Charlie Munger:

Your ambition must match your cognitive ability.

The world does not reward those whose talent does not match their position.

The core of value investing is to stay within your circle of competence,

only investing in areas you truly understand, avoiding opportunities outside of your cognitive reach.

Buffett told me: do not short sell, do not borrow money.

The most important thing is: do not engage in things you do not understand.

Most retail investors lose money regardless of bull or bear markets, and the reason lies here.

Those who win in short-term bets often continue to gamble, and in the end, they are highly likely to lose due to cognitive limitations.

Ambition is not gambling; true ambition is obtaining long-term returns from the intrinsic value growth of assets.

Support every decision with deep understanding; when cognition is in place, returns will follow.