On the afternoon of May 4, local time, the 9th Buffett Shareholders' Meeting hosted by Sina Finance and the Chinese and American Investors Reception was held at the Downtown Omaha Marriott Hotel. The reception was the largest and most influential investor exchange event during Buffett's shareholders' meeting. Investment elites, heads of Chinese public and private equity funds and brokerage firms, and executives of listed companies attended the conference and began a high-quality conversation.
Yang Delong, executive general manager of Qianhai Open Source Fund, attended the conference and delivered a speech. He shared a value investment case saying that an old shareholder bought all of his accounts as Maotai stock and never saw the market since then. From 2012 to now, Maotai's stock price has fluctuated greatly. But he hasn't been moved, hasn't watched, or sold. Let's guess how much his account is now? In just 12 years, the accounts have now exceeded 100 million.
Yang Delong believes that value investing is not only suitable for US stocks, or that only investing in US stocks is suitable for value investment; it is not suitable for value investment in A-shares. Value investing is a universal investment concept, suitable for both US stocks and A-shares.
The following is a transcript of some of Yang Delong's speeches:
Every year at the Maotai Shareholders' Meeting in June, we also saw many people who have achieved financial freedom by holding Maotai for a long time. In June of last year, I went to Maotai Town to attend the shareholders' meeting. I met Mr. Lin Yuan last year, and Mr. Dan Bin also went there last year. We drank tea and chatted together. Every time we went, we met many people who have achieved freedom of wealth through long-term holding.
I met an old shareholder from Shanghai at the Maotai International Hotel, an old man. I was very excited to meet him. He said that in 2012, he was also an old shareholder who had been trading stocks for more than 20 years. He had always invested in the A-share market and had never made any money. All the money made in the bull market is lost in the bear market, because most investors like to chase the rise and fall. They do it in the short term, and don't even believe that A-shares can make money. At the time, he saw the CCTV “Trading Time” program. I talked about value investing on it. If you want to buy a good company like Maotai and become a shareholder, you don't need to worry about market fluctuations. You can go to the Maotai Shareholders' Meeting every June, then wait for the dividends and wait for the stock price to rise. He listened to it at the time, bought all of his accounts as Maotai stock, and never saw the market again. From 2012 to now, Maotai's stock price has fluctuated greatly. Meanwhile, it also experienced a stock crash in the second half of 2015, and the stock price has plummeted. After experiencing disadvantages such as “alcohol restrictions” and “plasticizers,” the stock price fell all the way to a standstill. This time, after three years of decline, Maotai's stock price also fell short. He has experienced these three sharp drops, but he hasn't been moved, watched, or sold. Let's guess how much his account is now? In just 12 years, the account has now exceeded 100 million. Maotai's dividend rate is 2%, and the annual dividend is 2 million, right? This old man is now retired. Did he live a very happy life in his old age? After all, his children were very filial. Because he left his children with the most valuable asset, which is shares in a good company.
Therefore, value investing is not only suitable for US stocks, or only investing in US stocks is suitable for value investment; it is not suitable for value investment in A-shares. As an example just mentioned, if you buy Maotai and become financially free, have they proven that it is possible to make value investments in A-shares, even if there are many large fluctuations in the middle.
In fact, in A-shares, we have seen that in the A-share market over the past 30 years, there is no shortage of companies whose stocks have increased hundreds of times, and there is also no shortage of investors who have achieved returns of thousands or even tens of thousands of times. We often talk about how many times the bullpen has increased, depending on their characteristics and common points. Without exception, these cattle distributors, which have achieved tens of thousands of times returns, have invested in one or two good companies for a long time, and finally achieved freedom of wealth and fulfilled myths. In fact, the same is true for A-shares. Therefore, value investing is a universal investment concept, suitable for both US stocks and A-shares.