Zorro: How value investors view the issue of "not holding shares"
Value investing is often buying the best corporate stocks when there is a value gold pit. Enterprises that are worth buying, general enterprises encounter certain difficulties, but we can be sure that the dilemma will be doomed to reverse, from the qualitative analysis of the enterprise side, the industry end, the product side, and then establish investment confidence, with the continuous decline to continue to buy. We attach great importance to the analysis of this reversal. It is not the reversal of the stock price, but the reversal of the fundamentals of the enterprise that the certainty comes from.
However, if the fundamentals have reversed, but the stock price does not reverse for a long time, many people will lack patience after a little longer, and they will have a kind of boredom with holdings. In order to avoid this negative psychology, we must do a combination of 3 to 10 stocks, the eyes should not only stare at a few stocks, alleviate your overly anxious mentality, of course, you can also use cash, constantly buy positions on falling companies, and cheaper and cheaper stock prices definitely indicate more generous returns in the future
Roughly for a stock from continuous increase to the future continuous reduction, maybe 5 years and 8 years, maybe more than 10 years, maybe a lifetime of holding will not reduce the position. In short, we do long-term preparations for the best companies, we don't have to worry too much about who is driving the stock price upwards or what causes the stock price to not rise for a long time, as long as it is a good track, and a moat of the enterprise, we only read: "Holding shares to keep interest, waiting for excesses" is enough.
When it falls sharply or continuously, my experience is: don't think about it, think that your shareholding is a high-quality enterprise, that is, increase the number of the highest-quality shares; if you have no ability to increase the number of shares, then quietly hold the stock and wait, or divert your attention to do something else. Remember blind predictions, which sometimes lead to meaningless panic or blind optimism. At this time, focusing on increasing the number of high-quality stocks, or turning a blind eye to "lying to win", is the most correct choice. The keywords "top stock", "increase the number of shares", "lying win" should be remembered. Open these high-quality enterprise annual lines to see, their lows and highs continue to rise year by year, although in some cases, your purchase will be entangled for a year or two, or even three or four years without an effective breakthrough to get good returns, but they are almost all the momentum to continue to rise, such as Moutai 2007-2015 also has eight years of box running time, and then break through in one fell swoop, in just five years and completed a tenfold increase.
Most people's anxiety about holdings for a long time comes from life. For the fluctuation of the market, there is a certain amount of funds, and investors who are not bound by life can easily cope with it, which is not the most difficult. The most difficult to deal with are friends in the "life constraint zone". The less money you have, the more life asks you for, the more you can't afford to live, and the harder the investment accumulates. But there is no way, must not be knocked down by life, can not compromise in the face of difficulties, must go out of the 1 to 10 million this life constraint area, frugal, reasonable arrangement of living expenses and investment input, and then in accordance with the principle of value investment to adhere to, in order to go to more than ten million of life free zone.
In addition, people who enter the stock market want to make quick money, if you do investment, it is inevitable to make a series of judgments on the future, the most important feature of value investment is based on the fundamentals of the enterprise and the general trend of the development of the society Common sense and regularity of things for the future growth of the enterprise as a scientific high probability of prediction. But if you blindly want to make quick money, you like to make predictions about short-term stock prices and performance fluctuations, even a little deviation in predictions may lead to psychological imbalances and investment loss of square inches. We should learn to delay gratification, we can minimize the stock price and performance fluctuations to make short-term predictions, we only for the long-term development trend of enterprises and the long-term development of society to do regular predictions. Money is earned by common sense, sometimes you follow common sense, grasp the vague general direction can be, wealth is the result of accumulation.
The best way to make money quickly is to accumulate it slowly. Value investment is like to stay up for a long time, only the general direction is determined, the investment target is not wrong, slowly accumulate wealth, the final return must be amazing! Speculation and gambling do not have such characteristics, they are about fast and exciting, and there is no strict requirement for the probability of success. Therefore, we value investors for a year and two years of holdings do not rise to see the norm, but the good form of good enterprises and the inherent energy is constantly accumulated, as the saying goes: "three years do not open, open to eat three years", as long as the country and high-quality enterprises have confidence, compound interest income is sooner or later. Our way to deal with it is: keep buying high-quality stocks, constantly accumulating their shares, using cash flow outside the stock market or dividends to increase one share is one share, "holding shares to hold interest, waiting for excesses", what we make is patient money!
