Zorro: Value investing is the right way, the more you insist on it, the easier it is

Thoreau once said: "Only when a person satisfies the basic needs of life, no longer draws on fame, and no longer draws on wealth, he can enjoy life more calmly and more fully." "From our personal experience in investing, we can feel that we have embarked on the right path of value investment, and the more we insist on it, the more comfortable it is, and the more we insist on it, the easier it will become." Investment also needs to cross a threshold, when you invest in a young age to overcome the necessary financial obstacles to survival and life, the investment will be more comfortable, more calm, the vision is getting farther and farther, the more broad the mind, you can really do it: there is no heart in your hands.

The bigger the investment, the easier it is to invest in: we learn to do subtraction. We also don't judge the macroeconomy too much, because we only buy companies that are inseparable from people's lives and production regardless of the macro economy. And we also do a closer look at the moat.

I read the shareholders' meeting of a certain bank and said that good management is the moat of the enterprise in people's minds. I think management can form a moat, but if the company only has its own moat in management, it is still not very reliable, because the possibility of the outward diffusion and imitation of the management model system is very strong. And if the management team leaves, it will make the excellent management culture spread and spread rapidly. Therefore, the study of moats depends on what industry, and whether the company has other more solid multiple moats to do the guarantee, so that the management of the moat can play a greater role. I personally think that the moat of some service industries such as the banking industry and the circulation industry in the catering industry is not easy to build, and a strong moat should come from some manufacturing industries, such as consumer goods manufacturing and pharmaceutical manufacturing, or industries that rely on scale to improve product gross margins. In addition, the outstanding performance of some enterprises cannot be considered to be a moat; some moats cannot promote the sustainable growth of enterprises, which should be noted. Research understands that good track power has a strong moat for enterprises, which is the key to our investment persistence and smooth hand.

Some friends study the inflow of big money. We wondered, "What does the study of other people's money in and out of, and the development of enterprises and our research have to do?" That's what people who want to follow the trend and get rich quick do, not what I want to do. "A lot of people are obsessed with the inflow of research money, and about 20 years ago, I also wanted to follow the money to make investments. Later, it was found that what is the relationship between the inflow and outflow of research funds and the future development of enterprises? Those high-quality enterprises have doubled 10 times in the past 10 years and 20 years, what institutions float domestic capital and foreign capital come and go, they do not determine the future of the future development of the enterprise, the future development of the enterprise, is determined by the attributes of the enterprise industry and the management ambition of the enterprise and the moat of the enterprise, the long-term development environment of the country and the world. Those who are always studying the inflow and outflow of funds are actually essentially trying to make an overnight rich investment, which is contrary to my personality and my deep value investment philosophy, so researching the inflow and outflow of funds is not my dish at all. Although I do not completely block this kind of information, my investment is completely out of line with the logic of other people's funds in and out.

If you want to invest smoothly and concisely, you must focus on the research of a specific enterprise: do not ask others who buys and who sells, do not follow the trend, we only study enterprises, because the confidence of holding enterprises comes from the future development momentum of the enterprise itself. We also sell because we have no confidence in the company. Capital trends and hot spots are not investment topics that we care about. In particular, some of the most popular stocks are classified: hugging stocks, beautiful 50s, growth stocks, value stocks, concept stocks, small cap large-cap stocks, etc., we do not strictly classify these stocks, we only study the future prospects of the company itself and the current stock price valuation to make a comparison.

On the road of value investment, do more screening and evaluation, you will find that most of the ideas and statements are useless, in addition to quietly guarding excellent enterprises, many actions and efforts are actually useless. The value is right, the deeper the understanding, the more like to do subtraction, the more you do subtraction, the easier it is to insist, the more insistent the more comfortable, the more comfortable the more like, this is a virtuous circle of positive feedback.