Category: Money tips Release Date: 2007-02-09
A private equity fund's investment story
In Shennan Avenue, near the cafe, we met Mr. B, a quite reputation in the industry of private sector managers. Before going to listen to the industry's friends in general have been introduced his story. Early in several mainstream investment sector investment positions, has accumulated a considerable track record and experience, he was two or three years ago and his partner along with the creation of his own company, began a career in private equity funds. And, in this round of bull market, the rapid expansion of their record of profitability and financial scale.
"We have been very optimistic about the market", B, Mr., our investment is based on the belief state and the nation is based on China's economic growth will have 10 to 20 years the golden age of judgments. He said he believes the golden age of China's stock market has only just begun.
For the B and his host's, now also a critical period of their development. At present the funds they manage the scale of Ji Geyi level, the cumulative gain since its inception has been considerable. "In April, when our overall income is 200% more than now more than 300% a", B said Mr.. It can be inferred that his organization would also get good returns. He happily told us recently that they have bought well-known center Qumou floors of Grade A offices, will soon be moved.
Mr. B a concern to them was a rumor that appeared in the first few Moutai daily limit, they is one massive buying power. His answer was, "we do hold some of Maotai." He said their investment principles is to manage client wealth is concentrated in the most outstanding enterprises, to enable these enterprises to operate more good. "We are committed long-term value investor," he said, with those who engage in insider trading, and speculation of private equity funds are completely different.
"We believe that the real good is no secret," he said, from the periodic reports, public information will be able to understand that we need to do is "buy and has been firmly hold" only. The problem is that many people can not do this. To rely on insider information, secret information may be able to make big money in a short time, but it is difficult to long-term development. He said that over the past few years a lot of very large investors lost out badly, and a big reason may be that they exist some sort of path dependence, it will only engage in the kind of insider and engage in the practice of manipulation.
"We do not have any particular investment philosophy." He said that in terms of ideology Graham and Fischer have pointed out the direction for us, Buffett has been in practice for decades, has made brilliant achievements, we actually want to practice in China, this theory, the hope In its guidelines, to be a good craftsman. He said that in order for clients and their assets entrusted the responsibility to do is to make as much as possible through the investment cycle, across the enterprise. "Research into a good business, and its a decade or more can maintain high growth. This is more than every one or two years, again, choice, I do not know how to improve efficiency." Is to try to find such companies and their collection.
He stressed that long-term investment, the need for more rigorous selection of the company. They had participated in a company's shareholder meeting, all aspects of the company are quite satisfied, but finally did not buy the stock. "We hope that our investments across the enterprise. The business leaders, we have always worried about, although there are a variety of halo over his head." He said that if the two companies, performance is just as good, and as a leader in the natural replacement more inclined to invest in companies able to maintain stable operation even have a new meteorological company. "We are fierce and ambitious leader in enterprise-type people a kind of innate fears, we hope that one of the best business is to have a leader with a sense of morality to run."
To do long-term investment, strengthen the concept of ownership is very important. He said that China's economic fluctuations in addition to individual years beyond 20 years, its economy has been all the way up, with an average GDP has 9%. In such an environment, if you do not dare to do long-term investment, you go to then Buffett era how could the United States dare?
He said the investment in the end, may be a philosophical concept, and worldview problem. He said that we can only believe in the principles according to their own thinking, and then do what we should do things. For example, we have chosen to Maotai do not know whether it will really rise, but the choice is a correct way of thinking and behavior patterns, when up do not know, or even important.
