Value investing is an investment strategy whose core idea is to buy premium at a lower price by analyzing a company's fundamentals and achieve a long-term return on capital in the future. Value investing is a long-term investment strategy that aims for stable returns and low risk.
Value investing has the following characteristics:
1.Focus on company fundamentals.
Value investors focus on the company's fundamentals, including the company's financial condition, business model, competitive advantages, management team, industry outlook, etc. Through the analysis of a company's fundamentals, value investors are able to assess the intrinsic value of a company and determine whether it is undervalued.
2.Focus on the margin of safety.
Value investors focus on the margin of safety, i.e., when buying, they will buy at a price lower than their intrinsic value. Doing so reduces investment risk and provides greater security for investors.
3.Long-term investment.
Value investors focus on long-term investing, believing that time will tell. Value investors don't sell easily because of short-term market fluctuations, but hold for the long term, waiting for the company to grow and ***
4.Keep an eye on market pricing.
Value investors focus on market pricing, and they believe that the market will overreact or undervalue some**. As a result, they look for undervalued ones when the market is pricing them and buy these for future returns on capital.
5.Think systematically.
Value investors focus on systems thinking, and they believe that investing is a whole and needs to consider a variety of factors. Value investors will adjust their investment strategies according to factors such as market environment, macroeconomic conditions, and industry prospects to obtain the best investment results.
Value investing is a long-term investment strategy that requires investors to have a high level of analytical skills and patience. However, when implemented correctly, value investing can bring stable returns and lower risk, creating long-term value for investors.
The so-called value trap, in fact, aside from the ** market, everyone should be able to understand, for example, career planning, a person who entered a certain unit at the age of 22, or a person in a certain company, has a particularly good one, a special lazy, a particularly diligent and a particularly lazy. When you are 35 years old, especially hard-working people have reached the middle management, and then the other one is still standing still, then at this time I ask you, if you are a girl, which one will you choose if you want to get married?This person who soars into the sky, he has great potential for the future, or the person who has not moved, and has more room for development.
Then when I say this, in fact, everyone will understand, as long as you are a normal person, you all know that he can do that position at a young age, he will definitely be terrible in the future, and he will not move at this age, then he will definitely be replaced, why is this not the case with the development of the company?Then after this wave of peaks came, some of them didn't walk up, and then they walked, they grew very tall, and those who didn't walk up have been lying on their stomachs at the bottom, why can't they do it for him while lying down at the bottom. Things can't work, competitiveness can't work, so at this time, you tell me again that I'm going to buy that low-level one, okay?So it seems that it has a lot of room for growth, but in fact, in real life, everyone understands this truth as soon as they say it.
So what is it that determines the rise and fall of a company?In fact, in the final analysis, it is his performance, and it is effective performance, you can't say that the profits I make are all accounts receivable, and the money can't be recovered, and it can't be done, under the premise of effective performance, we may conduct some analysis of him, if everyone is both effective performance, if not, we will make a callback on the profits.
So we say why the reason why we want to be an excellent company, right here, the power of compound interest is very terrible, if you raise your salary every year more than ten percent of your colleagues, it doesn't look much, but if you do it for 30 years or 50 years, so everyone, for example, if you do it every day, you can make progress, a little bit, over the years, in fact, it doesn't take a long time for friends to think that it is said in** I may not be able to figure it out in five or ten years, but in fact, as long as you make a little progress every day, two or three years will be very different, including this year, after you finish the class with everyone, you go back and look at your own operation method before, you are a complete amateur level and an entry-level level of this level of this level of difference.