Feng Shineng, former editor-in-chief of Nanyang Business Daily of Malaysia, with 30 years of investment experience, has obtained financial freedom in investment almost entirely on personal strength, and is regarded as the "god of Malaysian stocks". This article is an excerpt from Mr. Feng's compilation of articles in Nanyang Business Daily over the past 30 years.

1. Guessing the stock market is like catching Monopterus Albus

"will the stock market still rise? "this is the question I am most often asked. My answer is always "I don't know".

I know that interrogators will be disappointed and even complain in their hearts. They thought I was selfish and knew it, but they refused to share my experience in predicting the movements of the stock market with them.

In fact, "I don't know" is my most honest and sincere answer. I really don't know what the stock market will be like tomorrow, next month or next year, and I don't think anyone has the ability to do so. If I really knew, I would be happy to share it with you, just as I am happy to share my fundamental investment experience with you.

Countless people, painstaking efforts to "invent" new ways to predict the market, none of them can stand the test of time. I don't waste any more time guessing about the stock market.

First, it is because the stock market is fundamentally unpredictable. Second, there is no need to predict the stock market to make money by investing in stocks.

The stock market is like a ricefield eel, so slippery that you can't catch it at all. An old classmate who used to be a fishmonger told me the secret of catching ricefield eel.

He said, "Monopterus Albus can only be 'supported', not 'scratched' because it is soft but not hard. "Don't squeeze it hard, otherwise, it will feel uncomfortable, it will struggle, and no matter how hard you try, it will slip out of your hand. Catch ricefield eel, tight as loose, fast as slow, just as soft, skillful as clumsy.

The same is true of the stock market, you keep an eye on it too closely, trying to predict its trend, it must be against you. Many investors tried every means to "catch" the ups and downs of the stock market, but in vain, just like grabbing the rice field eel hard, they never caught it.

The best way is to stay away from the stock market and pay less attention to its fluctuations.Focusing on the company's performance makes it easier to "tame" the stock market.。

It is like lifting it gently, but it is more able to "subdue" the ricefield eel. The volatility of the stock market, like the constant peristalsis of Monopterus Albus, is normal, and we don't have to worry about it. Adopt a reverse strategy and buy good stocks at a low price. As long as the company's performance continues to rise, it will not be sold. Ignore the short-term fluctuations in the stock market and don't worry that your stock will not rise, because as the company makes more and more money, the stock price is bound to rise at the same time.

What does the stock market have to me? This is the right way to invest.

2. Lock in five-star stocks

One investor put a large sum of money into the stock market, and recently calculated the value of the stock on hand, and unexpectedly he only broke even. He wasted not only precious resources, but also more than 20 years of precious years.

It turns out that he likes to hear through the grapevine, likes to follow the trend and snatches up high prices, while eight out of ten or nine of the stocks he buys are junk stocks. Buying bad stocks at high prices is fatal. Buying bad stocks at high prices is his fatal wound.

Fortunately, in his portfolio, there are still 10 or 20 cents of high-quality stocks. Over the past 20 years, these high-quality stocks have increased by 10 to 20 times, and the profits have just offset the losses of bad stocks, so that he can still break even. When he recently reviewed his 20-year record to me, he sighed with regret: "if I had given up speculation and invested in only five-star stocks, my fortune would have increased tenfold so far." "more importantly," he said, "my spirit has been tormented by the stock market turmoil over the past 20 years, and I am often worried. It is really a nightmare. "

The less the stock market gains, the harder you work in other industries, the more you gain. Investing in stocks is just the opposite. the harder you work, the more you do, and the less you get when you keep rushing in and out of the stock market. Instead, the ones who gain the most are the long-term investors who remain motionless after buying good stocks. This is the secret of Kuok Hock Nien, Dansley Zheng Hongbiao and Dansley Li Shenjing on the Malaysia Rich list.

Stock investment, as long as it does not make serious mistakes, long-term investment can basically get a return that exceeds time deposits. The best way to reduce mistakes is to set an investment rule for yourself: buy only five-star stocks.

The so-called "five-star stock" is:

First, with excellent management, do not buy companies with flawed management; second, have a growing business; third, have a stable profit history; fourth, be financially sound; and fifth, produce products that are always in demand and take the world as the market.

Five-star stocks are like trees with deep roots, even if they are dry, they will not die. When spring comes, they are like blossoms and fruits.

3. If you don't understand, you won't buy it.

There are many reasons why retail investors hate battlefield, one of which is "ignorance". "ignorance" means not understanding and misunderstanding. Most stock investors are just passers-by in the stock market. For them, the stock market is a hotel, staying for a few days and then leaving.

Because they lack the correct investment concept, it is naturally difficult to find a foothold in the stock market, because they can not stand on their feet, just like rootless trees can not withstand the storm. You have to do your homework when investing in stocks. Having a correct understanding of stocks is just the beginning. Next, you must do a lot of homework to understand the investment environment and investment targets. The more you know, the more you earn.

