Category: Money tips Release Date: 2006-11-11
Value investors invested in the confusion often encountered in practice is that in the end if they would want fundamental analysis and technical analysis, combined? Value investors want it-band operations?
A few years ago, the value of investment and band operations (or the market hot spots) a combination of so-called "strategic investment" has been sought after in the fund, some fund managers to pursue this strategy to be a star fund manager at 1:00.
However, I believe so-called "strategic investment" Although the effect of a certain period of time is better, but its effect will hardly be sustained, is a clever too far, the complexity of the investment strategy. Because in this concept and strategy, fund managers face a double difficulty, one can not always continue to properly fund managers predict market movements and the band, if possible, their performance of the Fund will be a miracle in the world, because China's volatile stock market , opportunities are numerous, and this is a paradox --- given that they have always continued to correctly predict market movements and bands, then the value of investments redundant, and the value of investments and band operations combination of so-called "strategic investment" cease to exist a; Second, even if correctly predict the market movements and bands, individual stocks and the overall market trend and the band is not necessarily synchronized, so-called "index of loss of earning money", "28 phenomenon" talk is in this predicament.
Investments investments Road, speculation is also speculative approach. I personally think that the value of investment and band operations combination of so-called "strategic investment", even the pure-band operation of the speculative operations might as well, because the combination of both, combined with often inferior rather than the advantages of both. Investors heart, two scales: an enterprise value of weighing, a weighing market trends, and the corporate values and market trends in the short term departure from the frequent occurrence, investors tend to fall into this predicament and unable to extricate themselves contradictory.
One of the advantages the basis of value investing, that is not subject to market sentiment and price fluctuations, and to make rational judgments and decisions. A real investment house, and he has at any time the right to ignore quotations on the market, and never a result of someone else's irrational market sentiment and the so-called hot-band or passively guilty of "chase sell into" such as "forced error . "
Of course, I learn from Mr. Buffett has always supported the same time, to gradually form their own style, free to play. But I have an experience is that we must adhere to the "Congxinsuoyu without transgressing" realm. This "Moment" is "the basic principles of investment," the basic principle is that for hundreds of years in the history of stock market development of numerous "investment martyrs" with "blood" or even life in return, the contempt of these basic principles is to pay a heavy price.
After so many years of ups and downs, I still insist that abandoning technical analysis, to focus the company analysis, is a real investment at home the most rational, most practical, most sensible choice.
