Don't beat the board on the valuation.

When the stock market rises, they say "the valuation is reasonable or too low," and when the stock market plummets, they say "it ultimately still comes down to the valuation being too high." This is the most common rhetoric used by fund companies when addressing public investors. However, back in October last year when the stock index was above 6000 points, we rarely saw any fund company stepping up to warn investors about the excessively high valuation. Meanwhile, during the step-by-step downward adjustment, voices predicting upcoming rebounds were frequently seen in the press.

The core methodology of value investing lies in valuation. We can't help but ask: Have funds truly understood value investing? Or are fund companies really practicing this golden rule of value investment?