What I learned at private equity manager Lin Yuan

I don't have much research on Chinese private equity fund managers, and I only have one impression, that is, Lin Yuan. It may be because of his own personality and preferences, and he is more agreeable with some of the things he said. The following Q&A is my own collation from his public speeches and answers over the years, there may be some mistakes, but also hope that friends and listen to it, choose to listen to what is useful to themselves.

Q: Mr. Lin, what do you think of the current market?

Lin Yuan: I think there are signs of bears and cows coming out now, of course, I can't grasp it, this is just my personal judgment. I'm a stock trader, can I say it's a bear market?

Ye Cheng's comments: Don't ask a hairdresser if he wants to cut his hair. Fund managers may be counterparties with retail investors.

Q: Mr. Lin, what do you think of a technology stock?

Lin Yuan: I didn't pay much attention, I was a person who didn't suffer losses, I only fought you to the death in my acres and three points. We do investment to create unequal competition, there is no advantage in things simply do not engage, you are better than me, then I still go to engage in what, do not understand the things I do not listen to.

Ye Cheng's comments: Adhere to the circle of ability. It is simple to say, but it is very difficult to do, the market has temptations at every moment, there are not many people who have determination and can manage themselves well, and it is sometimes difficult to integrate into the bones without eating some losses.

Q: Mr. Lin, what is the most important thing in investing?

Lin Yuan: Monopoly.

Ye Cheng's comments: One sentence breaks the impact of the industry's competitive landscape on investment certainty. The most certain thing is monopoly, competition destroys profits.

Q: Mr. Lin, what is the key to investment?

Lin Yuan: Buy money-making machines.

Yecheng comments: Future cash flow discount. Own the most profitable companies in China and the world to make them money for you.

Q: Mr. Lin, are you a value investor?

Lin Yuan: I'm not a value investor, I'm not a long-term investor, I'm nothing, I'm just a person who knows what I'm doing.

Ye Cheng commented: There are many ways to make money in the market, you can not be a value investor, but you have to be clear about what you are doing.

Q: Why pay so much attention to the mouth?

Lin Yuan: China is the world's largest country and the most populous place in the world, with 1.3 billion people in China having to eat every day, and the poor and rich eating every day and can continue to consume. Consumer goods are relatively easy to grasp, and food is not in stock, it is easier to calculate the account, you just need to go to the supermarket to see if there are discounts on what is sold, whether there are new competitors, and pay attention to the changes in the Chinese.

Ye Cheng commented: Understand the situation of your own country, and recognize the comparative advantages of your own country, do simple things that conform to the development of the country.

Q: Why didn't you buy a bank or real estate?

Lin Yuan: The profits of the Bank of China and real estate are already the first in the world, what else do I want to do? In the zero years, China's bank profits were not as large as the market capitalization of HSBC, and at that time we also regarded banks as a key focus. The most important thing about the stock market is to look backwards, and common sense tells us to make money.

Ye Cheng commented: The national conditions of each country are not the same, but the comparison with developed countries is indeed a way of thinking. In China, it is like many things will appear in first-tier cities first, and then slowly develop into second- and third-tier cities.

Q: Mr. Lin, do you have any sword scores in the stock market?

Lin Yuan: I don't have a sword spectrum, I have good concentration and a normal heart.

Ye Cheng's comments: Patience and normalcy are really the two major winning weapons in the stock market.

Q: Mr. Lin, have you ever failed in your investment?

Lin Yuan: No. In the past, I have not failed, I have asked myself to be 100% correct, your method if there is a failure I think is unqualified, you do not go back, we pursue compound growth.

Ye Cheng commented: There are definitely losses in the invested stocks, but the overall portfolio should be basically positive, except for the world financial crisis. In buffett's nearly 60-year investment career, only two times have yielded negative returns. One was the dot-com bubble and the other was the financial crisis. Keep in mind Buffett's two principles. First, don't lose money. Second, remember the first one.