In terms of long term investment, they can be two types of investment options, where the options are to buy a great company at a fair price, or to buy a fair company at a great price.

Let’s talk about the first type, a great company meaning that they are a growth company, where you will see more capital expenditure put into their business. Besides, since they are still growing, their return or profit tend to be lower for now, but will eventually be very high once all their investments kicked in. However, the downside of investing into a growth company is that they often come with a relatively high PE ratio. This is due to their current weak income, that has yet to reach the expectation of fellow investors. Hence, investors are buying the future of this company, waiting for the company to perform in the future, and drag down the PE ratio.

An example can be given by looking at TESLA, that is currently trading at an 800 PE ratio. However, this does not stop the investors and funds to buy this stock because all the investors see great potential in TESLA, that electric car will eventually replace petroleum-fuel car in the future. Hence, investors are buying TESLA’s future.

On the other hand, a fair company means they are a relatively average company, but currently trading at a low PE ratio, which means below the market’s expectation. Let say the market average PE ratio is around 20 and this company is currently only trading at a 10 PE ratio. Then, buying this average company is the safest option as investors see that there is less probability of the price dropping further, and the return will be much more rewarding. However, the cons of buying a fair company at a great price is that investors may have to wait because a company is trading at a lower PE ratio means the majority are not willing to give this company a higher PE ratio. Hence, investors obviously have a high margin of safety and high reward-to-risk ratio, but may take time for the market to recognize it.

An example can be given by looking at MASTER, who is currently trading at 7 PE ratio. This is because the market has yet to realise this stock as we can see it has low trading volume. However, this stock might be a gem in the future if investors are able to recognize this carton packaging company that their main customer is First Solar, as renewable energy is rallying in the market.

In short, there is no absolute answer for which investment option to go for, but do bear in mind that each of the option have their own risk and opportunity. Investors shall assess each of those element before buying a stock.

在长期持有的投资中，可以有两种不同的选择，一种是在普通的价钱买一家很好的公司，而另一种则是在很好的价钱买一家普通的公司。

让我们来看看第一种，一家好的公司必定是有很好的成长，它们也会在他们的生意上做出大量的扩张。除此之外，基于他们还在成长中，他们现在的盈利相对的会比较低，但在未来当所有的扩张都完成时，会有爆发性的成长。但是投资成长股的坏处在于它们通常都会有较高的本益比，这是因为投资者在他们还没把盈利呈现出来时，买他们的未来，而希望未来的盈利会暴涨，从而拉低它们的本益比。

我们拿个例子来看看特斯拉 (TESLA)， 它们现在的本益比高达800倍。但这并没有减少投资者以及基金对他的热诚。这是因为投资者对它的未来有一定的憧憬，也知道电子车在将来一定会取代汽油车。所以，投资者在买这家公司的未来。

另一方面，一家普通的公司但却有着很好的价钱意味着他有着比市场更低的本益比。如果我们说市场平均的本益比为20倍，而这家公司却只有10的本益比时，那么买这家公司的风险将大大降低。这是因为股价下跌的风险极低，而回酬会十分的乐观。但是，买一家底本益比的公司意味着投资者会要花点时间等待他们股价的上升，因为本益比低的原因时市场并没有留意到它，更没有投资者愿意给他更高的估值。因此，投资者在买入这种公司的时候，风险是非常低而回酬是十分可观的，但却要花多点时间等待股价的上涨。

我们可以用MASTER这家公司来做例子，MASTER现在的本益比只是7倍。我们很清楚这是因为市场还没有留意到它，毕竟它的交易量相对的比较低。但是，如果投资者意识到这家做纸箱包装的公司，其主要客户是来自美国的FIRST SOLAR时，这家公司将有可能在未来发扬光大。这是因为再生能源会是未来的一个主要趋势。

总结，对于投资者应该选择哪种投资法其实并没有绝对的答案，但是投资者必须知道这两种选择，各自的风险和机会。在做出选择的时候，投资者必须先对这些公司做出评估，从而决定买入什么公司。

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