Recently, in the face of a mess of global capital markets, few investors can sit still. If you have money, you can’t buy it. If you have a stock, you can’t sell it.
We have already introduced how the investment guru Peter Lynch sees the stock market crash. This article introduces another investment in how big coffee Roy R. Newberg experienced 27 bull markets and 26 bear markets, 68 years without in loss.
Roy R. Newberg is a long-lived investment guru born in 1903 and died in 2010 at the age of 107. He entered the market on the eve of the US stock crash in 1929. He experienced 27 bull markets and 26 bear markets in the 20th century. In his 68-year investment career, he did not suffer losses in one year. Here are the top 10 investment principles for Newberg.
Principle 1: Study yourself.
The merits of personal character will help the investment succeed. Before starting to study stocks, you can first study whether you are suitable for investment before following the list below.
1. Examine your temperament, are you a natural speculator, or are you less willing to take risks?
2. You need to be energetic and need to be sensitive to numbers.
3. You must be filled with strong interests and hobbies about what you have to do.
4. Successful investment is based on the flexible use of knowledge and experience. It is a good idea to focus on investing in a particular area of your knowledge.
Principle 2: Research masters.
Newberg believes that investors should seriously study the masters who have made great achievements in the investment field. Newberg's advice is to learn from these masters, not to follow suit, to benefit from their mistakes and success, and to make appropriate adjustments based on your personal personality and circumstances.
Principle 3: Be alert to the sheep market.
This is Newberg's concern about the late American bull market in the 1990s. The market is extremely vulnerable to the comments of a heavyweight market person and can be called a “goat market”. It is a bit like a lamb being led by a leader to a slaughterhouse. Most lambs unconsciously enter the slaughterhouse with their heads, sometimes being cut of wool and sometimes losing their lives.
Principle 4: Look far.
A large part of Wall Street people pay too much attention to the company's profitability every moment. Many researchers have the best game to predict the company's earnings in the next quarter. Newberg believes that profitability should be the result of a combination of long-term strategy, proper management and timely seizure of opportunities.
If these factors are properly matched, short-term profit should not be a major consideration. Another benefit of long-term gaze is that it won't be attracted to the hot spots on Wall Street. For example, the auto stocks of the 1920s were hot until the 1950s, when people thought that every American would become a bowler.
However, like the hula hoop, this trend has turned to the end, and people who bought early have made a fortune, and those who bought at very high P/E ratios are very miserable.
Principle 5: Enter in and out at the right time.
Newberg’s point of view is that timing may not be everything that determines success or failure, but it is definitely a major factor in determining success or failure. Long-term investments that look good, if you buy the wrong time, may also cause you to lose a lot. In the bull market, it is wise to suppress your greed. There is a famous saying on Wall Street: the cow also makes money, the bear also makes money, but the pig can't make money.
Principle 6: Research companies.
Newberg believes that the company's management, leaders, the company's historical historical records should be analyzed, and the company's tangible assets and cash behind each share should be checked. The company's dividend policy is also worthy of serious attention from investors. Investors should be careful about the so-called “growth stocks” and don’t pay too high a price.
The trick to investing in “growth stocks” is to discover them before their products are widely used and the company's stock price becomes expensive.
Principle 7: Don't be obsessed. Newberg reminds investors not to devote excessive feelings to a particular stock. Falling in love with a stock can be, but before the stock price rises, after the overweight, let others love.
Principle 8: Investment diversification.
Newberg said, "Since 1929, I have never lost money. Although I have only broken the balance for a few years, I will not make a profit." Diversification, on the one hand, using hedging means, people have more Be patient and stick to the undervalued stocks and reduce the psychological fears that plague the market. On the other hand, of course, it is diversification.
Principle 9: Review the situation.
The so-called "time" and "potential", that is, the trend of the broader market, also refers to the world affairs outside the stock market. Investors don't have to focus on economics. Newberg's experience is that economics is not worth the money. You don't need an economist to tell you to pay attention to interest rates. If you look at interest rates, you can know that low interest rates are better than any phenomenon to tell you that business conditions are bad.
Principle 10: Do not stick to the rules.
At the very least, don't be too enslaved to follow the old rules and update your views as new conditions change. Newberg believes that everyone makes mistakes, and it is important to be aware of the mistakes you made in decision-making as soon as possible. In his 68-year history of working on Wall Street, 30% of his time was wrong. There is no investor in the world who is always right unless he is lying.
The investment master summed up ten principles because he is a master of investment. As an ordinary investor, can you stick to one of them?
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