Long-term investment with the concept of combining short-term investments Money Tips

Category: Money tips Release Date: 2006-07-11

Correct understanding of the concept of long-term investments

In China's capital market, the long-term investment philosophy can hardly be recognized. In addition to lack of supervision and direction of public opinion the wrong question, there are cognitive problems, so the correct understanding of long-term investment philosophy can not be ignored.

First, there must be mentally prepared for long-term investment. The meaning of long-term investment, one refers not to finance and investment, as a short-term speculative behavior (expectations of speculation a few to be able to make a fortune); Second, personal finance and investment is the cause of their life (either as their main business or your own sideline) . Of course, the concept of long-term investments are also relative. In 2035 compared to six months, one year is a long-term, ten or twenty years is a long-term relative to 2035, when, six months, one year or in 2035 relative to the short-term or short to medium term.

Second, the long-term finance and investment ideas and strategies have a sufficient basis. In the wake of the gradual reform of China's stock market mechanism to continuously improve the overall economic environment on the stock market to improve, with better support. Second, there are always a number of industries and enterprises in the longer period of time show a fast and stable growth, with a high intrinsic value. And that these industries and enterprises are constantly emerging, the endless; 3 is the result from June 2001 to July 2005, up to 4-year long bear market, many stocks have already fallen to a historic low, the investment values have been revealed. Fourth, long-term investments do not have to worry about the daily stock price fluctuations, to avoid the risk of short-term access can be saved and out of the commissions and transaction taxes burden.

Third, we must rationally deal with long-term investment finance. In other words, not a company's stock can be a long-term hold. The intrinsic value of those shares is not a long-term holding, sink into a long-term investment finance for errors or trapping. Because long-term investment performance of the object must be good, and is growth companies. Poor performance, there is no surplus stock, of course, not to mention long-term investment; even if the current trading good, substantial profit company, the absence of innovative mechanisms, there is no a very good development prospects, product market restrictions, but in order to maintain the capital increase year by year profitability of such companies also should not be a long-term holders of stock. Another case is that some investors wanted to do short-term, is stuck, the short-term change midline, midline become long-term, often fitted at the top, there is no stop in time and will endure long Yindie pain. This will not only earn less money, but also lost valuable time. Such long-term holding is clearly wrong. Rational long-term holding, just grasp the intrinsic value of the company under the premise of long-term investment performance of the fine to provide a steady dividend and stable stock companies. It is precisely because a lot of successful investors spotted a number of the company's high-growth and take a long-term holders of the shares of the companies ideas and strategies.

The basis of long-term investment philosophy and practical significance

Buffett has a point of view, but also his philosophy has been followed: the value of investment-based, rather than short-term speculation. He also believed in the "concentration of investment in long-term hold" investment strategy, in particular, focus on long-term investment value. Buffett's philosophy and strategy is three to four decades ago, formed under the U.S. securities market, for us, whether it has become obsolete then? Many people raised such questions. To tell the truth, then, China's current stock market, in the normative and the market is even worse than four decades ago in the U.S. securities market. In the early stage of development of China's stock market, Buffett's long-term investment philosophy and strategy seem to have very real significance. From this point of view, Buffett's philosophy and strategy for China's current stock market is not only not out of date and should be promoted.

To correctly view and use of short-term operation

We are so much emphasis on long-term investment is not to exclude short-term operation. On the contrary, we advocate a conditional investors should correctly view and use of short-term operation. There is information superiority, higher operating levels and experienced investors can be short-term operation.

However, to keep in mind the risk of short-term are often larger, can not take all the bets are on the pressure in the short-term operation. Therefore, the length of integration should be promoted.

In fact, the combination of long-term and short-term finance and investment ideas are also advocated in the concept and the basic idea of the more important.

For a long time, wangcai to long-term and short-term money management is the combination of using tactics constantly, reliable access to market, excess profits, allowing you to pre-empt the market one step to account for rapid long-term health of the profit to help you achieve your account, the overall rate of return far more than broad market index's gains.