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A family letter

To all of our sincere investors:

 

Tailai Investment Management Co., Ltd. set sail in a turbulent market environment. Everyone would agree that 2018 was a challenging year. Entering 2019, everyone is tremblingly looking forward to a stable condition. The market has changed its trend in less than half a year. Facing this situation, the market has gone up and down. The reactions of China, Hong Kong and the US market are expressing variously. As an investor, how could we interpret the messages from the market? Could it be an over-concerned situation of the Chinese and Hong Kong stock markets, which gives an excellent opportunity to enter the market; or is the US market over-optimistic, which leads to excessive valuations of stocks? In this regard, many investors, including me, are feeling stressed and difficult to make a correct judgment. No matter which direction we go, we are all facing unpredictable uncertainty. Many friends choose to leave the market to avoid danger, but is this a good practice? Knowing that there is great uncertainty in the market, we need to know the reasons and benefits for continuing to participate in the game.

 

You can recall that on the way of investing, no matter what the market conditions are, we have been constantly entangled in similar struggles. In this case, investors’ judgments are often influenced by emotions. Among the investors I have contacted, the following two cases are the most common. A successful businessman once complained to me, "I have bought stocks for more than 40 years, but I still haven't made any money. Why should I invest?" Another successful entrepreneur mentioned that "I made money by selling stocks, but this has been the case for decades. As long as I buy again, sooner or later I will lose more than I made. What are the benefits of investing in the stock market for a long time?" They are not single incidents. I have encountered many similar cases in a major wealth management group. According to data, more than 93% of clients’ investment performance is worse than the market itself. Whether it is this or that organization, common customers have similar or even more painful experiences.

 

I have been in the financial market for 20 to 30 years. In the process of serving different customers, I have always hoped to find the answers to the above questions from experience, communication with customers and books. I have experienced the financial turmoil of the last twenty to thirty years. The past two years influenced me the most because I am investing for my own living. Without the salary income from large investment companies, investment has become the only source of my income. I really understand what it means to agree with the interests of my customers. Let me summarize this using a paragraph from the letter I gave to my son (15 years old) in January this year:

 

"Still, I am facing a lot of challenges. One strange thing I recognise in this most difficult time is that I truly understood the nature of investment and found a clear business direction. This could be seen as a milestone! The job I choose to proceed with is extremely difficult and complicated. Maybe we could find a real point to breakthrough only if we struggle actively in difficulties. I could now confidently say to anyone that I can provide them with high-quality and reliable investment services; I also have the confidence to create a set of investment concepts and methods that can make the world a better place. My business will be able to achieve unprecedented success as time pass on. I am now fully committed and actively moving in this direction! Success is in our sight!"

 

I hope that the sharing will help you to figure out the truth in investment, success is in our sight!

Wish you all achieve your investment goals and achieve outstanding performance!

 

 

Yours sincerely,

Tai Chan

Chief Executive Officer and Investment Director

Tailor Investment Management Co., Ltd.

June 2019

Ten investment risks that are

unpredictable, permanent, irreversible and destructive

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01

Individual company

management

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