This is a personal promotional video of Buffett, which has no practical guiding significance for A-share investment.
He started out as a private equity fund.
1. Berkshire's first investment - Northern Textiles.
This is a poorly run company on the verge of bankruptcy. The purpose of his purchase is to restructure and sell assets. Until 1965, it had controlled the entire enterprise and kicked out all management.
This investment method is not suitable for A-share retail investors. Because retail investors neither have the team to govern the company, nor do they have strong financial strength.
2. The U.S. securities market is different from China, and there is no reference for value investing.
Below is a monthly chart of the Dow Jones Industrial Average. Completely unilateral rise in the market . In such a market, as long as the buying time is long enough, any investment is profitable .
If Grandpa Ba comes to China to invest in A-shares, I think he will be deeply trapped, and he will not even be able to earn regular bank interest.
3. Kweichow Moutai is China's Coca-Cola?
I found online when Buffett bought Coca-Cola. Coca-Cola was first bought in 1988. At the time, U.S. stocks went through the 1987 crash, so they were very cheap. By 1989, a total of 1.02 billion US dollars was used to buy 7% of the total equity. Another heavy buy.
Heavy positions in A shares simply do not work. If LeTV, Young Eagle Farming and Animal Husbandry, Kangmei Pharmaceutical, Sinovel, Sanan Optoelectronics, Dongfang Garden, Kangdexin, Lantian shares, any one of them will lose a mess. You must know that these are the white horse stocks of the former track.
Graham went bankrupt in 1931 by buying the bottom of the stock market.
Fisher continued to go bankrupt during the 1929 bear market.
Livermore's life was full of ups and downs.
The environment is constantly changing, and if you just seek a sword, you will go bankrupt.
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