Representative of the Fund for the institutional investors, has been a fan of value investing. So what is value investing? Is to buy undervalued stocks (low price-earnings ratio) and long-term holding, while the broader market's own point is not important. Because any given time there are undervalued stocks (fund managers words).
but entered in 2008, this idea was subjected to severe punishment. With the broader market continued to fall, not a single plate can be spared, the stock fund has thus become the hardest hit. to hold high the banner of the value of investment fund managers are constantly in the understanding of the existence of errors of value investing.
misunderstanding: over-reliance on price-earnings ratio
bull market over the past two years, with the valuation of the dynamic price-earnings ratio for a time into the mainstream of value investing. And the most important feature is the dynamic price-earnings ratio stocks advance the future, then we see the static price-earnings ratio of 30 times, 40 times price-earnings ratio of stock valuation in a dynamic system, is considered to be By comparison, the bear market this year, 5,000 points, 4,000 points, 3,000 points, in almost every key point, there are organizations are similar to the point of view, but the fact is wave upon wave of bargain-hunting family, and constantly tied up in hills.
In fact, only in respect of this indicator in terms of earnings, it has such characteristics: that is a bull market, overvalued, over-again overestimated; in a bear market, it is undervalued, underestimated and then underestimated. From this sense, although the two cities the average price-earnings ratio has fallen 20 times, but not necessarily the end of that market has fallen.
Mistakes II: ignoring trends in investment
I do not know since when, the technology trend analysis on behalf of investors are derided as Investment guru in the world. But the truth is cruel, CBBC has gone through a complete cycle, it was found that momentum investors are better value as the performance results for investors.
we raised funds, for example, Although the Chinese market in 2006-2007 featured a record 648.35 percent had net growth rate, but because the turnover has been high, the stock position to adjust the frequency and criticized by the industry peers. it seems that only buy and hold, it Wang is a public offering of investment funds.
market in the first half of this year, the performance of the more defensive the addition of equity funds are those funds more frequently transfer positions. If dynamic combination of Fortune SGAM Fund, which as of 2008, 7 31, the net is down 15.30%, well below the 42.81% over the same period of deep decline in the KLCI. and contrast the first two quarters of the Fund's top ten holding, we found that seven stocks have changed. Similarly There are Fortune SGAM Fund Baokang consumer goods, dual power and Soochow Value Growth Fund and other Chinese renaissance.
Myth: mechanical long-term value of investments held by
does not mean long-term holding. We see some raised funds, stubbornly adhere to the so-called value investment philosophy, in the so-called blue chips on the cloth Shigekura. The market changes, the not timely adjustments, as well as the final defeat Zaibai. For example, several funds owned fund facility is so typical. < br> As of June 30, 2008, with seven facilities fund equity funds, as many as six funds came in the first half of this year's list after the income of the fund 1 / 3 position. We grow only the leading facility for example, Contrast the first two quarters of this year's top ten holding, we found that only one change occurred in the stock. Although the structure of the fund relatively stable position, but the results are not satisfactory, the cumulative net value of the Fund declined 39.02% during the first half. < br> Aberdeen trend of all the real wealth fund transaction records will be published in the Aberdeen Daily trend of investment in public forums on the circle, stay tuned!
invite you to invest immediately trend circle together towards Road to wealth.
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