In addition, I recommend this article about Buffett and Sinopec to the landlord.

Why Buffett is not suitable for China stock market?

Buffett reduced his holdings of H shares in PetroChina, which made him walk off the altar in the eyes of China investors. Although Buffett, as a stock god, has been worshipped by many investors in China, and value investment once resounded through the China stock market, investors have surrendered their weapons to market speculation in the face of rampant market speculation. In addition, Buffett also admitted that he "shipped too fast" on the H shares of PetroChina, which made some speculative forces in the China market ridicule Buffett, and some media also found reasons to join the hype, as if Buffett had lost HK$ 27 billion on the H shares of PetroChina instead of making HK$ 27 billion, as if he was smarter than Buffett. Some even bluntly said: Buffett is not suitable for China.

I also agree that Buffett is not suitable for China. But the author believes that this is not to deny Buffett and other value investment methods. Although Buffett admits that he shipped H shares of PetroChina too fast, it is normal for Buffett to make some mistakes in his operation. We can't deny Buffett's great success in investing in H shares of PetroChina. Although some of us are full of negations about Buffett, some people, including Rogers, even think that their investment level is higher than Buffett's, but ask ourselves, who among these people earns more money from PetroChina stocks than Buffett? So those who deny Buffett are undoubtedly ridiculous.

Of course, the author also thinks that Buffett is not suitable for China, but this is not a denial, but a reflection. After all, some forces from China made Buffett feel that he was "shipping too fast" on the H shares of PetroChina this time. Because from the perspective of the whole world, from the perspective of real value investment, Buffett's reduction of H shares in PetroChina is not wrong. After all, when Buffett reduced his holdings of PetroChina H shares, the P/E ratio of the stock had reached about 17 times and 18 times. The price-earnings ratio of ExxonMobil, the world's largest oil company, is only 13 times, and that of BP, the world's second largest oil company, is only 12 times. Therefore, as far as value investment is concerned, Buffett's operation is not wrong. However, the problem is that Buffett met China's opponent in H shares of PetroChina. These China rivals don't pay attention to value investment at all. They respect the power of capital and believe in speculation. Therefore, when Buffett meets these crazy China opponents, it is inevitable that there will be operational mistakes. So, on the whole, this is not Buffett's fault, nor is it the fault of value investment. But because Buffett is not suitable for China.

So why isn't Buffett suitable for China stock market? Because the China stock market has no soil for valuable investment. Not only can Buffett not exist in China stock market, but even Buffett cannot survive in China stock market.

It is an obvious fact that Buffett can't find an investment object suitable for his own investment standard in China stock market. Because the original intention of China stock market was to provide financing services for listed companies, the biggest feature of China stock market is to issue new shares at high price and high P/E ratio. Even in the lowest days of the stock market, the price-earnings ratio of new shares is more than ten times, which makes it difficult for investors to buy. After the secondary market, the price-earnings ratio of the stock is at least 20 times. Therefore, it is difficult for investors to buy excellent listed company stocks with price-earnings ratio less than 20 times in the secondary market, except for steel stocks whose industry prospects are not optimistic by investors. You want to buy more than one yuan of PetroChina, basically daydreaming. As a result, Buffett can't even find the investment target when he invests in China stock market.

Not only that, the face-changing of listed companies is also beyond Buffett's value investment. Buffett holds shares in a company for as little as seven or eight years and as many as several decades. It's really hard to say how many listed companies Buffett can safely hold in China stock market. Lantian and Yinguangxia used to be the myth of China stock market, but now, these companies are either cold in the third board market or rubbish in China stock market. There is also Sichuan Changhong, which used to be a flag on the China stock market. Now this former flag has long been broken. If Buffett had held such stocks for a long time, I'm afraid it would not be Buffett long ago. Although the performance of domestic listed companies generally shows explosive growth, I'm afraid only God knows, truly knows, you know and I know what lies behind this explosive growth and how many companies are making fakes! It is not surprising that such a listed company will one day make investors come to a bad end. Does Buffett dare to hold it for seven, eight or ten years?

It is also based on the current situation of China stock market that China stock market is full of speculation. Speculation is the only way to survive in China stock market. The so-called value investment is just a whitewash by investment funds and stock market management. In China stock market, the size of the market is determined by the amount of funds. As long as you have money, any stock market miracle can be created. Therefore, in such a stock market, it is childish to speculate a stock like PetroChina to a price-earnings ratio of 20 times, and to a price-earnings ratio of 40 times and 50 times. Have you noticed that in China stock market, the price-earnings ratio of some blue-chip stocks has been fried to more than 100 times? And this is still a value investment! If it is not a value investment, it is not surprising that some blue-chip stocks have a price-earnings ratio of more than 200 times! So, in the face of such a crazy person, how should Buffett adapt? Unless Buffett becomes crazy!