Reprint If your stock suddenly fell to half of the End of the World blog knowle

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the the  A completely normal company's stock is down 80% or even 90% who would be selling. I also made the same mistake. The end of 2008, after the collapse of Lehman Brothers, I sold off the shares of the company's two business normal: I was somehow afraid of them survive the financial tsunami. After six months, the two stocks have risen more than twice. I often want to kick their own two feet.  When a stock is climb, we have to ask ourselves a question. ?  In fact, 24 times earnings for many companies in terms of normal, not too high. Except that it can become 12 times in a month. We have ten thousand kinds of reasons can be proved, 12 times is not absurd, but also normal earnings. Reason can make the macro, micro,Parajumpers Jackets Norge, such as unexpected interest rate hike expectations, inflation expectations, the prices of raw materials, finished goods decline in value, the management changes, the addition of new competitors, or the original performance a bit exaggerated, or the Greek debt crisis, and so on,Parajumpers Norge.  When your worth suddenly become 50 million from 100 million, you are really good about them? You really could take it easy? Do you really dare to stand up to it? This money is your hard earned. Parents, wives and children also depend on you. At a loss when your investment decisions may be unwise.    Leave room, multi discounted  how to try to avoid this situation, I have a few ideas. First, look at the stock, to leave the room. For example, accounts of the company's history and future projections of more than some discount. Second, the valuation should leave room. For example, the fair value of a stock should be 5-8 yuan rather than 8 yuan, or another accurate figures. The stock valuation is an art, not a science. Finally, each company has a problem, some of the problems you just do not see it. Their management may have been infighting, but they camouflage well.  To reduce yourself be carried away by the number of times, I suggest that you see more of For example, determined not to buy a 30 times price-earnings ratio of stocks just because similar stock more expensive (40 times). A reliable method is pegged to 30 times this number. This is not a small figure. It is means my investment takes 30 years to recover the cost of capital (assuming the company's future development) with the current level of profits. Of course, the future profits of the company may grow, but there will be a down year. For a handful of high-growth companies, 30 times may also be very reasonable or even cheap. Note, however, that only a handful of companies can last years of high growth (for example, more than 20%). If we This time the market environment may have a problem. The stock's price-earnings ratio with inflation, which means the bank rate. In general, the higher the interest rate, lower stock valuation multiples,Parajumpers Jackets. And vice versa. But it is also a very dangerous The current low interest rates can it last? How to do in case of a sudden rise in interest rates?    Grasp of market timing is not possible  I had fried Warrant (ie, warrants, warrants and put warrants), this way, I regret a thing. Loss of money is not, contrary to my own investment principles and lose money is greater. Warrant of course have a fixed period, such as, in fact, you are gambling, betting that a stock or index at a fixed date (for example, May 31) before risen to what extent, will fall to what extent. Even if your macro analysis and micro analysis are correct, predict market timing is very stupid. Analysis of the fundamentals have been very easy, if you add on forecasts of market timing, it is more difficult. A correct fundamentals sometimes may take two years, three years or five years or even 10 years to show it, you have the patience and money to afford this? Warrant enough: usually a few months up to one year. The fried Warrant is performance of Xinxinbaopeng, but for the majority of people, is a sign of ignorance. They do not know the fundamentals of performance takes a long time. Keynes once said,  Great investors Templeton John Templeton said, do not try to find the inflection point in the market,sac Longchamp, adhere to long-term investment is tireless road to riches (it is the time, not the timing, that counts). Templeton understands the weaknesses of all people (including myself), worried that she not have the courage to buy stocks when the market crash. So he own shares love (good company stock) to determine a price (This can be called under the Value), and issued a directive to the securities broker: Once the share price fell to a certain level, they automatically buy much. Why directors    very profitable  everyone a lot of money can be found in a large number of directors of the Company in Hong Kong, the main reason is their stock to add value for them. Why? Directors in the sensitive period (for example, two months prior to the published results, during the making acquisitions, or other sensitive period) can not be traded stocks. At other times, each sale must be approved by the Board in advance, but also to announcement, the directors have to take into account the image and gossip,sacs Longchamp. The directors are also worried about the other directors (in particular, the chairman of the board) and fund managers said the company So, on a self-restraint: directors trading their own stock is very frequent, and buy a number of often more than the number of sold. Many directors leave after only sell the stock. They float time is generally longer, sometimes up to ten or twenty years. When the stock market crash, they not only embarrassed to sell its own shares, but had to push themselves to buy the stock, in order to give the public confidence. Later results, of course,clarisonic mia, they were forced to made a fortune.  Not when the people of the directors of secondary schools, this thing can also a reason. Long-term investment and reduce transaction is gas. Do not worry when the stock market crash, patience is a virtue, and virtue must be rewarded. In the eighties, when I was studying in Australia, one teacher said, his money are forced to earn. He buy a house, the monthly payment of the contributions of many mortgage. It also forced him to save money and think of ways to find extra money. He said, to save money and hard work are virtues. So, he can only make a fortune. This is the same reason fortunes with directors. When the stock market crash, we have to remind ourselves that this storm will pass.    Supposedly your company does not have listed  investors to treat stock fell: Assume that your company is not listed, you do private equity investment before the IPO. Buffett's teacher, Ben Graham once said, the The Exchange quotation system is very harmful, it continues to give you some information harmful to tempt you to make the wrong decisions. Real investors should take advantage of the convenience provided by this quotation system, rather than be led by the nose.  Because the stock can sell at any time, so we develop a bad habit: enough carefully before buying stocks, buy the stock before doing research, or always do the research anyway, when a problem, we always can sell the stock. However, the problem sometimes come too fast, we have not had time started to run, the stock was gone half.  Buffett stated on many occasions, the real long-term investors should want to see the stock prices have fallen, so he was able to buy more every month. I have already explained in the     This article in the May 25, 2010 at caijing.com.cn Finance