Fixed investment is a good method

These are wonderful times because we have the opportunity to participate in the investments of all the great companies.

However, many people lost money in the best investment era, and the vast majority still lost money. Why? Actually, there are two fundamental points. The first is that I can't be sure whether the company is good or bad. For example, many people invest in fairy stocks, and some people invest in companies that themselves have huge financial problems. This is at a level. The second point is that the investment method is actually incorrect. Many people enter and exit quickly, and many people are full of positions and leverage. These are all quite risky.

The content of the improvement corresponding to these two points is that we need to learn two kinds of knowledge. The first is how to select good stocks and good companies. The second is how to invest in this good company, how to avoid the peak of its stock price, and try to buy at a low point. These are just two questions.

This determines the success of our investment. Regarding the first question, all we need to do is do a survey and analyze the data. Surveys are the best survey method for consumers to look at their products, see their production, learn about their founders, learn about their suppliers, and learn about their sales situation. The best way to analyze data is to look at their financial reports, and also to look at their financial reports over the years. To see the historical data they have accumulated, this is quite critical.

Then there's the question of how to invest, that is, how to invest. The reason most people lose money is because they bought at a high point, right? The reason he made money then was because he succeeded in breaking through the bottom of the trough. If the first point is correct, in fact, this stock will definitely be upward for a long time, which means that if you buy it at any point in time, it has a probable margin of profit; it's just that we want to make more profit. Well, if we use a very short-term approach and buy at one point at a time, there is a high probability that it will experience a one-time decline. If we operate in a band, in the medium term, then buying and buying it many times will indeed increase the number of times we hit the point, but once we operate in the opposite direction, we may lose more than a one-time short-term operation, because it means that you may have diluted your previous profit by stepping on it many times. If you add leverage, then it is very likely that you will lose a large percentage of your principal within a short period of time.

How can we guarantee our profits in the long run? In fact, Buffett's recommendation is definitely correct; that is fixed investment! If we say that our analysis is accurate, we determine that it has great prospects for development, and the probability that the future will explode is very low, we should hold it for a long time, invest regularly, and buy it regularly. Because since it is a high-quality stock, we should believe that the long-term trend of its stock price is definitely upward. In the upward trend, we actually buy at all the points in the middle, so every point bought before the selling point is likely to be profitable. Long-term holding, don't consider falling factors. Even if we do, we should know that every falling point is a good buying point. And when we have this kind of awareness, and when we have this kind of perception, in fact, any time of sharp decline is the best buying point for us. And with this kind of thinking, we can see things that others can't see. However, when speculating on the short and medium term, all the fears are scary for us. We can only see points that others cannot see if we actually adopt long-term principles and value investment. And Buffett said that I'm afraid when others are greedy; don't be afraid, I'm greedy. It's also based on his vision of long-term investment and his concept of value investing.