Category: Money Tips Date: 2006-11-18
Is one for historians and history lovers to conduct comparative studies have shown that a study of Chinese history, historians discuss the issue of Japanese history, and some may not be interested in the history of Japanese history lovers learn more, because the not related to the contents of the scope of the historian's expertise. However, if the need for historical data analysis, although historians are not familiar with these historical, but they will form a basis for analysis and some possible inference, and then very carefully on the basis of this information to verify their own conclusions. On the contrary though more familiar with the history lovers, but tend to feel from their own preferences and set off on a subjective speculation and rarely will the basis of a careful analysis of historical data to verify your inference. These two different methods, compared to control the amount of historical data, the study results are accurate or not, a greater impact.
Invest in stocks and study of history is quite similar: most people can understand K-line diagram, also know buy low and sell high, it is like many people would read history and would like to form their own historical perspective. The fact that many investors actually read the books about Buffett's investment, but also studied a number of industry trends, or even close to track a company's own investment in the production and management, and many individual investors in higher education right now Academic art is still in the financial behavior and game theory can come in handy. On the other hand, just as history lovers might like the history of their own would be more familiar with, many investors, some companies are well aware of, but in investment, they tend to hold two diametrically opposite attitude, or a firm to long-term holding, even if not much profit or loss; or Yigu do not buy, regardless of whether the way the stock price higher. So, whether it is investment-related knowledge or information relating to business, for investment is very likely not the most important, professional approach to investment is the biggest factor affecting the results.
Historians study history with the above method is similar to the focus of investment method can also be reflected in two aspects: First, what kind of inference may have a higher stock returns; second, careful confirmation of this inference. Buffett has said his idol, a man named Eddie's caddy, this caddy has joined over the White Sox, Brooklyn Dodgers, New York Yankees, for the first time either of these teams into the World Series, or reelection as champion, So his income is also very impressive. Eddie says he does not really matter how Eurya bat, it is important that he can pitch the most popular star of Eurya bat. This means that the investor's investment skills or in the information advantage is not important, it is important that the investment enterprise is a star enterprise. Therefore, the Buffett investment in oil or China Life may not have too much contact with enterprises. From this perspective, the domestic Zhuanggu the root causes of failure, may not be too much on the surface of the stock or capital gains strand breaks, but did not choose the right varieties; professional investment research should also be the most important part is not a field research or to closely track the business, but in the absence of close contact with the company thought of before, this business is likely to be a star enterprise oh.
