Ninety-two-year-old america made $2. 2 billion in 54 years
Over the years, i've found a particularly strong truth: the more hard-working and operational most people are, the more they lose。
Four or five hours a day, chasing hot spots, changing tracks, making short lines, fearing to miss a wave, trading hundreds of times a year. But the final check, which not only makes no money, but also the fees, the losses, the losses and the fallback, reduces the principal。
Those who actually earn money in the stock market are mostly lazy。
There is a true case abroad of a 92-year-old american woman with no professional financial qualifications, no k-line indicators, no know-how, and no intelligence。
She spent only 54 years holding a stock, ranging from young stockholdings to white-haired hairs, making ordinary free money into a huge gain of 2. 2 billion yuan。
Many people think she's lucky and stepped on the times. But looking at her decades of investment record, it turns out that luck only adds up, and that what really allows her to travel through half a century and make a lot of money is three very simple iron laws that few people can stick to。
The average person, who understands it well, is able to change the bad habits of losing money and to steadily increase his/her investment success。
One, only a business that you can see, you can feel, and you can't touch what you can't understand
Her name is grace groek and she is the most common private investor。
In 1972, she made one of the most correct investment decisions in her life: the purchase of coca-cola shares, which had since opened a 54-year-long hold-up road。
Many people around that year were chasing hot tech units, periodic theme groups, volatile movements and short-term increases that seemed attractive. But grace remained unmistakable and firmly chose the seemingly flat consumption of coca-cola。
Her selection logic is particularly modest and there is no theory of half a depth。
First, everyone in this company knows the business. Both old people and children, whether economically prosperous or undermarketed, coca-cola has a very wide range of product audiences and a very high repurchase rate. It is a solid consumer business, not a shell business that relies on conceptual storytelling and capital-based valuation。
Second, cash flows from enterprises are extremely stable. For decades, the brand has been deeply entrenched and the global distribution channels have been well developed, generating a steady flow of real profits each year and operating conditions have not fluctuated sharply with market outlets。
Thirdly, there is a continuous distribution of returns to shareholders. Coca-cola maintains a stable bonus mechanism throughout the year, which is also the central advantage of long-term investors. The real money and silver earned are willing to be distributed to the strong shareholders rather than to be squandered or expanded blindly by management。
In her investment principles, there was always a hard standard: companies that did not understand the pattern of profit, did not understand the logic of money-making and did not touch it with hot spots。
This is also the core cause of the loss of countless scattered households。
A lot of people now work out without looking at what the company is doing, just looking at how the day is booming and hot, listening to people's suggestions and watching the live broadcast, entering blindly。
When the track fires, the bee rushes in, and when the concept cools, it cuts out. It doesn't matter whether the business has a real business, has a steady income, or has a sustainable profit。
This type of investment is essentially a matter of money management or pure gambling。
The market is changing year after year, and this year's hot topic will probably be left unattended next year. The price of the shares pushed up by hot spots, without basic support, is rising faster and falling harder。
Real high-quality enterprises, which earn money from products, reputations, cash flows, and are free from short-term market fluctuations, are able to move through round and round shifts, slowly helping investors to build up their dividends。
The most basic and most important step in stock-breeding has never been the search for a burgeoning cattle stock, but rather the holding of the bottom line and the investment in quality business that they truly understand。
Two, good shares don't catch up. Always keep your own security pads
Many shareholders have a fatal error zone: any price buys a good share。
That's not true. A better company, if it buys too much and overspent space for the next few years, will end up being tied up and pulled back for a long time, and even if the business continues to make a profit, stock prices will be difficult to escape。
Grace's huge gain of 2. 2 billion is indispensable, in addition to choosing the right target, a precise and rational entry。
In 1972, the united states stock market experienced a round of deep adjustments, with overall market moods depressed, high-quality blue-bracket valuations falling sharply and no longer bubbles. Just as everyone was scared and afraid to come in, she made a batch of coca-cola and finished her own core。
She never follows the wind when the market is crazy。
Every time the market was popular, everyone was talking about making money in stock, new players were easy to profit from, and there was a massive rise in various subjects, she kept looking and never came back。
Because she knew that the most risky phase was the one in which all the people of the market were crazy. All the good will be amplified indefinitely, the stock price will be completely different from the real value of the enterprise and the foam pile will accumulate to the point where it will be subject to a deep echo at any time。
She works very well for ordinary people:
Without seeking to buy at the absolute minimum, ordinary people are simply unable to do so. It is only necessary to wait for the return of high-quality business valuations to a reasonable margin, where market sentiment cools and the sequences slow。
At the same time, she has always retained sufficient idle cash to travel from grievances。
