This issue talks about the investment philosophy of Bai Gui, the three ancient investment experts in Records of the Historian. By learning the investment skills of the ancients, it helps us to have a deeper understanding of investment and help us to make better investments.
Bai Gui, a native of the Western Zhou Dynasty, assisted Wei Wenhou. Bai Gui is good at trade and very rich. His business philosophy was widely spread in later generations. Bai Gui's investment strategy is to observe market changes and supply and demand changes. He often goes into the market by himself and knows the price of goods like the palm of his hand. When there are too many goods, he is sold at a low price, and Bai Gui buys and holds them at a low price; When commodities are in short supply and the price is very expensive, Bai Gui sells them to make a big profit.
"People abandon me and choose others" is Bai Gui's business strategy, and it is also a famous investment saying. Bai Gui's investment philosophy is similar to that of Ji Ran.
Bai Gui is best at investing in consumer goods, which can be divided into two categories: daily consumption and optional consumption. Daily consumer goods include food, agricultural and sideline products and other consumer goods that must be used in daily life. Optional consumer goods include silk, lacquerware and other goods that can only be consumed when they are rich. Why does Bai Gui prefer to invest in the consumer industry? Because the consumer industry is a hard currency, there must be market demand, and demand will not decrease. Investment in such a variety is not difficult to sell, but the supply of goods is different in different periods of time, so this law can be used to invest.
When the supply of goods is large and the supply exceeds the demand, the price is cheap and suitable for buying; When the supply is small, the supply falls short of demand, and the price is expensive, which is suitable for selling. Bai Gui will speculate on the degree of grain harvest according to the year. When the year is good, the grain yield is high. Bai Gui will buy it at a cheap price and hoard a large amount of grain. When the year is bad, the grain price will become expensive and then sell it.
Although Bai Gui is a wealthy man, he is very frugal in life. He doesn't care about food and drink, nor does he have special hobbies. He shares weal and woe with his subordinates. When we read more books about investment masters, we will find that they all have a common feature, namely, frugality. For example, Buffett, after becoming famous, still lives in his early house; For example, when Templeton got married, he bought second-hand furniture. Well known value investment masters are frugal and will not waste money because they are rich.
In fact, after we understand and accept the concept of value investment, we will naturally understand that funds cannot be wasted or left idle, so we will unconsciously save, put money on the edge, and let the funds in our hands operate efficiently. Let the money be invested into the index fund as soon as possible to enjoy the power of compound interest.
In addition, Bai Gui also believes that if a person wants to do business, he must meet the following conditions for investment:
1. Wisdom should be adaptable;
2. Be able to make a correct choice;
3. Be benevolent;
4. Be decisive when things happen;
5. Be strong when encountering difficulties;
6. Be patient and persevere.
Bai Gui believes that a person who does not meet the above conditions is not qualified to invest and do business. In fact, generally speaking. Investment should be disciplined. Patience is the best virtue of investors.
