Q: The market has fallen so much recently, is it the end? A: Most of the market participants want to judge where the top and bottom of the market are. This is also a "holy grail" that almost all stock speculators want to pursue. But unfortunately, for the vast majority of people

Q: The market has fallen so much recently, is it the end?

A: Most of the market participants want to judge where the top and bottom of the market are. This is also a "holy grail" that almost all stock speculators want to pursue. But unfortunately, for the vast majority of people with such goals, it is invisible and invisible. Fortunately, when making investment decisions, we don’t have to rely on top and bottom judgments.

I think if my combination is cheap enough and implies a long-term high potential return rate, then the subsequent rise and fall will not be so important, which means that the bottom and top are not so important. Can you understand it by focusing on your own things, and can you accept its price? This is the most solid guarantee of long-term returns.

Q: The position in the third quarter report is even higher. What do you think?
A: position is not supported by our judgment that the market is about to bottom out. The position depends on the number of stocks we are willing to buy and the ratio of holdings of that each stock is willing to buy, and is not a top-down control target. So one situation is likely to occur, that is, when our stocks are getting cheaper and cheaper, if the long-term judgment of them does not change, we will gradually increase our positions on stocks .
is possible that our position has been increased to a very high, and the further decline in the market has led to further decline in our portfolio. In this case, you will first see the decline in our net value. If our long-term judgment of stocks has not changed while the net value falls, I can buy further.

Of course, I am highly optimistic about the market. However, this optimism is not based on a judgment on the rise and fall of the market in the future, but on a judgment on the long-term potential return rate of the combination. From various factors, we are all long-term optimists, which is necessary to explain.

Q: The net value has dropped a lot recently. What do you want to say to the holders?
A: Compared to the uncontrollable increase and fall of net value, my working status is more about focusing on my own combination and making appropriate corrections to the judgment of long-term value based on new information. Of course, we don't need to correct it in most cases.

I know that many friends have such an anxiety behind them. In the past few years, we have shown a relatively low fluctuation and low retracement. But I don't think I'll put this label on the head of a fund manager, because frankly speaking, controlling the drawdown is not the core goal of an excellent fund manager.

The definition of risk in my eyes is the possibility of permanent loss of principal, rather than fluctuations in the process. In the past, the fluctuations were relatively small, which depended on the performance of the market, on the safety margin we constructed in the process of stock selection, and on the fact that we did not deliberately form a moderate dispersion of the industry. This is not the purpose, but the result.

Everyone should realize that the short-term results of fund have nothing to do with our wishes. For a fund manager who does not aim at controlling the drawdown, it does not mean that his drawdown will definitely be large. Then, if you aim to control the retracement, it does not mean that your retracement will definitely be small, but may sacrifice your long-term returns.
But what is there another paradoxical inference? If a fund manager manages a product for a long enough time, his past maximum drawdown record must be used to break. In other words, if everyone stays with us for a long enough time, the maximum drawdown will almost certainly be broken, which is a probability issue.
But the scale of our hearts will always be there. At present, we believe that the long-term risk of the combination is not high and the potential for profit is not low. This is the state of peace of mind.

Fund manager promises to manage and use fund assets with the principles of honesty, trustworthiness, diligence and responsibility, but does not guarantee the fund's profits or the minimum return. Investment is risky, and the fund's past performance does not represent its future performance. The performance of other funds managed by the fund manager does not constitute a guarantee of the performance of this fund. Investors should carefully read the fund contract, prospectus and other legal documents of the fund when investing in the fund . The fund manager reminds investors of the principle of "buyer's own responsibility" in fund investment, and asks investors to choose fund products that suit them based on their own risk tolerance.