A Share Returns Are Similar To Those Of Buffett.

Wang Yawei, chief investment officer of the former Huaxia Fund Company and the most influential fund manager of China, has left the public offering for nearly three years. In March 28th, he published his first public speech in Hangzhou in March 28th. He has always been regarded as "trend investor" or "trading player".

The following is an excerpt from Wang Yawei's speech:

In fact, the A share market is still very suitable for long-term investment. Moreover, the rate of return on investment in prices is very high. We made a yield of 10 years, and after a long period of investment in 2000, it won the index. With the growth of the market, it is very difficult for institutional investors to win the index. But we can see that the long term return on investment here is far outperforming the index.

Why do we think the return rate of A shares is very low?

The impression comes from the unreasonableness of the index formulation. Maybe a lot of heavyweight shares are too high. However, if we do not consider the weight and invest the average A shares, the rate of return is very high.

We can see that in the last ten years of 2005 -2014, the annual compound return of A shares reached an astonishing 22.7%, which should be matched with Buffett. It's very high.

Moreover, we can see that rolling returns are increasing year by year. From 2002 to 2011, it was improved. From 2003 to 2012, this rolling return was gradually improving. Therefore, the A share market is becoming more and more suitable for long-term investment.

Let's take a look at the investment opportunities of value investing in the A share market.

This is to make two maps, divide all A shares according to the market value, and divide the static PE (representing the division of growth and value) into four equal parts, so as to get a total of four or four combinations. In these 16 combinations, 1/4 is the big blue chip stock before the average price. The conclusion is that the result of value investing is to win and grow.

It is basically better than what we have just said about "the average weight of A shares in the whole country". The rate of return has far exceeded the index, but if you invest in value on this basis, it will be even higher than that. So on the basis of market defeat index, this is even higher. Rate of return 。

We think that in the above two points, long-term value investing can generate very high returns for investors.

Since speaking Value Investing Well, everyone feels that A shares are not mainstream. What are the causes of minorities?

I think it has something to do with the history of Chinese market. The first is the question of market maturity and investor structure. Because the Chinese market is an emerging market in the past, emerging markets will have new investors coming into the market. The new investors' investment philosophy is not very mature. It may be a rise and fall. Psychological quality Do not have.

Second, the corporate governance structure of shareholders is not perfect at the level of listed companies. Many of them are big shareholders. As small investors, this is a passive investment. If investors can not participate in the management of enterprises, they may have only the value of gambling.

The third aspect is related to the regulatory system. The market was immature and a lot of speculative behavior. In this case, value investing is not so dazzling or attractive. This investor is easy to be ignored for a long time.

Fourth, I think it is very important that the original means of hedging are inadequate.

So I think the above points, though the result is that long-term investment can get a better yield in the A share market, but there are few investors who can really implement and earn money.