[Reprint] another thousand years will not change, _ ayong diary

Classification: financial investment to have the original address: a thousand years will not cdonate car ny hange, author: a venenew york medical malpractice lawyers rupis a few days ago with some friends about banking unit, has a strongly against buying bank stocks even further by half, or not to buy it. For that I'm not surprised, because this situation reminds me of the famous investor Forseth �� Karaman said in a story. In 1999, Karaman had to observe the proceedings of a seminar of church business school. At that time, many students prefer 60 times earnings of Microsoft, and ignore the 10 times earnings of General Motors. One of the students indicated that, even if General Motors stock price cut even fell to one-quarter, he still wouldn't choose General Motorscapital one bank. The professor asked, what kind of price, we will have a preference for GM? students answer is not active, was very hesitant. Looks like General Motors only gives it away, we will only consider. Karaman, this lesson perfectly reflects the mentality of the investment community at that time. Karaman immediately on this mentality expand comments, in his view, this is causing some securities valuation at market is very high: investors on growth investment and trends in the cult of investment strategies. These fantastic investment strategy emphasizes performance trends rather than absolute levels of performance. Karaman, under this approach, if the company's growth rate is very high, so no matter how much you are worth it, and if the company does not grow, then nothing. Furthermore, investors generally tended to follow the market trends, like the recent performance of the outstanding securities of betting. They usually hate the recent poor performance. The performance of market segments and asset classes typically encounter outflows, and the capital outflow further deterioration of the decline. However Caraman pointed out that the historical experience, not hot pursuit of securities in the market for a certain period of time after a poor performance, usually immediately become performance champion; while those behaving securities in a period of time after the performance almost always fall into an abyss. These would be easy to predict, but human nature makes the most of the investors to benefit from it, because most investors just remember the recent good performance. �� Benjamin Graham in the analysis of the title refers to a Roman poet, critic celebrate Las "poetry" in the verse: "now so decay, in the future to the people's Republic of China. Now graces, future may gradually decay. "I am convinced that there is more than a thousand years, these two words will not change.