Category: Money tips Release Date: 2007-07-24
Why is this stage, I will hold my full position portfolio, rather than choose to lighten up when stock prices? In 2001 I sold all the stock. Looking back, in 2001 the stock market has been to "top", but now generally considered a good market environment.
But in fact I do not care about broad market has always been the ebb and flow, I am only interested in the market, there does not meet my investment criteria of the company.
If the market does not I would like to invest in a good company, I would choose short positions. 2001, I find that the market did not I want to buy stocks, mainly not been "undervalued" companies, so I sold. But at this stage there are a number of value has been seriously undervalued the company, I ask myself the next three years will be to hold my investment portfolio, less than the valuation of these shares back to a reasonable level will not be considered fulfilled.
This is what I set my own discipline. Such an approach is what I always say "turtle policy", force yourself to do "idiot." The end result of this method returns are good.
For example, in 2003 I bought Wuliangye, the average cost of 9.5 yuan / share around 2004, after Wuliangye dividend (10 shares get 10 shares), I should the costs of 4.25 yuan / share, whereas in 2004 and early 2006, one year Village Wuliangye stocks have between 5 to 8 yuan up or Change, each rose to 7.9 yuan, but also landed on the 6 yuan. I just looked at, there is no sale, just like a "turtle" in which "cat with." Wuliangye this year on the stock broke through to 8 yuan, and then not turning back.
I have a friend, at that time to buy a lot of Wuliangye shares, while the rose to close to 8 yuan, he had sold; 6 yuan more then bought back; but the last price break 8 yuan, they will not buy it back. Wuliangye now to restore the price should be more than 20 yuan, and he was the difference in order to earn 3 yuan, but I lose more than ten million yuan. I said he was Zhanxiaobianyi face a significant loss.
Experience tells me that the accumulated wealth, the most important is your Awkwardness can be multiplied several-fold within three years or more, buy low sell high, speculation spread is difficult to make a large profit.
Last year I bought Merchants Shigekura convertible bonds, now share transfer, ex cost of 4 yuan, and this year early in May to buy another Shigekura G Shanghai airport, the cost price of 13 yuan, and this is I gave the next three years in the "seed "I will" cat with "regardless of its price Change. No problem as long as the company, but also buy at a reasonable price, especially the cost of stock has been away from the area, I will be more firmly hold it; I will be more "greedy" because behind the making of 10%, relative you the purchase price may be in front of tens of per cent or more.
Of course, "the cat with" to choose the right company, "the cat with." I chose the next three years, companies are fast-growing enterprise, this kind of "cat with" is what I enjoy the benefits of its high-growth period, so I chose to buy enterprises in the period of rapid growth, and so on to sell after a period of rapid growth . In fact, I was doing in the cross-industry enterprise, such an approach, I think that can be achieved only in the stock market.
(The author is an experienced investor, this does not mean that newspaper point of view)
