Charlie Munger: If the stock you buy has a compound interest return of 15% per year for 30 years, and you pay 35% tax when you sell it all at once at the end, your annual return would still be 13.3%. Conversely, for the same stock, if you sell once a year and pay taxes each time, your annual return would only be 9.75%. This 3.5% difference magnifies over 30 years and is truly eye-opening.

In this regard, Duan Yongping specifically quantified the "eye-opening" statement made by Munger: thirty years later, the former had a return of 42.35 times, while the latter only had 16.3 times, a difference of 26.05 times.

In "Poor Charlie's Almanack," there is a section that summarizes Munger's investment philosophy very well:

We tend to put a lot of money in places where we don't have to make additional decisions. If you buy something because its value is underestimated, then when its price rises to the level you expect, you have to consider selling it. That's difficult. However, if you can buy a few great companies, then you can sit back and relax. That's a good thing.