**, it's not a daily high sell and low buy, repeatedly tossing to earn the difference. **The end point of investment is to exchange shares for dividends, and get dividends lying down. Dividends are reinvested in middle age, dividends are distributed in old age, and equity is left to the next generation after a hundred years. Talent, insight and skills cannot be inherited, but equity can. One generation is rich, and one generation can be rich! The Davis family in the United States (from which the "Davis double-click" is derived) has been passed down for three generations. Davis Sr. in the 50s ** American International Group (AIG, called AIG in China), 70s ** BRKA (Warren Buffett's Berkshire Hathaway)** relies on equity heirlooms, and has held shares for more than 50 years.
We all know that Warren Buffett started Coca-Cola in 1988 and bought it until 1994, holding a total of 400 million shares and spending $1.3 billion. The holding period has been as high as 35 years. Investment value: from $1.3 billion to $25 billion. The dividend increased from $75 million in 1994 to $7 last year0.4 billion US dollars. In other words, now Buffett's annual dividends from Coca-Cola have reached more than 50% of the total investment that year, which is every year! And Buffett's long-term holdings are not limited to Coca-Cola. Warren Buffett invested in American Express, holding shares for 31 years; Invested in Moody's, holding the shares for 24 years; Investing in Procter & Gamble and Johnson & Johnson, both for more than 18 years ......Coming to China to invest in Hong Kong stock BYD, the holding time has also reached 14 years.
China also has a lot of good **.
China's ** was born for a much shorter time, but there are also many long-term holders, and they are all bigwigs. Duan Yongping started ** Moutai in 2013; Zhang Lei started Gree Electric Appliances and Tencent Holdings in 2005; Lin Yuan has held Yunnan Baiyao and Kweichow Moutai for 20 years; Liu Yuansheng bought Vanke and held it for 30 years......
Although there are no complete statistics, if you insist on long-term investment in China, there should be many companies whose return on investment will exceed the return on Buffett's investment in Coca-Cola. For example, Vanke A, Overseas Chinese Town, Kweichow Moutai, Wuliangye, Luzhou Laojiao, Shanxi Fenjiu, China Merchants Bank, Fuyao Glass, Gree Electric Appliances, Yangtze River Electric Power, Changchun High-tech, Hengrui Pharmaceutical, Yunnan Baiyao, Pien Tze Huang and other ......Because Coca-Cola was founded in 1886 and went public in 1919. And when Warren Buffett started in 1988, Coca-Cola was already a very old company. In 1988, China did not have a **, which means that in this short period of 30 years, it has covered all the star listed companies in China in the past, from small to large.
Although many shareholders on the Internet like to get together to coax, scold the big A shares for being rotten, and clean up the stockholders. I don't deny that there is such a thing, but this is obviously not the whole truth. In A-shares, there are actually not a few people who do value investing. It's just that in general, it's mainly big money. Most small capital shareholders have no advantage in cognitive ability at the beginning, and the key is that they are very greedy and pay great attention to short-term gains. Then they can only chase all kinds of hot topics tailored for them, frequently chase up and down, buy at a high point every time, and finally make a stable loss.
These are the ...... of technical analysis, financial statements, money managementToo lazy to bother with that! I don't understand anything, but it doesn't affect people's self-confidence at all. Successfully turn ** into a casino that guesses the rise and fall, mainly because the gambling is still poor, and if you lose, you will go up, and all kinds of scolding! In a way, ** is very similar to the lottery industry. People who specialize in pit money and have little money will take away the few remaining money of the small and middle class. Lottery tickets, scraping the last copper plate in the pockets of the poor. In fact, these two industries cannot be said to be specifically aimed at people with little money, but are targeted, and they are specifically charged with IQ tax.
In fact, big A shares have also achieved a lot of bigwigs. Wang Fuji, known as Pien Tze Huang's "sweeping monk", began to ** Pien Tze Huang as early as 2009 around 30 yuan, and the stock price rose to 490 yuan. Cumulative investment 1300 million, and the cash dividend in 2023 will be about 34 million. Without discussing value-added, relying on dividends alone, you can return to your capital in 4 years.
And another great god Lin Yuan in A-shares, started ** Moutai at 23 yuan in 2003. Moutai's share price rose to a maximum of 2,600 yuan, and in 2023, Moutai will pay a dividend of 435 yuan per share. Regardless of the value-added, the income is close to 2 times the original investment amount by relying on dividends alone. Today's Lin Yuan can have long ago completely ignored the fluctuations of Moutai's stock price, because for him, everything is earned. Kweichow Moutai, Yu Linyuan has long been a cash machine that makes sure that it does not lose money, and it does not need investment or maintenance. Don't talk about making money by yourself, one day you can leave the equity to future generations, and you will be rich from generation to generation! And like this, Lin Yuan bought more than one. Yunnan Baiyao, Pien Tze Huang, Luzhou Laojiao, etc. are all in Lin Yuan's account.
There is also spring in Xiaosan - Coca-Cola Quincy Town.
In Norfolk County, Massachusetts, USA, there is a small town called Quincy with an area of 69It has a total population of more than 80,000 people. It is mainly a pure residential area with few industries, but it is the place with the highest concentration of millionaires in the United States. The people of Quincy used to make a living from tobacco, and although they toiled hard, they were still poor and saw no hope of changing the fate of their wealth. Their wealth stems from their ancestor 100 years ago, Pat Monroe, the town's banker. Coca-Cola**, stock price $40 when it went public in 1919. At that time, American investors did not know that it would be a god stock in the future. So, after going public, the stock price halved within a year, falling to $19.
Pat Monroe is very forward-looking, thinking that this will be a god stock that travels through time and space. Because its cost is very low, it is sugar and water, but the market breadth, brand recognition, and gross profit margin are amazing. So, he suggested that a small number of small town residents take out a loan from his bank, **Coca-Cola**, and slowly repay the loan with dividends and wages in the future. Many people followed Pat Monroe's advice and held it for the long term. In the process of holding shares for hundreds of years, the residents of the town have experienced many bear market tests, including the Great Depression in the 1930s, and Coca-Cola from 1999 to 2005 because of the decline in profits for **7 consecutive years**, the stock price has been cut in half, and the market value has shrunk, but the townspeople are still holding the Coke in their hands**.
The descendants of this town have finally become rich because of the ownership of Coca-Cola, which has earned more than $1 million per household on average, and with the return on investment of dividends every year, Coca-Cola has risen as much as 500,000 times in 100 years! The descendants of this Coca-Cola town still vividly remember the words of Pat Monroe before his death: "Whether you are sad or happy, poor or rich, please continue to hold Coca-Cola**".
Such a legend is not unique in the United States. Omaha, a quiet town in Nebraska, in the central United States. There is a group of people in Omaha who have become millionaires because they own the ** of Berkshire Hathaway. Known as the "Omaha Myth." And in Seattle, Washington, there is also a group of millionaires who are rich because of their own Microsoft**. Known as the "Seattle Myth". And in Bentonville, Arkansas, there is a group of millionaires who are rich because of their ownership of Walmart. Known as the "Bentonville Myth".
If you want to have dividends in your later years, then you must do everything you can in your youth.