Cao Renshu: Never stop more than profit

Peter Lynch, who is in charge of the Magellan fund, is known as the "Huang Superstar in the investment world". In 13 years, he has created a record rate of 2703.12% per cent, with an annual compound rate of 32%. Compared with international big-name investment Masters, Hong Kong famous investor Cao Renshu "40 value-added 40,000 times times", more attractive. He is a "grassroots", without a dazzling degree and title, but eventually ranks among the billionaires.　　What he invests is the familiar stock market, gold and real estate. From an early age to do "developed" dream Old Cao said, he was a man who wanted to develop.　　As a child, Cao's family was very poor, so he was extremely disgusted with the poor life. When Cao was 13 years old, his father died and his mother became the sole economic pillar of his family.　　In addition to the three brothers reading, the family's remaining monthly meal fee of only HK $65. Middle School to Grade five, Cao is the home of the "Cook", daily responsible for buying food and cooking. In those years, Cao spent only 2 Hong Kong dollars a day, like magic, make "three vegetable soup." The specific menu is: With duck blood, big bean sprout and tofu boiled soup, and then use these three kinds of respectively made three dishes, namely duck blood, fried bean sprout and soy sauce tofu.　　This "recipe", the old Cao family, ate almost 5 years. This kind of life, let Lao Cao have a kind of urgent to break out of poverty dream. When he was a little Cao, was in primary school, once, the teacher to write "my dream" composition.　　Xiao Cao incredibly "daring" to write, "My dream is to be a millionaire." In the era when people thought the rich were "covered in copper", the teacher immediately approved the "unqualified".　　He was therefore called by the teacher to stand in the office. Lao Cao now often says, "the daughter is difficult to buy young poor". It was his own personal experience. To get rid of the poverty of his youth has always been the greatest impetus for his development.　　After more than 40 years, the old Cao has exceeded the dream of "Millionaire", but he still remembers this matter. Lao Cao said that this time he came to the domestic speech, in addition to recommending their own books, but also to their own investment experience to tell everyone to listen.　　"Developed" is glorious, he hopes more and more people learn to invest, through investment to create wealth.　　When the reporter told him, in fact, more and more Chinese people have a sense of wealth, the old Cao pointed thumbs up and said, "This is a good thing!" 40 added 40,000 times times Cao Renshu said he now has a net worth of 15% from wages and 85% from investment.　　But who can think that Cao's first "principal", unexpectedly only 5000 yuan. In the 1968, Cao met his girlfriend (now his wife), but at that time, he was still running for a living, even "dating", all let him worry. In addition to working, Cao had to be a few errands.　　1969, the old Cao with barely saved 5000 yuan savings to buy shares, become the starting point of his investment to create wealth. began to invest in a few years, the old Cao quite "smoothly", but 1973 years of stock disaster, to the old Cao brought a huge blow. The principal shrank by 80%, 500,000, only 100,000.。 After this, Lao Cao's investment philosophy, began to sublimate in the pain. 1982, "After the injury," the old Cao, met a new opportunity. He escaped from the bear market from 1981 to 1982 with a "stop-loss" investment principle and then went into the market. Since then, Lao Cao began to "go on the road to create rich", has been "fortune prosperous" so far.　　Among them, Lao Cao's four classic "campaign", has been the people relish. First, the stock market, run to win the Hang Seng Index in 1982, the old Cao spent 70% of the money, rushed into the stock market, betting the benefit of Hong Kong's return to property stocks, until 1997 thrown. In these 15 years, the Hang Seng index rose 23 times times.　　Only the part that wins the Hang Seng index, the old Cao's 600,000, to 1997 has become 13.8 million, profiting 23 times times. Second, the UK home purchase, make 2.5 times times 1994, Lao Cao began to buy home in London for 3 consecutive years, the purchase of 10 properties, 50% of the assets transferred overseas to escape the Asian financial crisis. In 2005 ~2008, he sold British properties in batches, averaging more than 1 time times the purchase price. As a result of the first purchase of a house to pay only 20%, 6 million investment back 30 million.　　If the sterling exchange rate fell by nearly 1/3 after 2008 years, and HK $30 million became HK $20 million, the real profit was 2.5 times times. Third, gold investment, make 1 time times from 1982 onwards, the old Cao Monthly storage of a gold coin, that is, the monthly "refuge" in Cantonese, to 2000, has saved a lot of gold coins. In 2001, Mr. Cao judged that the gold bull market was about to start, then bought 10,002 gold in 350 dollars, rose to 750 dollars to sell half, and sold out by 850 dollars. Lao Cao's gold was largely naked in 2007, and the investment was made one-fold, starting with HK $3.6 million.　　However, after the gold price went up to 1030 dollars, Cao said he was "still a fool." Four, catch up the state-owned stock rising train from 2003 onwards, the old Cao will invest in the direction of timely investment in state-owned enterprises, 2007 sold in time to avoid the stock disaster.　　