Reborn with Consumption System-Chapter 402 - 199: Value Investing_3

Actually, it was quite difficult. The three of them were from different age groups and had vastly different experiences, personalities, and hobbies. In the end, they could only talk about the market.

Liu Minghao, who held Han Lie in high regard, asked about value investing.

Jiao Fangyan took the initiative to pour Han Lie some tea. Then, she propped her chin on her hands and waited quietly, eagerly anticipating his insights.

"All the value investing theories on the market right now are bullshit."

Brother Lie didn’t pull any punches, his opening statement designed to shock.

But he had his reasons—insights forged through the repeated market crashes of ’16, ’18, ’20, ’22, and ’25.

"True value investing doesn’t care about performance, industry prospects, CITIC research reports, or any metrics promoted by so-called experts.

The only principle of true value investing is this: wait.

The market is simply a series of repeating cycles; nothing is ever new.

A true master of value investing doesn’t need to be exceptionally professional or incredibly brilliant; however, they absolutely must be able to endure solitude.

It means holding a large amount of cash and waiting—for three, five, even eight years. You wait until the end of a cycle, when the market plummets, retail investors are despairing and tearful, and blue-chip stocks are being indiscriminately slaughtered. That’s when the real opportunity for value investing arrives.

If the secondary market isn’t exciting enough, then go buy companies, real estate, antiques, jade...

At that point, everything is cheap. Countless greedy individuals who acted rashly will lose everything in the crisis.

We don’t even need to look too far back. During the 2008 economic crisis, how many people sold all their assets for a third of their value?

Economic crises never unfold according to any individual’s will.

Similarly, every crisis also harbors tremendous opportunities.

When an entire industry is booming, what’s the point of us discussing value investing?

Do you think you’re the only smart person in the world? The only one who sees the value in Tencent, Google, or Apple?

When the tide is high, even the smartest person can’t earn excess profits. It’s only when the tide goes out that we discover who’s been swimming naked, allowing us to plunder the valuables they left on the shore.

So, what is true value investing?

It’s exiting at the peak, holding cash, waiting patiently, and smiling as you watch the crisis inflict indiscriminate damage.

You wait five years, hold stocks for one year, and then wait for the next cycle.

For those who aren’t clever enough, for those who can’t consistently make money in the market, this is the only way to get rich: quadrupling your assets every six to eight years."

"CLAP! CLAP! CLAP!"

Liu Minghao clapped vigorously, his face slightly flushed.

"Brilliant! A profound insight! I’ve learned so much!"

He wasn’t entirely acting; he had genuinely gained something valuable.

Old Liu’s line of work often brought him into contact with clients who were bankrupt or on the verge of it. Consequently, he had already formed his own set of beliefs, though he had never articulated them as succinctly as Han Lie just did.

"I usually hold a large amount of fixed assets because I feel cash devalues too quickly. Then, during a crisis, I liquidate some and pick up bargains piecemeal.

Now, that seems inefficient and rather unnecessary..."

Old Liu spoke effusively about his personal insights, displaying an uncommon level of excitement.

The three of them discussed this topic at length, deepening their understanding of one another and sparking many new ideas.

The meeting concluded only when Lü Shuli returned with the contract and Jiao Fangyan signed it.

Han Lie was in a hurry for his next engagement. The deputy general manager of brokerage services at CITIC, through Old Zhang, had invited Han Lie to a drinking party. This invitation wasn’t just about discussing the PB System; it likely carried other implications.

Therefore, when Lü Shuli offered to accompany him, Han Lie declined. 𝒻𝓇𝑒𝘦𝘸𝑒𝒷𝓃ℴ𝑣𝘦𝑙.𝒸ℴ𝘮

What are you doing getting mixed up in a drinking party like this?!

But Liu Minghao’s common sense suddenly deserted him, and he insisted, "It’s not good to go drinking without someone to look after you. Let young Lü accompany you. I noticed Liang Wu wasn’t with you when you arrived, was she?"

Faced with Old Liu’s knowing gaze, Brother Lie understood.

Could it be...

There was no ’could it be.’ He just wasn’t very good at refusing others’ kindness.

So, Han Lie unhurriedly got into the taxi Lü Shuli had called.

***

I was incredibly busy yesterday, and on top of that, exhausted and sleep-deprived. I haven’t had a good night’s sleep in two or three days.

Writing such a Chapter at this time also serves as a reminder.

In ’19, I advised everyone to hold as much cash as possible and avoid reckless investments; early ’20 turned out to be a perfect bottom.

The current situation is quite similar. The world is in chaos, yet danger also breeds opportunity. I wish for everyone to remain clear-headed and self-disciplined, and to achieve prosperity soon.