Made a small investigation on the net a few days ago: Buy extended hold of high grade company, the price that makes a qualification is cast, does everybody still believe this word?
Regard this word as generally with the beginning of the year the situation when investing maxim is different, now, major person had not believed. Some people say the letter is not believed now before, some people say not to believe valence to cast, some people say valence is cast succeed in American ability only, buffett should come to China to go bankrupt for certain.
Of course also the small number of people still is certain, still holding to, mix I am same, bedding bag can choose to believe only, choose to hold to, ha.
Actually valence throws this theory quite simple, low buys high grade company, extended hold. A this method can be successful basic logic is the intrinsic value of the company, long-term and regular meeting comes out in the reaction on share price. If this logic is wrong, valence is cast cannot hold water in academic admiral, succeed impossibly also on practice.
Still read in the school when me when, see this theory for the first time, I had not suspected. Because this theory is too simple, too apparent, be like 1+1=2 to understand euqally easily.
But understood to be able to be not done on behalf of me, on practice, I still chose short line to chase after go up kill drop, although be in my reason, I know what has an outlook, what doesn't have a future, but I still can do the business that does not have a future. Design rule of the god is so interesting, the thing that has an outlook is short-term will look to always appear bland it is very painful to let you even, and the temptation that is full of all sorts of happiness however without the thing of the future.
Choose short route and not be valence is cast still have having a reason is I know valence is cast accomplish very hard. Enter the stock market in me at the beginning, the my comprehensive theory that analysed valence to cast and operation difficulty, be in theoretic I am to never suspicion passes, but go up in the operation, I feel I am not done.
Above all, also be most of core, it is time, the theory that throws because of valence needs spinning time just is right, this grows, may very long, even 10 years. When I analyse here, I had abandoned, I feel I am impossible to accomplish.
Actually I am as a child very stick-to-itive person, like a person to do a business quietly, can do very long. because such, I just know patient difficulty, did not insist for a long time to do the person of a thing, very fathomless this kind of difficulty, he always can feel very simple, dead water of not reasonable time sheds the force like greatly to be able to change everything, also can efface everything.
Invest for instance, in at the beginning you feel to buy high grade company extended hold is very simple, you feel oneself can hold is very old, you are actually likely hold a few months even a few days you were changed. Because be in the process of your hold, can produce a lot of things, the change of the industry, the wave motion of company outstanding achievement, the wave motion of share price, all sorts of interest empty newses are ceaseless emerge in large numbers, it won't be long you can shake. Resemble love, in at the beginning everybody can feel we want together all one's life, that moment seems to feel together all one's life very easy and same, but true life was together, all sorts of contradiction, all sorts of brawl, likelihood a few months you parted company.
Time, can let any intended innocently camouflage reveals original shape.
Valence casts the understanding that still a very big difficult point depends on pair of companies, a lot of people study a little to a certain company, feel oneself understood, wait for company share price to drop, say to looked not to understand again immediately, this kind understands degree, you can is hold very old?
A premise of extended hold is state of mind not just good, understand adequately to a company even. Write down so that I delivered a small gain before, say I study medicine 3 years, still did not buy, got the mad in season of a lot of people, say to make investment so like you, day lily is cool. Actually their overmeasure oneself savvy, a person should understand a trade truly, understanding a company is very difficult, I feel an investor can understand a trade 10 years, enough you earned.
Lin Jinfeng of famous Maotai investor ever had said, he studied landed industry 18 years, still do not have understanding to appear. I see this word at that time, I have feeling very much, the family is so called understand, with the understanding that we think, deepness is different completely.
I think extended hold is good company, not be you it is good that this company has many, however you want to be able to understand, it is your dish, you just can be taken so that live. You do not understand, this company is again good, again great, trashy also.
And buy with reasonable price, really important, but the thing that reasonable price is a very artistic word, for instance present division force, 8 times appraise was worth, some people feel unreasonable, they think division force issue is very much. And medicine, 50 times, the appraise of 100 times is worth, everybody still thinks very reasonable, because be to just needed, china is aged wait a reason a moment. I think appraise is worth this thing, still want test your understanding to the company, you do not understand, 8 times you also dare be not bought, because you do not know prospective company can outstanding achievement glides, go bankrupt even. And you have enough acknowledge to the company, believe future has development latent capacity very much, 20, even 30 times also can buy.
Although you bought good company with low-down price, you also can not take certainly live, because share price continues likely still to drop, even even shade drops a few years, with respect to the Washington Post that buys like Buffett, bought succeed add to drop for a long time. After although you are bought,be being entered, did not drop, this stock from the time that underestimates overmeasure to also need a lot of years, and in so much in year, the outstanding achievement of the company and share price can have for many times very big very acuteness even wave motion, in so long time, if you are right company understanding is not close, or if state of mind is no good, this among them you do not pass any test.
Although valence joins an operation difficulty is so great, but I still moved toward this road finally, because of the grow in quantity as experience, gradually understood rules of a lot of a lot simple and unadorned, I often say, the thing with important life won't exceed 5, you can be done all one's life, you with respect to can extraordinary success. To investment, be all one's life thing, grow long way, need slowly go, my hold a stock is very old, not be to waiting for this a few years to go quickly, however the thing of a conveniently, the thing of life conveniently.
Read a book in the home everyday like me, drink tea, hold to ran fitness all the time, so old had made a kind of way of life, and can last all one's life. For instance I study an industry or a company a lot of years, I study without how hard every day, however as me every day read, slowly experience and think, natural to industry and company understanding meeting is later and later, all these is optional, I do not have the objective with firm what, how long should the regulation consider to appear, just do these everyday, which day is appeared appeared, everything follows a reason.
Regard investment as when me all one's life thing, I am worn urgently no longer see a result, in the lifetime of an investor, can encounter a lot of good investment chances, want to had used an opportunity a few times a few only, you are met richer and richer. All these is not life is all, it is the thing of a conveniently only, we do ourselves to like the business that do everyday, make money incidentally just. Had money to be able to do the business that he likes more, live the life that oneself like, such to the loop, still have better than this life?
Be born in a nation that develops flourishingly, the price that makes a qualification is cast, do the business that oneself like, make money, need take advantage of an opportunity only and be.
