Hello everyone, today’s article is mainly about stocks and learning from the investment masters in stocks.

Let’s take a look at how some of the world’s investment masters make investments. Here we are talking about a Japanese. His name is Shichuan Yinzang, and his original name is Xiaoshan Yingzang. He was born in 1897 and died in 1992. After graduating from primary school, he began to make inroads into the world. He experienced three times of bankruptcy in his life. He began to invest in the stock market in 1931, and went through more than 60 years of investment career until his death. Here we will describe a case of investing in cement stocks in 1992. What was the situation at that time? On July 7, 1672, the Tanaka Kazuo Cabinet came on the stage, which caused a whirlwind of transformation of Japan’s island destruction. In fact, just like the current situation in our country, it will vigorously do infrastructure construction. At that time, Japan was to reconfigure the national factories, upgrade from coastal heavy industry to inland knowledge operation industry, build highways and inland industrial zones, and promote rural industrialization, Then, stimulated by the transformation of the Japanese archipelago, land prices and prices are sharply rising. At that time, in April 1973, the national land price in Japan was 30.9 percent higher than a year ago, and the average increase in the capital circle was 35.9 percent. In terms of prices, the consumer price index has increased by 14.2 compared with the same period of the previous year. It can be seen that it is quite similar to the situation of our country in previous years, especially in 2006-2007, that is, the price of land has risen, the price of housing has soared, and the economy is good. But by October 6, there was a variable, that is, the outbreak of the fourth Middle East War, which triggered an oil crisis, This is also a famous oil crisis in history, and the Japanese economy has also been affected by this, resulting in an alarming inflation. Land speculation was a very common behavior in the market at that time. In the time of economic chaos, the cement industry was also impacted. In order to curb inflation, the government significantly reduced public expenditure, and the demand for cement dropped rapidly. The operation of cement plants was very bleak. In fact, either the shutdown or the production volume was reduced, In fact, there is also a point like the macro-control that our current government is doing. At that time, the Japanese cement company, in the first quarter of 1976, its pre-tax profit was a loss of 635 million yen, and its share price fell from more than 800 yen in 1973 to more than 100 yen, a very large decline. It can also be seen that the Japanese stock market, like the A-share market, is also very volatile, And in cyclical stocks, its volatility is very large. Chuan Yincang Because it opened mines in North Korea in the early years and did business in China during the war against Japan, he has studied this kind of nonferrous metal and industrial products very much. He analyzed the stock price of Japan Cement Company in the past ten years, and found that the downward trend since 1974 has entered a trough. In order to solve the increasingly serious unemployment problem, the government is bound to adopt policies to boost the economy, Moreover, Japan’s cement company has its own limestone mine. The supply of fuel is at the top of the world, so he thought that the most effective way to solve unemployment is to build a large number of construction projects to absorb a large number of labor. In fact, it is a bit like our government, after the financial crisis in 2008, launched four trillion yuan to vigorously develop infrastructure, and all industries invested a lot in infrastructure, so the cement stock, it firmly believes that it will rise sharply, So in 1976, Sichuan Yinzang decided to invest its own capital of 600 million yen. His goal was to target a company. He believed that he should choose stocks that might rise in the future and eat quietly. Here we refer to the tortoise principle in his investment. He quietly undertook the cement company at the low position and did not pursue the high position. After half a year, by the end of May 1977, his cement company had reached 300000. By July 1977, the shares of Japan Cement had accounted for 14.2% of the company’s share capital, and became the largest individual shareholder of the company. At this time, the first quarter of 1971 was the first quarter report, The company’s pre-tax profit has changed from a loss of more than 600 million yen to a profit of 59 million yen, which is a situation of slight profit. The revenue has also increased by 7%. The prosperity is recovering. The share price, the share price of Japan Cement, has also started to rise, rising to 164 yen. That is to say, it has started to rise from its lowest point of 120 at the beginning, and the trading volume has also increased sharply. The market has created it at a low cost, At that time, it was between one hundred and twelve and one hundred and thirteen. When the stock price reached 180 yuan, it began to sell a part of it. Then he thought that the long market had just begun, and the future market was still bullish. So he needed to reserve cash to meet the future battle. When the stock price fell back to 160 yen, many analysts of securities companies began to be bearish. But in fact, the share price of Japan Cement soon broke through $200, which was 200 yen. At this time, the daily trading volume of Japan Cement reached 20 million shares, becoming a hot stock with the largest trading volume on the Tokyo Stock Exchange. By October, Japan Cement had reached a new high, reaching $253, 253 yen. The market had a feeling of being extremely high, Then the stock price has dropped in a fluctuation at a high level. By November, it fell again to 200 yen. However, it was Chuan Yincang who decided to sell all the shares after the stock price of Japan Cement rose again and exceeded 300 yen, So after investing 600 million yen in Japanese cement for more than two years, the exchange rate was as high as 3 billion yen. After the high price of 337 yen, Japanese cement turned sharply downward, and fell below the 200 yen mark in less than half a year, and continued to seek the bottom. We can see that the stock market in Japan is a bit similar to the A-share market, with great fluctuations. In fact, everyone is making trend investment, So he successfully made a trend investment in a cruel market environment. We can see that he was summarized by Chuanyin in his capital. The UV3 principle of his investment is: first, he will choose the potential stocks with great prospects in the future that have not been explored for a long time. We can see that when he invested in Japanese cement, the market was not optimistic at the beginning, but he relied on his long-term research, Judging the economy and the trend, he predicted or predicted that the development of the industry would inevitably turn out to be better. In fact, many investors said that when we invest, for example, when we invest in leading stocks, we invest in leading stocks when the industry is very bleak. There is a certain guarantee of investment. Second, he mentioned that he keeps an eye on the fluctuation of the economy and the stock market every day, and he worked hard to study it. He once established an economic research institute for a long time to study the Japanese economy behind closed doors. He spent two years reading economic books in the library, understanding the economy, and predicting the economy. Therefore, his thinking can judge from the macro perspective when making investment, He is not just looking at the situation of a company. He is more willing to judge the trend of the market and the trend of some industry stocks from a macroeconomic perspective. The third is that the discipline of investment is not too optimistic. Don’t think that the stock market will never stop rising, and you should operate the stock with your own funds. Because some stock markets in Asia have relatively large fluctuations, so the stock index will rise very high when it rises, and fall a lot when it falls. So many times, you should not be too optimistic. When everyone is very optimistic, you should be cautious and withdraw in time, and you should operate with your own funds。

Let’s take a look at his five principles of investment.

The first is that you should not rely on the recommendation of others to choose stocks. You should work hard to study them.

The second is that you should be able to predict the economic changes after a year or two.

The third is that each stock has its proper price, and the stock price exceeds its due level. Keep in mind that it is also a concept of the margin of safety.

Fourth, the stock price must be determined by the performance at the end of the day. Never touch the stocks that are hard to make. We often see some companies that have no performance in the stock market scramble, and then go up hard to make it. This kind of company can be followed in the bull market, but you must not squat down to the last one, because you can’t say when you will receive the last one, Then you will be trapped on that mountain forever.

Fifth, unpredictable things may happen at any time. Stocks are always risky. This is also an investment. There are often black swans. So we should be cautious and modest when making investment. Ok, that’s the end of today’s sharing.