Core Insights - The article highlights the investment philosophy and core strategies of Baillie Gifford, emphasizing its long-term growth focus and successful investments in major companies like Amazon, Tesla, and Nvidia [1][18]. Group 1: Investment Philosophy - Baillie Gifford's investment philosophy is rooted in long-termism, focusing on growth and understanding changes in the market rather than short-term fluctuations [8][11]. - The firm believes that a company's competitive advantages take at least five years to manifest, and thus, long-term investment maximizes returns through compounding effects [11][12]. - Baillie Gifford operates without external shareholder pressure, allowing it to maintain a consistent long-term investment approach [11][12]. Group 2: Investment Strategy - The firm categorizes growth companies into three types: transformative growth companies, vibrant growth companies, and sustainable growth companies, each with distinct characteristics and investment potential [13][14]. - Baillie Gifford emphasizes qualitative assessments over quantitative evaluations, focusing on the pathways to increased value rather than precise calculations of intrinsic value [15]. - The firm has a global investment perspective, leveraging opportunities across various regions, including emerging markets like China and Southeast Asia [16][18]. Group 3: Historical Context and Achievements - Founded in 1908, Baillie Gifford has navigated significant historical events and has established itself as a leading investment firm in the new economy era [1]. - The firm's long-term global growth strategy has outperformed notable competitors, including Berkshire Hathaway, over the past two decades [18].

Core Viewpoint - The article discusses the phenomenon of "investment fatigue" among individual investors, highlighting the emotional and mental toll of managing investments alongside other responsibilities [1][2]. Group 1: Investment Fatigue - Individual investors may experience "investment fatigue" after several years of active management, leading to feelings of exhaustion and disinterest in the investment process [1][2]. - Factors contributing to investment fatigue include complex strategies, overwhelming information, busy personal lives, and unsatisfactory investment performance [1][2]. - Some investors choose to simplify their strategies or take breaks when feeling fatigued, while others may feel compelled to continue despite the fatigue [1][2]. Group 2: Investment Strategies - There are two primary investment approaches: event-driven strategies (akin to mining for gold) and growth-oriented strategies (similar to cultivating apple trees) [3]. - The "apple tree" strategy is characterized by simplicity and predictability, allowing investors to manage their portfolios with less frequent oversight [3]. - Long-term holding of well-regarded assets is emphasized as a more effective and less stressful investment approach compared to frequent trading or complex strategies [2][3]. Group 3: Personal Experiences - Many investors report that as they gain experience, their investment returns stabilize while the time and energy they devote to investing decrease [4][5]. - Some investors find that the initial excitement of trading diminishes over time, leading to a more routine and less emotionally charged approach to investing [6][7]. - The psychological impact of losses becomes more pronounced over time, with investors feeling more stressed by drawdowns compared to earlier in their investing careers [8][9]. Group 4: Investment Mindset - Maintaining a comfortable investment zone can help alleviate anxiety and fatigue associated with investing [5]. - The process of learning and accumulating knowledge in investing can be exhausting, but breakthroughs can lead to more effortless and rewarding investment experiences [13]. - For some, investing is viewed as a lifelong hobby, which helps maintain enthusiasm and engagement in the process [12][14].

Group 1: Davis Double-Click Strategy - The Davis Double-Click strategy involves buying stocks with low price-to-earnings (PE) ratios that have growth potential, and selling them once their growth is realized and PE increases, achieving a multiplier effect on returns [6][9] - The strategy achieved an annualized return of 26.45% during the backtest period from 2010 to 2017, exceeding the benchmark by 21.08% [8] - Year-to-date, the strategy has a cumulative absolute return of 48.70%, outperforming the CSI 500 index by 24.84% [9] Group 2: Net Profit Gap Strategy - The Net Profit Gap strategy focuses on selecting stocks based on fundamental and technical resonance, where "net profit" refers to earnings surprises and "gap" indicates a significant upward price jump on the first trading day after earnings announcements [10] - Since 2010, this strategy has achieved an annualized return of 29.43%, with an annualized excess return of 26.44% [12] - Year-to-date, the strategy has a cumulative absolute return of 53.50%, outperforming the benchmark index by 28.67% [12] Group 3: Enhanced CSI 300 Portfolio - The Enhanced CSI 300 portfolio is constructed based on investor preferences, including GARP, growth, and value investing styles, utilizing PBROE and PEG factors to identify undervalued stocks with strong profitability and growth potential [13] - The portfolio has shown stable excess returns historically, with a year-to-date excess return of 16.31% relative to the CSI 300 index [15] - The strategy's performance this week yielded an excess return of 0.88% [15]