What causes it? Because the success or failure of stock investment has something to do with your confidence in the stock you buy. If you have confidence, you will have the courage to buy a lot of shares in a company. Long-term fishing big fish, have confidence, you will put long-term, catch big fish-- make long-term investment. It is only possible to make a lot of money from long-term investment. Dansley Li Shenjing never sells IOI shares.

Dansley Li Laisheng's family not only does not sell, but also continues to increase their holdings in  Dujia Bay and Jiadong. Dansley Zheng Hongbiao never sold his stake in Volkswagen Bank. Dansley sycamore clings to the top of the cloud for a long time. They own shares in these companies for decades, every day. After decades of complex growth, the 10, 10 million ringgit invested is now worth 5 million, 000 ringgit.

If you want to hold a stock for a long time, you must have absolute confidence in the company concerned. Confidence must be based on understanding. The deeper the understanding, the stronger the confidence. The more confident you are, the less likely it is to sell off your good shares. Only by holding it for a long time can we enjoy the huge profits brought by the growth of compound interest. That's why Buffett said, "the more you know, the more you earn." If you know something, buy it for long-term investment, and if you buy non-good stocks, long-term investment is futile and futile. Long-term investment must be understood first.

If you don't understand, you won't buy it!

4. Why is there no speculation in good stocks?

The most common mistake made by retail investors is to engage in haste. As soon as I heard the "news", I had no time to think and attacked immediately. For fear of missing out on an once-in-a-lifetime opportunity to make money, he couldn't wait to pour his capital into a stock, hoping to make a big profit if he hit it.

Retail investors have never thought that those who are favored by speculators are all inferior stocks. Speculators are not interested in blue chips, but they are not interested in blue chips. Before speculation, most speculators will get the cooperation of major shareholders. Major shareholders of blue chips are usually reluctant to work with them. The major shareholders of blue chip stocks never speculate on their own stocks.

Because the major shareholders of blue chip stocks are decent businessmen, they will not speculate on their stocks. No matter how high the share price rises, they will not sell off their shares so as not to lose control. This is their business, how can it be sold out easily? Since it will not be sold off, why speculate on the stock price? And as long as the performance continues to rise, the stock price is bound to follow, why speculate?

Everyone has a motive to do something. Since he speculates high stock prices and will not sell off his shares, it will not do him any good. Why should he do so?. And why cooperate with speculators?

Therefore, no one speculates in good stocks, because it is not necessary.

Most of the people fired are bad stocks. The major shareholders of inferior stocks are not sure to increase their shares (tickets) by improving their performance, so they have to make a profit by "speculation". High-fired stocks, after falling back to the original low level, often never recover and can never recover to their peak price. Speculators will not fry the second round. If the same old trick is repeated and there is another round of speculation, all retail investors who are trapped in the first round will take the opportunity to escape, and those who are trapped may be speculators at that time.

Speculators will not create opportunities for retail investors to escape. Worthless stocks are speculated high, like bubbles blown out of soapy water. Bubbles are brightly colored in the sun, but, as the Heart Sutra says, "color is empty, emptiness is color". Behind the color, there is nothing.

5. Shadow movement of flowers on the moon

When Haoyue rose to the middle of the sky, the flower shadow and the tree roots hugged together, inextricably separated. This is the "Moon moving Flower Shadow". The shadow will be engulfed by darkness. However, as long as the moon on behalf of the company's performance exists, the shadow of the stock price will not disappear. Not only will it not disappear, but it will certainly follow the moon. The moon and flower shadow go hand in hand, stock price and performance go hand in hand. No external or artificial effort can disconnect the stock price from the profit. Even if it runs in the opposite direction in the short term, it is bound to merge into one and advance and retreat at the same pace.

"the cloud breaks the moon to make the flower shadow", the wind and the cloud, all may mess up the flower shadow, causes the flower shadow to change shape, in fact, cannot change the flower shadow to move with the moon track. Instead of spending energy guessing stock price movements, retail investors should devote their energy to the research of the company. As long as you can find companies with rising profits, buy their shares at a reasonable price and hold them for a long time, your "wealth" will naturally grow with each passing day.

This kind of investment method makes you feel at ease physically and mentally, and helps to prolong your life. Why do you need to look everywhere for "tips", listen to rumors, and rush in and out of the stock market? If you get yourself worried and restless at home, you may lose your life. Why bother to come?

6. The clever trick of "bear slowly and steadily"

For stock investment to be successful, "fast" is not as good as "slow", "ruthless" is not as good as "stable", and "accurate" is not as good as "enduring". It is better to be slow, steady and patient than to be fast and accurate. When you are most impulsive, stopping for a moment and slowing down a step can bring you back to your senses and reduce your mistakes. There are mistakes in "busy" and fewer in "slow". Many people are afraid that they will be slow and lose investment opportunities.

