As an amateur investor, although we do not have the deep capital, professional knowledge and strong research team of structural investors, it does not mean that we are useless in front of institutional investors.
Peter Lynch tells you what are the advantages of amateur investors
First of all, it is not necessary for an amateur investor to invest like an institutional investor. If you invest like an institutional investor, your performance is destined to be the same as that of an institutional investor, and in many cases the performance of an institutional investor is not outstanding at all, but mediocre.
Amateur investors just need to go with the flow and think freely, and there is no need to force yourself to think about investing like a professional investor. If you're a surfer, a truck driver, a high school dropout, or an eccentric retiree, you've got an investment advantage because many of the companies you know are where 10 baggers are created, and those companies are beyond the scope of professional investors.
Secondly, amateur investors don't need to spend a lot of time explaining to anyone why they are investing in a certain A** instead of B**, as long as they are determined to make a decision. However, institutional investors need to explain their positions and the rationale behind them to their teams and clients. Positions are also disclosed once a quarter, and they need to be explained from the perspective of investors.
Again, the ** setting of amateur investors can be freely switched between 0%-100%, when the market is underestimated or when a good opportunity is found, it can be high**, when it smells high risk or cannot find a good target, it can be low**, or even short. But the ** managers of institutional investors do not have such a luxurious choice. Even if they are aware of the coming risks, they still have to maintain a certain **:
The proportion of **type investment** is not less than 80% of **assets.
The proportion of equity-biased investments should be between 60% and 80%.
The ratio of balanced **investment** and bonds is 50% each
The proportion of partial debt-type **investment** is not less than 30%.
Finally, amateur investors fancy which company's ** can be heavy, but institutional investors can't: public offering **investment** should follow the "double ten" principle: one **holding the same** shall not exceed 10% of the assets;All ** managed by the same ** manager of a **company** shall not exceed 10% of the market value of the same **.
After understanding these, I instantly feel that I am quite good as an amateur investor, the key is to improve my cognition, polish my eyes, find a good investment target, **etc**.