If the market has not yet reached that stage?

[sharminsumu86]

From an investment perspective, it is the counter-cyclical ability that Buffett talked about. When the profit is good, look at the PE, and when the profit is poor, look at the PB. The second part will talk about the general situation of our theory and practice in the Chinese market. If we follow the four quadrants, Chinese products can be roughly divided into three categories. Commodities that are very linked to foreign products are basically relatively mature, while purely domestic products may be in the early stages. Therefore, the concept we practice is to find some companies with low moats or low efficiency to rebuild their moats. Finally, when the moat is established, we try to become a company in the moat and not be eliminated. Finally, relying on luck to become a part of an oligopoly or monopoly, this is probably our belief.

If on this basis, we solve the profit risk and the risk of operating goods, expand and strengthen the trade, and finally enter the real industry, we basically spend five years to do some trade and solve the industry access problem. Spend another three years on upstream and downstream contracting, processing, and equity issues. After eight years, you may phone number library have a certain foundation, and the rest is counter-cyclical investment capabilities, which is probably like this. In summary, expand the scale of trade on the basis of safe profits, and enter the industrial chain, follow the growth of the Chinese market, and strive to become a strong industrial chain company in China or the world. In the development of the entire four quadrants, we can see that in the process of industrial evolution, each stage of it probably takes decades or hundreds of years.

When the market reaches that stage, it will mature to that extent with the market. , it is difficult for one person to achieve maturity independently, so this is passive investment. Therefore, as the theoretical basis above, combined with the actual situation in China, from our perspective, many domestic markets are non-credit markets. We must control business risks, secondly, be a good agent for long-term stable profits, thirdly, arbitrage as regional risk-free trade, fourthly, hedging of spot, forward goods, standard products, non-standard products, etc., and fifthly, industrial contracting and quotation. Our company can do all trades that can explain the profit risk. In this process, we do not bet on one side. It is very important to make the profit clear. After making the profit clear, we can go deeper or expand the scale.