Introduction To Stock: How Can Investors Find Growth Stocks?

In the stock market, such as hotels, extemporaneous occupants are expensive, the average annual cost of monthly packages is low, and if they buy property rights, they will be cheaper to stay. This is a disadvantage for transient passengers but good for long-term residents.

So if you find yourself stuck in the stock market, rational people will have to place a long-term contract. They need to take a long view to invest. They must have a keen interest in hotel traffic, service quality, room size, orientation, storey height, structure, facilities and even escape routes. In the final analysis, the relationship between value and supply and demand is the two fundamental factor that affects prices, and it is also the inherent mechanism of long-term trends. If the change of supply and demand does not follow the mark of the antelope, there are many kinds of techniques, so we should discard the complexity and simplify it. We should use our skills to predict and observe again. The seemingly brilliant prediction theory is only a skillful technique, but a small way, and can not cast large devices. The famous personages who are respected by investors in the investment world are those who rely on the insights of economic development, who rely on unique philosophy, rely on extensive contacts, and rely on commercial olfaction, do not rely on pure prediction. Value assessment and quantitative analysis are the key factors of investment level. When the value of the enterprise is quantified, it can be compared with the price immediately. If you have difficulties in quantitative analysis, you can also judge according to some simple financial indicators. "Simplicity is beauty" is the only way to invest successfully. Below is the trend of EPS (earnings per share), which is now 1991, so far, which has been restored to power. It is obvious that 98~99 is the trough, and 99 years have caused huge fluctuations due to non recurring gains and losses. Generally speaking, 99 years ago, Shennan glass is still a good growth stock, but in 2000, nearly 7 times pulled up, far beyond the margin of safety, causing sharp fluctuations in stock prices, and the current price has returned to the starting point. The stock price has risen by only 50% over the past 99 years, but EPS has risen nearly 1 times, and the value seems to be underestimated. Now there are so many shares in the market that China's A share market has entered a region worthy of investment according to the enterprise value. It is worthwhile to invest no profit after entering the market. It means that the safety factor of buying is quite high. Please don't forget that the investment philosophy is the first and the principal safety.

But the value is developing, and the profit brought by the value increase will be far more than the arbitrage benefit based on the difference price. Buying a good company at a reasonable price is the right way to become a super player and a wealthy investor. Because of the endogenous shrinkage of marginal returns, Darwin's business makes investors and even business managers overestimate the future value of enterprises, resulting in the failure of investment plans. However, the economic patent business has no such disadvantages. The marginal revenue of these companies is more secure, allowing companies to expand their business by using excess profits (more than the average level of the industry), which in turn promotes revenue and keeps pushing EPS up, forming a virtuous circle.

Wrigley chewing gum (company listed on the main board of New York 1919, code WWY) 1968~2005 month line trend semi logarithmic chart. The stock started at $0.25 in the 74 stock market. It has seen us $74 this year. In the past thirty years, it has created 300 times book income records in a stable manner. Before 90s, the unit issued a dividend once a month, and now it is issued once a quarter. If these dividends are reinvested in the stock market, the investment income in the past thirty years is a very terrible number. Wrigley has been invincible in the field of chewing gum. Its brands, such as Wrigley, Yida, Jin Lang, and so on, are well known. Its product line structure and industry status are quite similar to those of P&G in the domestic washing market or Coca Cola Co in the carbonated drinks market. They create a niche market by themselves, and gradually make this market segment bigger. As long as the enterprise can maintain a certain market share, rely on the natural growth of the market segments, and with the unique formula with legal protection, the accumulated wealth will accumulate. Investing in this type of stock has nothing to do with growth but pleasure.

The price of Chinese cigarettes has been increasing for decades, and the value of enterprises has increased year by year. Unfortunately, domestic tobacco stocks can not be IPO. Moutai is also a yearly price increase. As long as the consumer market can scale up, no one is a good investment variety or super black horse. "Only melt in the mouth, not melt in the hand" Mars, "Diamond long long, a permanent" De Beers, Bordeaux red wine five big estate are family enterprises, some people say that family enterprises can not be big and wrong, as long as the economic patent business even is criticized by the family enterprises are shining, the economic patent business is so magic.