Catch Phrase | 戴维斯双击(dàiwéisī shuāngjī)

Writer: Debra Li  |  Editor: Stephanie Yang  |  From: Shenzhen Daily  |  Updated: 2020-10-15


Translated from the English term “Davis Double Play,” this term refers to the theory of the famous U.S. value investor Shelby Davis (1909-1994). Davis took a small grubstake of around US$50,000 and turned it into a massive family fortune of close to a billion dollars through investing in primarily insurance stocks. Davis liked to use the example of being able to make 4 times his money when he bought a stock at a P/E of 10, and then it doubled its earnings over a period of years and the market revalued the business at a P/E of 20, thus creating a 4 times return. Therefore, “Davis Double Play” refers to a buy-and-hold strategy where the stock price gets a boost from the company’s earnings and also from investors giving a higher evaluation of the company because of the increased earnings.


A: 我买了一些汽车股,不知道什么时候能涨?

Wǒ mǎile yīxiē qìchēgǔ,bù zhīdào shénme shíhòu néng zhǎng?

I’ve bought some motor shares, and am wondering when they will become profitable.

B: 等四季度行业复苏盈利改善的时候,或许会迎来戴维斯双击。

Děng sì jìdù hángyè fùsū yínglì gǎishàn de shíhòu,huòxǔ huì yínglái dàiwéisī shuāngjī。

Perhaps you can wait until the motor industry recovers and company earnings improve in the fourth quarter. Then the “Davis Double Play” will work to reward you.