Xiaojie HUANG: Belief is Key to Investment

2010-12-24

Many people asked me about the prospect of the securities market and macro economy next year. I said that I had no idea. Then he will continue to query me about my investment decision since I didn’t know the development situation next year. I told him that although I didn’t know the prospect next year, I fully believe in the better development of Chinese economy and capital market in the next 20 years. This is my firm belief in our country’s future. 

Thus, belief is key to investment. The one without belief will never become a great investor. For the one without belief will not insist and shake, which results in missing great opportunities. The belief is not blind, but built on the concrete data, facts, strict logic and reasoning. To achieve a great success, the investor is required to possess merits such as high intelligence, strict logic, diligence, hard work, objectiveness, rationalism and belief. He must figure out certain thing, believe in and insist on it. Based on the investment requirements on human nature, a wrong persistence is better than a correct “fence sitter”. The former has belief, which is the biggest value in human nature; the latter will fall down one day even though winning success temporarily. Peter · Lynch said, “When you make investment in stock, you must have basic belief in humanity, even the national prosperity in future. Nothing shakes my belief so far.” We make investment in China due to our firm belief in the national future. Thereby, we always insist on our decisions in this complicated pattern despite of the weakness of human nature. 

I was also asked about the most satisfactory one among dozens of enterprises that we invest in. I tell him that we only invest in one enterprise, Jiuding Capital. We continuously invest in it for decades and devote our lifetime to the construction of this enterprise. 

The process of enterprise construction will be divided into two stages. In the first stage, we will build a competitive enterprise with the courage to confront rivals and assume responsibility, no distraction by misunderstanding, firm belief, high aspirations and indomitable vitality. In the second stage, we plan to establish a respectable enterprise, which won’t be as simple as winning success in competition. Thus, we are required to have lofty ideals, foresight and broad mind and undertake heavier responsibilities. We will struggle to realize this aim for our lifetime. 

We are idealistic and aspire to accomplish the common goal. We were born at the good place in the right time. It is a great pleasure that we gather together, ponder over the national future and struggle for the common goal. This is our belief in the future and life-time cause.