Wang Xianchun’s Dialogue with Entrepreneurs 13: Jiawei Shenzhen, Guangdong
Ningbo and Yongkang are cities where industry and commerce are developed and entrepreneurs gather together, so we invite several entrepreneurs to share their stories about value investment.Wang Xianchun: Jia Wei, your family doesn’t know value investment, so how did you get to know value investment?Jiawei, Shenzhen, Guangdong: My family understands value investing but does not know how to apply it to the stock market.I came into contact with value investment at the beginning of 2018. At that time, a friend introduced me to follow some big VS on Weibo. I was learning and observing different people at that time.In the stock market crash, BIG V was silent, or forwarded worthless content, only Teacher Dong continued to spread the concept of value investment.This is also something that I have been grateful to Teacher Dong’s team. If they had not insisted on releasing these contents in the downturn at the beginning, I think I might have been absent and quit the stock market.From the experience of Buffett, Munger and other investment masters, I see hope and have been patiently waiting for returns.At the same time, I also have a better understanding of Teacher Dong’s experience in Maotai, and deeply experience the human nature of the game is not easy.Fajitai-wang Xianchun: Have you ever invested in value investing before?What do you think of value investing?Jiawei, Shenzhen, Guangdong: No.Value investing, as the name suggests, is about understanding value before investing.Everyone’s understanding of value is different, and everyone’s ability circle is also different, and the final choice is not the same.In my eyes, value investment should not be a venture investment. The enterprises I invest in should not have the risk of bankruptcy or destruction. I choose excellent evergreen enterprises in terms of priority and pay little attention to the ability of management.Choosing the ship comes second to choosing the captain.This is the understanding at the enterprise level. The second is valuation, how much the enterprise will be worth in the future, which is also one of the core propositions in value investing.The two legs of value investing are an understanding of the fundamentals of the business, plus an understanding of how valuations change.In addition, I learned the human nature game from Teacher Dong, and I think the value investment theory is relatively perfect.Fjitai – Wang Xianchun: How to look at value investment from the perspective of industry?What about bank investments?Look at track stocks?Guangdong Shenzhen Jiawei: businessmen pay attention to a penny a point goods, the second is to shop around three, see which cost-effective, the seller basically no premium.At present, banks have high cost performance and long-term growth. Under the favorable conditions of annual M2 growth rate of more than 10%, banks are high-quality assets. Meanwhile, the historical valuation is at a historical low, and good investments are sold at the worst time.Track stocks have very low cost performance, they used to be relatively reasonable valuation, but now it is the end of the day, there is no momentum in the past few years, the market has overdrawn their future gains in advance, it will take quite a long time to digest the bubble.I don’t see the rationality of people who invest in track stocks. They even lose the common sense of shopping around and just shout up blindly, and then shout some fundamental understanding that the public knows. This is no longer investment.Fjitai-wang Xianchun: In the past few years of holding the bank, people around you do not believe in the investment opportunities of the bank, and even criticize Mr. Dong?Will it affect you?Jiawei, Shenzhen, Guangdong: First of all, I am very grateful to others for asking questions, they promote my thinking, some questions I could not think of, this greatly improved my efficiency of illiteracy, people are afraid of ignorance, thank them for helping me.Others are not optimistic about banks, and I want to know the reason. If the bearish reason is valid, it will be of great help to me. But unfortunately, what I feel more is irrational fear or prejudice caused by dissatisfaction with the stock price.I also welcome criticism of Teacher Dong, pointing out the loophole in his investment logic, but if it is just simple insult, I will go in one ear and out the other ear, sorry, ha ha.Fajitai-wang Xianchun: During the investment process of the bank in recent years, have you ever thought of giving up?What is the New Year’s view on the future of investment in banks?Guangdong Shenzhen Jiawei: I invest in banking stocks is logical, when there is no problem with the big logic, I will not give up, other irrelevant details I directly ignore.The bank will be better in the New Year. I suggest you to read Teacher Dong’s analysis of banks in 2018 and 2019. In 2018, the bank talked about its past life, and in 2019, the bank talked about its present life and future development.Aside from a lacklustre share price, fundamentals are recovering strongly.Fujitai – Wang Xianchun: The bank valuation has not been repaired, your bank investment income has not been realized, but why are you more and more determined and optimistic about Teacher Dong?Guangdong Shenzhen Jiawei: Mr. Dong’s logic is right, I firmly optimistic.Teacher Dong has been tireless analysis of banks, human nature, investment and so on, this spirit is worth learning!I am a lazy person, always want to be a salt fish, lie flat, gain for nothing, but Teacher Dong 365 days thinking about investment, this I admire very much!Fajitai-wang Xianchun: In these years of contact with Teacher Dong and value investment, do you have any changes in your thoughts and attitude towards life?Jiawei, Shenzhen, Guangdong: There have been great changes.Besides making stocks, I have no goal in life, the only goal is to make money, but I do not know where to start all the time. I have seen a lot of investment projects, but I have not moved, and I can not see what return, and how much money to invest is very clear.Before 2018, it was a day of monk, bell ringing, dawdling.My family is not satisfied with me, they said: the family is not without money to support you to do business, you do nothing all day is not good!I thought I’d spend my life collecting rent and waiting to die.Although I will not make money, but I am not willing to invest freely, waste their hard-earned money.After learning value investing, my favorite word is certainty, my favorite quote from Graham, looking at investing from a timeless perspective.I am a person with no desire to consume, save as much as possible, but I have no weakness to buy stocks, soon full of money, also like the feeling of bottom fishing.The value investment system gives me a lot of pleasure.At the same time, investing in stocks requires lifelong learning. There is no such thing as a one-size-fits-all, which is interesting.Value investing has turned me from a salt fish person into a positive person, which is a bonus.As a representative of the post-90s generation, what advice or words would you like to give to investors of your age?Jia Wei, Shenzhen, Guangdong: Young people should do what they want to do, do not be timid, everything has some gains and losses, can learn lessons and experience is very good, a lot of truth can not only teach us the stock, the reality is also a lot of inspiration.Fujitai – Wang Xianchun: What is your pursuit and purpose in investment?Shenzhen Jiawei: expand my knowledge, make good teachers and good friends, spread my positive energy and investment ideas to go out.