Industry insiders speculate that such gains may come from a few stocks that are heavily leveraged, or from superb short-term trading techniques. But Luo Weidong claims that in the past three years, his excess earnings are entirely from the growth of the enterprise. Whats more, he claims that he has almost never traded in the past three years.
Whats more, Luo Weidong once emailed Buffett that if Buffett invested 5 billion dollars, he was confident that he could turn it into 100 billion dollars in three to five years. Although Buffett declined, it is clear that he did
According to the data of private placement network, of the 1791 products still in operation established at the high point of Shanghai stock index, 80% of them have lost money as of May 12, but some of them still have amazing returns. The most prominent one is Saiya Star Securities Investment Fund, which ranks the first in Five-year returns. It was established in May 2015, and so far its returns have reached 563.3%.
According to the reporter, Saiya growth No. 1, another fund of Saiya capital, was established in January 2015, with the latest net value of more than 20 yuan. This means that if the earliest investments were held to this day, the assets would have doubled 20 times.
Whats more surprising is that in this years volatile market environment, Saiya Xuanyuan fund under Saiya capital has earned more than 100% in the year (as of April 30). At the same time, in addition to Saiya Xuanyuan fund, Saiya capitals other 10 products all yield more than 50%.
Twice rejected by Buffett
In 2019, Saiya capital became the champion of the private equity companys income ranking, and also the third place in one year and the champion in two, three and four years. This year, its product income is once again leading. Is it the long-standing champion charm failure? What is the origin of this private placement?
According to the information of China Fund Industry Association, Saiya capital was founded in 2014, with only 5 full-time employees. However, Luo Weidong said that there were actually 10 people, and the qualification test of the remaining 5 people was delayed due to the epidemic, so the qualification has not been determined. At present, the management scale is about 1 billion yuan.
His legend has been circulating in the private equity world. For example, in 1995, the first year of the University used the scholarship won by the top student in the college entrance examination to speculate on stocks. The investment profit made him buy a house in Shenzhen as a junior. In 2005, Suning Electric Co., Ltd. was publicly recommended, which increased by 18 times in more than two years, and then ten times shares were excavated.
Verified by the reporter to Luo Weidong, the above legends are true. But his story goes far beyond that. Whats interesting is his two brief exchanges with Buffett.
Luo Weidong said that in August 2018, he sent an email to Buffett saying that if Buffett invested $5 billion, he was confident that he could turn it into $100 billion in three to five years.
Actually, from my second email to now, the net value of our products has doubled again, and the net value of the fund has broken the 20 yuan mark. If Buffett invested 5 billion dollars in August 2018, it will become 100 billion dollars in 20 months. Anyway, the first time I did it, the second time I hope I can still do it, even if he still refuses me. Luo Weidong said when talking about this matter with reporters.
It is reported that when Luo Weidong sent his first email to Feite, that is, in August 2018, the net value of Saiya growth No.1 had been withdrawn to around 1 yuan. By December 2019, the net value of the fund was about 12 yuan. As of April 30 this year, the net value of the fund had exceeded 20 yuan. It can be seen that Luo Weidongs product has indeed gained 20 times of income in 5 years, but the fluctuation in the middle is also relatively large, most of it The profit sharing has been achieved in the past two years.
So how does luoweidong achieve 20 times of income in 5 years?
He didnt give a clear answer, just told reporters that the money he made was not by cutting leeks, but by growing with the enterprise to find the stocks with the best growth. At present, the number of positions held by Saiya capitals funds is only 3-5. In the past three years, Saiya capital has never changed positions or even kept zero trading.
In Luo Weidongs view, there are three advantages to keep the non trading. One is that the strategy is completely replicable; the other is that the capital ceiling of the strategy is very high; the third is that you dont need to earn other peoples money, as long as you make money for the growth of the enterprise.
The reason why there is a champion charm in private equity is that many private equity companies make money from others, but its not always that many people lose money to make money for you every year, so its easy to get Waterloo. He is forthright.
He said he bought a real estate stock at the end of 2006, when he mainly observed the compound growth rate of the companys net profit and main business income. In the first four years of holding, the growth rate of this listed company is more than 100% every year, and he will attend the shareholders meeting of this listed company every time. But in October 2011, when he went to the shareholders meeting again, the companys sales had grown to 100 billion yuan. At this time, Luo Weidong asked the chairman a question: when is the companys sales expected to reach 200 billion yuan, five years? The chairman replied that he could not do it in five years.
My heart is cold as soon as I listen to it, because I hold it because its compound growth rate can reach 100%. If it cant reach 200 billion yuan in five years, the growth rate will fall below 30%, so I decided to gradually reduce my position. Luo Weidong said frankly that this is the main logic of buying and selling. What Saiya capital needs to do is to explore the stocks that can become Baima in the future.
At the end of the interview, Luo Weidong made it clear that he did not hold technology stocks in recent years, and his positions are all big consumer products. As for whether he can fulfill his second commitment to Buffett, time will give the answer