#PALU PALU Smart Classroom:

The Secret of Investment: Three Keys to Combat Human Nature
The essence of investment is the dual cultivation of cognition and mentality. All wealth codes are hidden in three anti-human logics:
First, use common sense to counter instincts. The market is a voting machine in the short term and a weighing machine in the long term. Chasing rises and selling on dips is an animal instinct; calculating a company's cash flow over ten years is common sense. Buffett's 26% annualized return over 60 years is fundamentally about sticking to making decisions using elementary arithmetic.
Second, combat greed with discipline. Dalio's "100 Uncorrelated Return Streams" theory reveals that true risk comes from the collapse of a single logic. Top investors build anti-fragile systems instead of chasing after star assets.
Third, use time to combat volatility. From 1919 to 2019, the annualized return of the U.S. stock market was 6.8%, but if you missed the 40 days with the largest gains, your return would be zero. You must be present when the lightning strikes—this requires a strategic composure that transcends volatility.
The ultimate paradox of investing is this: the true patterns only reveal themselves when you stop searching for the secrets. All excess returns ultimately come from the commitment to simple truths. This moment is the starting point.