1. The full text of WHAT
only tells one point of view: investment is not an ordinary business. For fixed investment strategists, the more important cost is not money, but time.
2. WHY
This article puts forward the point of view: Investment is not an ordinary business.
analyzes and demonstrates this point of view from the following aspects:
1. Difference 1: Ordinary businesses have start-up costs and daily costs. After deducting them, the rest is pure profit. There is no start-up cost or daily cost for investment. The only cost is the transaction fee of buying and selling and . But if you don’t trade frequently, transaction fees can be better than nothing.
2. Difference 2: It is okay to do business with borrowed money, but investing with borrowed capital is courting death, and it is courting death in advance.
3. Difference 3: For those who adopt fixed investment strategies, unlike doing business, their really important cost is time, which is far more important than money.
4. Finally, we come to the main point of this article: investment is different from business. You cannot borrow money that has costs and repayment periods to invest. It must be spare money that will not be used for a long time. It must be spare money after sufficient unexpected reserves are prepared. It must be spare money that can accompany you through at least two bull and bear markets.
3. HOW
(1) Compare "doing business" with "investment" and effectively demonstrate the point of view of this article from the three aspects of "is there a cost", "can you borrow money" and "which cost is more important".
(2) interspersed cases as arguments. One is that people take loans to buy houses, because it is money with costs, so this originally good investment turns into a leek cut by the bank. Once it falls, it will even become a "hanging rope" grave.
Another one is that in 2018, during the blockchain bear market, because of daily costs, the more seriously the team worked and persisted to the end, the sooner they went bankrupt.
These two cases are used to argue that "cost money" is dangerous.
(3) The progressive relationship further demonstrates: using "money with a useful life to invest" is more terrible and will lead to death.
(4) For those who adopt fixed investment strategies, the more important cost is time, not money.
(5) uses the eggshell of a cooked egg as a metaphor for the money that can be invested. This analogy is intuitive and vivid.
My thoughts and actions:
We can divide our money into three accounts to manage: the first account is for daily necessary expenses, leaving enough cash flow for about 3-6 months, this part of the money can be saved Go to Yu'e Bao or WeChat Financial Management and you can use it at any time.
When this capital reservoir is filled, the money that overflows can be used to save 1-3 years of living expenses, which is a risk reserve fund "to prepare for emergencies." This part of the money can be used to buy short- and medium-term debt funds, which have low risks and high returns, around 3% in the long term.
When this part of the fund reservoir is full, what is left is spare money that will not be used for 3-5 years. Only with this part of the money can you consider investing in some funds or stock assets with relatively high risks, which have high long-term returns. However, it is a product with high short-term fluctuations and high risks. Because your money is not urgently needed, you can withstand the short-term ups and downs of the market, and in the end you can get big profits.
4. Logical analysis of excerpted paragraphs
Original text:
Paragraph 1 “The money you use for investment should not be “cost money”. It is not impossible to borrow money to do business, but borrowing money to rush into transactions Investing in the market is 100% wrong. People who borrow money to invest in the trading market are courting death, and they are courting death in advance - because such people are actually dead when they enter the market, but they still Just don’t know – don’t shake hands with them…
Paragraph 2 “Money with costs will turn any good investment into a grave. (Total-score relationship) The most common example is when people take loans from banks to buy houses. Many times, real estate is a relatively good investment - if you already have enough money so you don't need a bank loan. (### Turning relationship) But the problem is that 99% of people are not able to purchase such a large asset at once, (causal relationship) So, here comes the bank’s opportunity to make money——Note, real estate is actually It is not a money-making opportunity for the general public.They hired the best actuaries, (parallel relationship) designed a plan that was of great benefit to them, and (*** progressive relationship) allowed the public to spend 20 to 30 years using two houses. The price to buy a house... Why is it always "twice"? Why are the plans given by banks around the world similar? Because that is the result of actuarial calculation, (parallel relationship) anyway, every time people buy a house, the bank will earn one house (money)! (Transitional progressive relationship) Real estate is a very illiquid asset - the main reason is that most people buy a house to live in, and if they sell it, they have no place to live - so, then House prices always seem to be rising... (turning and progressive relationship) But the problem is that the price of real estate cannot rise forever. Once house prices plummet (for example, falling by 25% in one year in the next 30 years) , then "investment" becomes a "hanging rope".
1. Analysis: Paragraph 1 is the argument, Paragraph 2 is the argument case, which serves as an auxiliary explanation.
2. Logical analysis of paragraph 2:
(1) The first sentence "There is a cost of money, which will lead to any..." is the general statement, followed by the sub-statements. Constitute a "total-score" relationship.
(2) The logical relationship between each sentence is marked in the text.
