This video is very suitable for investment novices, sourced from William Ackman, CEO of Pershing Square Capital Management. Although it was a sharing from 13 years ago, it is very valuable. He used the lemonade business to explain finance and investment in a simple and understandable way, and many conclusions still hold today. First, clarify the three tables: the balance sheet shows what you have in your hands, how much you owe others, and how much you still have net; The income statement shows whether a period of time has been profitable or not, including income, costs, expenses, interest, and depreciation; The cash flow statement is the hardest, determining whether money is truly received and continuously spent, and whether it can expand and withstand bad cycles. Many people only focus on profits and ignore cash flow and debt structure. In the end, the problem is often not whether they make money or not, but whether they can hold on. The financing part is also very straightforward: bonds and stocks are two types of commitments. Borrowing money is a fixed return, and in the event of an accident, the other party takes priority in receiving the money, but the return is capped; Selling equity involves bearing more volatility, and it is only after clearing debts that shareholders have the turn, but there is greater potential for returns when the business is successful. The essence of IPO is to sell equity to the public: the company receives funds to continue running, or allows early shareholders to obtain liquidity. In investment, he repeatedly emphasized two things: compound interest and drawdown. Compound interest takes time, and the earlier it starts, the more advantageous it is. If the return rate is slightly different, the difference will be very exaggerated if it extends to several decades. Retraction is the enemy of compound interest, losing 50% requires earning 100% to recoup, so "don't lose too much" in long-term investment is not conservative, but efficiency. What company is suitable for long-term investment? Its standards are very simple. Can you explain in a few words how it makes money. Is the brand strong enough and are users willing to continue buying; Is there a moat that others cannot take away; Don't be too heavily indebted; Don't overly rely on external variables such as interest rates, exchange rates, and bulk prices; High capital efficiency is not a business that requires constant investment to grow. It may seem like a preference, but it's actually screening out companies that are difficult to judge in the future. The psychological and disciplinary aspects are more like the bottom line: dare to buy when panicked, dare to sell when overheated, but the premise is that you have done your own research, not just start with a familiar name. Handle high interest debt before entering the market and set aside 6-12 months of contingency funds to avoid being forced to sell at the worst price. It's not a problem to not have time to study individual stocks: for funds or indexes, leave the research to the system, and choose fund managers mainly based on credibility, whether the strategy can be explained, whether the long-term record can be verified, and whether the interests are consistent. (PS, but here I would recommend the S&P 500, which is very similar to fund managers.) Finally, I recommended the book 'Smart Investors', which is also worth reading. https://www. (youtube.com)/watch? v=WEDIj9JBTC8