Category: Money Tips Date: 2007-02-01
Chen Jiwu: Wells Fargo Fund Management Ltd Deputy General Manager in charge of research and investment.
Master of Computer Science, Zhejiang University. Since 1994, engaged in trust and investment, commercial banking, investment banking, she served as headquarters of Zhejiang International Trust and Investment Investment Bank Vice President, South fund company fund managers, the use of central fund of funds China Life Investments Chief Investment Officer.
Stock market gradually moving from mainly speculative investment and speculation in the pattern of attaching equal importance, regardless of "value investing" is the word in today's investors, the eyes of praise demoted, have become one of the most common words. The winners are, by the value of investment has dropped sharply in the last two years, the A-share market to earn pours; while a large number of investors in accordance with the same value investment philosophy to invest in, but repeatedly suffered heavy losses, automobile, iron and steel The sharp decline of the stock that is a typical example. As a result, "value investing is invalid theory", "value investing is away," saying the market is flooded.
From Graham's "portfolio investment" and Buffett's investment report, every investor can learn how to use the enterprise value analysis for selection of valuable stock and profits, but in the world, after all, is only one Warren Buffett . Stock investment is an art, the value of investments is only a concept, can not use a fixed methods and models to describe how to value investing. The company's value is objective, management level, operational capabilities, equipment status and other factors that affect the company's intrinsic value, but the company's value will be constantly exposed to external environmental impacts of changes in upstream and downstream sectors of oil price changes, etc. These are not the company itself beyond the control of external factors will affect the company's value changes. Specific to the value of re-evaluation of the main body, personal preferences, the market hot spots, capital flows and other factors would affect the market value of the company's overall judgments. Therefore, the enterprise value is in a constantly changing environment, the value of the factors that affect not only corporate-controlled, but also companies are not controllable, the market will be on the market in the subjective psychological changes in enterprise value have a major impact . When we rely solely on a few simple price-earnings ratio, book value and other indicators of stock selection that they are carried out on the value of investment, value investing philosophy had been distorted.
Value investment philosophy is a rich connotation of the concept and value investment philosophy is also bound to the eternal theme of the market. Value investment philosophy is not wrong, the problem is with the person's grasp and understanding. The market need for a comprehensive and objective manner, dynamic understanding of the value investing philosophy, when we once again one-sided, the mechanical interpretation and application of value investing, you may also be the next one will be the losers.
