Agricultural Bank of China Huili fund Zhao Yi: stick to value differentiation into keywords in 2022

Another year is like water. We spent 2021 in hesitation and determination.

Thanks to the recognition of all investors, the fund I managed achieved rapid growth in scale in 2021. Sticking to the long-term value will eventually bring good return on investment to the holders. Agricultural Bank of China new energy hybrid, Agricultural Bank of China research selected hybrid and Agricultural Bank of China industry 4.0 hybrid fund have ranked among the top three of their kind in the last two and three years. (Note: ranking source: Morningstar, as of December 31, 2021; the ranking of ABC new energy hybrid is 1 / 914 in recent 2 years and 3 / 824 in recent 3 years, similar: active allocation - market growth type; the ranking of ABC research selected similar is 2 / 914 in recent 2 years and 2 / 824 in recent 3 years, similar: active allocation - market growth type; the ranking of ABC industry 4.0 hybrid similar is 1 / 679 in recent 2 years and 1 / 856 in recent 3 years, similar : flexible configuration)

In the past 2021, investment is not destined to be a smooth sailing. Related industries have experienced two consecutive years of growth and the scale of funds under management has increased rapidly, which are intertwined in the market at the beginning of 2021. The callback after the Spring Festival made the funds I managed face the test of withdrawal, and the ranking fell for a time.

This is the first year after becoming the champion in 2020. There are also some disputes and voices in the market, which is also a big challenge for investment methodology. Although from the perspective of investment, I don't care too much about short-term performance and ranking, a lot of received information makes me constantly think about whether the achievements in 2020 are the result of luck or the inevitable result of investment methodology?

Investment is a matter of looking for certainty in an uncertain market. What is worth adhering to and what needs iteration is the biggest test for fund managers. In the process of investment, you will encounter many changes and see many opportunities every day, but whether you can seize the opportunities is actually a continuous trade-off process. This requires constant cultivation of your mind. After all, there are too many temptations in the market. For me, the methodology of investment is the core that should be adhered to, and how to realize it is the weapon of continuous iteration.

This year, I stick to and expand my ability circle. In the past, the research background of machinery and military industry was basic. New energy and pharmaceutical manufacturing were the result of the continuous improvement of the capability circle, but their essence was to expand in the direction of "high-end manufacturing". In this system, I can freely practice the stock selection method, choose a good company from a good track, grow with the company and earn money for the growth of the company.

The popularity of the new energy sector in the past two years comes from the high returns it brings to investors, but in fact, the market of the new energy sector in the past two years is different. In 2020, the leading stocks rose better. The keyword in 2021 is called "new energy +", that is, all new energy related and new energy embracing companies have won good gains. This situation will be difficult to reappear. The keyword in 2022 will be "differentiation".

The new energy track, which has been strong, has fallen sharply recently, which makes investors worried about the overvaluation of the new energy sector doubt again. Return to the essence of investment. If the market falls, first judge whether it belongs to market fluctuation or fundamental change. If the fluctuation is caused by the market, the decline means the release of sector risk, and you can buy promising enterprises at a cheaper price.

Many companies in the field of new energy are considered overvalued. In fact, most enterprises, especially leading enterprises, were killed in 2021. The sharp rise in share prices was caused by the rapid growth of performance, which has been at a very low level dynamically.

In my opinion, there are still good investment opportunities in the industries where the penetration rate of new energy vehicles is still increasing rapidly in the past two years; The short-term market expectation and valuation of photovoltaic and wind power have been high, but there is a large space in the long run. There is a possibility of significant fluctuations in 2022. It is necessary to select a real good company and trade time for space.

Without considering the possible changes at the macro level, high-end manufacturing dominated by new energy and technology and large consumption sectors dominated by medical treatment and consumption will have great investment opportunities in the future. Among them, the lithium battery industry chain has high growth rate and low valuation. At the same time, it has also begun to develop rapidly in energy storage and other industrial applications, which is relatively more dominant.

Although some companies in the new energy vehicle industry chain may not achieve the expected profits in 2022, there are still many opportunities in subdivided areas. In terms of industry configuration, it still focuses on high-end manufacturing dominated by new energy, semiconductors and military industry.

2022 has come, Lbx Pharmacy Chain Joint Stock Company(603883) the rapidly growing demand for wealth management is worth cherishing, and long-term excellent public fund products are of great significance to our customers. Thank you for your support and trust. Let's take advantage of the general trend of history and share the achievements of the new era of China's economy.

(by Zhao Yi of Agricultural Bank of China Huili Fund)

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