Practical confusion in value investing
Value investing is an investment method, no different from other models, it is not a panacea, and there are also rules, as well as the risk-return ratio of pay. The reason why many shareholders can't complete it is actually whether they understand the "affordable" and "affordable" mentioned in the https://weibo.com/ttarticle/p/show?id=2309404906995856834895, and we will continue to dismantle the relevant factors today.
Research on three major issues in the operation of value investment
From an operational point of view, in fact, value investing also has corresponding problems. For example, the education industry is in full swing, but as a result, it has encountered policy regulation and control, and the profit model has been overturned and restarted, so it is meaningless to talk about valuation, fundamentals, trends, etc., at this time, because the foundation of the industry is different. Therefore, in fact, the key lies in the logic of the industry and related policy factors, to put it bluntly, this industry is not just needed, many industries will be transformed, but there will be no shortage, this is to think about when choosing.
Emerging industries also have their own cycles, scientific research cycles, capital cycles, inventory cycles, etc., if you buy early, it's also very uncomfortable, far from it, let's just say Nvidia, 330-106-nearly 1000 This process, in fact, the point is unpredictable, but the big time cycle is clear, the Fed's interest rate hike cycle brought about by the weakening of technology stocks, and with the end of the Fed, the inventory cycle opens, plus the blessing of AI, and finally forms a wave of big rebound, similar cycles may not be so large next time, but the law of the cycle is similar。 Therefore, if you buy early, you will have a worse shareholding experience, but you will still make a lot of money when you catch up with the big cycle (yes, this big money is the reward of the times).
Buffett has bought early and expensive many times, and finally relied on the dividend factor to return to the capital, and then caught up with the big cycle and made a lot of money, to put it bluntly, he doesn't know when the big cycle will come, but the underlying logic is the key to ensuring profitability.
Key points that Warren Buffett will focus on when value investing:
Warren Buffett is the most famous successful person in value investing, and his experience is the most abundant, and he can also give us a lot of references. For example, Buffett chose the auto insurance industry because he needed auto insurance to buy a car, and the increase in insurance premiums was much higher than the rise in consumer goods, and the profits were reliable. Including his games such as Apple and Occidental Petroleum have also mentioned similar factors.
It can solve the problem of buying early, and with the advancement of time, the enterprise grows with time. This also leads to another factor when choosing a company, that is, the profit margin is high and significantly higher than that of its competitors, so that it can benefit more in the big cycle of the industry.
。 This solves the factor of buying expensive, no matter how good the company is, it can't escape the factors of the general environment, when the environment is poor, when it is pessimistic, the weak cycle, but it is more conducive to the game. To put it bluntly, if the cycle is bound to happen, then after a long period of bad cycles, a good cycle is coming.
But no matter which one, in fact, responsibility is the necessary contribution to the growth of investors, if you do not take responsibility, you cannot grow, Buffett is also constantly exploring the factors of the times, constantly changing, including Apple's attempt is the key. Therefore, when people who do value investment are not smooth and frustrated, they often attribute it to insufficient research and insufficient strategies, so they constantly revise and improve their ideas, which is worth considering. Next, we continue to try to solve such factors, especially the key question.