Is there a survival soil for value investment in Chinese mainland?Will it work?
Not only does it work, but it works even better than U.S. stocks, where value investing is so popular.
The U.S. stock market was born in 1811 and has a history of more than 200 years.
With the blessing of such a long time, both the design of rules and the quality of shareholders have become relatively mature.
This means that U.S. stocks will move more steadily. Otherwise, there would not be a long bull or slow bull in the history of the U.S. stock market for more than ten years.
But what about Chinese mainland **?
It was born in 1990 and has only been around for more than 40 years.
Although it was established on the shoulders of the giant of the U.S. stock market, and learned from Xi and learned a lot of experience, it is necessary to localize and adapt to the Chinese mainland capital climate.
Moreover, the design of rules can be used as a doctrine and can be learned from Xi, but the quality of shareholders is not a problem that can be solved by the doctrine of taking it.
Compared with U.S. stocks, Chinese mainland** is younger and more immature. This means that Chinese mainland** is more irrational.
In this way, it is more suitable for the survival of the concept of value investment.
Because a more irrational market is obviously able to accelerate the frequency of harvesting by value investors, thereby increasing investors' profits.
Value investing is all about 16 words:High-quality companies, undervalued**, patiently held, overvalued and sold
From "undervaluing**" to "overvaluing selling", value investors have completed a round of harvesting. The shorter the interval between these periods, the more profitable it will be.
For example, the low estimate of a ** is 50 yuan, and the high estimate is 80 yuan.
In that 10-year harvest, the profit per share was 30 yuan;Harvest once in five years, come twice in ten years, and the profit per share is 60 yuan;In the past two years, it can come five times in ten years, and the profit per share can reach 150 yuan ......
If the profits after each harvest are reinvested, the profits will increase exponentially, and it is possible to increase more than ten times or even dozens of times in ten years.
China happens to be very young and irrational. In this way, more rounds can be harvested.
Therefore, compared with US stocks, Chinese mainland** is obviously more suitable for the concept of value investment.
However, without that diamond, you can't do this porcelain work.
Investors who do not understand the concept of value investment, if they have to use this method to make a profit in Chinese mainland**, the result is estimated to be not too beautiful.
For the "sickle", Chinese mainland** is a place where profits can be grabbed more than US stocks, but for leeks, survival is even more difficult.
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