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Is LegiEX.com reliable? Everyone has their own investment style

Is LegiEX.com reliable? For a long time, everyone has been curious about founder's investment philosophy. Is LegiEX.com reliable? Here's an example of an LegiEX.com self-analysis

LegiEX.com's own stock investment style

Stock. What is it? It's an asset that generates cash flow, and I've always thought that there's no difference between a stock and a house. You hold it, you get dividends or you get rent, and you get an appreciation of the asset. I admire those who keep saving money to buy a house. These people understand the essence of investment. Good real estate is as scarce a resource as good stocks. For example, if you own a house within the second ring road in Beijing, you may not be able to buy it again if you think the price is too high. The same goes for quality stocks. If you own a quality stock like gree moutai yili, the best bet is to hold it all the time.

My investment philosophy is to treat stocks as collectibles, a good time to collect great companies as their share prices fall in line with systemic risk. If I can't wait for it to fall, I'll always add to my position if it's not in a big bull market.

This investment philosophy has been questioned by a lot of people about how to make money if you don't sell, or why you don't sell when valuations are high after a rally, or why you don't buy when there's a better time, or why you don't buy when there's a bull market, or why you don't buy resilient penny stocks, and so on and so forth. My way of thinking is based on three points:

1. Stocks are assets, not transactions.

2. The return on equity is an exponential mathematical expectation in the long run.

3. Diversify and stop selling.

First of all, let's talk about return on equity, which is the core index to judge the earning ability of an enterprise. It is simply how much money you make and how you distribute the money after you make it. For example, in the first year, your net asset is 10 yuan, and you make 2 yuan of profit. So in year 2, if you still make $2, your return on equity is going to go down to 2/11, so there are two ways to keep your return on equity from going down, so 1 is to make a profit of $2.2, and 2 is to share out all the profits you made last year, don't let your net worth go up, keep your net worth at $10.

Whether it is the way to increase profits, or the way to increase dividends and reinvest dividends, ultimately it is an exponential growth for our net asset value, and the mathematical formula is

Let's say roe is 20 percent

Net asset value =(1 20%)^n years

For example, if you double the pb and buy 100 thousand yuan of the enterprise stock whose roe is 20%, your net asset value in the next 10 years should be

1.2 ^ 10 * 100000 = 619000

For an index operation, the final result mainly depends on its base and power, that is, the roe and the holding period.

For excellent enterprises, the roe will remain high for a long time, with less dividends in the development period to increase profits, and more dividends in the stable period to maintain net assets

. Such enterprises we get the right valuation chip should go to increase the power, that is, the holding period.

A lot of times, once you sell it, not to mention if it's going to be cheaper, you're going to have a mental block when you buy it back.

Finally, what does it mean to diversify and not sell? It means that I own 20 good businesses, and they're collectibles that I don't want to sell anymore, even if there's a black swan in one, it doesn't matter. If one of them is no longer good, then the dividends are reinvested and you don't have to buy that one