The liquor sector has plummeted, and the question that many people are most concerned about is, is this the beginning of the decline, or is it just a short-term correction?

On the one hand, the valuation of the liquor sector is indeed at a high level. Liquor-themed funds will be very sensitive to expected changes in the market, and large fluctuations in the fund's net value are inevitable.

In particular, for liquor index funds, it is difficult for fund managers to adjust positions. Investors with lower risk preferences can moderately reduce their positions, or increase the allocation ratio of "fixed income +" products in the investment portfolio to make the overall position more balanced.

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On the other hand, according to the analysis of Essence Fund, liquor combines social attributes, addictive attributes and financial attributes. It is difficult to find substitutes that combine these attributes at the same time. This category will have a long life cycle, and the competitive landscape is very complicated.

Stability is a typical industry with long slopes and thick snow in Buffett's eyes.

If they are optimistic about the liquor industry in the long term, investors can put their trust in fund managers, offset short-term fluctuations in stock prices through medium and long-term holdings, and patiently wait for the rose of time.