Snowball Special Issue No. 028: A Guide to Preventing Fools in the Stock Market

Chapter 4 Talk about investment common sense
Find a better one every day, individual investors, original link: http://xueqiu.com/9220236682/30046759
1. People who always say that they can easily double their long-term annualized rate of return of 50%, please stay away. There are almost no such people on the planet. Buffett only achieved an annualized rate of 13% in the first 29.5 years.Pigs can also fly in a bull market, the key depends on what will happen if they fall.

2. At present, the relatively convincing result is the difference between the 5-year annualized rate of return and the index rate of return, which can largely filter out the luck factor. If the difference is greater than 10%, it basically shows that the level is relatively high. High (actually very few such people).

3. Ordinary people (who can’t spend 1-2 hours a day looking at company fundamentals and other information or thinking about investment) suggest investing directly in index funds (fixed time limit). CSI 300 Index Fund is a better variety with low cost and long-term index funds It is related to the size of GNP. If you have confidence in China, use index funds to earn money for China's economic growth. In the long run (10 years), it may outperform other investment varieties.In addition, it is also possible to buy public funds or private funds, but this requires discernment. Chinese funds generally outperform the index.

4. Ordinary people (can't take 1-2 hours a day to look at company fundamentals and other information or think about investment) If you invest in index funds, public and private equity funds, and stocks, it is recommended to use spare money to save yourself a good way out, and expect to gain from the stock market. The idea of ​​getting rich is bad.

5. Do not touch futures and short-term options.The risk of futures is much higher than that of stocks and bonds. Futures lack the anchor of intrinsic value. If it is not for hedging and preservation, it is a complete high-leverage gambling game. If you want to gamble, it is recommended to go directly to Macau for more fun.The same is true for short-term options. The stock market is a voting machine, the crowd is irrational, and no one can predict short-term trends. If short-term options are not for hedging, they are purely high-leverage gambling games.

6. Don't take it too seriously if you brag about how many stocks you have caught, but there are no strict empirical records or audited records.

7. Investment is not about eloquence. Under normal circumstances, you can speak eloquently about chasing ups and downs.

(End of this chapter)