The Stock Market Has Never Been Short Of Investors Holding Long-Term Shares.

In recent years, management has repeatedly stressed the idea of value investing, and encouraged investors to minimize speculation and extend the cycle of shareholding.

In this regard, management has also formulated relevant policies to encourage the market to gradually repair long-term distorted value investment ideas.

In January 1, 2013, the implementation of differentiated red profits tax policy gave the market a clear direction.

In other words, advocates of short-term speculators will take on more business costs.

On the contrary, investors who have held shares for more than 1 years will be able to enjoy half the bonus tax benefits.

So, should China encourage the long term stock market for China's securities market?

Throughout the world's most mature stock market, most investors who advocate value investing and execute long term holdings become the ultimate winners.

Data show that in the forest lake city of Illinois, a hundred year old woman donated her $7 million heritage to her alma mater.

Obviously, the astonishing act of the elderly woman has aroused great concern in the society.

But no one can imagine that her huge assets stem from the value added of a famous American company she bought tens of years ago for $180.

In addition, Mr Buffett, who is keen on the concept of value investment and persists in long line holdings, is undoubtedly one of the most admired figures for global investors.

At the same time, he is also a globally recognized "stock god".

According to statistics, in the past 60 years of Buffett's investment career, he only recorded negative returns in 2001 and 2008, and in the rest of the time, he basically achieved stable positive returns.

It is worth mentioning that in the past years, he also created more than 50% yield in 1976 alone.

According to incomplete data, the overall return on investment of Buffett portfolio is about 21%.

However, if he deducts the increasing capital factor during his time, his real return on investment will remain at 18%.

However, behind Buffett's success, we can not ignore a big background.

In fact, the average annual growth rate of the S & P 500 index has risen to 10.3% since 1965.

In addition, there is a study report that in the past 200 years, the annual real interest rate of the United States common stock portfolios is about 6.9%.

It can be seen that in Buffett's creation

Behind the myth, the US stock market, which has been in the long run for a long time, is the main supporting factor for its success.

Back to the domestic stock market, although the period has experienced many ups and downs of the market, but since 1990, the focus of the operation of the stock market is constantly moving up.

During this period, if investors can catch the big bull stocks of Vanke A, Shenzhen Development A and so on, long-term investors' profits will be quite amazing.

However, it is regrettable that after years of market reform, China

The market environment has not been fundamentally changed.

At the same time, under the background of the myth of "the immortality" of the market, the speculative atmosphere of the market is quite strong.

Over the years, many listed companies in China's securities market will experience "first year losses, two years ST, third years' suspension of listing and fourth years' turning losses into profits".

As a result, when the market delisting is not strong enough and the cost of regulation is low, the listed companies can basically meet the needs of "protecting the shell" by means of various means.

For a long time to occupy

Most of them belong to junk stocks which lack growth and even lack of fundamentals, and a large number of excellent enterprises are gradually eroded by the bad market soil.

As a result, the development of enterprises is expected to be greatly reduced, and the listed companies with certain growth will be easily overdrawn by idle funds.

At this point, once investors hold long term shareholding operations, they can not only enjoy the dividends paid by listed companies, but also suffer losses from market spreads.

Author Guo Shiliang believes that encouraging investors to gradually form value investment, the idea of long term shareholding must thoroughly change the harsh soil environment that the market has existed for a long time.

In essence, if the market can give investors greater investment security and create a reasonable return on investment for investors, investors will gradually form the habit of long-term holding.