Many people look at Munger's investment journey, and a very interesting turning point is his strategic adjustment at age 50. What changes did he make during that period that ultimately pushed his wealth into the billion-dollar range? The core actually boils down to a few things.

The first is completely abandoning the "picking up cigarette butts" approach to cheap stock speculation. Early investment circles favored stories of doubling low-quality stocks, which sounded tempting but carried enormous risks. He realized that this path would eventually hit a ceiling, so he chose to withdraw entirely. At the same time, he firmly rejected leverage—many people fall victim to this. Once the capital chain breaks, even the best strategies are useless.

The second step was turning toward high-quality companies. Companies with pricing power, consistently high ROE, and wide moats that prevent competitors from entering are the ones worth betting on. The phrase "buy great companies at a reasonable price" sounds simple, but executing it is very difficult. Most people still want to make quick money, but he took the opposite approach.

The third key word is discipline. Refusing to trade frequently is a way of rejecting emotional trading. The market creates noise every day—predictions from influencers, swings in public opinion, fluctuations in K-line charts—all distractions. The truly profitable people are those who can block out these noises and patiently wait for the moment when the target price and the big market trend align.

Then there is the circle of competence. He spends a lot of time refining his mental models and constantly expanding the boundaries of his abilities, but there is always one line: never touch what he doesn't understand. This may sound conservative, but in reality, it is the most advanced form of offense.

Finally, the power of time compounding. Through long-term collaboration with Buffett, he fully experienced what "time is money" truly means. High-quality investments grow on their own over time; after 20 or 30 years, the growth is exponential. Compared to frequent trading and various techniques, the realization that "choice is more important than effort" is the true secret to wealth.