Need to understand the concept of investment and financial management: investment is to sacrifice current interests and gain future benefits (the most concerned is the rate of return); Financial management is a science that looks at life from a financial point of view and realizes the strategic goals of life through financial products (a process of realizing life goals through one's own financial resources and life planning, rather than short-term interests)! The theory of progressive compound interest can be said to be the biggest mystery to promote Buffett's sustained wealth growth. Many investors don't understand the value of progressive compound interest theory, or even if they do, they don't have the patience and perseverance to stick to it for a long time, which is one of the main reasons why most investors can't achieve great success. In order to make the capital grow faster and get higher returns in investment, we must pay enough attention to the theory of progressive compound interest. What is financial planning? Financial planning, also known as personal financial planning, refers to a professional personal financial service that uses scientific and fair financial analysis procedures to rationally plan and manage personal financial plans and investment strategies in order to achieve their long-term financial and life goals. Eight hot spots of personal investment and financial management: funds are entering the golden age; Stocks with good prospects; Opportunities and risks coexist; National debt; There are more and more investment options; Savings; Whether old songs can sing new bonds; The hot situation is expected to reappear; Investment profit opportunities greatly increase insurance; Income Insurance Will Witness the Crisis of Investment Hotspots —— A Report on the Investment Strategy Conference of Deutsche Bank "Seize the Investment Opportunity of the Century and Tap the Global Potential Market" In 2008, the global financial market was bleak, and all the world's top 500 enterprises suffered asset shrinkage, especially the China A-share market. In 2009, everyone seems to see hope again, but they are all afraid of being swayed by considerations of gain and loss. In May 2009, when the world financial market reached the long-short dividing line and many investors were deeply confused and hesitant, Deutsche Bank International Asset Management Co., Ltd. and Guangdong Deutsche Bank Investment Management Co., Ltd. held an investment strategy conference of "grasping the investment opportunity of the century and tapping the global potential market". At this conference, Deutsche Bank experts boldly and clearly expounded the trend of the world economy, analyzed the huge investment opportunities at this stage, and the feasible strategies and methods to seize these opportunities. Experts attending the meeting: Mr. Du Jinmin, a famous financial theory research expert, professor of Jinan University, doctoral supervisor and independent director of Guangdong Deyin Investment Management Co., Ltd.; Mr. Wang Yangzi, theoretical founder of Calculation Method of Characteristic Waveform of Global Financial Market, senior professional analyst of stock evaluation and director of Deutsche Bank International Financial Market Research Center; Mr. Huang Chunhua, a famous overseas investment and financial management expert, a senior international financial planner and chief technical director of Guangdong Deutsche Bank Investment Management Co., Ltd. In 2008, more than 200 participants were completely attracted by the incisive analysis of Deutsche Bank experts. After the meeting, everyone still discussed and asked questions of interest. "I am very proud to announce that in the global financial tsunami in 2008, none of Deutsche Bank's customers lost money!" When Mr. Huang Chunhua, the chief technical director of Deutsche Bank, said this in his speech, the audience burst into warm applause. In such an open press conference, in the face of the fact that most investors in the world have suffered huge losses, I am afraid that only a third-party wealth management company like Deutsche Bank can say such a thing with such confidence. When discussing the A-share market with individual guests, Mr. Wang Yangzi, an analyst of China Stock Exchange and Hong Kong stocks, stressed that the most important prerequisite for ensuring asset safety is reasonable asset allocation, and a considerable proportion of steady investment must be allocated before investing in the stock market. It should be said that this is also his voice to investors. If people invest according to this principle, the financial market in 2008 will not be full of chicken feathers. Finally, Ms. Yang Qixiang, the chairman of Deutsche Bank, looked forward to the future development direction and strategic layout of the company, and the press conference was successfully concluded. Postscript: The investment channel recommended by Deutsche Bank can stand the test of tsunami, with an increase of 6,543,800,000 yuan. I am confident that I can effectively make global diversified investments, disperse and avoid risks, and realize steady asset appreciation. In 2008, "Global One Fund" proved to be the safest and most efficient investment means. Deutsche Bank's customers also rely on the global * * * same fund, coupled with the professional operation of Deutsche Bank experts, in 2008, they not only kept their principal, but also achieved an increase of more than 15%. A customer of Deutsche Bank invested several hundred thousand yuan in the same global fund portfolio on the eve of the financial tsunami last year. After feeling the advantage of stable income, the company decisively increased its capital by 6.5438+million yuan after the meeting to invest in this field. The theory of progressive compound interest can be said to be the biggest mystery to promote Buffett's sustained wealth growth. Many investors don't understand the value of progressive compound interest theory, or even if they do, they don't have the patience and perseverance to stick to it for a long time, which is one of the main reasons why most investors can't achieve great success. In order to make the capital grow faster and get higher returns in investment, we must pay enough attention to the theory of progressive compound interest. The wonderful quotation "compound interest is a bit like snowballing from the mountain." At first, the snowball is very small, but when it rolls down for a long time and the snowball sticks properly, it will eventually be very big. " "Nothing is more influential than time in long-term investment. As time goes by, the power of compound interest will play a huge role and realize huge after-tax benefits for investors. " "According to