1973 Buffett's entrepreneurial story in the period of economic transition

After the extensive and rapid growth of China's economy, it will enter a period of transition. There are many problems during the transition period, such as imported inflation, asset bubbles and so on that have been underestimated in previous years. These problems are not only in the current Chinese economy, but also in the development of the U.S. economy has repeatedly emerged. Many people see the short-term economic disadvantage is panic, even very pessimistic. And the potential of China's economy may be unpredictable for many people. The development of China's economy is only comparable to that of the US economy. Now the world economic environment facing the Chinese economy is somewhat similar to the environment faced by the U.S. economy in the 1973, although the causes behind the economic problems are different, but many economic contradictions and problems are similar. Richard。 At the end of the first year (1969) of Nixon's presidency, the U.S. economy showed signs of recession. Washington has had to slash interest rates to reverse the downturn. As a result, investors have moved to Europe and elsewhere in search of higher short-term earnings, reaching a total of $20 billion trillion. By May 1971, the United States had had its first monthly trade deficit for a long time, triggering a worldwide panic sell-off of the dollar, and the situation was on the verge of desperation. February 12, 1973, the United States government has to again announce the depreciation of the dollar 10%. October 16, 1973, OPEC convened in Vienna to raise oil prices from $3.01 a barrel to $5.11 trillion, up from a staggering 70% (by the second year, This number was once close to 12 dollars. The next day, the Arab members of the OPEC group formally announced the cessation of oil exports to the United States and the Netherlands after enumerating "the crimes of the United States in support of Israel in the Middle East war" (Rotterdam has been Europe's main oil-importing port). So far, the first "oil crisis" in the history of the world shocked the whole outbreak. At the end of 1973, an oil crisis over the Middle East war swept over half of the globe in a few months. 1969, the Dow broke 1000 points, according to the P/E ratio, IBM was 39 times times, the music is 50 times times, and Ya Fang is 56 times times. In the June 1969, the stock market went straight, and gradually became a stock disaster. By May 1970, each stock would have fallen by 50%, or more, than at the beginning of last year. 1970-1974, the U.S. stock market is like a gas ball, not a hint of anger, sustained inflation and low growth of the U.S. economy into a "stagflation" period. Yet Mr Buffett, once lost, was secretly delighted that he had seen a bonanza coming-he had found too many cheap stocks. In 1972, Buffett was eyeing the press again, and in the 1973 he secretly ate the "Boston Globe" and "Washington Post" in the stock market. 1975 to 1976 was a memorable period for the US stock market, when the Dow was up 60%.10 years, and Buffett's $10 million appreciation was 200 million. This is Buffett'sInvestment strategy: The economic development is not over, so the bull market is not over, so the short cut gives investors more opportunities. If the future looks back to the Chinese stock market, is not going through a similar process? A few years later, history will prove that investors are standing at 3,000 points of the stock index as a new starting point for Buffett's career in 1973.