Orient Red Asset Management: Looking For Investment Targets With Growth Certainty

Although the A share market has continued to rebound, the overall valuation of the market is still relatively low. If we find the investment target of growth, whether it is stock or financial products, and then buy and hold it at a reasonable price, we will get good returns in the future.

How to choose a company with growth certainty? The experience of Mr. Gu Lingyun, assistant manager of Dongfang red asset management, Asset Management Co, the first brokerage department in China, is to insist on choosing investment targets that satisfy the "lucky industry + competent management + reasonable price". "Lucky industry" It means that the company will have enough room for development in the future, and "competent management" can lead the company to develop continuously.

Facts have proved that this is indeed true. Mr. Gu Lingyun managed Dongfanghong pioneer 1 not only won the first half of last year's securities business since its establishment last year, but also recently seized the opportunity to get a good return. According to Wind information statistics, as of July 11th, Dongfanghong pioneer 1 ranked first in the rate of return of 8.65% in nearly one month in 224 brokerages, and at the same time, the return rate of 30.08% in the past one year was ranked first among the 119 set up financial products.

In fact, "growth certainty" has always been the choice of value investors. Investment target One of the most important criteria. Combing the book "value investing" from Graham to Buffett's investment experience, value investors always assess the basic value of a financial asset first, and compare it with the current price provided by "market gentleman". If the price is below the value and can get enough margin of safety, buy the securities. This is also regarded as the key to Graham's theory of value investment.

From a practical point of view, it is one thing to search for securities that are selling at a price lower than their intrinsic value, and finding them is another thing. When they were looking for growth firms, they found that the inefficient growth should be eliminated in time, because the profit in strict sense should be recovered after the input of funds for growth.

The book points out that the value of growth creation depends on two factors, one is the additional capital. Profitability The return of additional capital is higher than the cost of capital, and the value created by each dollar is greater. The two is the amount of capital used to obtain the proceeds of franchise, which depends on the speed of development of franchising. They even believe that the use of idiosyncratic growth is the only profitable growth mode, and the "trait" has also been developed into the famous Buffett's "moat" theory later.

Despite the popularity of value investing theory, it is not easy for even trained and diligent professional investors to achieve long-term and stable benefits. Not to mention ordinary investors, it is a good choice to choose excellent financial products. At present, the Dongfanghong pioneer 7, once again led by the champion investment manager, is issuing through the business outlets of the industrial and Commercial Bank of China (601398, stock bar) and Orient Securities and so on. The product has no purchase and exit fees, and only when the rate of return exceeds 6% in the current year, the management personnel can extract 20% of the excess part as a performance reward for Gu Lingyun.