Warren Buffett said: To invest for a long time and hold high-quality equities for a long time, the return on income is the highest. Warren Buffett loves consumer stocks and stays away from technology stocks.
I am superstitious about Warren Buffett's theory, and I also found excellent consumer stocks in my mind in A-shares, and conducted long-term experiments, and the following are the results of my experiments.
Choose quality stocks
I started taking a position in this stock in 2021, and this stock has a price-to-earnings ratio of around 30, which definitely violates Buffett's margin of safety thinking.
At that time, consumer stocks were generally overvalued, and I also listened to those nonsense that were soaring, and I thought about building a position, buying more and more as it fell, and holding it for a long time.
Open a position in high-quality consumer stocks for the first time
Jinshiyuan liquor brand
The situation for three years
In the past three years, the performance of this high-quality stock has been soaring, with an average annual operating income growth of more than 25% and an average annual net profit growth of more than 25%.
In 2023, it will achieve its revenue target of 10 billion again, and I thought there would definitely be hype.
At the beginning of the year, his performance was really good, and in the miserable days of A-shares, it did not fall too deeply. When the A-share coach changed, he made great progress all the way. Not only did it conquer the city and grab the land, but also achieved a positive return of nearly 20%.
Three years of shock, who knows?
The current situation
It's been three years, and my position has barely moved, as can be seen since my taxes are only 240 yuan.
It's been three years, and my gain is -7.7%.
Three-year investment results
Teacher Sun said
In the past three years, this stock has brought me huge gains and huge losses, and I have always adhered to Buffett's concept of holding high-quality stocks for a long time, and basically did not make a T move on him to sell high and buy low.
With the new round of stock adjustment, I also have doubts about the concept of value investment: is it really suitable for value investment in A-shares? I'm saving on taxes and fees, but I'm also missing out on arbitrage opportunities.
Long-term holding of consumer stocks with stable performance has lost 7% in three years. Friends, what the hell am I going to do? Is it really possible to invest in A-shares?