Liu Mingyue, a good water source asset: investment is expensive in the fit and focus firmly optimistic about value growth

Recently, there has been a clear divergence in market styles again, with large-cap stocks strong and small-cap stocks weak. Many core assets, industry leaders, institutions hugged the big market value stocks rose like a rainbow, and by the negative news and regulatory pressure, small market value stocks fell, at the same time, the once hot cyclical stocks also died down. The change of market style also affects the performance of fund investment, and it is very important whether the style of the fund manager is in line with the market. Liu Mingyue, founder of Shanshuiyuan Asset, believes that there is no good or bad investment style, only suitable or unfit, focused and unfocused, if suitable for themselves and can focus on consistency, and eventually obtain sustained and stable returns, it is acceptable.

Every investor has their own preferences, value, growth, cycle, theme, undervaluation, reverse, reversal, etc. Are diverse, and looking back at historical performance, each investment style seems to be able to obtain a certain benefit. There is no good or bad investment style, only whether it is focused and whether it is mastered to the extreme. If it can be used better, the probability of success is relatively high, and the performance will be better.

Regardless of the investment style, investors need to balance risk and return at different moments, build a portfolio, and finally constantly track and deliver on expectations. In the end, if you can get a sustained and stable income, it means that it is all effective. But if the style is always drifting, the effect may not be satisfactory.

Of all investment styles, value and growth are the two most discussed in the market. The difference between value and growth may be that the value is not as big as the growth, the growth stock is more like a friend of time, the upward momentum is stronger, and the medium- and long-term yield will be better. But there are also many times when growth stocks and value stocks are rising, and it is good that investors can tap into good value stocks.

Liu Mingyue is firmly optimistic about China's value growth stocks, he said that the growth is reflected in the future performance can continue to cash, such companies have a large growth space, the growth rate is relatively fast, but the valuation level is relatively high, the investment earned is mainly to share the income of the growth process of the enterprise, the company from small to large, income continues to grow, the market value is also constantly improving. Judging whether the company can grow is mainly to see whether the performance can come out, whether it is predictable, and whether it is sustainable.

If the time goes back to 10 years ago, Hengrui Pharmaceutical must be a good choice for investors. Standing at the current point in time, can we also find a group of companies that expect to achieve 3-5 times or even more than 10-20 times in the next 5-10 years? Based on this logic, Shanshuiyuan Assets, founded by Liu Mingyue, chose to focus on investing in China's value growth stocks and investing in new blue chips in the future.

"New" refers to a company that is not and can become a blue chip in the future. The characteristics of "new" highlight that it is still in the process of growth and has not yet fully matured, and we share its relatively rapid growth process. Blue chips mean that the income profit is relatively stable, and the revenue growth is slow, but it can still remain stable.

"Good as water, water is good for all things without dispute", Liu Mingyue hopes that when the invested enterprise sells to the opponent in the future, the other party can still make money, and it is a good company that can continue to make money like this. Therefore, when choosing a sub-industry or target to invest, you will constantly ask yourself whether it will still exist in the next 10 or 20 years, whether it can become an index component stock with stable income and profit, whether it can still grow, and if it cannot give a positive answer, it will be treated with caution. For example, companies that have collapsed because of outdated technology or other speculative activities, and the sharp decline in future revenue, can not be regarded as the new blue chips of the future.

Liu Mingyue said that choosing to invest in such a company is a long-term process, so we must adhere to the focus, be friends of time, and enjoy the process of its growth.

This article originated from Easy Publishing