This year marks the 30th anniversary of the establishment of Shanghai Securities News. Thirty years of wind and rain, thirty years of spring and autumn fruits, recalling the extraordinary years of the past.
Since its inception in 1991, Shanghai Securities News has witnessed and recorded the 30-year vast development process of China’s multi-level capital market from scratch and from immature to mature, highlighting the responsibility and responsibility of a mainstream financial media. In this regard, I would like to express my sincere respect to the outstanding achievements made by Shanghai Securities News in the past 30 years and its help to the majority of investors in the capital market.
Shanghai Securities News is not only the witness and witness of the 30-year development of China’s capital market, but also left many traceable memories for me in the years of struggling in the financial market, and has become a mentor and friend who has accompanied me for many years.
In my nearly 30-year career in securities investment, Shanghai Securities News has been accompanied all the way. I became acquainted with Shanghai Securities News as a reader and had more in-depth interaction with Shanghai Securities News after establishing Mingda assets.
On May 28, 2019, Shanghai Securities News conducted an exclusive interview with me, At that time, I put forward that “investment needs a penetrating vision. How to value a company is the core competitiveness of investment institutions. When you judge the investment value from a long perspective of 3 to 5 years, you will get a judgment that is completely different from the popular view. Mature investors make profits by taking advantage of market mispricing and are optimistic about stocks with sustainable cash flow characteristics” Even judge one to two years earlier than the mainstream trend of the market.
This year marks the 16th anniversary of the establishment of Mingda assets. SSE has sorted out our investment philosophy: the “Fool Investment” proposed in 2005 selected 10 industry leading companies with consumption and service attributes from the 20 most expensive companies in the market at that time to form a portfolio; The method is like an AUM razor. It is simple but effective. Crossing cattle and bears is actually connected with the value investment philosophy such as Warren Buffett’s moat theory and time is a friend of a great enterprise. This is the true meaning of investment recognized by Mingda assets from the beginning. According to the theory of “scarcity of blue chips” in 2014, in the next two or three years, blue chips with high performance in China’s stock market will become scarce, and even blue chips will generally appear valuation premium. Instead of superficial gambling on the style transformation of large and small plates in the market, we should start from the industry, study the competition pattern of “winner takes all” in the industry, and look for the investment value of white horse stocks and scarce blue chips. The “oligarch era” in 2016 has an important background. Here, “oligarch” refers to companies that have obtained absolutely leading market share and profit share in the industry through market competition. Leading enterprises have a higher moat and greater duration. The theory of “whiter and more expensive” put forward in 2019 continues to this day. In the future, the whiter and more expensive white horses and blue chips can create long-term higher returns for investors.
In addition, in June this year, Shanghai Securities News reported an investment sharing meeting of mine, which was published under the title of “stick to China’s assets and continue to be optimistic in the next five years”. I put forward the reasons for adhering to Chinese assets and several directions for future investment from the following three aspects, which will give answers over time.
get rid of the fog and look at the long term: at present, China’s inflation pressure is not large, because there is a continuous boom in the supply of pigs. Liu Mingda judged that China’s CPI will decline significantly in the fourth quarter of this year, gradually showing a downward trend in interest rates. From a macro perspective, the long-term downward trend of China’s interest rate remains unchanged, which is also the fundamental reason for judging the bull trend in the Chinese market in the next three to four years.
reasons for sticking to Chinese assets: in the next five years, China’s industrial manufacturing, Siasun Robot&Automation Co.Ltd(300024) , medicine and other fields will have a very small gap with European and American countries, which is also the fundamental reason for continued optimism. In terms of competitiveness and innovation, China has quickly narrowed the gap with European and American countries, and even surpassed in the core segments. The profits of emerging industries represented by computers and medicine continued to rise, and the transformation of advantages among industries accelerated. In terms of industry, China’s photovoltaic industry ranks first in the world. Nearly 90% of the production from silicon wafer to battery comes from Chinese companies. In addition, the whole supply chain of new energy vehicles is also highly concentrated in China. From the perspective of structural balance, the photovoltaic and new energy vehicle industries have launched great opportunities, and there will probably be more than 10 companies with a market value of more than trillion in the future. We should highly focus on the investment of leading enterprises. Looking back over the past five years, the market share and profits of leading companies have continued to rise regardless of whether the industry boom is good or bad.
investment focuses on four core words: I think mature core assets deserve investors’ attention. Our investment style can be summarized into four words: concentration, value, long-term and positive. “Concentration” refers to the leading enterprises that look for and focus on investment in the industry among many enterprises; “Value” is to find the investment target with large safety margin under a certain rate of return target, and optimize the investment portfolio through the risk control system; “Long term” refers to a leader enterprise with outstanding and most potential for a relatively long time to share the high benefits brought by the sustainable growth of the enterprise; “Positive” is an enterprise that looks for a business model in a forward-looking and positive perspective in the real economic ecology and can achieve rapid development in the process of industrial integration and upgrading. A long-term feature that should be paid attention to in future investment is that huge and massive institutional investors take stocks as an important choice.
Shanghai Securities News has witnessed Mingda asset’s adherence to the concept of “positive value investment”. We are also honored to win the award of “Golden Sunshine award, ten-year excellent private placement company and fund manager” issued by Shanghai Securities News. In the past, we feel more professional, pragmatic and keen. It is precisely because of the long-term excavation and hard work of Shanghai Securities News on the capital market that the policy, supervision and market information are timely and objectively interpreted, and more excellent asset management institutions in the capital market can get attention, so as to help the majority of investors establish a correct investment value.
Standing in their thirties, they are in full bloom. As an old friend of Shanghai Securities News, on the occasion of the 30th anniversary of its publication, I sincerely hope that Shanghai Securities News will still burst out surging new power and create brilliance in the new era. Let us work together to make positive contributions to the continuous prosperity and development of the capital market.
(Shanghai Securities News)
