buying different types of stocks
Different types of stocks have different buying timings. At the same time, stock purchases also have priority issues. To make stable profits in a market, you must know the core underlying logic that drives the market volatility. The biggest and most important core logic is performance expectations. All fluctuations are almost This factor can be ultimately guided to this factor. Whether it is the outlet, news themes, change of controlling rights, mergers and acquisitions, expansion of production capacity, new R&D investment, etc., all the ultimate orientations are in performance expectations.
When did landlords buy land in the past? It must be a famine year, a year of abundant harvest, and a landlord’s thinking is like this. In fact, the logic is very simple. In a year of harvest, the price of the food itself is also limited. It is cheap and the land is relatively expensive. If you buy it this way, no matter how big the landlord will be. Bankrupt.
I have been doing value investing in A shares and trading stocks for so many years. After comparing long-term data, the priority of buying stocks is ranked from high to low, super brand, seasonal fluctuation industry leader, financial industry, and industry cycle. All the losses in the past few years were basically due to the gap in market perception. It was wrong to take the dividend rate too much, ignore the growth of the company, and pursue a low price-earnings ratio. Starting in 2020, after completely changing the thinking and operation direction, it is basically stable. Profitability, data can even be refined to monthly transactions.
Super brands, as an investor, I ignored this factor before. Based on historical data comparison, we will realize that the growth of super brands can completely transcend cyclical periods. Even if it is a stock market crash, it is basically the first to rebound and become the market. cornerstone. In A shares, it is now given a new index. But what I want to say here is that most of the Index cannot be called super brands.
From a long-term perspective, the value of these companies has been increasing. Its stock price performance has always been upwards (deducting abnormal market fluctuations). As long as we are not chasing high, insisting on value investment, and buying at the right price, the success rate is close to 100%. The suitable price I am talking about here generally refers to the average The price-to-earnings ratio is around 15 times, and the average price-to-earnings ratio refers to the average of the last four years. The specific algorithm is not listed here, it is very simple. What I want to highlight here is that the most profitable industries in our entire A-share ecology are actually concentrated in the upstream, which is the industry that successfully penetrated upwards in the industry chain. The most stable and reliable sector is the chemical and household appliances sectors, which basically have good pricing power. After nearly 20 years of extensive development, brand concentration has formed an oligopoly.
Industry leaders with high volatility basically follow the trend of commodities in this respect, so when to buy, of course, when the industry is about to lose money, of course this is the most ideal buying point, and it is generally relatively difficult to encounter. For example, I take the steel industry as an example, Steel’s 2015 annual report.
If you bought at that time, you would hold several times the industry now. Therefore, the best buying point here is that the cyclical stocks of the entire industry are following the movement of commodities. For specific data, please refer to the Wenhua Commodity Index. Later, I will analyze and predict commodity trends in the article, and share some investment opportunities.
Financial stocks, including large and small financial stocks, I will not subdivide them. I only focus on the industry to explain, when is the most appropriate time to buy securities stocks, that is, when the trading volume has fallen to a historical low, every round of bull market is indispensable for the sharp rise of securities stocks. The logic is simple. The trading volume rises. Brokerage business rise. For the four major banks, banking stocks have only bands and no major trends. This is determined by the combination of asset quality and regulatory factors. The main source of profit is the interest rate differential. The source of profit for bank stocks lies in the expansion of loan scale. Look for faster growth in loan scale and low NPL ratio. The low here refers to below the median. Generally 1.2% is used as the 2020 standard, and then provisioned full. Based on this element, stock selection is easy.