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Insights from traders.
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There was once a true &#34;God of Wealth&#34; - Younghan Qiu (March 28, 1924 - May 16, 2012), who multiplied the funds invested in the stock market by 250 times. For today's investors, Younghan Qiu may be relatively unfamiliar, but in the last century, he was well-known in Taiwan and Japan.
While most people know him as the &#34;God of Wealth,&#34; Younghan Qiu was also a writer with over 460 works covering a wide range of topics, from stock investment, real estate investment, business operations, entrepreneurship, to food and travel essays. He even won the prestigious literary award &#34;Naoki Prize&#34; in Japan.
There is plenty of information online about Younghan Qiu's life, but there is scarce information about his investment insights. I happen to have a copy of &#34;Younghan Qiu's Stock Market Primer,&#34; which I found at a flea market.
In Japan, Younghan Qiu was known as the &#34;God of Wealth&#34; or the &#34;Stock God&#34; because every time he recommended growth stocks publicly, they would hit the daily limit up, and his initial investment of 2 million yen grew to 50 million yen within a year. In 1986, when the exchange rate was around 200 yen to 1 US dollar, he boldly predicted that &#34;1 US dollar will be exchanged for 100 yen,&#34; a prediction that came true nine years later. In July 1987, he wrote, &#34;Stock and real estate prices will continue to soar regardless of the macroeconomic situation,&#34; and indeed, the Taiwan stock market surged from around 2000 points to a historical high of 12,682 points in 1990, a precise prediction that is still talked about today.
When he first visited Beijing in 1988, he was convinced that China would undergo significant changes in the future. Around 1997, while many were pessimistic about Hong Kong's return to China, Younghan Qiu remained optimistic and increased his investments in both Hong Kong and mainland China, believing that &#34;China will drive the reform and opening-up movement, Hong Kong will become a transit hub to mainland China, and people in other Chinese cities also hope for prosperity similar to Hong Kong.&#34;
In 1999, Younghan Qiu also predicted that the bitter fruits of Japan's bubble economy would be replayed in the United States, stating, &#34;Japan's land and stocks are in a bubble, and the sharp decline in the US is likely to focus on stocks.&#34; In 2000, the burst of the technology bubble indeed caused the Nasdaq index to plummet from over 5000 points.
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Popularization of Investment
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Younghan Qiu was the first &#34;Naoki Prize&#34; writer to write investment and financial books. His greatest contribution to Japan was perhaps using his literary skills to explain financial knowledge in a straightforward manner, emphasizing the importance of investment with an unconventional perspective.
After settling in Japan, Younghan Qiu began studying the stock market to make a living. In the late 1950s, he entered the stock market with 2 million yen, and a year later, his account balance had risen to 50 million yen, a 25-fold increase, making a name for himself in the stock market. He later recommended third and fourth-tier stocks in Japanese magazines, allowing many readers to make significant profits, earning him the titles of &#34;God of Wealth&#34; and &#34;Stock Market Deity.&#34;
Mr. Qiu Yonghan was a remarkably diligent individual, never shying away from buying stocks on his own, even in his eighties, he still took a flight every three days. Just a month before his passing, he went to Shandong for an inspection. One of his investment philosophies was to invest in &#34;things that China will lack in the future.&#34; He had two main criteria for stock selection: first, the industry should not be too competitive, and second, the stocks should have an annual profit of at least 50% to double.
&#34;The benefits of stocks are the rewards of patience. Making money is mostly about patience, with only a small part relying on intelligence.&#34; Mr. Qiu believed that industries that may seem backward now but will be in high demand in the future, such as medical, environmental protection, and food, are worth paying attention to.
In addition to his expertise in the stock market, Mr. Qiu also had a keen eye for real estate investment. One of his most classic moves was in 1989 when the Hong Kong property market hit rock bottom. He led a group of Japanese investors to purchase 650 units in Taikoo City, with over a hundred of them bought personally by him. All these properties were sold before the property market crash in 1997, reportedly earning him a profit three times the initial investment.
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Money-making Principles
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1. How to find money-making opportunities
If you can truly understand what troubles people and what they are seeking, then you are on the path to making money. Money-making opportunities are everywhere.
2. Choice and Effort
Rather than just working hard to make money, it is better to choose the right business to start with. In every era, there are businesses that make money and those that don't. Those who want to make money must pay attention to their choices. Keep an eye on the trends of the times.
3. Dealing with inflation
Inflation is an effective way to rapidly increase wealth. Borrowing money to operate, the more severe the inflation, the easier it will be to repay in the future. Savings cannot withstand inflation.
