Invesco Great Wall Li Jin: Investment must be on the right path

Invesco Great Wall Fund Li Jin's investment philosophy is simple: to do investment to "keep right", to walk on the right path for a long time.

Because of his adherence to the right path, "surprising" is something he does not deliberately seek. 、

In investment, he continues to sculpt in depth research and polish the portfolio.

Of course, investment is not just to walk with your head down, but to look up at the sky, with the background of the times, the general pattern and vision of industrial trends.

Li Jin likened investment to leading soldiers to fight. For the continuous tracking and in-depth study of individual stock companies, let Li Jin understand the various "soldiers" under his command, select elite troops to form a strong brigade, test Li Jin's kung fu, good at fighting, in actual combat, Li Jin's elite brigade charged into the front, combined attack and defense, and followed the trend of the times, decisive victory over thousands of miles...

The "righteous" person

If the investment community in the early years was still an era of wolf rushing and showing its own magic; then, now investment has reached an era that requires systematic investment concept and methodological guidance.

Li Jin's values and methodology, the road to simplicity.

"My own core philosophy is 'integrity'. In the long run, choose to grow with excellent companies. I understand the 'keeping right' is to do the right thing for a long time, if you have been on this road, the long-term results will not be bad. Li Jin's words were concise and concise.

Behind the uprightness of values and methodology is Li Jin's accumulation of life experience and investment experience.

Li Jin said that he prefers to read history books. "After reading so many historical stories, I think it is very important to walk on the right path, maybe sometimes the shortcut is faster, but in the long run, people who walk on the right path will definitely go a long way." The road is obstructive and long, the line is coming, walking on the right path, reaching out to pick the stars, is Li Jin's choice of philosophy of life.

In the investment, Li Jin is even more looking for the "right way" up and down, and on the right road, he is stable and far-reaching.

Li Jin believes that when making investment, we must see the general direction clearly. And what is the general direction? "I pay more attention to two points: one is the background of the times, and the other is the industrial trend. To invest, you must not only walk with your head down, but also look up at the sky. Look at the sky clearly, making investment is relatively simple. Under the background of the times, it is necessary to consider what industries are in line with the industrial trend, study the industries with higher prosperity or industries with better prosperity, and screen out the companies in these industries. "This is the big pattern and big vision in Li Jin's investment.

Looking back on Li Jin's career, the accumulation on the right path has progressed layer by layer, and finally connected points into lines, connected into surfaces, and connected into a system.

In 2007, Li Jin, a university graduate, began working as a loan officer in a bank, an experience that gave him experience in analyzing and identifying quality companies.

In 2010, Li Jin jumped to the Securities Research Institute as a researcher and began to conduct in-depth research on the manufacturing industry. At that time, it was the tail of the A-share bull market, Li Jin's new job began soon, the market quickly peaked, entering a bear market that lasted for nearly two years, until the second half of 2012, some growth stocks began to perform.

In 2013, Lee joined a public fund as a researcher and began managing his first fund in 2017.

At that time, Li Jin still had many "unenlightened". He said that when he first started managing the fund, "his vision was relatively short-sighted, his performance was relatively poor, his fluctuations were large, and he was under greater pressure during that time." ”

However, The sensitive and studious Li Jin began to adjust and reshape his own ideas and frameworks.

In the practice of investment, he realized that in addition to respecting the market, he should also pay attention to the margin of safety, form a long-term investment idea, adhere to the integrity, grow with excellent companies, and put the company's performance and fundamentals in the most important position.

The market is also constantly moving in and out of new topics for Lee.

In 2017, the leading sector of the A-share market was concentrated in liquor, insurance, home appliances and other industries, when Li Jin's portfolio was dominated by manufacturing. After realizing that the scope of investment was not wide enough to limit performance, Li Jin began to expand the industry areas covered.

However, at that time, Li Jin was not lagging behind in performance among his peers in a heavy warehouse of liquor. "Every time I had dinner with my peers, others said they bought liquor, and everyone around me bought liquor at that time, but I didn't buy it. But by the end of the year, the results weren't that bad. Through this, I realized that I had to invest in my own circle of competence. Investments should be based on the depth of your research and your level of knowledge. Although everyone buys liquor, the original intention and result of buying are relatively different, some people buy liquor because others have bought it, and he himself is actually not particularly familiar with liquor. This made me realize that investing within my circle of competence is a better choice. This is how Li Jin constantly evolves his own ideas and methods.

Since 2018, the market has changed a lot. Through the flexibility and maneuvering of the position of fund products, Li Jin has experienced great ups and downs in the market. "At that time (2018) I didn't think there was much opportunity in the market and there were relatively large risks. One is that the valuation was more expensive at the time, and the other is that the market did not react to the expectations of liquidity and trade wars, so the position was reduced a little, and the position was added before the New Year in 2019. Li Jin recalled.