In fact, it's just the opposite, because when the stock market hits rock bottom, it is bound to linger in the low-price area for a long time. You have enough time to choose fat and eat it, and you don't have to worry about not being able to buy it at all. To make money, we must first learn not to lose money. To fight steadily and step by step is a prerequisite for preventing losses. Act rashly, advance rashly, incur losses at the light, and die at the heaviest. A wise man does not do it. The ninja has a knife in his heart. If there is no extraordinary determination, it is difficult to bear. Stock investment, "tolerance" is not enough, few can achieve great success.

Patience is the mother of success. Before you buy, you can put up with what others can't stand before you can buy it in the low-price area. Before you sell, you can put up with what others can't stand before you can sell it in the high-priced area.

After buying, can bear to be patient, can hold for a long time to make a big profit. If you can't stand it, you can't wait to sell a little profit, and the income is limited. How can we be "rich"? The company takes time to develop, the business takes time to implement, the oil palm takes time to grow, and the plan takes time to complete, so patience is the mother of success. Being able to endure and endure is called "patience". Being unable to bear it is like picking fruit before it is ripe, which is green and difficult to swallow. Sweet fruit can only be tasted by ninjas.

Therefore, it is better to be slow than fast, to be ruthless than to be steady, and to be sure than to endure. "slow, steady and patient" seems clumsy, but it is wise.

7. Integration and integration

Stock investment is neither pure science nor pure art, but a mixture of science and art, and it can also be said to be between science and art.

Stock research covers two parts:

The first part: the discussion of theory.

The second part: the study of listed companies。

Taking time as the economy, we need to study the development history of individual companies, business as latitude, and we need to study the company's structure, industry characteristics, financial evolution, background and style of business management leaders, business philosophy, and so on. It is complicated, and it is by no means regarded as playing with tickets. with an amateur attitude, you can enter the house.

The theory of stock investment which is very personal and suitable for A may not be applicable to B. If there is a theory that can be applied to everyone, then everyone can become Buffett second as long as they copy Buffett's investment philosophy. The fact is: there are at least a hundred books on Buffett, but there is no second Buffett in the world.

If you study the history of the most successful investors in the West, you will find that everyone has a different style and different investment methods, but they all go the same way and have outstanding achievements. Therefore, successful investors can learn from it, but if they want to invest successfully, they still have to develop their own strategies.

Like education, primary and secondary schools are basic education, reading everything, whether it is practical or not. In order to gain a lot of knowledge. Without Bo, there is no way to expand your horizons and become a frog in a well. The university specializes in a field that has been narrowed down, for example, liberal arts students do not have to study math. However, it still belongs to a more in-depth general education, which aims to seek its excellence. If you are not refined, you will be superficial. It is only when you have a master's degree or a doctor's degree that you are qualified to say "Tong". For a certain subject, you can follow your heart's wishes and do not exceed the rules.

If you don't get through, you will lag. Stock research from extensive to refined, from refined to proficient, non-long-term immersion, nothing to do. To be knowledgeable, proficient and knowledgeable, it needs to be done step by step, not quickly.

This is the truth that integration can only be achieved through the stage of "integration" of Bohe.

8. "Fast, ruthless, quasi" bankruptcy has your share.

"Fast, ruthless and accurate" is the highest state pursued by martial arts masters. The move is as fast as lightning, it is for "fast", a move to take life is for "ruthless", and a hit is for "accurate". What are the odds of winning if you apply these three tricks to stock investment?

Those who are "fast" buy and sell one step faster than others. You buy before others buy, the purchase price is lower than others, it is to "buy low". Before others sell, you sell first, the selling price is higher than others, is to "sell high".

In order to buy low and sell high, we must develop the habit of reverse thinking. 99% of the people in the stock market are "shun" people who follow the masses. "Shun min" are mostly people who dare to buy after others have bought them, and others are willing to sell only after they have sold them. It is not "buy low and sell high", but "buy high and sell low". How can we make money?

Everyone who participates in the stock market wants to be one step ahead of others. Do you have the conditions to be better than others? Therefore, it is easier to know than to do to make money by "fast". "ruthless" people, as soon as the opportunity arises, go all out, spend millions, never be soft, do not succeed, then become benevolent, is "ruthless" cool enough.

However, the stock market is a place that does not play cards according to reason. You think the stock market will rise, but it will fall sharply. You think a company has a bright future, but there will be a set of false accounts. If you are confident and desperate, bankruptcy is waiting for you.

If you are "accurate", you will guess again and again. The problem is that what happens in any corner of the earth can affect the stock market. You never know what will happen on the other side of the world. How can the prediction be "accurate"? Listed companies have a lot of inside stories, and retail investors, as outsiders, have the benefit of hindsight, so how can they accurately predict the performance of the company?

Since there are so many variables in predicting the stock market and companies, how can they be "accurate"? In the case of uncertainty, acting as fast as lightning, buying and selling boldly is tantamount to suicide.

Swordsmen are bound to die under the sword. If you want to be "fast, ruthless, and accurate" across the stock market, you are not afraid of 10,000, just in case. If you make a mistake, you will never turn around. Be careful, be careful!