Buying Stocks is Buying Companies
Selected Quotes on Intrinsic Value & Buying Stocks Means Buying Companies
💡 Core Golden Quotes
- “The simplest definition of investing is: if you had enough money, you’d want to buy the entire company at this price and take it private”
- “Buying stocks has nothing to do with your cost basis, nor with what price it reached before. The only thing that matters is the company’s intrinsic value”
- “For investing, a very important point is being able to treat listed companies as if they were unlisted”
- “Very few people remain unmoved after a 100x gain—so the key is still looking at fundamentals with ordinary mindset, forgetting cost, and ignoring the market”
- “For companies you truly understand, buy and sell decisions are actually about equally difficult”
❓ Selected Q&A
Q: What’s the highest realm of investing?
A: It’s roughly this (buying a company such that even if it gets delisted, you’re not afraid—you can recover your investment through dividends and other means). (2010-03-31)
Q: What’s the simplest definition of investing?
A: The simplest definition of investing is: if you had enough money, you’d want to buy the entire company at this price and take it private. But if you only have limited money, you can only buy a small portion. (2010-03-26)
Q: If this weren’t a publicly traded company, would you buy at this price?
A: Hehe, it’s not really about taking it private. The meaning is: if this weren’t a public company, would you buy at this price? If you say no, then it’s not value investing. (2010-03-26)
Q: Does buying stocks have anything to do with cost?
A: Buying stocks has nothing to do with your cost basis, nor with what price it reached before. There’s only one thing that always matters: the company’s intrinsic value. (A company’s discounted future cash flow is its intrinsic value.) (2012-06-26)
Q: What’s a very important point for investing?
A: For investing, a very important point is being able to treat listed companies as if they were unlisted, then rationally thinking about what you should do. (2012-11-10)
Q: What’s most critical about remaining unmoved even after a 100x gain?
A: Very few people remain unmoved after a 100x gain—so what’s most critical is looking at fundamentals with ordinary mindset, forgetting cost, and ignoring the market. (2012-03-14)
Q: For companies you truly understand, are buy and sell decisions equally difficult?
A: For companies you truly understand, buy and sell decisions are actually about equally difficult. (2012-07-04)
Q: Does “knowing how to sell makes you a master” have speculative elements?
A: Value investors’ buying and selling are both related to value—for example, selling has nothing to do with cost basis. At its core, “knowing how to sell makes you a master” actually considers the relationship between market price and cost. People who want to do this naturally pay very close attention to the market’s attitude toward the stock rather than focusing on the business itself. (2012-07-04)
Q: You said you’ve never seriously estimated the so-called “intrinsic value” range—what does that mean?
A: I’ve never seriously estimated the so-called “intrinsic value” range. Before selling most of my Netease shares, what I kept rationally considering was mainly how much money this company could actually earn in the future—not how much my stock had already earned. To roughly figure this out, you can’t do without deep understanding of the company, industry, products, etc. (2011-01-11)
Q: Is it correct that if value remains constant, the lower the price, the more you should buy?
A: If value remains constant, then yes—the lower the price, the more you should buy. Of course. (2010-03-03)
Q: Why is catching falling knives dangerous?
A: Catching falling knives is dangerous because when people try to catch them, they’re usually thinking about what price the stock used to reach rather than what the company’s intrinsic value is. (2010-04-16)
🔗 Related Notes
Related Concepts Buying Stocks Means Buying Companies · Discounted Future Cash Flow · Ordinary Mindset (Pingchangxin) · Intrinsic Value Related People Duan Yongping · Warren Buffett · Charlie Munger Related Topics Duan Yongping’s Value Investing System · Sell Timing & Holding Logic
内在价值与买股票就是买公司篇精选
💡 核心金句
- “投资最简单的定义就是如果你有足够的钱你就想在这个价钱买下整个公司，然后把他下市”
- “买股票和成本无关，买股票和其以前到过什么价无关。有关的东西永远只有一个，就是企业的内在价值”
- “对投资而言，很重要的一点是你能把上市公司看成非上市公司”
- “大概很少有人在涨了100倍依然不动心的，所以最关键的还是平常心去看基本面，忘记成本，忽略市场”
- “真正理解的公司，买和卖的决定其实是差不多难度的”
❓ 精选问答
问：投资的最高境界是什么？
答：差不多是这个意思（买了一家公司，即使它退市也不怕，可以靠分红等手段收回投资）。（2010-03-31）
问：投资最简单的定义是什么？
答：投资最简单的定义就是如果你有足够的钱你就想在这个价钱买下整个公司，然后把他下市。但只有很少钱的话就只能买一小部分了。（2010-03-26）
问：如果这不是一家上市公司，这个价你买吗？
答：呵呵，倒不是真的要下市。意思是如果这不是一家上市公司，这个价你买吗？如果你说不买，那就不是价值投资。（2010-03-26）
问：买股票和成本有关系吗？
答：买股票和成本无关，买股票和其以前到过什么价无关。有关的东西永远只有一个，就是企业的内在价值。（公司未来现金流折现就是公司的内在价值）（2012-06-26）
问：对投资而言，很重要的一点是什么？
答：对投资而言，很重要的一点是你能把上市公司看成非上市公司，然后理性地去想应该怎么做。（2012-11-10）
问：涨了100倍依然不动心，最关键的是什么？
答：大概很少有人在涨了100倍依然不动心的，所以最关键的还是平常心去看基本面，忘记成本，忽略市场。（2012-03-14）
问：真正理解的公司，买和卖的决定难度一样吗？
答：真正理解的公司，买和卖的决定其实是差不多难度的。（2012-07-04）
问：“会卖是师傅”这句话有投机成分吗？
答：所谓价值投资者的买卖都是和价值有关，比如卖的时候和成本是无关的。“会卖是师傅”的骨子里实际上考虑的是市场价和成本之间的关系，想这么做的人自然是非常关注市场对这个股票的态度而不是专注在企业的生意上。（2012-07-04）
问：我从来就没认真估过所谓”内在价值”的区间，这是什么意思？
答：我从来就没认真估过所谓”内在价值”的区间。在卖出大部分网易之前，我一直理性考虑的问题主要是这家公司未来到底可以赚多少钱而不是想我的股票已经赚了多少钱的问题。要大致想明白这个问题，对公司、行业、产品等等的了解不深是做不到的。（2011-01-11）
问：价值不变的情况下，价格越低越买，这句话对吗？
答：价值不变的情况下，价格越低越买，当然对咯。（2010-03-03）
问：接飞刀容易中招的原因是什么？
答：接飞刀容易中招的原因是：人们在接飞刀的时候往往想的是这个股票过去到过什么价，而不是这个公司的内在价值是多少。（2010-04-16）
🔗 相关笔记
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