Li Xuanjin, general manager of HSBC Jinxin**.
In the past, it may have been a bit difficult for many people who are making investments. It is often argued that the current market volatility is somewhat more than expected. Here, I would like to share with you some of my personal experiences and experiences.
I have been in the asset management industry for more than 25 years, and during these 25 years, I have experienced various levels of market volatility, large and small, as well as many difficult market environments. In 1997, shortly after entering the industry, he encountered the Asian financial crisis; In 2000, there was a crash in technology stocks; the outbreak of the global financial crisis in 2008; The subsequent years of 2015, 2018 and the last few years have experienced various fluctuations and adjustments in the market.
After experiencing the "difficult moments" of the market again and again, my biggest realization is that "value investing never goes out of style". This is also the wise quote that Charlie Munger left us. Based on my observation of the market over the past 25 years, value investing has proven to be a long-term effective investment method, but this effectiveness requires a relatively long time dimension to verify. In the short term, we often see the deviation of the market from the value, and we often need patience and time to wait for the return of the market value.
In addition to patience and time, there are two aspects to focus on to do a good job of value investing.
First of all, you must do a good job of risk management. As Munger said, "Before considering any investment, first assess the risk". Value investing often requires a relatively long period of verification, which requires us to be very careful not to make big mistakes. I think that's very important.
Second, be sure to manage your emotions well. As Munger said, "Don't get excited when you succeed, don't be depressed when you fail", we need to keep a clear understanding of the market at all times, so that we can overcome market volatility and wait for the return of value.
To do a good job in value investment, in addition to paying attention to the above two points, the most important thing is to "combine knowledge and action". Only by strictly abiding by investment discipline and doing a good job in risk management and emotional management diligently can we better help investors grasp the long-term opportunities of value investing.
Let's witness the return and discovery of market value together!