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Warren Buffett

performance comparison of 4 types of long term investment strategy - Cover

Why Does Focus Investing Performs Better than Market-Cap ETF than High-Dividend ETF than Bond ETF | 10-Year Empirical Study | Long-term Investing

Excluding short-term speculation akin to gambling, our study today focuses on a 10-year long-term investment perspective. We found that individual stock investments (focus investing) outperform market-cap ETFs, market-cap ETFs outperform high-dividend ETFs, and high-dividend ETFs outperform bond ETFs.

Assuming an investor allocated $100,000 to each of these four strategies 10 years ago:
– focus investing (represented by Apple, AAPL) grew to $884,000.
– Market-cap ETF (represented by Vanguard S&P 500 ETF, VOO) grew to $342,000.
– High-dividend ETF (represented by Vanguard Dividend Appreciation ETF, VIG) grew to $302,000.
– Bond ETF (represented by Vanguard Total Bond Market ETF, BND) grew to $116,000.

How can investors choose a strategy that aligns with their risk tolerance and personality, allowing them to achieve the best returns while still enjoying peace of mind?

In the following sections, we’ll explore each strategy in detail, analyzing their strengths and weaknesses to help you make an informed choice.

Market Share Matters, but Mindshare is Key

Market Share Matters, but Mindshare is Key: Warren Buffett’s Philosophy on Capturing Hearts

The concept of mindshare originates from value investor Warren Buffett. It refers to a company’s ability to gain a long-term competitive advantage by occupying a prominent position in the minds of consumers, investors, and other stakeholders. Compared to market share, which focuses solely on a product’s sales proportion within a category over a certain period, mindshare encompasses a broader range of factors that influence how people perceive and think about a company. These factors include its reputation and word-of-mouth, brand, product or service quality, management team, financial performance, and other intangible elements.

23 Key Takeaways from Poor Charlies Almanack

23 Key Takeaways from Poor Charlie’s Almanack

The book “Poor Charlie’s Almanack” primarily shares the life wisdom and investment philosophy of Charlie Munger, who is the long-term business partner of Warren Buffett, the legendary investor.The content of the book revolves around the following key aspects:1. The Importance of Cross-Disciplinary Learning: Munger emphasizes that to become an excellent investor or decision-maker, one should not be limited to knowledge from a single field but should instead explore various disciplines and build their own “mental models.” These mental models are like tools in a toolbox, helping us to analyze problems more comprehensively and make better judgments.2. The Power of Compounding: Munger places great importance on the power of compounding, which applies not only to investing but also to many aspects of life. He believes that if you can be just a little smarter than others and allow time to work its magic, the results can be significantly different.3. Avoiding Common Thinking Errors: The book lists many common thinking errors, such as the sunk cost fallacy. Munger reminds us to stay vigilant and avoid letting these errors influence our judgments.4. Investment Philosophy: Munger shares his unique investment philosophy, emphasizing the importance of value investing and how to identify good companies that are undervalued.5. Life Wisdom: Beyond investing, Munger also shares his views on life, happiness, morality, and other aspects.In summary, *”Poor Charlie’s Almanack”* is a book filled with wisdom, suitable not only for investors but for anyone who wants to improve their thinking abilities.

為什麼有錢人喜歡自我保險

為什麼有錢人喜歡自我保險? | 查理芒格表示，他和華倫巴菲特總是自我保險，如果你能負擔得起的話，你也應該這樣做：”不要為其他人的欺詐行為買單” !

芒格認為聰明人都應該自行保險，因為保險公司通常會收取過高的保費，而且存在浪費和欺詐。自行保險的實用性取決於個人的財務狀況和風險承受能力。對於那些能夠承擔風險的人來說，自行保險可以省錢。在決定是否自行保險時，需要考慮潛在的風險和成本。芒格的建議並非適用於所有人，特別是對於那些無法承擔重大風險的人來說。