Selected Q&A: Ordinary Investors and Index Funds
💡 Key Quotes
- “I don’t know if there’s a value investing method specifically for retail investors. Anyway, there are many things I don’t understand, and if I don’t understand them, I stay away”
- “If you think of yourself as a small investor, you’ll very likely remain a small investor”
- “What you invest in has nothing to do with how much money you have. Nothing at all!!!”
- “People who don’t understand investing well should stay away from the stock market. When they absolutely must invest, index funds are a great choice”
- “Knowing what not to do is far more important than knowing what to do”
❓ Selected Q&A
Q: Any good suggestions for retail investors practicing value investing?
A: I don’t know if there’s a value investing method specifically for retail investors. Anyway, there are many things I don’t understand, and if I don’t understand them, I stay away. Many people never understand it their whole lives, so they never touch stocks their whole lives, and they are the best value investors. (2010-06-02)
Q: Any suggestions based on being a retail investor?
A: I have no special suggestions specifically for “retail investors” — investing is all the same. But if you insist on defining yourself as a “retail investor,” it’s actually best not to touch it at all, because buying stocks means buying the company, and you must have the mindset of a “major investor” (the assumption of buying the entire company). “Investing” without this assumption is dangerous in the long run. (2010-06-02)
Q: How should we understand the statement “If you think of yourself as a small investor, you’ll very likely remain a small investor”?
A: There may be many reasons why “small investors” easily remain “small investors,” but personally I think the most important is that they may want to make quick money and big money because they’re small, thus taking risks instead of pursuing truth. Actually, no investor in this world doesn’t want to make big money. Knowing what not to do is far more important than knowing what to do. (2015-04-28)
Q: If current capital is very small, how should one invest?
A: If we ignore transaction fees, what you invest in has nothing to do with how much money you have. Nothing at all!!! However, it does relate to energy — meaning if you have too much money, you may not have enough time to find enough good stocks. If you have too little money, you may not have enough expenses to research companies. Many people think they can’t learn from Buffett because Buffett has too much money, but I’m basically certain that people who say this don’t understand Buffett. (2010-03-11)
Q: Did Buffett also start as a retail investor?
A: Buffett also started as a retail investor, and so did I. His approach is not mysterious — at least it helped me a lot. I only started investing after reading about Buffett. (2010-06-02)
Q: Why is it hard for most funds to practice value investing?
A: Personally, I think most funds find it truly difficult to practice value investing, mainly because of fund structure. Since funds are often evaluated by the year, investors also often decide whether to invest based on the previous year’s performance. So the phenomenon we often see is that when it’s most time to buy stocks, many funds are frantically selling in the market because shareholders are panicking and want to redeem. And often when stock prices are very high, many funds are frantically buying because at such times many shareholders are willing to put money in. (2010-06-21)
Q: Any suggestions for people who don’t understand investing well?
A: People who don’t understand investing well should stay away from the stock market. When they absolutely must invest, index funds are a great choice. There’s an even better option — buy Old Ba’s (Buffett’s) stock. The above views apply only to US stocks; I haven’t looked into domestic ones. (2014-06-14)
Q: Do you invest in index funds yourself?
A: I don’t invest in index funds myself; I find them too boring. (2014-06-14)
Q: The principles of value investing are simple. Why don’t most people practice value investing?
A: Just like with investing, those who can’t figure it out in a lifetime mostly refuse to think about long-term things — short-term temptations are simply too many. (2019-01-18)
Q: The average lifespan of hedge funds is only 7 years. What does this tell us?
A: The average lifespan of hedge funds seems to be only 7 years. Never learn from their approach. (2010-03-27)
🔗 Related Notes
Related Concepts 买股票就是买公司 · 能力圈 · 长期主义 · 复利 Related People 段永平 · 巴菲特 · 芒格 Related Topics Duan Yongping’s Value Investing System · Advice for Young Investors
普通投资者与指数基金篇精选
💡 核心金句
- “不知道有没有一个专门针对散户的价值投资法。反正我也很多东西不懂，不懂就不碰”
- “如果你觉得自己是小投资者，那你很可能会一直是小投资者的”
- “投资什么和你有多少钱没关系。关系！！！”
- “不太懂投资的人最好别碰股票市场，非投不可的时候，指数基金是个很好的选择”
- “知道什么不可为比知道可为什么要重要的多”
❓ 精选问答
问：散户做价值投资有什么好建议？
答：不知道有没有一个专门针对散户的价值投资法。反正我也很多东西不懂，不懂就不碰。有很多人，一辈子都不懂，所以一辈子都不碰股票，他们也是最好的价值投资者。（2010-06-02）
问：基于散户，有什么好建议？
答：我没有任何针对”散户”的特别建议，投资都是一样的，但是如果你非要定义自己是”散户”，其实最好还是不要碰的好，因为买股票就是买公司，必须有”大户”心态（就是把整个公司买下来的假设），没有这种假设的”投资”长期而言是危险的。（2010-06-02）
问：如果你觉得自己是小投资者，那你很可能会一直是小投资者的，这句话怎么理解？
答：“小投资者”之所以很容易一直是”小投资者”的原因也许有很多，但个人认为最重要的是他们可能会因为自己小而想赚快钱，大钱，从而铤而走险而不追求真理。其实这个世界上没有投资人不想赚大钱，知道什么不可为比知道可为什么要重要的多。（2015-04-28）
问：假如现在资金量很少，该如何投资？
答：如果不考虑手续费的话，投资什么和你有多少钱没关系。没关系！！！不过和精力有关系，也就是说如果钱太多时可能没有足够多时间找到足够多好股票。钱太少又没有足够开销去研究企业。很多人觉得没法学巴菲特是因为巴菲特有太多的钱，可我基本肯定这么说的人是不懂巴菲特的。（2010-03-11）
问：巴菲特也是从散户开始的吗？
答：巴菲特也是从散户开始的，我也是。他的东西不神秘，至少对我的帮助很大。我就是看了巴菲特的东西后开始投资的。（2010-06-02）
问：大多数基金为什么很难做到价值投资？
答：我个人认为大多数基金都很难真正做到价值投资，主要是因为基金的结构造成的。由于基金往往是用年来衡量考核，投资人也往往是根据其上一年的业绩来决定是否投进去。所以我们经常看到的现象是往往在最应该买股票的时候，很多基金却会在市场上狂卖，因为股东们很恐慌，要赎回。而往往股价很高时却有很多基金在狂买，因为这个时候往往有很多股东愿意投钱进来。（2010-06-21）
问：对不太懂投资的人，有什么建议？
答：不太懂投资的人最好别碰股票市场，非投不可的时候，指数基金是个很好的选择，还有一个更好的选择就是买老巴的股票。以上观点仅就美股而言，国内的我没了解过。（2014-06-14）
问：你自己投指数基金吗？
答：我自己不投指数基金，觉得那个太无趣。（2014-06-14）
问：价值投资的原理很简单，为什么大部分人不做价值投资？
答：就像投资一样，一辈子悟不出来的多数都是由于自己拒绝去想长远的东西，短期的诱惑实在是太多了。（2019-01-18）
问：对冲基金的平均寿命只有7年，这说明什么？
答：对冲基金的平均寿命好像只有7年，千万别学他们的做法。（2010-03-27）
🔗 相关笔记
相关概念 买股票就是买公司 · 能力圈 · 长期主义 · 复利 相关人物 段永平 · 巴菲特 · 芒格 相关主题 段永平的价值投资体系 · 给年轻人的投资建议