4. The money earned from stocks is a fee for patience
In theory, the money earned from stocks is a fee for patience. It is rare for anyone to immediately make a big profit after buying stocks. To protect oneself, if the price drops after purchase, it is generally advisable to buy more at a lower price to average out the losses and patiently wait for the price to recover to the buying price. This period is a test of patience for the individual, as a slight mistake can easily lead to a big loss, experiencing the bitter consequences of impatience.
5. Young people should not aspire to become stock market experts
Relying solely on playing the stock market is not an easy way to make a living. Some people become wealthy by playing stocks, but there are very few who can sustain substantial profits in the long term. Those who were once successful may be eliminated by the times due to outdated concepts and ideas. Or, those who were successful in their youth may not be able to keep up with the progress of the times and may even end up losing money. In reality, there are no experts in the stock market, so young people are better off not aspiring to become experts.
6. Cultivate the habit of &#34;thinking and acting immediately,&#34; integrating knowledge and action
The first big step taken by successful individuals is not thinking but acting. Without cultivating the habit of &#34;thinking and acting immediately,&#34; one cannot join the ranks of successful people. Therefore, developing the habit of immediately putting thoughts into practice is the primary condition for success.
7. Differentiate between &#34;building a business&#34; and &#34;becoming wealthy&#34;
<h2>When there are 50 employees, it is truly one's own company, and the profits earned belong to oneself. However, when there are 500 employees, although the boss may be the major shareholder, they may no longer be able to do things as they wish.</h2>
For big business operators, in terms of personal wealth and income, they may not necessarily be better off than small business operators with their own capital.
8. Attitude Towards Money
If a person is always pursuing money throughout their life, they will not be able to find true satisfaction within. Similarly, one should not treat others without kindness and be cynical just because they lack money themselves. Therefore, maintaining a balance of &#34;not poor, not excessively desiring wealth&#34; is actually a healthier attitude towards life.
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Investment Insights
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1. Real Estate is More Advantageous Than Stocks
During economic development, when stock prices rise, land prices tend to rise even higher. Stocks are more volatile, and overall, during economic prosperity, there are companies with poor performance as well as companies with good performance but lacking in appealing ethics. However, even though land can be &#34;reclaimed from the sea,&#34; land cannot produce, so land often maintains high prices. As wealth in society increases, prices are driven up even higher. However, not everyone in the real estate business understands this principle from the beginning. Those who realize this principle earlier than others are bound to become wealthy earlier than others.
Qiu Yonghan believes that the quickest way to become wealthy is through real estate. The simple and clear principle is that land will only appreciate. Land resources are always limited, and while land can be reclaimed, developed, or filled to increase its area, it cannot be mass-produced endlessly like industrial products. On the contrary, for those living on land, as long as they continue to produce goods, they can increase their wealth. With an increase in goods, money increases, population increases, and land prices rise accordingly. Being quick to buy land and then waiting for its value to appreciate is also one of the clever ways to make money. If people with more money come to buy land around you, you don't have to do anything but hold onto the land quietly to become wealthy.
2. Priority Between &#34;Real Estate First&#34; and &#34;Stocks Supreme&#34;
For those without substantial assets, they may not be able to afford real estate, so for the wealthy, &#34;real estate comes first&#34;; for those with less money, &#34;stocks are supreme.&#34; People living in major cities and their surroundings should prioritize &#34;real estate first&#34;; conversely, those living in rural areas may consider &#34;stocks supreme.&#34;
3. Good Relationship with Banks
Banks essentially operate on the principle of &#34;lending an umbrella on a sunny day and taking it back on a rainy day&#34; (adding flowers on brocade, throwing stones into a well), so one should understand this situation and manage their operations diligently to avoid problems. When dealing with banks, besides not lying, when repaying loans, one must strictly adhere to the agreed-upon dates and not let the bank see that they are too extravagant... Delaying repayment dates will leave a bad credit record. It is more beneficial to maintain a record of repaying loans on time than to build a personal relationship with the bank branch manager.
4. Good Timing
There is always a so-called right time for everything. Mencius said that timing, location, and harmony among people are crucial, with harmony among people being the most important. Of course, all three are essential conditions for success. Using a simple example, in stock investments, the difference between making money and losing money does not lie in buying different stocks but in buying the same stocks at different times and prices.
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5. Utilize Curiosity, Problem Awareness, Change, and Imagination
Before taking action, it is essential to consider whether your ideas could lead to future trends. If the answer is yes, I believe it is crucial to have curiosity about the world, possess problem awareness, keenly observe changes, and have a strong imagination. Without curiosity, one may overlook important matters. Problem awareness means not just observing events as phenomena but actively engaging with them. Emphasizing the fluidity of &#34;change&#34; is vital, as opportunities for profit and success arise from change. Each change has its critical or divergent points. Money flows out, and alternative funds flow in.
