Recently, some people in the market have a full position to raise funds and have a heavy position in the big white horse, and they have put the blame on value investment, shouting about being cheated by value investment, lamenting that value investment will not lose money.
Value stocks rose well in the past few years, resulting in many speculators converting to value investment and following the trend and buying a lot of core assets. They thought that as long as they buy some recognized high-performance big white horses, the stock price would not fall sharply. Now it seems that they are disappointed, and big white horses are everywhere.
has diversified buying of a bunch of low PE and low PB stocks, and the market value will not drop sharply, and it will still not match the overall market drop.
Some people think that long-term holding will have good returns, but the result is that they lose more than before when they were in ultra-short term. Value is not only late, but also absent.
In fact, some of the views above also represent my views a few years ago. Value investing is based on the long-term effectiveness of not being effective every year. A good company does not mean that the stock price only rises and does not fall. The stock is a voting machine in the short term and a weighing machine in the long term. We must pay attention to the margin of safety, we can only use the pockets of Mr. Market, not the head. If we get trapped, it is not necessarily that we are wrong. Mr. Market is a lunatic. Any bizarre thing in the market may happen. What we need to do is handle our own affairs well and ensure that we can still live in this market when the bizarre thing happens.
