Golden Review World 丨 No need to over -interpret Buffett to reduce BYD

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Although the capital market advocates long -term value investment, it is not to say that they will not sell it in their hands. For example, the stock god Buffett has recently reduced its holdings of 1.33 million shares holding 14 years. Of course, the market's interpretation of this also has different sounds.

From the perspective of pessimists, many people think that Buffett is worried that BYD is too high, the stock price has increased too much, and there is a bubble, so you need to reduce your holdings and avoid risks.

It is not unreasonable to hold this view. Even if the current electric vehicle is a hot hot spot in the market, even if BYD's net profit growth can reach more than 200%, whether it is more than 118 times the P / E ratio, or nearly 850 billion yuan The market value of people really makes people feel high.

You know, the cost of BYD shares held by Buffett is only about RMB 1.5 billion, which is equivalent to 6.66 yuan per share. How much money did God make?

If the current technology and cost of electric vehicles are superimposed, Buffett sells a little bit of BYD.

But isn't Buffett be optimistic about BYD? Buffett's company previously held a total of 225 million BYD, and now even reduces its holdings of 1.33 million shares, coupled with the previous reduction of the shares, there are still 219 million shares left.

If you are not optimistic about BYD, you can sell all the clearance, because the total market value of BYD shares held by Buffett is less than 39 billion US dollars, and it seems insignificant in the market value of all its stocks. Besides Berkshire Hathaway holds shares, but holds the shares of Western Capital Group Co., Ltd. 100%controlled by Berkshire Energy Company.

Do this company buy and sell BYD? Do you have to let the stock god shoot? We don't know.

From another perspective, it is normal for any buying or selling in the market to do it, and there is no need to do too much interpretation.

Just like the buying and selling of the National Fund on the semiconductor sector of the A -share integrated circuit, it can be sold when it is profitable. Only a cash flow can invest in more startups or good companies with low valuations. Essence

You know, it is not only several institutional investors that can maintain the company's stock price, but the listed company itself. It is a growing performance, the "moat" of core technology and products, and the company's care for the stock price of the secondary market. In the U.S. stock market, if any company feels that its stock price is undervalued, it is not to go to institutional investors to buy, but to repurchase and cancel it in a large repurchase to increase the gold content of the stock price.

In contrast, many companies also increase their holdings, but either just a little "hair rain", or even if repurchase, it does not cancel. This method of maintaining the stock price and market value is very pale.

Of course, if you must learn from these transactions, that is, these institutions are not blindly "holding the group to warm", even if BYD held by the subsidiaries of the stock god, it is not unchanged. For example In buying energy stocks such as Western Petroleum, it has also reduced the holdings of Apple, Clear Morgan Chase, Pfizer, and Wileson. Is it not good to the above companies? This is not the case. The difference in the difference in fluctuations is a customary trading rule in the stock market.

In comparison, many domestic investment institutions are blindly "holding the group to warm", relying on the capital strength of "raising barbells", and then named "long -term value investment", making people unable to refute but helplessness.

Edit | Chen Yuhe School Inspection | Yuan Gang Review | Liao Xiaotao

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