Group 1: Davis Double-Click Strategy - The Davis Double-Click strategy involves buying stocks with growth potential at lower price-to-earnings (PE) ratios, selling them once growth is realized and PE increases, thus achieving a "double-click" effect on earnings per share (EPS) and PE [1][7][10] - The strategy achieved an annualized return of 26.45% during the backtest period from 2010 to 2017, exceeding the benchmark by 21.08% [9] - Year-to-date, the strategy has delivered an absolute return of 41.19%, outperforming the CSI 500 index by 26.47% [10] Group 2: Net Profit Gap Strategy - The Net Profit Gap strategy focuses on selecting stocks based on fundamental and technical resonance, where "net profit" refers to earnings surprises and "gap" indicates a significant upward price jump on the first trading day after earnings announcements [12][15] - Since 2010, this strategy has achieved an annualized return of 30.29%, with an annualized excess return over the benchmark of 27.75% [15] - Year-to-date, the strategy has recorded an absolute return of 42.83%, exceeding the benchmark index by 28.11% [15] Group 3: Enhanced CSI 300 Portfolio - The Enhanced CSI 300 portfolio is constructed based on investor preferences, including GARP (Growth at a Reasonable Price), growth, and value investing styles, utilizing PBROE and PEG factors to identify undervalued stocks with strong profitability and growth potential [16][18] - The portfolio has shown stable excess returns in historical backtesting, with a year-to-date excess return of 19.88% relative to the CSI 300 index [18] - The strategy has delivered a monthly excess return of 2.62% [18]

Group 1: Davis Double-Click Strategy - The Davis Double-Click strategy involves buying stocks with growth potential at lower price-to-earnings (PE) ratios, selling them once growth is realized and PE increases, thus achieving a "double-click" effect on earnings per share (EPS) and PE [7][10]. - The strategy achieved an annualized return of 26.45% during the backtest period from 2010 to 2017, outperforming the benchmark by 21.08% [9]. - Year-to-date, the strategy has generated an absolute return of 33.83%, exceeding the CSI 500 index by 23.39% [10]. Group 2: Net Profit Discontinuity Strategy - The Net Profit Discontinuity strategy focuses on selecting stocks based on fundamental and technical resonance, where "net profit" refers to earnings surprises and "discontinuity" indicates a significant upward price gap on the first trading day after earnings announcements [12][15]. - Since 2010, this strategy has achieved an annualized return of 29.96%, with an annualized excess return over the benchmark of 27.68% [15]. - Year-to-date, the strategy has delivered an absolute return of 37.50%, outperforming the benchmark index by 27.06% [15]. Group 3: Enhanced CSI 300 Portfolio - The Enhanced CSI 300 portfolio is constructed based on investor preferences, including GARP (Growth at a Reasonable Price), growth, and value investing styles, utilizing PBROE and PEG factors to identify undervalued stocks with strong profitability and growth potential [16]. - The portfolio has shown stable excess returns in historical backtesting, with a year-to-date excess return of 19.41% relative to the CSI 300 index [16]. - The portfolio's performance this week yielded an excess return of 1.77% [16].

Group 1: Davis Double-Click Strategy - The Davis Double-Click strategy involves buying stocks with growth potential at lower price-to-earnings (PE) ratios, selling them once growth is realized and PE increases, thus achieving a "double-click" effect on earnings per share (EPS) and PE [1][7][10] - The strategy achieved an annualized return of 26.45% during the backtest period from 2010 to 2017, outperforming the benchmark by 21.08% [9] - Year-to-date, the strategy has generated a cumulative absolute return of 26.78%, exceeding the CSI 500 index by 16.76% [10] Group 2: Net Profit Discontinuity Strategy - The Net Profit Discontinuity strategy focuses on selecting stocks based on fundamental and technical resonance, where "net profit" refers to earnings surprises and "discontinuity" indicates a significant upward price gap on the first trading day after earnings announcements [12] - Since 2010, this strategy has achieved an annualized return of 29.85%, with an annualized excess return of 27.60% over the benchmark [13] - The cumulative absolute return for the current year is 35.72%, outperforming the benchmark index by 25.70% [14] Group 3: Enhanced CSI 300 Portfolio - The Enhanced CSI 300 portfolio is constructed based on investor preferences, including GARP (Growth at a Reasonable Price), growth, and value investing styles, utilizing factors like PBROE and PEG to identify undervalued stocks with strong profitability and growth potential [15][17] - The portfolio has shown stable excess returns in historical backtesting, with a year-to-date excess return of 16.82% relative to the CSI 300 index [17][19] - The portfolio's performance this week yielded an excess return of 0.31% [17]