incomplete information, I estimate that Isabella's initial economic assistance to Columbus was about $30,000. If we don't consider the spiritual accomplishment brought by the discovery of the new continent, it should be pointed out that the loss brought by the whole incident is not just another IBM. Because it is roughly estimated that the initial investment is 30,000 US dollars, and the value has reached 200 million US dollars (1962) according to the annual compound interest of 4%. " "Holding stocks of enterprises with unique competitive advantages for a long time will bring great wealth to investors. The key point is that the unrealized stock returns of investors have generated huge long-term value-added through compound interest. " "Means and purpose must not be confused, and the purpose can only be to maximize compound interest after tax." "As an investor who must pay taxes, a continuous single investment with the same compound interest can achieve much more returns than a continuous circular investment." In actual combat, compound interest is commonly known as "rolling interest", "generating interest" and "increasing interest". This is a method of calculating interest. In this way, interest will be generated according to the principal, and the newly obtained interest can also be calculated. The characteristic of compound interest calculation is that the principal plus profit at the end of the previous period is taken as the principal of the next period, and the principal amount of each period is different when calculating. Compound interest seems easy to understand, but not many people really understand its financial significance and its true meaning. Buffett believes that holding shares of enterprises with competitive advantages for a long time will bring great wealth to value investors. The key point is that the unrealized return on the company's stock by investors has produced a huge long-term appreciation through compound interest. To invest in an enterprise with a long-term competitive advantage, investors need to hold it for a long time and wait patiently for the stock price to rise with the development of the enterprise. Enterprises with sustainable competitive advantage have the ability to create excess value, and their intrinsic value will continue to increase steadily. Correspondingly, their share prices will gradually rise. In the end, the great power of progressive compound interest will bring great wealth to investors. The power of compound interest comes from two factors, namely, the length of time and the rate of return. The difference between these two factors has a great difference in the appreciation of compound interest. The length of time will have a great influence on the final value quantity. The longer the time, the more value-added the compound interest will produce. The same is 654.38 million yuan, calculated according to the annual appreciation of 24%. If the investment is 654.38+00 years, the due amount is 859.400 yuan; If the investment is 20 years, the maturity amount is 7,386,400 yuan; If you invest for 30 years, the maturity amount is 63.482 million yuan. It can be seen that the more value-added it is in the later stage. The rate of return has a huge leverage on the final value, and a small difference in the rate of return will cause a huge difference in the long-term value. The same is 654.38+10,000 yuan, which is also an investment of 20 years. If the annual appreciation is 654.38+00%, the amount after maturity is 672.8 million yuan; If the value is increased by 20% every year, the amount after maturity is 3,833,800 yuan. This shows the huge difference. If the rate of return is very low, such as 3% or 4%, then the role of compound interest is much smaller. Buffett once analyzed the huge income difference brought by 10% and 20% compound interest: "The investment of 1000 US dollars has a yield of 10%, which will increase to 72,800 US dollars in 45 years; The same 1000 USD, after the same 45 years, when the yield is 20%, it will increase to 3675252 USD. I am very surprised at the difference between the above two figures. Such a huge difference is enough to arouse anyone's curiosity. " From 1965 to 2004, Buffett increased Berkshire's return on compound equity to 22%. In other words, it took Buffett 39 years to increase every $65,438+0,000 to $25,938,500. Action guide 1. Invest early. Because the longer the time, the greater the progressive effect of compound interest. In order to take advantage of this effect, we should invest as early as possible, the sooner the better. I suggest that after you earn your salary, deduct the necessary living expenses and start making investment and financial planning with the balance. 2. Maintain a sustained and stable rate of return. The principle of progressive compound interest tells us that if we keep the annual rate of return high or low, we can invest in time to get rich. What is the appropriate rate of return? Generally speaking, it is ideal to set the target at 10% to 20%. According to the market situation, this goal can be adjusted accordingly. This goal can be achieved through the efforts of individual investors. 3. No big loss will happen. Only by continuous calculation, the benefits of compound interest can have magical effects. In the meantime, it doesn't matter if the income is flat for one or two years, for fear of serious losses. If the loss is serious, not only will all previous efforts be in vain, but the compound interest effect will also come to an abrupt end and everything will have to start from scratch. If you want to get rich with compound interest theory, you can't have a big loss. What is investment and financial management? Concept: Investment and financial management is a comprehensive, systematic and comprehensive economic activity that actively plans, arranges, replaces and reorganizes all assets and liabilities, including tangible, intangible, mobile, non-mobile, past, present, future, legacy, will and intellectual property according to needs and purposes, so as to preserve and increase their value. Objective: To maintain and increase the value of all assets and liabilities through effective management. Classification and concept classification of investment and financial management: investment and financial management can be divided into personal investment and financial management, family investment and financial management, and corporate/institutional financial management. Investment and financial management is an active consciousness and behavior. Investment and financial management is a living habit and way. Personal and family investment and financial management is an economic activity aimed at meeting the development needs of individuals and families.