Buffett'S Letter To Shareholders Has Just Released, Causing A Great Stir In The Investment Market.

The Buffett letter to shareholders issued in 2016 has just been released and has attracted wide attention from investors all over the world.

According to Boxill Hathaway's annual report of 2016, in the past 52 years, the book value of Boxill Hathaway rose from US $19 to US $172108, with an average annual compound growth rate of 19%.

That is to say, in fact, Boxill Hathaway's annual net assets growth rate is not as high as many people think, but because he insisted on fifty-two years of sustained growth, and compound interest growth is very fast.

After 52 years of compound interest growth, the growth of net assets per share reached nearly ten thousand times, and the share price rose more than ten thousand times. At the highest time in 2016, Boxill Hathaway's stock price broke through 250 thousand US dollars.

In 2016, with the bull market benefiting from US stocks, Boxill Hathaway's net wealth increased by US $27 billion 500 million and book value increased by 10.7%.

This is also an inspiration for domestic investors. Many domestic investors are seeking to get rich overnight. They hope to earn double or even three times four times a year.

In the bull market, for example, in 2015, even through the OTC capital allocation or two financial leverage.

This kind of quick success and instant benefit often brings disastrous consequences. During the 2015 stock market crash, many leveraged investors suffered huge losses.

From Buffett's investment experience, investment should gain long-term and stable value-added.

There is a saying in Wall Street that "the leftover is king", that is to say, do not see how much you have earned, but how much you have invested after years of investment.

Investment should seek stability, value preservation and appreciation of assets rather than overnight prosperity.

Back to A shares, since last August, A shares have already seen the bottom of history, and from the rebound to the slow bull market.

And in the next two to three years, A shares may get out of the trend of slow bull market, that is, the market is not rising fast, but the market is constantly rising in the concussion.

In the case of slow bull market, investors should seriously choose some high-quality blue chips to hold, and change the space through time to get stable assets and value added, rather than frequent pactions.

The more frequent the paction, the greater the probability of losing money, keeping a good attitude and investing in value, so that we can truly share the results of this round of slow bull market and have good returns.

Recently, Morgan and Stanley also put forward that in the next ten years, China's economy is still the highest in the global economy. A shares are likely to move out of the slow upward trend, that is, the slow bull market, so now we should actively choose high quality blue chips to allocate, and actively embrace the current slow bull market.

In a 29 page letter to shareholders, only a small part is about political content.

Buffett did not refer directly to the Trump administration nor did he directly call Trump's immigration policy. But he pointed out that even if it is not for economists, one of the key factors that make America great is immigration.

Growth has always been unthinkable. One of the main reasons is that a large number of talented people and ambitious immigrants have come to the United States.

Buffett pointed out that "from 240 years ago, in less than three years of my age, the United States has assembled the market system of human intelligence and wisdom, and a group of intelligent and idealistic immigrants have realized the prosperity of our forefathers in accordance with laws and regulations".

In this passage, Buffett stresses that immigrants from the United States have given the United States a lot of talents.

Immigrants from the United States have attracted talented people from all over the world. This has contributed greatly to the long-term economic growth of the United States.

On the other hand, the largest market for the US economy is the market system. This market system that guides capital, talent and labor has created the wealth of the United States, and this system is also the main system for distributing wealth. Most of the distribution can be carried out through the guidance of federal and local taxes.

In the light of some major restrictions and changes in immigration policies recently introduced by Trump, it is clear that Buffett supports the immigration policy more loosely, rather than Trump's strict restrictions.

In fact, the United States itself is an immigrant country. Many excellent scientists, businessmen and politicians are emigrants.

These immigrants made great contributions to the great power of the United States. Trump's new immigration policy was opposed by all sides in the early stage of its launching.

Buffett's investment in recent years has broken some of his traditional ideas. This shows that Buffett adjusted his investment strategy according to market changes and industry changes.

For example, Buffett has made it clear that he will not buy technology stocks. He believes that it is difficult for technology companies to stay ahead for a long time, often in the "five or six years". But last year, he unexpectedly bought a large number of Apple Corp stocks and made a lot of money.

In the past, Buffett thought the railway industry was very bad, so he thought that in eighty years, the railway was a terrible business.

But after 80 years of competition, the United States now has only four railway companies, and its business has improved.

In 2010, Boxill Hathaway spent more than $26 billion on the acquisition of 77.5% stake in Burlington Northern Santa Fe company, which successfully secured the company's income, and this company later contributed a large portion of its profits to Boxill Hathaway, which is also proved by the side.

The vision is very hot.

In the second half of last year, Boxill Hathaway bought heavily airline shares.

Buffett used to be skeptical about the aviation industry. He once said, "if you want to become a millionaire, there is a way to become a multimillionaire before buying an airline unit."

It is clear that he has been not optimistic about aviation stocks.

Why buy it now? Actually, he bought the railroad company of Burton North Santa Fe company in 2010.

After decades of fierce competition in the aviation industry, there are few remaining companies and the industry has undergone fundamental changes.

The remaining six largest airlines in the United States have achieved five consecutive years of profit in 2016, with a total profit of more than 14 billion dollars after adjustment. In the past ten years, the aviation industry has lost more than fifty billion dollars.

It can be seen that after decades of competition, the airline industry in the United States has already won the battle and the remaining winners will have the investment value.

Judging from some of Buffett's investments, he will not be conservative. He will not stick to his past views, remain unchanged and stick to the rules.

He will adjust himself according to the changes in the industry.

This is also very worthy of our reference.

Another reason is that Buffett has been inclined to buy some steady growth consumer stocks, but now Buffett's investment capital is huge, and there are not so many good consumer stocks to be allocated, so he has to buy shares in other fields, which also expands the business scope of Burke Hill Hathaway company and keeps the stability of the growth.

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