Ten Principles Of Stock Investment

Mark Mobius is currently executive vice president of Franklin Tan Burton fund group, and is also a manager of "Franklin Tan Burton development fund", "emerging country fund", "Asian Growth Fund" and "Latin American Fund". Among them, the "Franklin Tan Burton development fund" was also selected as the "best 100 fund in 1999" by Money magazine, and the stanp S&P S Microapal fund evaluation institution was selected as the "Taiwan Overseas Fund Award" in 1998. Its Asian Growth Fund has gained 106% since September last year, and is the champion of the same fund.

　 Mobius rule 1: when everyone wants to enter, it is the time to play. When everyone rushing to play, it is time to enter.

According to personal experience, Mobius found that the best way out is to redeem slowly and gradually in the upmarket market. Don't wait for the market to fall and panic selling, but when the market is still rising, it will appear in batches. Of course, the so-called "right time to play" is not always a rule for experts. Therefore, I suggest that when the following two main signals appear, the time for investors to come out:

Signal No. 1: a salesperson who doesn't have a lot of contacts usually calls you and strongly recommends you buy a stock, otherwise you may miss the wave.

Signal two: salesmen recommend you to buy stocks with a very dramatic hyperbole.

These two situations may imply that the market investment atmosphere is about to lose control and the market may fluctuate a lot.

　 Mobius rule two: your best protection is diversification.

Investment should be without borders. As long as a company with profit potential, no matter which country the company is in, it should be included in your portfolio so that you can achieve the risk of dispersing a single stock or a single country's business cycle. It is reflected in the concept of diversification. In recent years, there are more and more dispersed single country risk types in mutual funds. For example, ten years ago, when the Burton fund group established the new national fund, it was the first in the world and the only one to vote in emerging countries, but now it has more than 100 emerging stock funds.

　　 Mobius rule three: if you want to participate in the growth of the fastest growing regions of the global economy, you must invest in emerging countries.

Why? Investment Emerging market stock market? The answer is growth. For example, mainland China, India and Malaysia, the three emerging economies, have grown 118% in the past ten years, while the three countries in the United Kingdom, the United States and Japan have grown by 58% over the past ten years. At the same time, the average economic growth of the newly emerging countries is 6.6%, far higher than the 2.9% of the developed countries. Although the stock market in emerging countries is short term fluctuations, the long-term growth momentum is far stronger than the developed countries, and the long-term investment in emerging countries has higher returns.

　　 Mobius rule four: the quality of the management team is the highest standard of stock selection investment.

That's why Mark. Mobius There are 250 days in 365 days of a year, which are the reasons for visiting the world's companies and visiting companies. Mobius believes that human factors, the quality of the management team, determines the profit margin of the listed company in the future. While analyzing the management team, in-depth visits and understanding of the business philosophy, business objectives, and even personality traits of the business team and the battle of various industries are several important observation factors.

Mobius rule five; use FELT to select stocks or stock market investments.

The so-called FELT is -Fair, Efficient, Liquid and Transparent. Where to invest any shares Before investing in any stock or stock market, we should examine whether the stock price is reasonable (Fair), whether the stock market is efficient trading (Efficient), whether the stock has liquidity (Liquid), and whether the listed company's financial statements are transparent (Transparent).

　 Mobius rule six: the so-called "Crisis" is the reason why people begin to wake up.

Mobius: for example, because of the devaluation of Tai Zhu and the outbreak of the Asian financial turmoil, the government of Thailand began to reform the financial laws and regulations. People worried about the future life and began to work harder and save more money. This shows that when the environment is safe, the people are easy to be lazy. When the environment is difficult, it is the driving force for the people to move forward. When the financial turmoil happens, it is precisely when these countries begin to slim down and exercise their muscles that they begin to invest opportunities.

　　 Mobius rule seven: a down market will eventually pick up. If you are patient, you don't need to panic.

Mobius's investment experience in Hongkong in the past thirty years has made him learn. risk The ultimate value "risk" can provide returns. Although Hongkong is a famous and volatile stock market, market news may cause a roller coaster stock market volatility. But in the past thirty years, mobiers has found that if you can extend your investment, you usually get a good return. For example, in the year following the Asian financial turmoil in 1997, the Hang Seng Index in Hongkong dropped by 55%, but in the past year since the low point in September 1998, the Hang Seng Index has risen by 85%. This shows that those who can see the light at the end of the tunnel will eventually be rewarded.

　　 Mobius rule eight: sometimes you have to perform worse than the big ones, so you can beat the market in the future.

When the Asian stock market was the hottest in 1993, the market value of the Thailand stock market reached 133 billion dollars, but in the early 1998, it dropped by only 22 billion dollars. From the short term, the market still had a drop in space. It seems that the stock market should be sold out quickly. But when Mobius carefully selected stocks, many stocks were not bad. At that time, it was the opportunity to increase the position by price underestimation and cheap buying. When the investment target's stock price continued to be undervalued and the share price continued to fall, Mobius would continue to increase its weight. So the fund's performance will be lagged behind those funds that hold a lot of cash in the short term, but when the market starts to bottom up, the fund's performance will go beyond the big market under the leadership of blue chip stocks.

　　 Mobius rule nine: net asset value (NAV) to determine whether it is worth investing.

When considering whether an investment target is worth investing, the value of the total assets of the underlying investment can be deducted from the net value of total liabilities and divided by the number of shares outstanding. If this value is higher than the current stock price, it means that the underlying investment target is undervalued (undervalued), and the stock price has the potential to rise, which is a worthy consideration; otherwise, it will not.

　　 Mobius rule ten: first, understand the stock exchange of a country, otherwise it will not blindly invest.

This principle is especially applicable to the emerging stock market, because most of the stock market in emerging countries is only the prototype of the mature stock market in Europe and the United States. The rules and regulations are incomplete and the rules of the game are changeable. Therefore, if we want to grasp the general investors with high explosive potential in emerging markets, we should choose the emerging market mutual funds with sufficient information and expert management.