Category: Money Tips Date: 2006-01-24
After years of thought, I think this is the first one to learn the essence of Buffett's thinking, this idea is there, Graham, Buffett learned from their teachers, and with sufficient margin of safety in order to comfortably participate in the stock market the game Whether it is the casino Ye Hao, or market or the.
To enhance the concept of margin of safety can be strengthened in three areas: 1, conscientiously study and analysis of entrepreneurial skills, reading skills in financial reporting, identification of financial tricks and corporate deception techniques, to enhance knowledge of various industrial operations. Their best to find a very good guarantee future profits of companies, even though the ailing companies. 2, and slowly learn to estimate the authenticity of corporate assets and profitability, reliability and the reliability of future prospects and reliable time. 3, combined with China's stock market 10 years of experience, not to pay too high a price multiplier, the price multiplier from the circulation with potential market value of real assets, real earnings ratio of observed to start.
2, when the market price fluctuations of the master, not to do price fluctuations of the slave
Trying to do the masters of price fluctuations, if the trader to do a trend in this difficult to achieve, through many years of trend trading experience, with increasing age, family, work, the increase of things, I have increasingly come to realize the kind of day Tracking the price is ready to take action methods, can not be prolonged use, even continue to use, it is very easy to extremes and make your nerves become fragile, and sometimes had to break a long, long closed Quotes machine for some time, but this will not solve fundamental problem, the problem still have to cycle the next time the emergence of the quality of life declined significantly.
Buffett to the teachers learned a second magic weapon - the price fluctuations in the market quotation of Mr.. Previously on this issue I also try to understand, but not because of his trading methods, just know a bit superficial, it is difficult to understand in depth. Recently, the entire trading system of their own conducted a thorough update, understanding gradually deepened analysis found that if you will look for companies to buy as your most important daily work, listed companies will be viewed as a whole, and soon will find that the market the trend disappeared, replaced by every day offer.
Like every day in open auction, sometimes rainy day to participate in the auction were a bit less, and sometimes the weather is good people to participate in a little more, some people like to watch the fun, an emotion itself selling points, some people waited at the auction day will be the door, she sees him more time to go take a look at it, while the auction staff kept shouting prices from morning to night, people came from a variety of salesmen to solicit but also to mobilize the majority of people involved in pricing randomness strong sought after because we like is the kind of atmosphere to stimulate the auction, some people like to watch the popularity of the re-auction offer, because the auction is divided into numerous small share, and sometimes in fact expensive, but because the people involved are usually bought a little, easy to be deceived, but the real buyers are generally are based on the auction provided by the auction information and make their own investigations before standard textbook approach, whether it is to buy a part or whole, and the tender must be good, although the real The base number can not be accurately obtained, but the bidder must have their own price to accept the bottom line. If they are not familiar with the auction items go about as far as possible to make credible bids re-action, without the auction items of interest, or even if there are, but pricing too high, then continue to wait, constantly on the auction listing appraisal done to find the subject interesting, but once the price is right, tender offer hand on the collection together, and constantly come up with to enjoy the interesting, of course, willing seller if there would be any significant price, of course, can sell some.
3, improve the ability to determine the level of corporate value
I think that fundamental analysis depends on the ability to begin to think you find problems way of thinking, when I try to use the decision tree way of thinking research firm issues, made great progress in corporate financial reporting information is only a starting point for research, many problems to conceal the following need to use your logic to the deliberation, appraisal and analysis of problems are identified, fundamental analysis is a fun piece of work, constantly adding new knowledge, improve their thinking ability, to expand its horizons.
Secondly, good use of time-scale to measure the value, sometimes a problem can not be a conclusion when the time to make more use of this yardstick, many ask themselves, if this problem on how to think on a scale of one-year, 2 to 5 years? 10 years? With the time scale to measure so that you see many of the problems, as an ordinary investor, the time scale is a big advantage, to search for a longer time scale the stability of the authenticity of a high return on assets of enterprises.
Finally, using the probability trade-off the size of your chances of winning, there is no chance of winning 8 percent of not to action, where the probability of chance of winning come from the analysis of corporate information in an effort to see if you think the next few years the enterprise has an important influence factors are those , favorable factors to determine an unknown factor, the respective numbers of unfavorable factors, based on the weight of different factors and the probability of knowledge, estimate the company's future probability of success, and then calculate the market price relative to real assets and real earnings multiplier, combining the characteristics of China's market to find the probability of chance of winning a higher price range.
