The United States defines a bear market as follows: from the highest point of the Dow Jones index, a 20% decline, and the bear market is established. If this is the standard, then there are bear markets in China every year. China's stock market has been more volatile.

On a whim, Chen Xiaoxi checked all the stock indexes of the entire stock market from 1991 to 2007, and found that every three years, the Shanghai Composite Index rose by 100%, and according to this law, he set himself a goal to increase his investment by 100% every six years.

"So far, I think this assumption is achievable in practice. Therefore, my third lesson is that there is a bear market every year, and a bull market is not far away. This experience is important for investment confidence. Chen Xiaoxi said.

After talking about the concept, enter the practical stage.

When choosing stocks, Chen Xiaoxi looked for companies with good operating conditions and low price-earnings ratios to buy. In the bear market that fell in 2007 and 2008, steel companies and machinery manufacturing companies met this standard.

In 2009, the stock market recovered, and the first one that began to rise was machinery manufacturing stocks. Next up is steel. Basically, the P/E ratio went from 6 to over 20.

"Usually I make money and never ask why. But in hindsight, it's quite interesting: it was very common sense. In order to stimulate the economy, the government has invested 4 trillion yuan, and the state investment is nothing more than infrastructure construction. Machinery manufacturing such as bulldozing and excavation should be the first to benefit, followed by steel. ”

After 2009, stocks soared and bonds plummeted. Chen Xiaoxi's experience started at the beginning. The final pattern is 15% stocks and 85% bonds. At the end of 2009, when the stock market fell again, the experience took effect, which helped him reduce his risk and help him make money.

The experience of these three years has allowed Chen Xiaoxi to gain a fourth lesson: the price-earnings ratio is the touchstone.

Liang Fang has been exposed to stocks and knows that the price-to-earnings ratio is an abbreviation for "price-to-earnings ratio", which is calculated by dividing the stock price by the annual earnings per share. The ratio of stock price per share to net assets per share is known as the price-to-book ratio.

Liang Fang couldn't help asking: "The net value of the market and the price-earnings ratio, sometimes the two indicators are not completely consistent, which indicator is more important?"

"I've heard people talk about the value of a company, and the result of that discussion is that the value of a company's existence in the world is its ability to make money. If the ability to make money is quantified, it is the price-earnings ratio. Therefore, in my mind, the P/E ratio is a bit more important than the P/E ratio. ”

Liang Fang nodded, thought for a while, and then asked, "The data you rely on comes from financial statements. As we all know, financial statements are not 100% true. The implication is, is there any reference to untrue financial statements?

"I don't seek the truth of every detail of the numbers. When everyone has moisture, compare horizontally and find a company that is relatively better in various industries, and the number of moisture is also of reference value.

What's more, if the financial statements are falsified, distorted, and the profits are written high or low, they can only be falsified for a short period of time for a certain purpose, and it is difficult to falsify them for a long time. The risk of auditing the firm itself is too great. Companies don't always acquiesce to doing this. Chen Xiaoxi replied eloquently.

Liang Fang thought about it again, and finally asked: "I decided to invest in stocks, how much money do I need at the beginning?"

"Being an investor isn't just about having enough money. The return on investment is based on the ratio, not the amount. What's more, the amount of money is relative, and if you divide your money into enough shares, the money will be enough. ”

Hearing such an answer, Liang Fang's eyes lit up. At the same time, I couldn't laugh or cry. It was the first time she had heard someone say "If the money is divided into enough shares, the money will be enough."

"So are we going to draw up a contract?" Liang Fang asked.

Chen Xiaoxi was stunned for a moment, and asked with some disbelief: "You mean that you invested money in me and let me make stocks?"

"Uh-huh. ”

Chen Xiaoxi smiled dumbly: "This is the purpose of your coming to me?"

"Not really. At first I wanted to vote for Bunny. You moved me, and I changed my mind. ”

"I didn't mean to impress or convince you. There are a lot of people out there who have their own set of ideas about the stock market and make a profit. Chen Xiaoxi's refusal was obvious.

Liang Fangcai was not so easily discouraged: "Indeed. Many people bought one or two stocks with a lot of money, and bet on the right ones, and since then they have skyrocketed. But he himself did not dare to believe that he would win. Otherwise, you would have invested all your assets in the stock market and made a lot of money. What you're doing is value investing based on financial data. You don't rely on speculation, you don't rely on luck, you are more confident in the returns. The proof of this is that you put all your liquidity into the stock market. ”

Chen Xiaoxi pondered for a moment or two, and finally seemed to have made up his mind: "Okay." For the sake of our friends, I'll be reluctant to accept it. I will draw up the agreement, I will open the conditions, and I will give the name to me. ”

"Then I-"

"You're responsible for paying and getting returns. ”

Liang Fang got up and stretched out his slender jade hand. Chen Xiaoxi didn't even get up, he grabbed Liang Fang's hand and shook it twice casually.

"Why didn't you go to their reunion last Saturday? I thought you went along. When the business was settled, Liang Fang's gossip heart rose again.

Chen Xiaoxi's eyes suddenly drifted, and he snorted, but didn't answer anything.

"Did you two quarrel?" Liang Fang wanted to laugh even more. In her heart, Chen Xiaoxi is easy-going and generous, and Zhu Beini is docile and reasonable, what is it like for such two people to quarrel? Liang Fang couldn't think of it, but felt funny.

"It would be nice if there was a quarrel. ”

"Cold War?"

"Pretty much. Chen Xiaoxi was very helpless.

"I'll give you an idea. Don't try to teach people, don't try to convince people. When you turn over this in your heart, you go to her as if it's all right. How to live and how to live. It's as if the Cold War had never happened. Zhu Beini is a smart person, even if she is a smart person, many things need time to understand. ”

Chen Xiaoxi put his hands behind the pillow, played for a while, and said: "The name is Bei Fund, wait for me to send you the specific content." ”

Seeing that it was time for lunch, Liang Fang invited Chen Xiaoxi to have lunch, and Chen Xiaoxi said that he still had important things to do and needed to take a step first. Liang Fang has always been hearty and will not be entangled in small things. The two waved goodbye at the door of their office.

Lin Lin spoke from behind her back and let out a sigh: "Now I'm relieved." ”

"Huh?" Liang Fang felt a little unhappy in his heart. Lin Lin said this, as if she suspected that she was wrongdoing something with him in the office. However, she did not show her anger, and the new partners need to be run-in.

"I'm still playing around with you when you start a company, it turns out that you can really do things!"

It turns out that it is this that is relieved. Liang Fang smiled shyly, stretched out his hand and patted Lin Lin on the shoulder: "After talking all morning, I was tired and hungry." Let's go, let's eat!"