From this period, the rise of state-owned enterprises in Hong Kong, the old Cao again reaped rich. More than 20 of the investment experience, Lao Cao's biggest investment experiences, is "stop more than surplus." This principle, so that the old Cao almost every time before the crash, smooth escape. "People never know when they are going to run into a stock disaster, so invest in discipline," said Cao. "Lao Cao" stop more than the principle of surplus, refers to the purchase of stocks, the decline of more than 15%, sold out, if the increase of 20%, we must grasp the stability, earn a little more.　　But if you fall again, lose more than 15%, if you lose more than 20%, you should sell. "Wisdom is better than the tide" now, Lao Cao is holding high the trend of investment banner. Once upon a time, Cao was also a believer in value investing.　　Until 1974, Lao Cao used the "Value investment law" investment fiasco, he then rethink, and ultimately create a "trend investment" law. July 1974, the Hang Seng indexFell from 1774 points to 478, down 73%. Old Cao judge, Fall end, can go into the market. So he started buying and remembering corporate stocks from 8 yuan. However, the old Cao after buying, and remember the company continued to fall, old Cao Yue fell more and more to buy, until and remember the enterprise fell to 1 yuan.　　As a result, the old Cao was proud of the 500,000 worth of wealth, to the year of December, only 100,000 yuan, shrinking up to 80%.　　The so-called "housing leakage even the night rain", after the loss of investment, Lao Cao was the investment company to dismiss. At that time, old Cao married soon, the oldest daughter was born, the wife has been full-time home, Lao Cao is the only source of income. Old Cao began to feel overwhelmed. One night, it was said, he unconsciously wandered to the Star Ferry and forgot his home time.　　The next day, a newspaper reported, "Cao Renshu to jump overboard suicide." Now, Lao Cao recalls the "almost suicidal" days, has been laughing. This experience gave him a profound lesson, that is, "the stock market specializes in picking up self-righteous people."　　One of the most important rules of Lao Cao's investment career-"stop-loss-earning"-is also the result. It was this failure that made Cao's fate usher in a turning point.　　Not only was he invited by Lin Shanmu, he founded the "letter", but also changed his faith in value-investing law, shifting from value to trend. In the 1984, two events occurred, prompting Lao Cao's "trend investment law" to mature. The Sino-British Agreement on Hong Kong's reunification was reached. At that time, the people of Hong Kong were worried about the reunification, but Lao Cao saw the trend. First of all, with the reunification of Hong Kong, more and more mainlanders will come to Hong Kong, the population of Hong Kong will continue to increase and the consumption of Hong Kong will certainly increase. The second thing is that according to the Sino-British Joint Proclamation, the Hong Kong government can only sell 50 hectares a year. Lao Cao realizes that Hong Kong's house prices will rise to an incredible price. Old Cao Zeng wrote an article to say, "The rice can not eat, the floor cannot but buy".　　Meanwhile, Mr. Cao also began investing heavily in Hong Kong's real estate stocks. "The trend is your best friend. Follow the trend until it end. (The trend is your best friend, follow the trend until it's over.)　　This is the old Cao's summary of trend investment. For the trend, the old Cao is not only believe, can be said to be worship. Mr. W.buffett's success was due to his "good fortune" and not the "Value investment law", Cao said. The same is true of "value investment law", Buffett's teacher Graham (B.graham) did not succeed, because his life is not good. Buffett's success is not to show that he is smart, but because he has encountered a rising trend.　　Since the 60 's, the U.S. stock market as a whole has been in the bull market, such a bull market, lasted more than 30 years.　　So Lao Cao has a saying, every friend knows, "wisdom is better than the trend". Take advantage of investment in China for the April Beijing-Shanghai speech, the annual Cao Renshu, spent 5 months to learn Mandarin, his speech title is, "potential in China, the trend to create rich. " In Lao Cao's view, the global economic focus is now in China, which is why he spent 5 months learning Mandarin.　　The retired Cao, still ready to use his successful experience in Hong Kong, to catch up with the mainland "Prosperity Train", once again to create a wealth miracle. In fact, Lao Cao's daughter came to Shanghai 6 years ago. At present, he is persuading her to go to Chongqing.　　"I've already taken a step ahead of others," he said proudly. Lao Cao's "Investment in the way" investment, but also to urge her daughter's career development. Some friends send their children abroad to develop, Lao Cao is very not understand. In his view, China's development is the best.　　He felt that after many years his daughter must have been richer than the children of her friends. There are thousands of successful investments, but failed investments are always similar.　　