Dialectical Learning

Weekly Reflections

Recently, I have been listening to Xu Shuze’s “Private Lessons from Investment Masters (Season 1)”. This course was planned by Zhu Ang of “Dianshi Investment” and broadcast by Xu Shuze. The course popularized the investment experiences and main investment thinking of Buffett, Soros, Edward Thorp, Simons, Cohen, and Dalio in the form of a general education course, and extracted the core concepts of each person.

From the perspective of the masters’ investment history, the masters’ wealth has all gone through the development process of primitive accumulation → exponential growth → wealth preservation → exit (partial). At different stages, the investment methods used are worlds apart, especially the investment methods of masters after the capital scale reaches hundreds of millions, which are completely non-referenceable for small investors. Instead, the masters’ early investment methods are more referenceable. Combining the essence of the masters and forming a complete set of strategies, it can be summarized as: winning the ovarian lottery, betting right on the country’s fortune, discovering one wet and slippery snow track after another, concentrating holdings, doing short-term trading, and placing heavy bets. In essence, it is about maximizing the efficiency of capital use. As for thinking such as diversification, balanced asset allocation, and value investment, these are things that should only be considered after the capital scale reaches a certain level. Corresponding to the A-share market, the methods of “hot money” are very close to the early investment methods of masters, especially the tactics of General Helm Xu used by many masters in their early days. Unfortunately, when General Helm Xu’s capital reached the scale of tens of billions, and he should have learned Buffett’s diversified holdings and value investment, he went astray and learned Cohen’s tactics: insider trading. Cohen could settle with the Eastern District Court of New York for 1.8 billion US dollars, while General Helm Xu could only get a prison sentence of 5 years and 6 months. From this point of view, the A-share market protects small and medium investors more than the United States.

Weekly Events

The chairman of Youzu Network died of poisoning. Condolences, every entrepreneur deserves respect.

Weekly Market

Period: 2020-12-21 ——— 2020-12-27

This Week Summary: The three major indices all rose, ending a two-day decline, and Stock Connect continued to flow in. It is expected that under the effect of inertia, the phased rise will continue next week. Although the liquor sector was still among the top gainers this week, on the last trading day, all three yellow wine stocks fell to the limit, bicycles and titanium dioxide were among the top gainers, while lithium batteries and CAR-T were among the top losers. Sector rotation is still very obvious, and patience in holding stocks is more important than blindly chasing highs and selling lows.

Market (%)	Index	This Week	1 Week Ago	2 Weeks Ago	3 Weeks Ago
Shanghai Composite	3396.56	0.99	-0.29	-0.77	1.06
Shenzhen Component	14017.06	0.73	-0.26	-1.28	2.450
ChiNext Index	2840.8	0.71	-0.18	-1.13	4.7
Hang Seng Index	26386.56	0.16	-0.67	0.36	-0.22
HSCEI	969.49	1.24	0.67	0.14	-1.71
Hang Seng HK Chinese Enterprises	3709.91	1.03	0.02	0.39	-3.35
Dow Jones	30199.87	0.23	-0.41	0.16	1.03
Nasdaq	12804.73	0.26	-0.07	-0.23	2.12
S&P 500	3703.06	0.35	-0.35	-0.13	1.67

Market (CNY, Billion)	This Week	Previous Week	2 Weeks Ago	3 Weeks Ago
Shanghai Connect	48.44	79.13	73.27	164.48
Shenzhen Connect	37.7	5.71	-3.67	80.92
Hong Kong Connect	62.00	9.77	63.01	193.43

Positions

Code	Name	Current Period Dynamic
SZ000889	Zhongjia Bochuang	Flat
LU	Lufax	Flat
F260104	Invesco Great Wall Domestic Demand Growth Mixed	Increase
F001668	Hwabao Global Internet Mixed	Increase
F163406	Xingquan Herun Graded	Increase
F008238	Zhongtai CSI 300 Enhanced A	Increase
F166301	Huashang Trend Flexible	Increase
F004997	GF High-End Manufacturing	Increase