Principles are actually concepts and related methodologies, which are a set of scientific action patterns, that is, operating systems.

What is important and what is more important are values. Principles are within values, but values ??also include character and various other factors.

Self experience: Decision-making is an ability that everyone must learn the day after tomorrow. Decision-making determines destiny, and the successful thinking model behind decision-making is what we need. Apply these mindsets to reach our own goals.

Dario’s warning in the book and his personal experience——

You’d better figure out what happened to other people at other times, other places, because if you If you don’t do this, you won’t know if these things will happen to you, and if they do, you won’t know how to respond.

Many things in history happen logically. What was the situation at the time is likely to be the same situation later. That’s why you need to understand history.

Almost everything is a "scenario recurrence": in the past, almost everything has happened continuously with a logical cause-and-effect relationship. Of course, people's wisdom is wrong in accurately determining what is happening again and understanding the cause and effect relationships behind it. When people are extremely pessimistic, they sell at a discount, prices often become very low, and governments have to take action to improve the economic situation. Not surprisingly, the Fed eased monetary policy and stock prices bottomed in December 1974.

I learned that I must ensure that any bet, or even a combination of bets, does not cause my losses to exceed acceptable limits. In trading, you have to be both defensive and offensive. If you don't have an offensive mind, you can't make money; if you don't have a defensive mind, you can't keep your money. I believe that anyone who has ever made money in trading must have experienced terrible pain

There were enough clients for Leo to open his own company, with frequent field visits. My job has always taken me to all kinds of exotic places and allowed me to meet interesting people. If I could make money from these trips, that would be just the icing on the cake.

This is not academic learning: people with practical experience in this area tell me about the process of farming, I organize what they tell me into models, and then use these models to examine these processes over time. interactions between different parts.

I really dove into the livestock, meat, grain and oilseed markets. I like these things because they are tangible and the perception of their value is less prone to distortion than stocks.

Because "foolish people" keep buying and selling stocks, the price of the stock can remain too high or too low, but the livestock will eventually be slaughtered and turned into meat on the counter. Pricing there will depend on how much consumers are willing to pay. I can imagine the journey of these products from production to final sale and see the potential relationships. Because livestock eat grains (mainly grains) and soybean meal, and because grains and legumes compete for acreage, the two markets are closely related.

I know almost everything imaginable about these two markets, such as: what are the planned planting areas and usual yields of these two main crops; Rainfall estimates yield; how to predict harvest size, transportation costs, and stockings of livestock of different weights, different feeding locations, and different weight gain rates; how to predict clean meat yield, retail profit margins, and consumer preferences for different cuts of meat. preferences, and slaughter numbers per season.

For example, if I know how many cows, chickens, and pigs are raised, how much grain they eat, and what their rate of weight gain is, I can predict how much meat will be available for sale and when , and how much grain and soybean meal was consumed and when. Similarly, I looked at how much acreage cereals and pulses were planted across all cropping sectors, ran a regression analysis, and found how rainfall affected yields in each sector. I could then apply weather forecasts and rainfall data to predict cereals and pulses. The production time and quantity of the class. To me, the whole process seems like a beautiful machine with logical cause and effect. By understanding these relationships, I can derive decision rules (or principles) that I use to build the model.

I have found that it is a much more practical way to measure demand in terms of the amount of money paid (rather than the quantity of goods purchased) and to examine who the buyers and sellers are and why they buy and sell. I explain this approach in my book on Economic and Investing Principles.

This different approach is one of the main reasons I am able to spot changes in the economy and markets that others miss. Since then, when I look at any market, whether it's commodities, stocks, bonds or foreign exchange, I can see and understand some of the imbalances that define supply and demand in the traditional way. which are regarded as equal units) are not perceptible to the person.

The teachers gave us real case studies for us to read and analyze. We then broke into small groups and discussed freely what we would do if we were in the same situation as the people in the case.

It makes no sense to make money as your goal, because money has no inherent value. The value of money comes from the things it can buy, but money cannot buy everything. It’s smarter to first determine what you really want, what your real goals are, and then think about what you need to do to get them.

Money is only one of the things you need, but when you already have the money you need to achieve what you really want, money is no longer the only thing you need, and it is certainly not the most important thing. Important stuff.

When thinking about what you really want, it’s a good idea to think about their relative value so you can weigh them appropriately.

Personally, I need meaningful work and meaningful relationships to be equally important to me, and I place a lower value on money - as long as I have enough Just meet my basic needs.

When considering the importance of meaningful relationships compared to money, it is clear that relationships are more important because a meaningful relationship is priceless and no amount of money would cost me You can't buy anything more valuable than this.

So, for me, meaningful work and meaningful relationships were and still are my primary goals, and everything I do is geared towards achieving those two goals. Making money is just a by-product of it.

Due to business reasons, customers always call or ask for feedback on the situation, so I decided to write down my daily thoughts to save time and cost while forcing myself to think.

The combination of my clients’ deep understanding of how the “machine” of their businesses works and my understanding of how the market works is beneficial to both of us. , and also make the market as a whole more efficient. I envisioned the ability of these complex machines to give us a competitive advantage over those who were blind, and ultimately to change the way these industries were run.

(The bolded part is the original text)