A Shares Are The Best Time To Invest In Value.

This year, I have the honor to come to the Central American town of Omaha to attend the 2016 annual meeting of Buffett.

Every year, more than 50 thousand of the investors from the world will come to this town like pilgrimage to listen to Buffett's insight.

I summed up Buffett's investment essence: insisting on value investment, overcoming the greed and fear of human nature, is a secret weapon that has gained huge returns over a long period of time.

Many times ago, like many investors, I began to read Buffett's letter to shareholders, and benefited greatly.

This book contains a letter written by investment master Warren Buffett to Berkshire Hathaway shareholders. The topics covered include management, investment and evaluation. The core spirit is put forward by Graham and Todd. It discusses corporate governance, corporate finance and investment, common stock, mergers and acquisitions, accounting and taxation.

Over the past 20 years,

From scratch, from small to large.

Through rigorous and long-term market tests, value investing advocated by investment master Buffett has proved to be the best way to obtain long-term excess returns.

At present, after three rounds of stock market crash, many blue chips and growth stocks have fallen significantly investment value, suitable for the long and medium line layout.

It is of great practical significance to talk about value investing now.

Graham said, "in the short term, the market is a voting machine. In the long run, it is a weighing machine".

You will find that Buffett studied weighing machines, weighing the weight of every company and holding underestimation of buying opportunities.

We have counted the 20 largest A shares since 2001, and found that their growth is positively correlated with stock prices.

That is to say, time is the best friend of value investors.

Buffett, an investment guru, once said, "value investing does not fully guarantee us.

Because we not only have to buy at a reasonable price, but also the future performance of the company we buy is also consistent with our estimate.

But value investing provides us with the only opportunity to truly succeed.

So, how to achieve value investment? I sum up the three principles of value investment: intrinsic value, margin of safety and market fluctuation.

A few months before his death, Graham said, "if I have found anything in my 60 years of experience in Wall Street, no one has ever been able to predict the volatility of the stock market successfully."

It is elusive, but value investors can use market volatility to buy chips at a low price.

Pricing is the core of financial market work.

The intrinsic value of an asset is only known by God, but the closest is the winner.

The intrinsic value of an asset is an estimate, not an exact value.

It is better to be vague and correct than to make precise mistakes.

When determining the reasonable level of market valuation, we do not need to calculate accurately. We need to make a simple comparison to get the market valuation to the bottom.

Buffett's teacher and Wall Street Godfather Graham once said, "I boldly turn the secret of successful investment into four words' motto: margin of safety."

The margin of safety is not guaranteed to avoid loss, but it can ensure that the opportunity to gain more than the opportunity to lose.

The margin of safety is contrary to the traditional concept of "investment in wealth and insurance".

In the stock market, the leftovers survive.

If you want to win in a long-distance race, you must not take risks.

In every investment decision or investment activity, we hope that the risk will be minimal and we hope that the profit will be maximized.