Today, the class monitor continues to bring you Buffett's recommended reading list, compiling Buffett's recommended good books Part 2~
11. 'Investing Steadily: Learning the Common Sense of Making Stable Profits from the World's Largest Fund Founder'
Author: John Bogle
Buffett recommended this book in his 2014 shareholder letter.
Chapter 12. "Poor Charlie's Almanack"
Author: Peter Kaufman
Buffett wrote in the letter: 'For a long time, scholars have been debating whether Charlie is the reincarnation of Ben Franklin, and this book should be able to tell you the answer'.
13. "The Most Important Thing in Investment"
Author: Howard Marks
Buffett once referred to this book as rare and valuable in a report. The author, Marks, aims to advise investors to think more when making decisions, learn from his own mistakes, and help investors succeed.
14. "The 3G Capital Empire"
Author: Cristiane Correa
Warren Buffett recommended this book at the 2014 Berkshire Hathaway Inc. Shareholders' Meeting.
15. "First A Dream"
Author: Jim Clayton, Bill Retherford
Author Jim Clayton is the son of a tenant farmer in Tennessee, he grew up in Tennessee and eventually founded the largest manufactured housing company in the usa.

Hello mooer friends~
The popularity of the metaverse has given rise to a new battle between internet giants. Recently, Byte spent about 9 billion yuan to acquire the metaverse concept company “PICO.” Currently, the metaverse is mostly used in social networking, games, film and television content. The most appealing point is that it introduces real-world operation logic into the digital world. Through social interaction, everyone can feel a special experience between reality and fantasy, and the game, as a carrier, can highly recreate a virtual scene close to reality.
Capital is also crazy about the “metaverse” concept, which has become very popular. As early as 2019, Tencent formed a joint venture team with the American metaverse game company Roblox. Byte, on the other hand, invested 0.1 billion yuan in domestic mobile game developer Code Qiankun in April of this year. PricewaterhouseCoopers anticipates that the metaverse-related economy will experience significant growth, and the market size is expected to reach 1500 billion dollars by 2030. With the current technical background, the metaverse is still in its infancy, and the current layout is more about laying the underlying foundation for the construction of the metaverse.
Details are in the article~

Hello, mooers~
If there is anything that can fully reflect Buffett's entire investment philosophy and methods, it is undoubtedly these dozens of shareholder letters. Buffett himself has not written a book, and these dozens of letters he wrote to shareholders are the best firsthand information to understand him. In some of these letters, he repeatedly emphasizes to shareholders things like what kind of investor Berkshire Hathaway really wants, the scope of his own capabilities, expected returns, and what kind of businesses Berkshire Hathaway likes.
In these quotations, Buffett expresses his investment philosophy. For example, he would rather be excessively conservative than suffer permanent losses caused by the belief in the philosophy that trees will grow to the sky in the "new era." But when it is raining gold, one should bring a bucket to catch it. When faced with a bull market, everyone must avoid becoming an arrogant duck, thinking that their superior swimming skills have taken them to the sky.Today is his birthday~

Hello mooers~
Today, I will take you to learn about Buffett's self-reflection. This article is selected from Buffett's 1989 letter to shareholders, where the old man reflects on the first 25 years of his investment career. The first mistake: buying just because it's cheap, in a troubled company, one problem is not solved yet, another arises - the kitchen will never have just one cockroach. The horse may be good, but it's useless without a good rider. It's much better to buy an extraordinary company at a normal price than to buy an ordinary company at an extraordinary price.
The second mistake: ignoring habitual rules. There is an unseen power that plays a crucial role in companies, which we can call "habitual rules." For example, whatever a leader wants to do, no matter how absurd, subordinates will quickly produce detailed ROI and Global Strategy research to support it. We do not want to associate with managers who lack respectable character, no matter how attractive their company's prospects are.On the investment journey, everyone needs to constantly evolve in order to find the direction that suits them.

Hello, fellow investors~
The pandemic has brought significant impacts to the global shipping industry, turning companies such as CIMC Group and COSCO SHP SG into star enterprises. Behind this backdrop, Yantian Port, as a key harbor, has also faced substantial disruptions. Parking spaces are hard to come by, containers are in short supply, and maritime transport capacity is extremely strained. The efficiency of global port operations has declined, yet international demand for Chinese goods has surged significantly. After cargo is unloaded overseas, international liner companies lack sufficient capacity to return empty containers to China. Many international liner companies believe that transporting empty containers back to China from foreign ports is too costly, and they prefer to order new containers in China instead.
In 2018-2019, the cost to ship a 40-foot container to the U.S. East Coast was approximately $1,200-$1,500. This year, it has skyrocketed to $27,000-$33,000. The surge in shipping costs has primarily benefited shipowners, logistics companies, and freight forwarding firms, but rising logistics costs will ultimately be passed on to consumers. Small and medium-sized enterprises (SMEs) have been hit hardest, especially those in low value-added manufacturing sectors, as high freight charges have wiped out their profits.
For more details, please refer to the full article～

