Does Buffett's method work in China?

Especially in China, two-thirds of the 6,543.8+billion investors are trading stocks according to various stock reviews and news reports. What they pursue is "no loss, less money". It is really difficult for these people to really practice Buffett's value investment philosophy. There are two reasons why people suspect that Buffett's tactics will not work in China: First, the China stock market is immature and irregular; Second, Buffett's investment philosophy is easier said than done. In fact, these two reasons are simply untenable. First of all, the China stock market is immature and irregular. It can be said that the more immature and irregular the stock market is, the more effective Buffett's value investment concept will be. In a mature and standardized stock market, the fundamentals of listed companies have a high degree of integration with stock prices. Even if you don't care much about fundamentals, you just regard stocks as trading varieties, and you may end up losing only commissions, because these stocks themselves are worth the price; On the contrary, in the immature and irregular stock market, the stock price deviates from the fundamentals too much. If we don't pay attention to its intrinsic value, it is too risky to only grasp shadow investment. Moreover, Buffett's investment philosophy is easier said than done. There are objective reasons, but mainly subjective reasons. The objective reason is that the China stock market lacks two important elements of Buffett's value investment: first, valuation; The second is the sustainability of the profit model. The subjective factor is that most investors have not really grasped and applied Buffett's investment essence. There is a joke that when the bride learns to cook and cuts onions and tears, she calls her mother for advice. Mom said, just cut it in the water. After a while, the bride called again and said, now that she and the onion are soaked in the bathtub, how to cut them next? Hehe, if investors learn Buffett's investment philosophy like this, nine times out of ten they will fail. Buffett's value investment concept is universally applicable, and China is no exception, which can be confirmed by his success in investing in stocks all over the world. What is the essence of Buffett's investment? 1994 in his speech at the new york Securities Analysts Association, he said, "I think there are three basic concepts. If these concepts are firmly rooted in your thinking frame, I can't imagine that you can't get good returns in the stock market. None of these concepts is complicated, and none of them needs mathematical talent or similar talent: ① You must regard stocks as a business; 2 treat the fluctuation of the market as your friend, not your enemy, and profit from the stupidity of the market, not participate in it; The most important thing about investment is the margin of safety. " It can be said that these three points are the core of Buffett's investment method. When he heard that value investment was very popular in China, he told China Investor: "The essence of investment, whether it is a company or a stock, depends on the company itself, on the company's development in the next five or ten years, on how much you know about the company's business, and on whether the management likes and trusts it. If the stock price is right, you will hold it. " Buffett has always believed that stock investment should choose a good company and buy it when the price is reasonable. So he never bought those hot stocks whose share prices rose too fast, but concentrated on mining those stocks that rose steadily. In his eyes, hot stocks must be overvalued. In contrast, investors in China like buying active stock very much, which will not only make them Buffett, but also learn nothing from him. Without value investment, even if you earn 8 times 10 times a year, you can't be Buffett, because such performance must be supported by supermarkets, and such money comes and goes quickly. Just like gambling, it is not unusual for you to win more money, because if you win, you lose. You know, Buffett has long been away from this big bull market. Starting from Buffett's value investment concept, combined with the reality of China stock market, this book quotes Buffett's original words as much as possible to explain his core ideas, investment skills and theoretical essence. Admittedly, this book does not think Buffett is right, nor does it guarantee that he can be invincible in the stock market by using his investment philosophy. As we all know, many state-owned enterprises in China stock market rely on policies to make profits, and many private enterprises will soon get into trouble if they leave a founder, which is also a headache and taboo for Buffett. But at least, a good understanding and accurate grasp of Buffett's investment nature will help you look at investment with a rational eye.