Sou Hu Cai Jing·2025-11-11 10:07Core Insights - The article discusses the challenges ordinary investors face in adopting value investing strategies, emphasizing that understanding both external techniques and internal mindset is crucial for success [1][6]. Group 1: Misconceptions about Value Investing - A common misconception is that value investing simply involves holding stocks for a long time, without considering the importance of the entry point [3]. - The timing of stock purchases is critical; buying at high prices can lead to losses despite holding for years [3][4]. - Investors often misunderstand dividends, thinking that dividend payments equate to profit, while failing to recognize the impact of stock price adjustments [3]. Group 2: Importance of Growth Potential - Companies must demonstrate growth potential for value investing to be effective; high dividend yields in declining industries can be misleading [4]. - Growth potential should be assessed from both the macroeconomic environment and the company's individual capabilities [4]. Group 3: Internal Mindset and Emotional Resilience - Emotional resilience and the ability to withstand market fluctuations are essential components of successful value investing [6][8]. - Investors must maintain confidence during market downturns and avoid the temptation to sell during short-term volatility [6][8]. - The mindset to resist chasing stocks during upward trends is equally important to avoid missing out on long-term gains [6][8]. Group 4: Conclusion on Value Investing in A-Share Market - The article concludes that the A-share market is not inherently unsuitable for value investing; rather, the issues lie in investors' understanding and execution of the strategy [6].