Although Buffett's investment philosophy has many followers around the world, what is the essence of "value investment" that he has been emphasizing? As a fan, do you have a deep understanding of the significance of value investment?

"when I am ready to buy a stock, I will consider the situation of the whole company to decide whether to buy it or not. It's like shopping along the street, looking at the products of the whole mall before deciding whether to buy it or not. Warren Buffett (Warren Buffett)

Perhaps Buffett has already expounded the concept of value investment in this paragraph: as far as a single stock is concerned, a comprehensive judgment of value from the development of the company as a whole; as far as the investment market is concerned, understand all the products in the market to identify products with more valuable investment space.

Buffett once talked about life and success in an interview with the media. By carefully reading his suggestions, you will be pleasantly surprised to find that these suggestions are also in line with Buffett's value investment philosophy! Maybe value investment contains more true meaning of life? Then please follow the editor to interpret "conjecture":

Life advice

"the most important thing is who you want to get in touch with and with people who are better than you. Imitating someone is your best choice. figure out who you want to imitate. Although you can't choose where you come from, you can choose who you are, who you worship, and who you want to be. For many people, choosing a spouse, business partner and partner is also a very important thing in life. "

Real success.

"if you are 70 or older and the person you love loves you, then you are successful. I know a lot of rich people, but few people love them, and children think they are out of reach. "

The true meaning of life 1: stock selection to choose the best value, to be a person to create a different value!

Buffett has always been very different, because before his status as "investor", he was also a "businessman".

In 1967, Buffett owned the textile company Berkshire Hathaway, and he used the company's money to buy small property and insurance companies. This is the first difference between Buffett and most investors. Buffett dares to step out of the industry and learn about investing in completely different types of industries, such as property insurance and insurance.

When Buffett saw the potential opportunity and decisively implemented his decision, he bought half of the insurer GEICO in the 1970s and bought the whole company in 1994.

The true meaning of life 2: a person's ability is limited, choose excellent people to cooperate with!

When it comes to the company that Ba Shen bought, after he bought the whole company, he did not change the management and limited his complete control. He would ask the management about his ability and introduce more funds to pursue better interests for the whole company.

This is the second thing that distinguishes Buffett from ordinary investors. Buffett analyzes the cash flow from investments and buys some shares or the whole company when the company has a good prospect of free cash flow.

True meaning of life 3: eggs can be put in different baskets, but always pay attention to the most important eggs!

Some people commented that Buffett will not use beta value to assess market risk (from the modern value investment theory MPT). Instead, he only invests in high-quality stocks, and his strategy cannot be replicated by ordinary people: because it requires investors to have enough money.

In fact, the editor believes that on the one hand, it is the difference between "long-term investment" and "short-term investment", and on the other hand, it is also the difference between "diversified investment" and "important investment".

Perhaps we can interpret this to mean that when investing, eggs do not have to be put in different baskets, but which basket of the most important eggs requires our close attention!

The true meaning of life 4: do not pay attention to form, but to pursue their own heart!

Buffett doesn't care much about the form of investment, focusing on many types of investment: "stocks are good, but convertible special shares are better." Convertible bonds are also good. Credit default swaps (CDS) can only be built if I can build them myself, just like put options. Private equity is OK, but I will first look for private equity niches that focus on my own corporate culture. "

Therefore, when talking about life, he will think that imitating the object you worship is also a way to become an excellent person. In short, the form is nothingness, and it is more important to pursue one's own heart.

The true meaning of life 5: patiently pay attention to the opportunity, waiting for the opportunity!

"A lot of people don't realize that what they need to do is invest in the United States, follow my advice, or read newspapers," Buffett said in an interview with the media. They think they should trade when they can, but it is unwise to trade right away, and it is not a smart way to invest. "

When you think about it, this is not only the case with investment, but also with all the major decisions in life. Hasty decisions and actions can not help us, what we need to do is to wait patiently until the best opportunity arises, waiting for the opportunity!

True meaning of life 6: cultivate concentration through reading and thinking!

In Buffett's investment strategy: killing busyness and focusing on a few high-quality jobs, we mentioned that Buffett has been following the five-hour rule, spending 80% of his time reading and thinking. That's why he believes that success also includes a caring relationship between family and loved ones: success is simple, and the person you love will still love you when you get old.

So parents who spend all their time on "busy chores" to make their unaccompanied children feel that they are too late, we have to rethink whether to focus on a small amount of high-quality work is a better choice.