Starting with a fully invested A-share portfolio to become a capital...

Chapter 89 On the Way (Part 1)

After confirming that all the students had arrived, Bao Xingwei picked up a piece of white chalk and wrote the eight characters "On the Application of Investment Strategies" on the blackboard.

He then scanned the room and recounted his experience: "I studied investment. At the age of 17, I was researching stock market arbitrage strategies at Stanford University in the United States. In three years, I turned 200 yuan into 100,000 US dollars, which is roughly equivalent to 2 million yuan in today's currency."

"Wow!"

The students gasped in surprise.

"Earned 200 million in 3 years, is this the ability of the Dean of Finance?"

"500 times is terrifying. If you had a lot of initial capital, wouldn't you be able to earn millions, or even tens of millions of dollars?"

"If I could turn 200 yuan into 10 yuan, even if it's just Chinese currency, I'd be strutting around like crazy."

They never expected that Dean Bao Xingwei, who was rarely seen, would have such a legendary background.

However, upon closer reflection, it seems understandable. Without some real skills, how could one possibly enter the national financial think tank?

Peng Ge, Xiong Xinghuai, and other deans of finance at other universities already knew about Bao Xingwei's background and were not surprised.

Turning 200 yuan into 10 yuan in 3 years is possible. In a booming market, such as the recovery in 1995 and 2005, many people could have multiplied their investment several hundred times.

But when did Bao Xingwei achieve this?

1930 years.

The Great Depression in the United States.

When the Smoot-Hawley Tariff Act was signed, the Dow Jones Industrial Average fell from 250 points to 230 points, a drop of 8%, and then continued to decline, reaching a low of 41.22 points on December 17.

It was against this backdrop that Bao Xingwei made precise investments in gold, coal, and tobacco, achieving long-term profitability even during a bear market.

……

Bao Xingwei, standing on the podium, gestured for silence before continuing, "The reason I was able to achieve stable profits during the Great Depression in the United States in 1930 was primarily due to my position sizing strategy."

At this point, he wrote the words "armor" and "sword" on the blackboard.

"In my view, the stock market is a battlefield without bloodshed. If we want to make a profit, we must arm ourselves."

"Armor refers to defensive, resilient stocks, such as rare metals and energy, which have sufficient resistance to downside risk."

"As the name suggests, the sword helps us fight against being harvested, or rather, harvesting other people's stocks. During the Great Depression of the 1930s, cheap alcohol, cigarettes, and Coca-Cola were the key to my profitability."

Dean Bao Xingwei tirelessly recounted his experience and techniques in turning 200 yuan into 10 US dollars in 1930.

The students in the audience silently took notes of this valuable knowledge.

Even Peng Ge, a financial academician, had to admit that in terms of investment strategy allocation, he was not as good as Bao Xingwei.

Zhang Yang, who was sitting in the third row, also agreed with Bao Xingwei's strategy.

However, if you want to make money in a market, he believes that strategy should come after knowledge. Only by improving your market knowledge can you make accurate judgments about market fluctuations.

If your own understanding is not up to par, you won't be able to seize the opportunity, even if it comes your way.

Even more serious is the situation where some ordinary people are unaware that they are in the midst of an economic crisis.

Take the recent subprime mortgage crisis, for example. Many migrant workers didn't know why it was suddenly difficult to find work, nor did they understand why contractors suddenly notified them to resume work, let alone the country's "four trillion yuan investment plan".

It may be years, or even decades later, before they learn from certain information channels that the country was in an economic crisis in 2007, which led to fewer jobs.

Cognition determines the lower limit; improving one's understanding of the economy and capital markets is the first step to achieving profitability.

……

For two consecutive lessons, Bao Xingwei talked about his investment strategies.

After Bao Xingwei finished speaking, Xiong Xinghuai, the dean of the School of Finance at Peking University, immediately took over, and his course was titled "Macro Investment Theory".

