Exploring Unpopular Assets: Revealing Hidden Value for Savvy Investors

Find hidden value
If you want to find high-quality and low-priced investments, you need to look for the value hidden in assets that others don’t want.

The value that is truly meaningful to investors is the value that has not been discovered, and the places that are most likely not to be discovered by others mainly appear in the blind spots of thinking, that is to say, they “don’t want it”.

There are many reasons for “not wanting”. The reason for “not wanting” at a lower level is because you don’t like it. Investing is not about falling in love. It is very unprofessional to eliminate an investment target simply because you don’t like it at first impression. Behavior; and more “don’t want” is due to lack of understanding, incomprehension, and herd mentality.

Pondering the quality of thinking

What I enjoy most about this industry is that it’s not the time you spend thinking that matters, but the quality of your thinking.

The interesting thing about the investment industry is that you need to constantly think and accumulate experience based on what you see, hear, and think.

But what really brings about the accumulation of experience is obviously not the time of thinking, but the quality of thinking. If you want to evaluate the quality of thinking, you must figure out what quality thinking is.

On the one hand, a certain problem needs to be solved, and another point, also mentioned in the interview, is to be able to “prepare for rainy days” and prepare for the worst as much as possible. The latter point is especially critical. If you cannot consider the possible risks and whether you can bear them, then the value of this kind of thinking cannot be reflected.

Investing requires some courage

The truth is, if you don’t take risks when investing, you’ll never make extra money.

Investment is a risky thing, and risk-taking is a problem that we often face. In fact, in the uncertain future, everything we do will have risks of one kind or another, even if it seems to be a stable position or a stable state, There are always many unstable factors that hide some potential risks, but sometimes we are not aware of the risks.

Therefore, it is normal to occasionally take some risky behaviors when investing. You do not need to be too harsh on yourself. Taking appropriate risks can sometimes really have the effect of “gaining wealth through risk”. Of course, we need to avoid random factors in our behavior as much as possible.

Stock market sentiment creates profit opportunities

The emotional nature of the stock market creates profit opportunities, in other words, “volatility = opportunity”, despite the potential for losses.

In pain, you have to loosen the screws in your mind, especially when you’re pursuing a very concentrated portfolio.

We need to try to avoid being emotional, but for the entire market, emotion creates profit opportunities, so when the market is overly emotional, whether we can accurately grasp it will test our knowledge and experience. In many cases, emotionality is only an opportunity for a few people. If most people can control their emotions, then the market fluctuations will be much smaller – the market is a collection of group behaviors and reflects the psychological and emotional changes of most people. .

The second sentence is about ways to avoid being emotional. When we look forward to a certain thing or a certain relationship, we often tighten our nerves unconsciously and pay too much attention to the progress of a certain thing or the words and deeds of a certain person. The slightest unsatisfactory change will cause emotional imbalance. Everything must be relaxed and relaxed. If the string is stretched too full or too tight, it will easily break.

Master your areas of expertise

Only by grasping the areas in which you are good can you go further in success. If you have the opportunity to make a living doing this, that’s great.

From the perspective of “can we do it”, we can do many things. Even if we don’t know how to do it at the beginning, we can learn it later. The problem lies in the cost of learning. Everyone has different talents, and as a person’s experience becomes richer and richer, he will gradually bring in some past knowledge and skills, which will gradually show that different people have different areas of expertise.

Just like when I was a brokerage analyst before, roadshows and promotions were not areas I was good at (of course, because I was a small brokerage, I lacked sufficient training opportunities), so it was difficult for me to achieve satisfactory results in that industry.

Specific investment strategies and stock selections often correspond to different ideas, different information situations and emotional control abilities. If there is sufficient time, sufficient information, and strong emotional strength, perhaps some thematic investments can become profitable. A good way; if not, you have to lengthen the cycle (the emotional pressure will be much less), take profits from some well-known companies, companies with stable profits and dividends, and so on. In the stock market, not all types of strategies are what we are good at.

Discovering areas in which you are good at requires continuous reflection on your own situation, and you also need to pay attention to the difference between what you like and what you are good at. In addition, our evaluation of ourselves cannot rely on the rules and labels set by others. In terms of understanding ourselves, , no one has more say than ourselves.

Warm reminder from Foreign Exchange Eyes: Before doing foreign exchange transactions, be sure to review the qualifications and official website information of the foreign exchange platform to prevent being deceived. If you encounter problems with foreign exchange withdrawals or fraud, you should immediately collect evidence and call the police, and at the same time expose and protect your rights.