INVESTMENT PHILOSOPHY
Based on common sense, look out globally. Be keenly aware of the long-term trends in disruptive innovation, focus on investing in investment targets with certainty, and long hold to win excess returns.
First Principle Thinking
Stock investment means buying a portion of a company at a premium price compared to that of the actual controller, and the high premium is paid to obtain high liquidity.
The essence of industry research is to explore the business prosperity, while the essence of company research is to discuss asset pricing.
Long - term investment is about sharing the value growth of enterprises, and transaction - based investment is about judging whether the market price is overvalued.
Focus on Disruptive Innovation
Wealth creation stems from the improvement of labor productivity, and the enhancement of labor productivity comes from scientific and technological innovation.
We focus on disruptive forces that shatter the existing equilibrium. The replacement of the old equilibrium by the new one breeds a long - term and certain growth trend.
Regarding how to discover, track, and utilize this trend for investments in technology - growth stocks, we have established our own unique approach.
Theory of Comparative Advantage
Based on the theory of comparative advantage, we select investment targets from a global perspective rather than being confined to a single market.
For example, when it comes to investing in the computer software industry, we choose the United States; for the semiconductor manufacturing industry, we opt for South Korea and Taiwan; and for the 3C consumer electronics industry, we select the Chinese mainland.
INVESTMENT SELECTION
Outstanding Industry
Screening dominant industries in high-growth economies
Outstanding Company
Select companies with high moat and sustainable growth
Appropriate Price
Grasp underestimated opportunities of the company and ensure safe margin
SCOPE OF INVESTMENT
Global Financial Markets
New York
London
Frankfurt
Tokyo
Shanghai
Shenzhen
Hong Kong
Singapore
RESEARCH PROCEDURE
RISK CONTROL
Prior Risk Control
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Four-step Method: modeling, tracking, verification, and correction
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Test model validity
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Improve safety margin
Balanced Positions
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Concentrate leading stocks
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Balanced position method
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Liquidity is good for risk control
Track Closely
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Track market trends
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Track company changes
Long Holding
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Long-term investment smooths volatility