My Investing Experience: Finding Your Investing Style

After I experienced technical analysis for a period of time, I did not achieve the effect I expected, and I became more and more resistant to this method during the experience, so I began to look for other ways.

I went back and picked up some books on fundamental analysis that I had read, most of which were about financial analysis. However, whenever I look at financial analysis, two questions arise in my mind: one is that I am not from the Finance Society, can I master the skills in it just by reading books? The second is that even if I really learned, there are endless cases of corporate fraud in the stock market, and the financial reports of those companies are almost so beautiful, can I see their problems with my ability?

Thinking of this, I feel that this road seems to be unreasonable, so where should I start?

After much deliberation, why not take a look at the experience of those well-known seniors in the investment industry, maybe we can get some inspiration from them. So then I read a lot of biographies of my predecessors, among which Jim Rogers and Buffett impressed me deeply.

Both are examples of long-term investing.

In the book, when Rogers mentioned some past events of his cooperation with Soros in the Quantum Fund, he admitted that he was almost unsure about short-term trading and short-term fluctuations in stock prices. The general trend of years, decades or even decades. When he cooperated with Soros, he focused on long-term trends to select investment products, and Soros focused on selecting the buying and selling points of these investment products.

Later, after Rogers went it alone, he basically relied on long-term investment to make profits. His method was to choose varieties from some neglected and unfavorable assets, and to enter the market when the market was low, and he would try his best to choose assets that were similar in the world. Enter when you are desperate.

There are two things that impressed me most about Buffett's book:

One is his discussion about stocks and companies: buying a stock is equivalent to buying a company. If you don't plan to hold this stock for a long time, you should not hold this stock for a minute.

The second is that in one of his biography, the author wrote that during Buffett's investment career of more than half a century, his annualized return on investment reached 14.7%.

At first glance at the figure of 14.7%, I was quite shocked. Compared with the myth that I imagined that many "investment masters" can earn several times or even dozens of times every year, it is simply killed in seconds, and it is not even as good as the piles of "stock gods" around me. But think about it, how many of these "masters" are still active in this market? How many can maintain this record for a long time?

Thinking about it this way, I suddenly had a feeling of enlightenment. It seems that the real king in this market is the same as the saying goes, "the one who laughs the sweetest is the one who laughs the last." The last king in the market must be strong and survive. people.

Buffett's annualized rate of return is 14.7%. We ordinary investors must not be able to compare with masters. Can we achieve 10% annual rate of return? If the annualized rate of return is 10%, it means that the investment income will double every ten years.

From then on, I set this goal as my goal.

In addition, I was deeply impressed by the commonality of the experiences of the two masters, that is, they both regard trends as very important, especially the trends of a country and an era. This way of thinking also made it clear to me: As ordinary investors and non-professionals, it is very difficult for us to judge the trend of an industry or a company, because we do not have professional knowledge and industry insider knowledge, but we judge The trend of an era and the trend of a country are much easier.

To take a specific example, I believe that China's national fortune must continue to rise, and it will continue to rise in the next few decades. If this is the case, then China's stock market as a whole must also continue to rise. However, there are so many pitfalls in the Chinese stock market for manipulating companies and stock prices. How can these be avoided? Continue to share with you in the next article.