Hello fellow investors~
In Q2 this year, PDD Holdings reported total revenue of RMB 23.05 billion, a year-on-year increase of 89%. The net profit attributable to ordinary shareholders (Non-GAAP) was RMB 4.125 billion, with an average of 740 million monthly active users, marking a 30% year-on-year growth. Although the profitability is related to the reduction in subsidies, it is evident that despite fewer subsidies, there has not been a significant loss of users. Chen Lei stated that the company’s core focus remains on agriculture, hoping to drive overall economic development through agricultural growth. The company aims to become the world's largest agriculture and grocery platform. Currently, in the agricultural platform sector, the company has already achieved the top position, serving over 10 million farmers.
Alongside the release of its operating performance, PDD Holdings announced the 'Billion-Yuan Agricultural Research Initiative,' stating that it will not prioritize industry value or profitability but instead focus on advancing agricultural technology and providing more incentives to agricultural science and technology practitioners and workers. All profits from the second quarter and future earnings (if any) over the next few quarters will be invested in this initiative. In the short term, sustained profitability may be difficult to achieve. However, the investment in the agriculture sector clearly aligns with the national strategic direction. At present, the overall development of fresh produce remains at a relatively nascent stage.
More content can be found in the summary.

Hello, fellow investors~
JD.com has released its Q2 2021 financial report: 1) Q2 revenue reached RMB 253.8 billion, a year-on-year increase of 26.2%; 2) Q2 non-GAAP adjusted net profit was RMB 4.6 billion, a year-on-year decrease of 22%; 3) The number of annual active users in Q2 reached 532 million, a year-on-year increase of 27.4%, with a record high net addition of 32 million users in a single quarter. This performance exceeded market expectations. Regarding the reasons for the decline in JD.com’s net profit, JD.com Group provided the following explanations: first, expansion of employment scale; second, employee compensation and benefits; third, continuous investment in technology R&D and infrastructure; fourth, providing benefits to partners and consumers.
Regarding the recent regulatory issues that have attracted attention, the introduction of regulatory policies is beneficial to the industry in the long term. During JD.com’s development process, it has also been affected by unfair competition practices within the industry, such as forced exclusivity agreements ('either-or' choices), disorderly capital expansion, and excessive subsidies, all of which have seriously disrupted business operations. The company has proactively conducted internal reviews based on these requirements and established an internal monitoring system while communicating with regulators regarding the progress of these self-inspections, receiving positive feedback. Overall, the impact on the company is not significant. JD.com achieved solid overall growth in Q2, and its future profitability still requires further tracking.
More insights can be found in the article.

Hello mooers~
Asset allocation is a classic financial issue. What to allocate, how to allocate, there are different allocation methods for different investors. Ultimately, we hope that through asset allocation, we can reduce the portfolio's volatility and increase the investment portfolio's returns. Asset annual return ranking in the past 16 years: Stocks > Gold > Property > Bonds > Deposits; Asset prices rotate significantly. The best and worst assets change dynamically every year.
Currently, there are methods available: (1) The S&P Wealth Quadrants are based on family asset allocation, considering personal risks and family investments. Only by allocating according to a fixed and reasonable ratio can we ensure long-term, sustainable, and steady growth of family assets, but this method cannot achieve personalization. (2) Personalized dynamic allocation model. The core of asset allocation is: based on fully understanding the personalized needs of investors, dynamically optimize asset allocation schemes according to market conditions. This can be achieved by turning absolute values into historical percentiles, known as valuation thermometers, for timing purposes.
A more comprehensive method is in the article~

Hello, fellow investors~
The gray rhino is charging forward at an accelerating pace. The long-debated issue of tapering has once again struck fear into global financial markets. Following the release of the Fed's meeting minutes, the U.S. stock market plummeted in late trading, triggering significant volatility across global financial markets. In the published minutes of the Federal Reserve’s meeting, the Fed explicitly discussed Taper (the reduction of bond purchases) for the first time and even dedicated a specific section titled “Discussion on Asset Purchases.”
The minutes did not make any detailed decisions but noted that the targets for price stability and employment are approaching satisfactory levels. Currently, inflationary pressures in the United States remain substantial, and it may not recede smoothly to normal levels as expected. However, the employment situation, which the Fed prioritizes, seems to have not yet reached its threshold. Consumption data has not met expectations either; recently released retail sales figures for July by the U.S. Department of Commerce showed a 1.1% month-on-month decline, compared to a previous increase of 0.6%.
All the content is provided below~