, I see a hundred thousand. – James
Explaining why one should be “scrimping and saving” to put all money into investments, James vividly illustrated the immense potential of money under compounding, emphasizing the concept of opportunity cost.
V. Summary#
This lecture once again reinforced the core of the CLEC investment philosophy: simplicity, persistence, and long-term thinking. Through clear viewpoints and vivid examples, James warned investors to abandon all illusions of market timing and to stick to the principle of “buy with any available funds, and never sell.” At the same time, with great determination, he urged everyone to give up all insurance products and invest their funds in index funds that can bring huge long-term returns. The lecture not only covered investment strategies but also extended to personal health, family responsibilities, and life philosophy, reminding everyone that while pursuing wealth, one should not forget that health, family, and inner peace are the ultimate sources of happiness.
Disclaimer: This article is for personal study notes only and does not constitute any investment advice.