Not long ago, a fan strongly fought back on my point of view. The comments are as follows:
I not only have to meet his requirements, but also write a special article for his point of view. There are two main points in his objections:
1 He believes that wave theory and Gann theory are good books, not bad books.
He is likely to be a novice who has just entered the stock market and is likely to be a student. I feel that contemporary college students prefer Zhihu . For stock novice and amateur investors, "Wave Theory" and "Gann Theory" are both treasure books. From the perspective of our decades-old investment veterans like us, these books are rubbish. And that , is also nonsense.
In fact, no one in the world relies on waves to make money, and no one uses the mysterious numbers of Gann Sifang Diagram to achieve financial freedom. Elliot, the founder of "Wave Theory", ended up dying from poverty. Several of his subsequent masters who used wave theory to predict market conditions were eventually ruined. Gann's legacy after his death shows that he earned much less than people expected in his lifetime. His son said Gann didn't make much money in his investment.
2 He believes that traditional cultures such as the Tao Te Ching have little significance for stock investment.
He believes that things like "Tao Te Ching", "Analects of Confucius", "Buddhist scriptures" have little to do with investment, and are even just chicken soup sentences used by the author to write articles to make up for their numbers, and have no important role in investment. He used Livermore , Peter Lynch , Buffett but did not understand Confucianism, Buddhism and Taoism but he was able to achieve great success in investment, which shows that it doesn’t matter whether he understands the traditional culture of the "Tao Te Ching" in stock investment.
I understand very well why he has such an idea. A person can only understand the articles he can understand. His investment experience is too shallow, and it is impossible to truly understand the relationship between traditional philosophy such as the Tao Te Ching and investment.
Livermore, Peter Lynch, and Buffett have never read the works of Confucianism, Buddhism and Taoism, which does not mean that these works are not of great help to investment. It is not the same as the principles they adhere to in their investment have nothing to do with Confucianism, Buddhism and Taoism. On the contrary, the investment philosophy that real investors uphold is mostly in line with traditional cultures like the Tao Te Ching.
Especially value investment masters, their investment philosophy is like completely copying traditional cultures such as the Tao Te Ching and the Analects of Confucius. There are many people who may not believe it. Why is this happening?
When I entered the stock market for more than ten years and my investment level reached a certain level, I was surprised to find that is simply the lamp of wisdom for stock investment! Many investment problems that were not clear before were solved immediately after reading the Tao Te Ching. The main reason for
is that value investors all believe in conservative philosophy.
The higher the level of a value investor, the more conservative he may be in investment. When my investment level reaches a certain level, I become a conservative in investment. At this time, I saw a book with a distinctly conservative philosophy, which of course would be very in line with my appetite. After reading the works of Confucianism, Buddhism and Taoism, I will implement my conservative investment philosophy more firmly in my future investment.
Most investors who have been successful for a long time are more conservative in their investments. Livermore, mentioned above, said regretfully in his later years: "If I could strictly abide by fund management and only put out half of the funds to invest, my current situation would be much better." This is the consequence of his excessive radical investment in his later years. Fortunately, he did a conservative thing in middle age, which was to use part of the investment income to buy insurance. This made him have no worries about food and clothing in his later years.
World investment master Peter Lynch has bought thousands of stocks, which is also a manifestation of conservative investment.This is of course to diversify risks, and at the same time, there is a greater opportunity to capture bull stocks.
As for world investment masters Buffett and Munger, they have implemented conservative philosophy to their homes. You can take a look at the remarks of Buffett's usual speeches, which are simply the manifesto of conservatives:
1 If there is nothing worth doing, don't do anything!
2 Be vigilant when others are greedy, and be greedy when others are vigilant.
3 Investors don’t need to do many things right. It’s important to avoid making major mistakes
4 The reason why we have achieved our current achievements is because we care about finding the one-foot obstacles that we can overcome, rather than having the ability to fly over seven feet.
5 The first principle of investing in stocks: Don’t lose money.
6 What we know is that we don’t know.
7 If you can't control yourself, you will sooner or later be in trouble.
8 The market is like a big casino. Everyone is drinking and you insist on drinking Coke, it will be fine.
and other countless remarks exuding a strong sense of conservatism.
World Investment Master Munger 's behavior is simply the American version of " Confucius ", and he often uses some Confucius' words to comment on investment and some contemporary celebrities. I won't introduce it here.
stock investment is a high-risk activity. After experiencing risks, real investment masters gradually become very conservative in investment. They will gradually establish a conservative investment philosophy as a guideline and principle in their investment. This is the way for successful investors to establish themselves. Buffett's teacher Graham 's investment method advocated is very conservative, and its essence is a combination of dozens of stocks and bonds. Moreover, he spent a lot of space on his book " Smart Investor " to talk about "what should not be done". This book is extremely conservative in its investment methods. Instead of calling it a book that makes money by investing, it is better to call it a book that talks about "how to invest without losing money".
What is the largest fund in the world? It is an index fund. A large number of institutions around the world buy passive index funds and adopt this simplest and most conservative investment strategy.
In contrast, most of those investing individuals and institutions that are very radical in investment have died halfway through investment because they do not know how to abide by conservative principles. I won't give examples here.
Most traditional cultures led by the Tao Te Ching are full of strong conservative ideas. For example, a large number of words such as knowing to stop will not be in danger, resigning after success, being cautious as the beginning, not knowing what to do, all exuding conservative philosophical thoughts.
Although world investment masters like Buffett have never read the "Tao Te Ching", they have realized the importance of conservatism to investment over the years of investment. They practice conservative philosophy in investment, as the saying goes, they will be together.
Therefore, when a person like me who has reached a certain level of investment, after seeing books like "Tao Te Ching", he will certainly be amazed and then learn and think deeply. Those investment novices regard the Tao Te Ching as the poisonous chicken soup for investment. As the book "Tao Te Ching" says:
When the superior man hears the truth, he practices it diligently; when the middle man hears the truth, he feels as if he is alive or dead; when the inferior man hears the truth, he laughs it out loud.
