Value Investment Methodology with Oriental Classical Philosophy
The Eight Theories of the Value Investment Methodology with Oriental Classical Philosophy
The “Value Investment Methodology with Oriental Classical Philosophy ” is created by Mr. Sui Guangyi, which incorporates the philosophical thoughts of eastern classics and the wisdom of the financial industry. After years’ experimentation, it has achieved striking achievements.
Mr. Sui Guangyi has been an enthusiast of I Ching. The “Value Investment Methodology with Oriental Classical Philosophy” originated by him is the result of his more than 20 years’ study of I Ching，which acts as a “navigation system” for a vast business domain.
The “Value Investment Methodology with Oriental Classical Philosophy” is mainly built on eight traditional Chinese theoretical knowledge systems. The ancient wisdom, together with modern rational notions, helps facilitate the development of capital.
1.Theory of Understanding the Way
“Understanding the Way” can be understood from two aspects: first, define investment goals; second, make clear of the risk-taking capabilities. One should make clear of the maximum risk he or she is able to assume and manage them on this basis. Then he or she should ascertain and quantify the risks he or she might encounter and endeavour to acquire superabundant returns on this basis.
2.Theory of Grasping the Trends
“Grasping the Trends” has two meanings: discover and make use of the macroscopic and industrial development trends on the one hand and be daring to seize the trends on the other, which means that one should combine resources and capabilities to build his or her core advantage and ride on the momentum. Only by doing so can one be a winner in an increasingly competitive investment environment.
3.Theory of Excellent Skill
The “skill” here refers to the ability to manage and operate. Enterprise operation should be in line with the enterprise’s business portfolio and profit model. Vigorous management system and innovative business portfolio and profit model will help a company achieve excellent performance and market success and thereby determine its long-term development.
4.The Theory of Yin and Yang
The concept of Yin and Yang originates from the natural view of the ancient Chinese people, who observed that there were various contrary and interconnected phenomena in the natural world, such as heaven and earth, day and night, winter and summer, etc., and summarized the concept of “Yin and Yang” according to the philosophical mode of thought. As early as the Spring and Autumn period, both Yizhuan and Lao Tzu’s Tao Te Ching had mentioned Yin and Yang. Yin and Yang is a kind of division or subdivision of the “unity of opposites or contradictory relationship”, both of which are inseparable from each other. The same is true of the formation laws of the things.
5.The Theory of Rhythmicity and Synchronicity of Myriad Creatures in the Universe
Synchronicity theory means that what happens at a particular time is related to anything that happens at the same time. While we are waiting for the red or green light, all the indicators of the car will flicker at the same frequency after 21 seconds. The principle behind is that they vibrate and mutually influence each other on the same platform and the movement field of “coupled oscillation” in physics takes place. This reciprocal influence finally propels them into complete synchronization.
6.The Temporal-Spatial View and the Way of Thinking of “Emblem, Number, Principle” in I Ching
In the context of I Ching, the core meaning of “problem-solving in three circumstances” is that the destiny of the subject is subject to three levels of time and space. In practical application of the corporate strategy analysis, the position of enterprise should be determined through unifying the “emblem, number, principle”, which is the starting point of all analyses and predictions.
With the development of digital technology, the ways of thinking in I Ching, combined with logic and science, can give enterprises accurate positioning in the uncertain environment and provide them with support in effective strategic analysis and correct decision-making.
7.The Theory of Mindset-shifting
Any problem that one is thinking about can be considered from several different perspectives. In other words, the same problem can be analyzed from different perspectives.
To change the ways of thinking, it is necessary to get rid of the previous habits, just like the spaceship needs to get rid of the gravity as it takes off. Something easily obtained may not be cherished and only those things that are acquired through great efforts will manifest irreplaceable value. Therefore, while changing our ways of thinking, we must be patient and progressive.
8.The Theory of “Taiji” and “Wuji”
“Taiji” and “Wuji” are distinctive of the Chinese culture and manifest the peak development of Chinese philosophy. The earliest account on “Taiji” and “Wuji” can be found in I Ching, which is relatively rough and primitive, as it goes like this: “In the system of the Yi (Change) there is the Taiji, which produced the two elementary forms. Those two forms produced the four emblematic symbols, which again produced the eight trigrams”. The “Taiji” here is actually the beginning of the universe, while “Wuji” is a beginning earlier than that of “Taiji”. The oriental wisdom is extensive and profound. The above eight theories not only play a critical guiding role in the genesis of the “Value Investment Methodology with Oriental Classical Philosophy “, but also are deeply rooted in the philosophy of life of the Chinese people.