Capital markets are always full of uncertainty, macroeconomic changes, increased industrial competition, sudden business problems, and any single variable can trigger a boom. The retention of cash would not only protect against the risk of retreat, but also compensate for the costs and ownership of investments at low stock prices。
Most of our ordinary investors are inverse operations。
When opportunities fall out of low-life, high-quality assets, fear is too strong to buy, and they continue to wait and see. By the time the flames and the price of the stock double, everyone around them would be making money, they would start to be greedy and rush in。
It is the core logic of the vast majority of people who lose their share of the loss year after year when they are afraid to set up when the risk is low and when the risk is high。
Investment is never based on frequent operations, but rather on patience. Stop it, don't chase high, leave a security pad, just a simple operation, and you'll be able to get rid of most of them。
Iii. Refusal to make frequent trades, exchange time for profit, and not be emotional
If the first two criteria were the basis for her profit, the third was that she was able to hold the core bottom card of 54 years, with billions of proceeds。
In its 54 years of silos, the united states share experienced numerous crises. The great depression, the bursting of the internet bubble, the financial crisis, the many large-scale crises, and the collapse of markets each time were accompanied by a panic and a collective emptiness。
In each of the severe shocks, countless old shareholders who had stood for years were left with no psychological pressure and were left in a low position。
Grace was the only one who almost never ran his own hold。
Every time the stock price falls, the market is pessimistic, she doesn't read the news and panic, she just calms down to two questions:
First, is the core competitiveness of this enterprise still in place
Second, do consumers recognize its products
As long as both answers are affirmative, short-term stock prices fall, they are just false fluctuations caused by market sentiment, with no loss in the intrinsic value of the enterprise。
The stock price has fallen, only temporarily, and the ability of enterprises to make money has not disappeared, and the future will surely rise。
She never made short-term games, nor pursued short-term windfalls。
In her perception, the growth of a high-quality enterprise required decades of sedimentation, the accumulation of wealth and, equally, time。
Frequent trading, seemingly numerous opportunities, is a trap. Each sale carries the risk of handling fees, loss of slide points and miscalculation. The greater the number of operations, the greater the probability of errors and the faster the losses accumulate。
Many people are tired and losing because they want too much。
Buying a stock for 10 and a half days, getting anxious, running off the road without making a small profit, getting caught in the trap and getting high. Repeated operations not only emptied long-line cattle, but were also repeatedly harvested by the market。
Of course, long-term possession is definitely not brainless。
Grace's adherence is based on the fundamentals of continuous follow-up. She also leaves the business decisively if the business is run down, the core advantages disappear and profitability continues to decline。
The real long-term investment is to stand up to quality growth enterprises, to abandon emotional transactions and to trade time for compound value-added, rather than stubbornly flattening the garbage stock。
The investment gap for most ordinary people is not a cognitive gap, not a capital gap, but a gap between patience and self-regulation。
The core that ordinary people deserve most: learning logic, not copying patterns
After looking at this case of $2. 2 billion in 54 years, the first reaction of many people is: i'm looking for a tap, and i can't get rich for decades
There must be an objective and rational reminder that there can be no direct replication。
Grace's success has an exclusive age context. The half-century-old oxen environment, the dividends of the continued globalization of coca-cola, the long-term idleness of capital, are not available to the vast majority of ordinary people。
Most of our ordinary people's funds have a life cycle, buying houses, raising children, emergencies, need money at all times, and there is no way of holding shares for decades。
But her three underlying logics fit all investors, all markets。
(a) only high-quality assets that can be understood and avoid risks other than perception
Waiting for entry at a reasonable price, not to follow up and remain safe
Reduced ineffectual and frequent transactions, steady mentalities and profit from compounding。
The dumbest method in the stock market is often the surest。
Long-term persistence, simple rules, stable self-regulation and the accumulation of months are key to opening the income gap between ordinary people and top investors。
At the end of the day, it was never technology, not news, not frequency, but mentality, self-discipline and long-term patience。
The best way to move from a one-night-long zeal to a simple rule, to a gradual accumulation and steady addition of value is for ordinary investors。
Concluding remarks
Fifty-four years of light and change of course have led to the elimination of countless once-unlimited businesses。
Countless smart people are playing back and forth in the stock market, chasing up and down, and ending up on average or even losing. And an average old woman, with three simple irons, has been able to reap hundreds of millions of dollars in wealth。
Investment is never more frequent than who operates, who knows more tricks, who is more disciplined, who is more patient and who is able to adhere to the right underlying logic。
Simple investment, long-term sustainability, and the general population can make its own gains in capital markets。
Disclaimer
All the cases and data in this paper are open market information, are investment experience-sharing and logic only, and do not constitute any stock buy advice and investment operational guidance. Equity markets are risky and investments need to be prudent, and all transaction decisions need to be independently judged against their own risk tolerance, with corresponding gains and losses borne by themselves。