Group 1: Davis Double Strategy - The Davis Double strategy involves buying stocks with growth potential at a lower price-to-earnings (PE) ratio, waiting for growth to manifest, and then selling for a multiplier effect, achieving returns from both earnings per share (EPS) and PE increases [1][7] - Historical backtesting from 2010 to 2017 showed an annualized return of 26.45%, exceeding the benchmark by 21.08%, with consistent excess returns over 11% in each of the seven years [9][10] - Year-to-date, the strategy has achieved a cumulative absolute return of 23.31%, outperforming the CSI 500 index by 16.78%, and has exceeded the benchmark by 3.65% since the last portfolio adjustment on May 6, 2025 [1][9] Group 2: Net Profit Discontinuity Strategy - The Net Profit Discontinuity strategy focuses on selecting stocks based on fundamental and technical resonance, where "net profit" refers to earnings surprises, and "discontinuity" indicates a significant upward price gap on the first trading day after earnings announcements [11][15] - Since 2010, this strategy has yielded an annualized return of 29.49%, with an annualized excess return of 27.47%, and a cumulative absolute return of 33.56% this year, outperforming the benchmark by 27.03% [2][15] - The strategy's performance this week showed a slight underperformance with an excess return of -0.65% [2][15] Group 3: Enhanced CSI 300 Portfolio - The Enhanced CSI 300 portfolio is constructed based on investor preferences categorized as GARP (Growth at a Reasonable Price), growth-oriented, and value-oriented, focusing on stocks with low valuations and strong profitability [3][17] - Historical backtesting indicates stable excess returns, with the current year's portfolio outperforming the CSI 300 index by 16.17%, and showing a weekly excess return of 0.65% [3][17] - The portfolio's performance since July 18, 2025, has yielded an absolute return of 19.32%, with an excess return of 16.17% over the benchmark [3][17]

Group 1: Davis Double-Click Strategy - The Davis Double-Click strategy involves buying stocks with low price-to-earnings (PE) ratios that have growth potential, selling them once growth is realized and PE increases, thus achieving a "double-click" effect on earnings per share (EPS) and PE [7][8] - Historical backtesting from 2010 to 2017 showed an annualized return of 26.45%, exceeding the benchmark by 21.08%, with stable excess returns over the years [8][10] - Year-to-date, the strategy has achieved an absolute return of 16.79%, outperforming the CSI 500 index by 13.55% [8][10] Group 2: Net Profit Discontinuity Strategy - The Net Profit Discontinuity strategy combines fundamental and technical analysis, focusing on stocks that exceed earnings expectations and show a significant upward price gap on the first trading day after earnings announcements [11][12] - Since 2010, this strategy has yielded an annualized return of 29.25%, with an annualized excess return of 27.44% [12][14] - The current year's cumulative absolute return is 28.58%, outperforming the benchmark index by 25.33% [14] Group 3: Enhanced CSI 300 Portfolio - The Enhanced CSI 300 portfolio is constructed based on investor preferences, including GARP (Growth at a Reasonable Price), growth, and value investing styles, aiming to identify undervalued stocks with strong profitability [16][18] - Historical backtesting indicates stable excess returns, with the current year's portfolio achieving a relative excess return of 14.50% against the CSI 300 index [18] - Year-to-date, the portfolio has generated an excess return of 0.97% this week [18]

