“Is the rise of real estate, infrastructure and coal stocks also a value investment?” Value investment should advocate the spirit of science. If you believe in the so-called science and technology and growth, you will be stupid. The blind worship of value investment will eventually mislead others and oneself, and the gain is not worth the loss.
Since April, the index has been weak and volatile, and the sectors are clear-cut. Standing in line has become the key at present. Recently, many people asked me, “is the rise of real estate, infrastructure and coal stocks also a value investment?” It seems that in their eyes, value investment is to buy science and technology, military industry and so-called new energy for growth. The value in their eyes is labeled and one word, and this ignorance will undoubtedly pay a price in the end.
First, value investing is dynamic. Every day the enterprise changes, the industry cycle changes, the valuation of stock price changes, value for money can be called value, high price pursuit is foam, everything is valuable, and there is no sorting.
Secondly, value investing is to advocate the spirit of science. All the data are based on objective data and financial statements. The main reason for the fraud is that the concept of the subject matter is the source of short-term foam. The so-called technology and growth are just a nice name. Behind it is still the cold machine shop and manufacturing agent. You believe it is silly.
Finally, value investment does not need faith. Many people talk about the classics of masters and shout the slogan of value every day, but they are unwilling to sit down and study and judge realistically. It seems that money will fall with these slogans. Value investment comes from practice and science. Blind worship finally “becomes the reality of speculation and borrows the name of value”. Finally, it wrongs others and oneself, and the gains outweigh the losses.
Recently, it is the disclosure season of annual reports and quarterly reports, and it is also the busiest time for value investors. Quiet reading is a necessary condition for becoming value investors. Independent thinking and moving forward alone are the inevitable choice of value investors. Advocating the scientific spirit and more reflection and questioning are the secret of the success of value investors. I hope you and I have the scientific spirit and can make the world a better place.
(the author is Guotai Junan Securities Co.Ltd(601211) Shanghai Research Director)