Lao Cao is most afraid of those who are not civilized, unwilling to open their eyes to see the future. Lao Cao has a friend, is a doctor of Harvard University, can be regarded as a "bad luck" doctor. Dr. 1997 returned to Hong Kong to ask Lao Cao to borrow money to buy a flat. Lao Cao said, now buy a building is not cost-effective, do not borrow. As a result, the financial crisis in Asia soon led to a sharp drop in property prices in Hong Kong. The doctor was glad to have dodged a bullet. By 2003, Hong Kong's property prices had fallen to a low level due to SARS. At this time, Lao Cao advised the doctor to buy a building, he did not think that no one wanted things, you want me to buy. As a result, he regretted that Hong Kong's property prices had risen all the way. By 2007, the doctor again ran to find old Cao, said to buy HSBC, Lao Cao's persuasion again failed.　　Since then, HSBC has fallen from more than 130 Hong Kong dollars to HK $30. Lao Cao is also afraid of the professor. Every time the old Cao put forward the investment proposal, the Professor asked, you give me the data to see.　　Lao Cao wondered, I told you is the trend, is the future, the data has not come out! So the professor didn't believe him.　　In Lao Cao's view, no matter "value investment law" or professor, they are "backward mirror" to see the world, and these people, it is difficult to achieve success. Cao has been a long time not reading, but he is online every day, because many of the latest ideas, are published online first. "Even the telescope has long been invented, the times are different, to use binoculars to look at the future, do not use inverted mirror."　　"At the end of the interview," Lao Cao added.　　Q&a Shanghai House prices will only be higher "the way to invest" (hereinafter referred to as "MJ"): You say the Chinese bear market is over, this means that a shares into the bull market? Cao Renshu: Technically, the A-share bear market is indeed over. But Hong Kong and the United States have no sign that the bear market is over and that it will not be over in the short term.　　So, even if China's bear market is over, entering a bull market is not a bull market that is rising all the way, but there are ups and downs.　　MJ: So how do we investors react? Cao Renshu: The United States is still not optimistic. You don't want to buy stocks that do business in the United States right now. and follow the policy, what the party asks you to buy, what you buy; the party asks you to gowhere you go.　　The party will make everyone developed. MJ: You used to buy gold and you made money. In the past two years many investors in the country are also concerned about gold investment.　　Do you think gold investment will make money in the future? Cao Renshu: When gold reaches a maximum price of 1030 dollars, it enters the box trading range.　　The highest price I believe is 1030 dollars, the lowest price is about 830 dollars. MJ: There's a lot of debate about the prices in Shanghai. You seem to have been bullish on Shanghai prices.　　What do you think of Shanghai house prices in the future? Cao Renshu: There are only two possibilities for future housing prices in Shanghai, the first is high, the second is high. Shanghai is now taking the road of "urbanization" which the United States has already experienced, the city population is more and more. Therefore, the price of Shanghai property prices plunged impossible. In the coming year, Shanghai house prices may not rise much, but a year later, there will be big opportunities. My grandfather in the last century 40 's optimistic about Shanghai real estate, buy a house in Shanghai.　　He was right, but 40 years early. MJ: You said just now that the U.S. economy is very uncertain, but many domestic investors want to buy us home.　　When is the real estate in America bottoming out? Cao Renshu: Contrary to the "urbanization" of Shanghai, the United States is now experiencing "urbanization". The urban population has aged and gradually returned to the countryside to retire. This will be a long process, it can be said that the previous baby boomers how long, "to urbanization" process will be how long. The baby boom has been around for 16 years, so "going to urbanisation" is about 16 years away.　　The U.S. housing market after 15-18 years, only to meet the bottom. Sell buy 350 US $50% 600,000 deficit 80% 500,000 buy resources stocks invest in state-owned enterprises buy Wanlihan Gold 1997 sell real estate stocks, make 2.3 times times 2006 start selling overseas properties, earn 2.5 times times 2007 sell state-owned shares, reap rich, gold, make 1 time times 50% assets in London buy a month 1 gold coins　　;　　With 600,000 Hong Kong dollars to the bottom of investment and record enterprise failure investment small, the principal into 500,000 old Cao 5000 40 value-added 40,000 times Times 1972 1974 1982 1994 2001 2003 2009 Lao Cao Investment proposals rely on savings to accumulate the principal, starting from 25 years old, the latest 30 years old, should convert savings into investment. Invest early, invest in your youth, take risks, and even invest in high-risk markets such as warrants.　　Before the age of 30, to learn and accumulate investment experience. A fiasco before the age of 30.　　Success is the mother of failure, and success before the age of 30 will hinder future development. People to middle age, investment to learn "something, there is no". Go to the retirement stage and not play dangerous games.　　Lao Cao said, now, there are 50% opportunities to make money, he does not buy, to wait 80%, will buy. Second-tier investment stocks.