100-Day Reading Sharing Plan - Day 1

"Long-Term Investment" - Parames

1. In 1990, while reading Lynch's new book, he had his first epiphany: investment should be based on value investing.

2. In 2000, he had his second epiphany: the way the economy operates is centered on human behavior, and investment is also part of the economy.

3. In 2005, he had his third epiphany: investment should be based on high-quality companies, appropriately balancing high quality and low valuation.

Simply put, long-term investment should have three centers.

First, in the long run, the economy is centered on enterprises. Stocks representing corporate equity appreciate the most over the long term, so our investment should focus on stocks, supplemented by bonds. They are respectively referred to as representatives of physical assets and monetary assets.

Second, in the long run, listed companies are centered on high-quality enterprises. High quality refers to having a long-term sustainable competitive advantage. Stocks of high-quality companies appreciate the most over the long term, so our long-term investment should focus on high-quality excellent companies.

Third, in the long run, the stock market is centered on the intrinsic value of companies. Undervalued companies appreciate more over the long term, so our long-term investment should focus on value. However, buying at a low price does not mean the stock price will rise soon. We need the patience of long-term investment, waiting for the market to return to rationality and value. That is, to return to the subjective value long recognized by the market group.

Take myself as an example. I once bought $Taiwan Semiconductor(TSM.US) at 200, but cut losses at 140; bought $NVIDIA(NVDA.US) at 120 and cut losses at 100. I did not wait for the value to return and was even more fearful when others were fearful. I did not stay rational and wait for the stock price of the good companies I bought to return.

In contrast, big players like Value Brother entered the market to buy the dip in April, not only erasing losses but also making huge profits.

Today's sharing keywords: high-quality companies, low valuation, value investing, patience, value return

Current holdings: $Amazon(AMZN.US)$NVIDIA(NVDA.US)$Taiwan Semiconductor(TSM.US)$Cleveland Cliffs(CLF.US)$Rocket Lab(RKLB.US)$Alphabet - C(GOOG.US)$Unitedhealth(UNH.US)