I think we should look at Ba Lao's words dialectically. The most important thing is to choose the good ones and follow them, and change the bad ones. No one's words are completely suitable for you. [It is better to have no books than to believe in them completely, a truth]
Whether it is investment and trading system, or life philosophy.
Let me explain my understanding of this sentence from several dimensions:
1. From the perspective of value investment
I think buying stocks is buying companies, no problem. But I think there is nothing wrong with Ba Lao's logic, such as if you don't want to hold a company for 10 years, you should not hold it for 10 minutes. But in fact, I understand that the most important and difficult thing about investment is to have faith in the company and understand that you can't fall in love with the investment target.
Without faith, it is easy to lose sight of the target and chase after rising prices and sell when prices fall;
If you have too much faith, you will easily fall in love with the target. We must know that we enter the capital market to make money. Real things are changing and developing dynamically, and nothing is immutable. In addition, the most important point is that there are many variables in the impression of a complex system, and many influencing factors are butterfly effects.
2. From the perspective of non-value investing
I personally think that when investing in any target, it is more important to buy at a good price than to buy the right one. Investment itself is a calculation of profit and loss ratio and a probability game, because in the long run, I will die. So no matter how good a company is, it must have a suitable valuation price. If something is too expensive, can we wait until it reverts to the mean?
Regardless of whether we manage our own wealth or are in the asset management industry, is it appropriate to always use "long-term holding and value investment" to comfort ourselves or our investors who trust us?
