Seth Klarman is a truly great book

I took a lot of notes while reading this book, especially the first half of the chapters. This book will definitely be on my shelf for frequent and rereading. There are too many things to take in, so I will just mention two points here:

First, do not set a profit target when investing. It is useless to set a profit target. Instead, set a risk target. This is the best way to practice Buffett’s theory that “the first and second priority of investing is not to lose money.”

Second, all investments that cannot generate cash flow are speculation, such as collectibles. The only investment purpose of holding these things is to sell them, of course this does not include collectors who truly enjoy appreciating them.

The relationship between strategy and results in investment is that profitable results are not necessarily due to the correct strategy, and the correct strategy cannot guarantee profitable results, it just has a higher probability. Therefore, whether or not to make a profit and whether or not to adopt the correct strategy are mostly not the same thing, and sometimes they are even completely opposite.

September 25, 2009: Speculation is not a derogatory term. I recently read Lao Cao's "On War" and "Memoirs of Niederhoffer", and I have a deep understanding of it. I have reread "The Annual Report of Seth Klarman for about 10 years", which is indeed not easy, but only by reading the old things can it be more real and beneficial.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.