In such an operation, Li Jin achieved a better income performance and opened a new investment journey based on this. In May 2021, Li Jin joined the Invesco Great Wall Fund, and on August 31, he officially began to take charge of the Invesco Great Wall Science and Technology Innovation Fund, continuing to chase the investment star sea.

"Overall, it is a relatively stable growth style in recent years. The market has changed a lot in the past few years, and I am glad that I have persevered and have been doing what I feel I am good at. Li Jin summed up his investment process in this way.

"Soldiers are good at planning"

For investment, Li Jin believes that it is like leading soldiers to fight.

Leading soldiers to fight, it is natural to need elite troops. Excellent companies are the elite soldiers under Li Jin; a good combination is a strong team for Li Jin. In-depth and continuous research has allowed Li Jin to have more and more elite soldiers; an organic combination of the whole, so that Li Jin's investment forms a synergy and directly pounds huanglong.

Under the insight of the background of the times and the trend of the industry, Li Jin refined the company. "First, the company must have a relatively strong pricing ability and industrial status; second, the company's management is better, corporate governance is better; third, the financial statements are relatively healthy, I prefer companies with excellent cash flow and relatively healthy balance sheets; fourth, financial indicators, such as gross profit margin of 30%, net profit margin of 10%, ROE, ROIC is more than 10% of the company." This is Li Jin's refined approach.

Such continuous and in-depth research has made Li Jin quite a success. Li Jin bought shares in an information technology company in 2019. "At that time, the market was very divergent, I had research at the beginning of the company's listing, and then the market has been questioning its financial problems. I like to often read the announcements, interim reports, annual reports, and quarterly reports of some listed companies, and I find that its quarterly report data has always been relatively good. A counterfeiting company can not continue to counterfeit for a long time, I will delve into the company itself, investigate competitors, after the investigation, found that this company is a particularly excellent company, began to buy heavily. For a long time, this company was my largest heavy stock, took it for a long time, and made several times. ”

In addition to the in-depth study of individual units, Li Jin's platoon deployment places great emphasis on the role and significance of the combination.

Li Jin believes that as a fund manager, you must not only spend time studying related stocks, but also how to manage the portfolio. In Li Jin's view, the ideal state of investment is that the combination is an organic whole, rather than a process of separation from each other. "Portfolio management is especially like a battle, every fund manager is a general, there are a lot of soldiers, the fund manager goes to buy different stocks, and that stock is the soldier. I want my combination to be a whole combination, a more balanced combination that requires both offensive and defensive, and I don't want a combination to be fully offensive or completely defensive. Li Jin said.

Of course, as for how much offense and defense are, it depends on the judgment of the market. If you think the market is good, attack a little more, if you feel that the market is worse, defend a little more.

In addition, unlike many peers, the combination is simply negatively correlated with assets, looking for a balance of the practice of equating, Li Jin's combination of the way, is to require the combination is to fight towards a goal, just like the war, the goal is clear is to capture the city, all soldiers are progressing in one direction, do not want the soldiers or the combination of stocks to appear to cancel each other out, need to often think about the combination from the overall point of view, so that the combination has a better offensive and defensive effect.

When marching and fighting, it is naturally necessary to be flexible and maneuverable and to follow the trend of the times. Li Jin, who loves to read "Sun Tzu's Art of War", is well versed in the way of flexible adaptation.

For example, his views on market valuations. Li Jin said that his requirements for the valuation of each company are different, and some of the companies in the portfolio are strategically held by me, which are held for a long time, and the tolerance for valuation is relatively high. Valuation tolerance will be lower for companies that buy tactically, have low expected yields, and have short holding periods. "Whether it is a strategic holding or a tactical holding, there are two main considerations: one is whether the company itself can be bigger, and the other is whether the stock price space is large enough." Li Jin said.

As for the ultimate reference to Li Jin's investment approach, it is naturally clear and unmistakable. "Although I am a public fund manager, I hope to earn absolute returns for investors every year." Li Jin's original heart was simple.

Under such a concept, Li Jin hopes to form a common frequency and resonance with his holders. "The process of matching, mutual understanding and mutual trust between the client and himself, I can't guarantee that I will do better in each time period, if the client pursues a relatively high yield, I will advise him to sell my fund and buy other funds." If you trust me and think you can do better in the long term, then hold it together for a long time. Li Jin, who is on the right path, has his own "customer view".

Risk Warning: The past performance of the fund and its net value do not indicate its future performance, the basic people should carefully read the "Fund Contract", "Prospectus" and other fund legal documents, understand the risk return characteristics of the fund, and judge whether the fund is compatible with the investor's risk tolerance according to its own investment objectives, investment period, investment experience, asset status, etc., and purchase the fund according to its own risk tolerance.