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一代“传奇”朱利安·罗伯逊的12条投资箴言

12 investment maxims of the legendary Julian Robertson

Qilehui ·  Dec 5 02:52

Source: Qilehui.

Introduction:

Robertson is a typical value investor. In his view, the essence of the hedge fund industry is to patiently search for those "undiscovered, with potential value realization" inexpensive companies, carefully study and heavily invest in them, and then wait for returns. Once Robertson is convinced that his judgment is correct, he will make a significant bet. Overall, Robertson's investment strategy is mainly based on value investment, and his investment philosophy is highly acclaimed by the public. Here are his 12 investment maxims.

With the new generation of "Tiger Cubs" fund managers creating "Little Tiger" and "Tiger Cub" hedge funds, Robertson is considered a pioneer in the hedge fund industry.

Robertson believes that making money in the stock market is not difficult. The main investment concept of this Wall Street genius is: "Avoid major losses while betting big when feeling right."

Overall, Robertson's investment strategy is primarily based on value investing, and his investment philosophy is widely admired. Here are his 12 investment maxims.

1. Inspiration strikes, conduct thorough research, and bet big

One of Robertson's colleagues once said that once he is convinced his judgment is correct, he will make a significant bet.

Robertson is a typical value investor. In his view, the essence of the hedge fund industry is to patiently search for those 'undiscovered, potentially valuable' inexpensive companies, carefully study and heavily invest in them, and then wait for returns.

2. Avoiding competition can increase the chance of success.

Robertson stated that the average outcome of each move by hedge funds determines the final profits. 'In a market with relatively weak competition, there is a greater opportunity to profit.'

Using baseball games as an example, it is easier to improve batting average in lower-level leagues compared to higher-level leagues because the competitors are not as strong. Robertson once said,

In a baseball game, you can hit 40 home runs in a Class A league team and never receive any rewards. But in a hedge fund, you earn based on your average success. So you should go to the 'worst' league you can find, stand out in low competition.

3. Long and short strategy

Robertson believes that the best practice for hedge funds from a risk hedging perspective is to take long and short positions in different stocks. He once said,

Our job is to find and invest in the best 50 companies in the world, while shorting the worst 50 companies in the world. If you find that the operational performance of these top 50 companies is not better than that of the bottom 50 companies, it means you may not be well suited for this job.

The key to long-term profitability lies in avoiding major losses.

Robertson believes that the key to long-term profitability of hedge funds is: how to outperform the market when the market performs poorly.

In addition to long-short strategies providing a certain hedging effect, there is another way to avoid major losses: take advantage of buying those clearly undervalued companies when the market conditions are not good.

Robertson points out that when looking for the right entry point in terms of price, investors may make mistakes, at this time the company's financial condition appears more reliable, "One thing is very important, safety is always better than regret."

Choose the appropriate companies to short sell.

Many hedge funds themselves do not hedge, however, Robertson is very fond of shorting heavily overvalued stocks. His view on short positions is:

In my shorting behavior, I will look for companies with poor management or short those severely overvalued companies in industries that are in a downward cycle or misunderstood by the market.

Become the sole decision maker.

Robertson has assigned many research and analysis tasks to other personnel, but the one making decisions is always him alone.

He believes that a good researcher may not necessarily be a good decision maker, and the real decision-maker needs excellent emotional control. Many times, investors' mistakes are not caused by analysis, but triggered by psychological fluctuations. He said:

Not many people have the ability to pull the trigger, and I am usually the one who pulls the trigger.

7. Avoid Gold

In Robertson's view, gold trading is often based on predicting human nature, which is not investing but speculation. He said:

I don't like investing in gold, because the logic of investing in gold, rather than analyzing the value of gold itself, is more about analyzing the psychology of those gold investors.

8. Wholehearted Involvement

Robertson previously said:

When you are managing funds, it may dominate your entire life, perhaps requiring you to dedicate 24 hours a day to it. Hedge funds are not an industry where lazy people can survive.

9. Accumulation and Outburst

Hedge funds are an industry built on reputation. Robertson said,

Hedge fund business is about nurturing success. Over time, the accumulated achievements will eventually help you succeed, that is our growth.

In addition, the Matthew effect of "the strong get stronger, the weak get weaker" means that only with stable profits, fund size will roll larger and form a virtuous cycle.

10. Having a clear self-awareness

Robertson believes that falling from a high point to a low point can make people realize themselves. The external praise and criticism are not that important, as it is ridiculous to let others' opinions affect your judgment. He said,

I remember once, I made it to the cover of "Business Week" and became "the greatest analyst in the world." However, three years later, I was severely criticized.

If you let the media's opinions influence your view of yourself or what you do, it is undoubtedly quite foolish. Trust me, these remarks are irrelevant, do not let idiots bring you down.

11. Know when to advance and retreat

Robertson stated that the market is always changing, strategies that worked in the past may lead to failure in the future. He believes:

Many successful investors understand the principle of exiting swiftly in rough waters. For example, in 1969, Buffett also mentioned in his investor letter that due to the lack of suitable opportunities, he decided to liquidate the fund.

12. Cultivate interests from a young age

Robertson once said:

I still remember the situation when I first heard about stocks at the age of six. At that time, my parents were traveling, and my aunt showed me a company named UnitedCorp. in the newspaper (United Airlines), which was listed on the NYSE with a price of about $1.25.

At that time, I realized that perhaps I could buy stocks by saving enough money, which gradually sparked my interest in investing.

If you want to cultivate a child's interest in investing, it's best to subtly instill some key ideas in them from a young age. Give them some real gold and silver, not too much, as only real experience is meaningful, the earlier they are exposed to a certain field, the greater the chances of future success.

Editor / jayden

The translation is provided by third-party software.


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