6. Cultivate the Habit of &#34;Think and Act Immediately&#34;
Successful individuals understand that success in business creates numerous job opportunities and substantial profits for both individuals and companies. Entrepreneurs who have built successful businesses from scratch are particularly admirable compared to those who make money through stocks or real estate. The first significant step taken by these successful individuals is not just thinking but acting. Without cultivating the habit of thinking and acting immediately, one cannot join the ranks of successful people. Therefore, developing the habit of immediately putting thoughts into action is a primary requirement for success.
7. Assertive Individuals Seize Wealth Opportunities
It is an undeniable fact that assertive individuals are better at seizing wealth opportunities. Those who have achieved great success and wealth on their own likely possess a degree of assertiveness and can be classified as optimists. They choose to focus on the bright side of the world, believing that clear skies will return after facing difficulties. Determined and quick to act, they take immediate action after making decisions. Those who do not act swiftly cannot handle ten times the workload of others.
8. The True Essence of Endurance
Endurance is an essential quality for humans. Its importance becomes evident when one sees the disadvantages of lacking endurance. The difference between having patience and lacking it is most apparent in stock investments.
9. Not Being Manipulated by Money
Money is a necessary possession. To avoid being manipulated by money, one must be familiar with it beforehand and determine its place in their life. Failing to judge the nature of money, succumbing to its temptations, will eventually lead to a disconnect from money and self-destruction. To maintain integrity in the face of money, it is beneficial to be wealthy and familiar with wealth beforehand. Whether it is stocks or real estate, knowledge is crucial for building wealth, especially in real estate. Investing one's entire life in money itself is not worthwhile. It is better to invest time and money in one's interests or passions.
<h2>10. Training to Control Money is Extremely Important</h2>
Due to the influential power of money, fair judgment of a person can be biased. It's not just about having more money, but also about the ability to control it, which entirely depends on how individuals handle money. In most cases, how money is used after earning it is a personal decision. However, when life becomes chaotic and unhappy after becoming wealthy, it is because one has been misled by money. This happens when there is a lack of training in controlling money during the process of becoming rich. Money is not a fierce beast, but it has the magical power to deceive people. Even if one considers themselves the master of money, there is a risk of being played by money or getting hurt by it. Only those who grow wealthy, understand the art of wise spending, and live a happy life truly deserve the title of a successful person.
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Investment Quotes
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People may not be aware, but money knows first.
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Market mechanisms make money aware of global developments before me, directing it to where it is needed.
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Success often comes from hard times, while failure is often the result of being too complacent.
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Poverty can inspire hard work, but success can lead to arrogance.
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Saving a little, managing finances well, working hard diligently, and being content with little desires.
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Hard work and diligence can accumulate wealth more than saving or investing, but it still cannot compare to being content with little desires.
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A heart like a gushing spring, a mind like a gentle breeze.
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No matter how many ideas one has, they are meaningless if not put into action.
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The wise can foresee the future before it even begins.
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A person of wisdom can foresee the future before it even starts, as seen in the &#34;Strategies of the Warring States.&#34;
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Too much money can bring too many troubles; having a moderate amount of wealth is preferable.
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Without desires, one does not feel that money is insufficient, but when dreaming big, one often finds themselves lacking money.
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Long-term investments should still focus on high-quality stocks, but they should be reassessed at least annually.
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&#34;Experience&#34; usually refers to past events. Therefore, applying past experiences to future endeavors is true experience; otherwise, it's just history.
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When the masses are in turmoil, investors should cultivate a calm demeanor.
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The phenomenon of low stock prices should not be ignored by operators to prevent speculators from taking advantage.
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When dealing with speculative stocks, quick decision-making is crucial; otherwise, it's not advisable to get involved.
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Short selling stocks due to time constraints carries high risks, so investors should be cautious.
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Stocks should primarily be approached from an investment perspective. Overemphasizing speculation is like exaggerating a specific part in a painting, neglecting the overall beauty, which is unwise.
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It's advisable to choose stocks that align with one's personality. Avoid those that consistently lead to losses. In simpler terms, if it doesn't match your personality, stay away – it's like a mismatch in horoscopes. (Mr. Qiu believes in the concept of &#34;stock personality.&#34;)
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BRK.A

Qiu Yonghan (March 28, 1924 - May 16, 2012), once multiplied his investment in the stock market by 250 times.

Account funds increased by 250 times! How did Qiu Yonghan achieve this?