Guest introduction: Wang Geng, executive director of Daohe investment, majored in economic information management of Central South University of Finance and economics, has been engaged in financial work for more than 20 years, and has successively worked in many financial institutions such as China Construction Bank Corporation(601939) , Everbright Securities Company Limited(601788) , Sealand Securities Co.Ltd(000750) , etc
Buffett's success is not accidental. What are the factors behind it? How does the background of the times affect personal investment? What is its investment philosophy worth learning from? How to define a good company? In this regard, Daohe investment Wang Geng shared wonderful views with you.
Wang Geng said that the economic prosperity of the United States over the past century has provided Buffett with a very good investment soil. The long-term stability and prosperity of a country are the best investment background. As investors living in China, the prosperity and rejuvenation of the Chinese nation also provides an excellent investment background. He said that buying stocks is actually owning the equity of the company. It is very important for a good company to become the ultimate long-term investment object.
following is the text essence:
\u3000\u3000 1. Daohe investment Wang Geng : national prosperity is the background of investment
host: what do you think of Buffett?
Wang Geng : Buffett, as an investment master in the United States and the world, and his partner Munger, took charge of the Berkshire investment fund in the United States, creating tens of thousands of times of returns for thousands of investors in 40 years. At present, Buffett is 92 years old. The current scale of Berkshire investment fund has reached 450 billion US dollars. Many of his investment principles are respected by global investors. Berkshire's annual shareholders' meeting attracts thousands of investors around the world, which is called the investment event of global investors.
At the same time, we should also see that the investment income created by Berkshire is also based on its era background. That is to say, Buffett lives in the United States, a big country that has gradually become prosperous and powerful since the beginning of the last century. This era has given him a very good investment background. Hundreds of years of prosperity has provided Buffett and his Berkshire with a very good investment soil, so that he has a lot of good companies to choose from, and also brought a very good compound interest growth for his funds and investors. Therefore, the long-term stability and prosperity of a country is the best background.
From this point of view, as investors living in China, the prosperity and rejuvenation of our country and the Chinese nation has also provided us with an equally excellent investment environment and investment background. Therefore, we should seriously study and deeply understand the successful investment concept that Buffett has tested, so as to provide good guidance for our own and our fund's investment.
Buffett's investment philosophy has gradually developed, changed and improved in his life. Before the 1970s, that is, before Buffett was 50, his investment was mainly value investment, that is, the value investment pursued by his mentor Graham. He bought a company with stable operation at a low price, that is, a company at a discount. This value investment has been pursued by Buffett for many years.
However, after the 1970s, Buffett's investment philosophy was more influenced by the investment master Fisher. He turned to a growth company with very bright prospects, which further improved his investment philosophy. Buffett himself said that he said that my investment was 85% Fisher and 15% Graham, so his investment philosophy guided Berkshire from value stocks to growth stocks, which brought him a very high return.
At the same time, in recent years, Buffett's ability circle has expanded outward. Previously, the investment scope mainly based on investment and consumption has been further expanded and turned to some investment in science and technology stocks. These are three major changes we can see.
Generally speaking, I don't think Buffett's success is accidental. He has his personal investment talent, investment efforts, and his investment background, which also provides a very good investment guidance and investment principles for our global investors.
\u3000\u3000 2. Daohe investment Wang Geng : buy a company with long-term competitive advantage
Moderator: what investment ideas are you optimistic about Buffett?
Wang Geng: in terms of investment philosophy, Buffett has practiced and successfully applied many investment concepts. In this process, I think some investment ideas are fundamental. We must uphold them, including buying stocks is buying companies. Such investment ideas enable us investors to get rid of market-based ups and downs, thus losing the direction of investment. Buying stocks is actually owning the equity of the company. At this point, it is very important for a good company to become the ultimate long-term investment object.
The second is to buy a good company. What is a good company? Companies with long-term competitive advantages can bring long-term compound interest returns to shareholders. Similarly, this kind of good company generally has a very good and broad moat to avoid fierce competition, so as to maintain relatively high operating income and shareholder return.
The third is the margin of safety. The so-called margin of safety is that when investing in a company, there must be a good price. The valuation of the company is a normal fluctuating valuation. Buying at different prices provides investors with different holding period returns. Buying at a higher price will lead to a lower return on investment. However, if you buy at a lower price, you will get a higher long-term compound interest return.
The secondary market presents a state of fluctuation or even violent fluctuation. When buying at a good price, low price and discount, there is no doubt that the return on investment is relatively high, leaving enough margin of safety and sufficient space for psychological stability for investors in the face of market fluctuations.
The fourth is the problem of the ability circle. Among Buffett's investment ideas, the ability circle is particularly important. A person's energy is limited, and his cognition and knowledge are also limited. If you invest in an industry or company you are familiar with, you will have a better bottom of mind. At the same time, you won't panic when there are market fluctuations. Constantly expanding your ability circle through learning can give you more choices for your investment, but overestimating your ability is easy to cause investment losses if you invest outside the ability circle. Therefore, it is very important to define your ability circle.
The fifth is that people abandon themselves. There will always be fluctuations in the market, and there will be relatively large fluctuations in emerging markets such as China, which is normal. It is also important to catch up with high buying or buying in the downturn when there are relatively large fluctuations. Buffett's investment philosophy is that people abandon themselves and take their own way. Instead of chasing high prices to buy, he also buys companies he has been waiting for for for a long time when market sentiment is low, and insists on buying with good prices. For example, when the financial crisis occurred in the United States in 2008, Berkshire bought a large amount of cash in hand. In Buffett's words, now is a good buying opportunity. Although everyone is very disappointed, it is too late to buy until the Robin crows. Therefore, from this point of view, Buffett undoubtedly adheres to the investment philosophy of abandoning others and taking our own way.
In the path of China's great rejuvenation, our Chinese investors and our A shares will have a bright future. Adhering to the above investment ideas, I think our investors will get a very good return on investment.
