"Today is the 979th day of Muzi reading with you"
Investing is a long road of cultivation, and investment is also lonely. The loneliness mentioned here is when making a decision, waiting and holding. Don't blindly follow the crowd. Thinking independently is one of the abilities you must have.
The one who can survive for a long time in the stock market must be lonely value investors, and you need to stick to your lonely and lonely persistence, not a hot spot chaser. Always warn yourself that the stock is not speculated, but invested. Therefore, the mining, buying, holding and selling of excellent stock is the hardest, most tiring and most challenging for you.
company with excellent fundamentals equity , holds interest rate, earning money that returns value is the purpose of value investment. So how can we choose such a good company from 5,000 listed companies? "Li Cai's Way" There are eight stock selection criteria to share with you:
① The compound growth rate of operating income for five consecutive years shall not be less than 10%.
② After deducting non-operating items, the compound growth of net profit shall not be less than 15% for five consecutive years, and is higher than the growth of operating income.
③ The gross profit margin is greater than 30% and is stable, and it is best to increase slightly every year.
④ The net cash flow generated by operating activities is sufficient and is positive.
⑤ The debt-to-asset ratio cannot be too high and is less than 60%.
⑥ Return on equity ROE is greater than 15% for five consecutive years.
⑦ The dividend rate is greater than 30%, or the dividend rate is greater than 2%.
⑧ Excellent management.
After the above eight rounds of screening, there are probably only a few dozen of them left in 5,000 companies. Please further filter according to your circle of competence. Finally, within the selected company scope, wait patiently to buy decisively when the price is below the value.
Regarding the methods to overcome fear and greed, everyone has different tolerances. It is definitely different to have millions and tens of millions in their hands, but the fundamental reason for value investment remains unchanged. The weaknesses of human nature, such as greed, fear, selfishness, arrogance, laziness, vanity, etc., can all be changed through deliberate practice.
It is undoubtedly the most difficult to overcome your own human weaknesses. For greed, you must always remember your own investment principles. This principle depends on your individual ability, preferences, and valuation system. Everyone’s standards are also different. Only when it suits you is the best.
Of course, there are some special situations, such as increases greatly in a very short period of time after buying, so it also requires timely reduction of positions in batches. The most taboo thing when investing in stocks is to fantasize out of thin air. Being realistic is a necessary choice. The premise of moderate greed is to have your own complete value investment system and strictly implement it, and you will naturally know what is yours and what is not yours.
I don’t need to say anything about fear. Establishing the above investment system will bring you a nightly sleep and will not be affected by the emotions of the “Mr. Market”. It is very normal to buy equity in a company within your system, and the stock price will continue to fall. Muzi said earlier that if you invest in a company's equity, you will earn dividends dividends and valuation return.
Whether it is a bull market or a bear market, there are always opportunities in the market. If you can't grasp it, don't blame others. It's just because you still have a shortage. Just make up for your own shortcomings while holding stocks and paying attention to your dividends. It is important not to waste every inch of time, because time is absolutely fair to everyone.
Time is valuable, its core is direction, as long as the direction is right, it doesn't matter if it is slower. If the direction is wrong, the harder you work, the farther you will be. day, making progress a little bit every day, slow means fast, this is Muzi's value.
Yes, slow means fast. If you have never experienced the magical power that slow means fast brings you, please concentrate and patiently persevere in doing something and continue to do it. Investing is a process of continuous accumulation, including company cognition, industry insight and methodological evolution.
The New Testament Gospel of Matthew says: Anything that has should be added to him, so that he will have more than; whatever he does not have will be taken away. This is Matthew effect . This world has never been "hard work, and the harvest is achieved". There will be more people with more people with less people. This is the normal state of the world.
What you need to do is to do in a track with exponential growth, with patience and persistence in doing the right things and being a friend of time.