Quantitative Models and Construction Methods 1. Model Name: Davis Double Hit Strategy - **Model Construction Idea**: The strategy involves buying stocks with growth potential at a low P/E ratio and selling them after the growth materializes and the P/E ratio increases, achieving a "double hit" effect through EPS growth and P/E expansion[7] - **Model Construction Process**: - Identify stocks with accelerating earnings growth - Evaluate the reasonableness of stock pricing using the PEG indicator, which considers both P/E and growth rate[7] - **Model Evaluation**: The strategy demonstrated strong stability, with annual excess returns exceeding 11% in all seven years of the backtest period from 2010 to 2017[8] 2. Model Name: Net Profit Gap Strategy - **Model Construction Idea**: This strategy combines fundamental and technical analysis, focusing on two key aspects: - "Net profit" refers to earnings surprises, typically exceeding market expectations - "Gap" refers to a significant upward price gap on the first trading day after the earnings announcement, reflecting market recognition and sentiment[11] - **Model Construction Process**: - Select stocks with earnings surprises based on earnings forecasts and financial reports from the past two months - Rank stocks by the magnitude of the price gap on the earnings announcement day - Construct an equal-weight portfolio of the top 50 stocks[11] 3. Model Name: CSI 300 Enhanced Portfolio - **Model Construction Idea**: The model is based on investor preferences, categorized into GARP (Growth at a Reasonable Price), growth, and value styles[16] - GARP investors focus on companies with strong profitability and stable growth potential at relatively low prices - Growth investors prioritize high-growth companies based on revenue, gross profit, and net profit growth - Value investors prefer companies with high and stable ROE over the long term[16] - **Model Construction Process**: - Construct the PBROE factor using the difference in percentiles between PB and ROE to identify undervalued stocks with strong profitability - Construct the PEG factor using the difference in percentiles between P/E and growth rate to find undervalued stocks with reliable growth potential[16] --- Backtest Results of Models 1. Davis Double Hit Strategy - **Annualized Return**: 26.45% (2010-2017)[8] - **Annualized Excess Return**: 21.08% (2010-2017)[8] - **YTD Absolute Return**: 16.55%[8] - **YTD Excess Return**: 14.14% (relative to CSI 500 Index)[8] - **Weekly Excess Return**: -0.15% (relative to CSI 500 Index)[8] - **Current Period Excess Return**: 1.75% (2025-05-06 to 2025-06-27)[8] 2. Net Profit Gap Strategy - **Annualized Return**: 29.21% (2010-present)[14] - **Annualized Excess Return**: 27.45% (2010-present)[14] - **YTD Absolute Return**: 27.39%[14] - **YTD Excess Return**: 24.98%[14] - **Weekly Excess Return**: 3.24%[14] 3. CSI 300 Enhanced Portfolio - **Annualized Return**: 9.75% (full sample period)[18] - **Annualized Excess Return**: 9.13% (full sample period)[18] - **YTD Absolute Return**: 12.90%[20] - **YTD Excess Return**: 13.23% (relative to CSI 300 Index)[20] - **Weekly Excess Return**: -0.10%[20] - **Monthly Excess Return**: 2.40%[20]

Group 1: Davis Double-Click Strategy - The Davis Double-Click strategy involves buying stocks with growth potential at a lower price-to-earnings (PE) ratio, waiting for growth to manifest, and then selling for a multiplier effect, achieving returns from both earnings per share (EPS) and PE [1][8] - The strategy achieved an annualized return of 26.45% during the backtest period from 2010 to 2017, exceeding the benchmark by 21.08% [10] - Year-to-date, the strategy has a cumulative absolute return of 14.65%, outperforming the CSI 500 index by 14.40% [11] Group 2: Net Profit Discontinuity Strategy - The Net Profit Discontinuity strategy combines fundamental and technical analysis, focusing on stocks that exceed earnings expectations and show a significant upward price gap on the first trading day after earnings announcements [13] - Since 2010, this strategy has achieved an annualized return of 28.69%, with an annualized excess return of 27.07% over the benchmark [16] - Year-to-date, the strategy has a cumulative absolute return of 18.68%, outperforming the benchmark index by 18.42% [16] Group 3: Enhanced CSI 300 Portfolio - The Enhanced CSI 300 portfolio is constructed based on investor preferences, including GARP (Growth at a Reasonable Price), growth, and value investing styles, focusing on stocks with low price-to-book (PB) ratios and high return on equity (ROE) [18] - The portfolio has shown stable excess returns in historical backtesting, with a year-to-date excess return of 14.31% relative to the CSI 300 index [22] - The strategy's performance this week yielded an excess return of 0.95% [22]