Xiong Xinghuai believes that understanding macroeconomics is the key to wealth.

He used the "Kondratiev wave" as the core concept to explain the four stages of economic prosperity, recession, depression, and growth, and listed the investment opportunities one by one.

Two classes later, near the end of the session, Xiong Xinghuai said with a faint smile, "Every global economic crisis is like a reshuffling of wealth. The reckless leave empty-handed, while the wise reap riches. I hope everyone remembers this." *Clap clap clap—*

The lecture hall was filled with applause.

The classroom was already packed, with people even standing at the back and door, all of them younger students who had come to audit the class.

This is a once-in-a-lifetime opportunity to have the deans of finance from top universities such as Shanghai University of Finance and Economics, Southwestern University of Finance and Economics, Central University of Finance and Economics, Tsinghua University, and Peking University discuss their research.

The onlookers included not only junior students majoring in investment, but also students from other majors such as finance and accounting.

At this time, the post titled "Dean's Discourse" on the Shanghai University of Finance and Economics forum attracted a large number of replies and became the most popular post recently.

[Financial Kid]: I just watched the leaked video, and I can only say that I benefited a lot. Is this the understanding of the Dean of Finance?

[Legal Elite]: Dean Xiong spoke very well, especially about that Kondratiev wave cycle, which I had never heard of before.

[Fan Little Bear]: Is this what it means to have a discussion among experts? When I was studying at Shanghai University of Finance and Economics, we didn't have this opportunity!

After the incident went viral, students from nearby universities such as Fudan University, Shanghai Jiao Tong University, and Tongji University came to attend the lecture.

……

At noon.

The investment class ended with everyone having lunch.

While eating in the cafeteria, Chen Chuan was full of enthusiasm, rubbing his hands together and saying, "After listening to Dean Bao and Dean Xiong's lectures, I feel like my Ren and Du meridians have been opened up. Next Monday, I'm going to dominate the battlefield!"

"Let's talk about this after you can get up."

"A pig that sleeps until noon and then goes on a rampage is going to kill everyone. Don't get caught in this trap and end up donating your children to the hospital."

"There are thresholds for donations; his quality is definitely not up to standard."

"I think so too."

Wang Liu and Xu Jiafeng worked in unison, showing no mercy to Chen Chuan.

Zhang Yang, who had almost finished eating, chimed in, "If you thoroughly understand the lectures of the two deans, you might really be able to dominate the field."

"Look, even our dorm leader, this super-achiever, says I can dominate everyone. You're all just jealous of my talent and..."

Before Chen Chuan could finish speaking, Zhang Yang asked, "Are you sure you know about the Kondratiev wave and can skillfully apply investment strategies?"

"Well... well..."

When Chen Chuan stammered, Wang Liu mocked, "He doesn't know anything about the Kondratiev wave. Chuanzi only knows about Teacher Bobo."

Xu Jiafeng: "K, you're so slow!"

Chen Chuan was speechless at his roommate's teasing. He had indeed studied the Kondratiev wave in his macroeconomics class, but he had long forgotten it.

……

After solving their food and clothing problems, Zhang Yang and the others returned to their dormitory for a midday rest. At 2 p.m., they went to the 1-101 lecture hall for their next class.

Before they even reached the lecture hall, the group was astonished by the layers upon layers of students.

"A celebrity is here?"

Wang Liu inquired.

Looking at so many students, Zhang Yang couldn't help but sigh, "Perhaps Dean Bao and his colleagues are the real elites in the financial world."

Because they had to attend class, the four of them squeezed into the lecture hall with difficulty, saying "Excuse me, classmate" repeatedly. The "teacher" on the podium was Peng Ge, an academician of finance.

Behind him, on the blackboard, were the words “Investment Secrets in Financial Mathematics” written in large characters.

Clearly, he wasn't hiding anything; instead, he wanted to share his years of research in financial mathematics.

(End of this chapter)