James的股票投资James Share Investing

Author: James Ng   |   Latest post: Mon, 16 Jul 2018, 12:26 PM


[转贴] [价值投资理念] - James的股票投资James Share Investing

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觉得不错就SHARE 出去吧。

James Ng

Value Investing is defined as buying those shares which have higher intrinsic value than the share price. For those smart investors, even if their share prices dropped a lot, they still can endure and not worry about it; after the price correction, their share prices started to rise, hence they can make profit. Why 90% of retail investors lose money in the market? Because they are greedy, even though they know it is a dangerous business to speculate but they still take risks and buy those speculating shares; comparing with those smart investors, smart investors never depend on luck alone, but rigorously study the intrinsic value of listed companies, patiently holding good shares, once the prices reached the desired level, they will not hestitate to sell them. Buffett emphasizes value investing, he'll never speculate. Most people don't have the unique abilities to endure psychology stress and lacking prudence judgment, so they prefer value investing.

Buffett'll focus on few potential companies, he'll study the long-term economic values and the quality of the management skills, and buy in big volumes when the prices are cheap enough. 1) He always invest in those easily understood companies which he has confidence, which are having simple and stable business; 2) He emphasizes margin of safety of price -- He views the margin as the corner stone of successful investing. In 1966 spring, US market was doing well, all the share prices which he bought were flying, but Buffett was feeling uneasy, he worried that it is very hard to find cheap share price anymore. The market then was crazy, but Buffett stayed calm, because he believed the rising of share price must be correlated with the growth of the profit of a company, not by speculating.

In 1968 May, when the market was doing well, Buffett informed his partners that he wants to retire. Later on, he sold almost all the shares. In 1969 June, the market crashed and became a bear market, until 1970 May, every shares dropped 50% compared with last year, or more. 1970 to 1974, US market was dead, with continuing inflation and low GDP growth. But Buffett was happy because he knew this is the opportunity to buy many cheap shares. He is successful in investing because he has long sighted view and calm judgment which others are lacking. In the end of 1999 to early 2000, Nasdaq was crazily rising, especially tech stocks, due to the crazy buying momentum of retail investors, and the market reached its peak in 2000 March. Most people can't resist the temptation to join the speculation of tech stocks. But Buffett still staying calm, still believes in his share selection criterias, focusing in "Brick-and-mortar" traditional companies.

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