Copied from tencent.com, authorized by Jinjia（金甲）， translated by Alex,ccjk.com
The very bullet for the very wolf, in right size, this is what we can learn from the 20 years’ old Chinese stock market.
You take an entire up and down as a cycle other than aimless couple of months or years, otherwise you are gambling.
Unluckily most of us are gambling nowadays, years before I once met a guy who would like to make a half-month “investment”. Everyone is trying to “win a lottery and lead a carefree life”.This is a way to hell. Even if you were lucky enough to avoid a slaughter, you may also lose everything you got.
– A bull knocked into the tree dizzily right after the inpatient farmer turned away, who had found a big hare which had run in the same tree and died.(- Chinese fable <守株待兔>)
What is the coolest bullet of Buffett?
Patience of holding the stock.
Patience of holding the money.
Patience of holding stock is known to all, however few would notice the latter.
If he had no patience of holding money, he would impossibly keep buying 1 dollar stock for 4 dimes.
And that’s the super ability, has a better eye for valuation and margin of safety as well as waiting for the opportunity, also he earned the name “Oracle of Omaha” for this.
We can say that there are more stocks valued 1 dollar and quoted 4 dimes in China than in American.
Because new market changes radically every couple of years.
These opportunities mean nothing if you do not hold cash.
And these opportunities are black swans, which may appear after a long-time wait.
The Chinese market remains how it was in western world several hundred years ago, individual investors who are so eager to gain profit make up the major power of the market, people around them even more urgent.
Flippancy everywhere and people become reckless gamblers.Price waves randomly on the screen applying to the situation.
– The very bullet for the very wolf, in right size, this is what we can learn from the 20 years’ old Chinese stock market.
– You take an entire up and down as a cycle other than aimless couple of months or years, otherwise you are gambling.
Unluckily most of us are gambling nowadays, years before I once met a guy who would like to make a half-month “investment”. Everyone is trying to “win a lottery and lead a carefree life”.
This is a way to hell. Even if you were lucky enough to avoid a slaughter, you may also lose everything you got and do the “inpatient farmer” thing.
– A bull knocked into the tree dizzily right after the inpatient farmer turned away, who had found a big hare which had run in the same tree and died.
The present stock market is staying at the starting bottom of an incoming super bull market, I can assure you even if you are trapped for your buying, you stocks still in the valuable zone.
But bottom area has levels, the fresh may not figure it out so easily.
Most of the investors, long-term or short-term, got involved with nearly the same money during last November.
Extreme moderates bought those stocks of largest amount at lowest price, no terrible drawdown, but a coin has heads and tail, they will hold the minimum increase in the coming bull market.Compared with 10-times or 20-times increased dark horses in the bull market, these stocks move like elephants.
Because many public and privately-offered funds quitted the game despondently during April and May, the market restarted a new section of “magic circle”.
People who hold money seesaw: am I supposed to get in if it goes on increasing?
People hold shares wonder: get out if it rebounds?
According to personal experience the sectional rebound will keep on for some time, and surely vibrates, because bull and bear both still alive and fight hardly.
But do remember the advice from your friend, Jinjia: bottom area has levels.