Some thoughts on value investing.

I wanted to tell a joke earlier.

 NASA has an old joke that goes like this: In the early days of the space program, NASA found that ballpoint pens couldn't write in zero gravity. Scientists have spent ten years and money developing a pen that can write in zero gravity, on any surface, at low temperatures, and in any pose of an astronaut. But Russia on the other end did it with just a pencil!

Why do I remember this joke, because I remember the story mentioned in the book "Charlie Munger's Principles".

The father of value investing "Benjamin Graham" invented a set of extremely simple investment methods . The key to him is simplicity. In the above story we can see that people actually like to set the situation and complicate it. But this is not required in value investing.

 Warren Buffett said: Investing is easy, but not easy.

I agree with what he said, the truth of investing is simple but it is hard not to make mistakes.

 If something is too difficult, we do something else. What could be simpler than this? - Charlie Munger, Berkshire Hathaway Annual Meeting, 2006 

Value investing may be too simple, because what he is talking about is to try not to make mistakes, to focus on the areas that he can understand, and to discover your growth stocks and potential stocks!

I won't discuss too much about the technical aspects here, but I will discuss that value investing is all about waiting for mispriced assets to appear, not predicting the future.

To discuss this one can quote a story told by Benjamin Graham:

 An oil speculator was recruited into heaven by God, but St. Peter stopped him and gave him bad news. St. Peter said: You are entitled to live here, but now the area where the oil-fueled people flow out is full. Can't get in you. After thinking about it, the oil speculator asked St. Peter if he could have something to say to the residents here? St. Peter allowed. Then the oil speculator shouted: Hell has found oil! Suddenly all the oil speculators rushed straight to hell. So St. Peter invited the oil speculator to move in. But he stopped and said: No, I think I should go and see, after all, the rumors may have real elements.

From the above story, you will find that people are prone to herd behavior, so value investing focuses on value rather than price. You will not buy a company's stock because it is cheap or expensive, but will buy according to value. . Of course, finding a good company is one of our most important aspects.

How to identify the quality of opinion consensus is actually the easiest way to find out from the most basic analysis.

• Will a company be replaced in the future?
• Is a company profitable?
• Can the profit continue?

These questions are simple but vary by individual analysis but the fundamentals do not change.

The above are just some of my thoughts. I hope that the majority of netizens will not spray too much, thank you.