Accelerating The Pace Of IPO, Healthy Growth Process Is A Long Way To Go

The Berkshire Hathaway shareholders' meeting once again focused global attention on Mr. Buffett and Mr. Munger.

However, when it comes to these two investment gurus, investors are often tied up with value investment, and Buffett's investment philosophy has been popular in China for many years.

Value investing is a topic that has been talked about for many years.

In fact, over the years, the concept of value investing has been repeatedly advocated in China's stock market, but to date, value investing in China's stock market is easy to say, but practice is very difficult.

More often than not, investors are more willing to gamble in the stock market with a speculative attitude. What is even more unpleasant is that they originally entered the stock market with the concept of value investment, but in the end they became deep stuck. In the domestic stock market, the successful practice of value investing is very few.

Berkshire Hathaway stock has a stock price of up to $250 thousand, even if its B-share shares are priced at up to $166.55.

Over the years, the company has created huge investment profits for long-term value investors, and Buffett's reputation has attracted attention.

Buffett's investment myth is not only related to his sensitive investment smells, flexible and effective equity investment and capital operation mode, but also closely related to the long-term bull market.

As a result, the combined force of various factors helped to lay the foundation for the long-term value investors' paradise in the US stock market, and also created Buffett's investment myth.

In fact, in China's stock market, there are some familiar names for listed companies that have created huge returns for long-term value investors over the years.

For example, GREE electric appliances, Yunnan Baiyao, Fuyao Glass, Vanke A, Wuliangye, Dongyuhong, Guizhou Moutai and so on.

Under the actual circumstances, if an investor has invested in the above stocks from the early stage, the compound investment return rate over the years will be very alarming.

Among them, GREE electric appliances, for example, initially issued a price of 2.5 yuan, up to now after the price of up to 5000 yuan, the cumulative increase is quite alarming.

In another way, even if investors are not original shareholders and invest in the stock market 10 years ago, the cumulative investment in GREE electric appliances in 10 years has been accumulated.

It's close to 10 times.

It can be seen that although China's stock market is still inseparable from the market environment dominated by retail ownership, the stock market is still not short of stocks with astonishing returns on compound investment for many years. The key lies in whether investors can be screened out and firmly held.

However, since the development of the stock market, although there are many good companies, there are some listed companies that can give investors a higher return on investment, but the proportion of the A share market is still very low.

In comparison, in many 3000 listed companies, the return on investment of many listed companies is not ideal.

What's more, since the listing of enterprises, the scale of refinancing is far higher than that of cash dividends, and even no cash dividends have been listed so far.

As a result, when the number of listed companies continues to soar, the overall quality level of listed companies is uneven, and the return on investment to investors is not satisfactory.

Faced with the huge market scale, and the stock market is still dominated by stock capital and the changing rules of the stock market game rules, it has weakened the confidence of market value investment, instead, it has made investors more keen on short-term speculation, trying to make a profit under uncertain market conditions.

This is the true portrayal of China's stock market since its establishment.

Indeed, in the past more than 10 years, although the stock market once climbed to 6124 or 5178 high points, it returned to its origin at a rapid pace, and it quickly increased and fell faster.

During this period, investors are slightly greedy, it is easy to return their profits, or even lose their capital.

In recent years, although the stock market supervision has increased significantly, the proportion of cash dividends has increased, but it has not yet been able to change the speculative characteristics of China's stock market.

Among them, take the recently active Xiong an concept stock as an example, when the news of the establishment of the Xiong an new area was made public, the Xiong an concept stock appeared a trend of successive soaring. Some stocks also appeared more than doubled in the short term. However, over the short period of speculation, it was easy to get rid of the future profit expectation. When the share price was fired to a high level and even a historical high level, it was easy to trigger a concentrated sell-off of profit taking.

Before that

As an example, Zhangjiagang's main new bank shares have continued to stir up speculation, which has inspired the rest of the new banking stocks to follow suit.

However, in the context of the subsequent suspension of self inspection and tighter regulation, the stock price fell by nearly half from its high position, and the risk was released centrally.

In fact, in the Chinese stock market, the market's speculation on new shares and even new shares seems to last forever.

Judging from the performance of new shares in recent years, the average increase is quite impressive, and this has also directly led to new enthusiasm in the market. Under the new regulation mode of IPO, it has triggered a new era for the whole people.

However, when the new shares were fired, we found that many new shares had reached a historic high after the market was fired, and then easily fell into the long bear road.

In fact, after the IPO, the price has been fired, which has seriously overdrawn future earnings expectations, and when the price reaches a historical high level, it often leads to the bursting of the price bubble.

It should be noted that along with the quickening of the IPO rhythm in the Chinese stock market, the quality level of the new shares is also somewhat disordered, and even more, there is a situation of pre - reduction and even pre - loss after the listing.

In essence, this series of phenomena is also a true portrayal of highly speculative market.

Volatility is decreasing and institutional investors' share is rising gradually.

True portrayal.

However, for a market dominated by retail ownership, the market itself still has many imperfections, and even more frightening is that sometimes institutional investors are more speculative than ordinary investors.

At the same time, after the issuance of new shares is accelerated, the pressure of intensive reduction and sale will gradually approach, which will aggravate the irrational distribution of wealth again.

Obviously, lacking of perfect legal escort and lack of correct guidance, it is difficult for Chinese stock market to get rid of the development of "speculator paradise", and the healthy growth process of China's stock market is also a long way to go.

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