Pricing is the core content of financial market work. Only God knows the intrinsic value of assets, but the closest one is the winner. The intrinsic value of an asset is an estimate, not an accurate value. It is better to be vague and correct than to be precise and wrong. When determining the reasonable level of market valuation, we don't need accurate calculation, only need simple comparison to find out whether the market valuation has bottomed out.

Principle 2 of value investment: margin of safety

The margin of safety does not guarantee that losses can be avoided, but it can guarantee that there are more opportunities for profit than for loss. The margin of safety is completely opposite to the traditional investment concept of "seeking wealth and risk". In the securities market, the "leftover" survives. If you want to win the long-distance race, you must not take risks. In every investment decision or activity, we must hope to minimize risks and maximize benefits.

Value Investment Principle 3: Market Fluctuation

Market volatility is elusive, but value investors can take advantage of market volatility to get opportunities to buy chips at low prices.

There is no market that only rises and does not fall, and there is no market that only falls and does not rise. After a sharp decline in the previous period, the market provided many opportunities for value investors to dig gold, especially the mid-cap blue-chip stocks, which are the industry leaders and have outstanding growth, while the valuation is at the low end of historical valuation. If it is difficult for ordinary investors to grasp the opportunity of individual stocks, they can invest in the Southern Well-off Index Fund with the medium and large market as the target, which is expected to gain the opportunity of market reversal.