N Key Points Of Hand Picking Stock Selection

Because work and study involve a lot of energy and time, I choose the strategy of long-term investment. Although the bear market has lasted for 4 years, the overall losses of the stock investors have been serious. However, in the case of heavy holdings, the stock market still maintains a close to 15% annual yield in the bear market. I summarized some stock selection methods. 　　 　

Because small investors have small amount of money, it is wise to invest less than 6 stocks. Long term investment is more suitable. Then how can we find out stocks worth investing in over 1000 stocks? I have summarized the following methods:

The first is ten. Every listed company has one of the following ten kinds of veto. This method can exclude more than 95% companies. 　　 　　

First, there is credit. stain Companies do not choose. These include: large shareholders emptying listed companies, false statements, concealing information that should be disclosed, insider trading, providing false accounting information and so on. 　　 　　

Two, the whole is not. Prosperity Companies in the industry do not choose. As a whole, the operation of listed companies will be affected. 　　 　　

Three, companies with poor parent companies are not selected. The parent company of a listed company is often referred to as a group company. If the operation of a group company is not good enough, the operating capacity of the listed company is often not much better, and the risk of emptying the listed company will also rise. 　　 　　

Four, the main business is not outstanding, and companies engaged in diversified operations do not choose. 　　　　

Five, companies with a small scale are not selected. Small scale listed companies do not have scale effect, high operating cost and weak ability to resist risks. 　　 　　

Six, the company is not elected. 　　　　　

Seven or 5 years achievement Companies with large fluctuations do not choose. This rule also excludes many short listed companies. The large fluctuation of company performance indicates that the company is unstable and risky. To investigate the stability of the company, 5 years is a must. 　　 　　

Eight, companies with no stable cash distribution will not be selected. Stable cash distribution proves the stability of the company and the authenticity of its performance. Counterfeiting companies can only make book profits instead of cash, and can only distribute cash through distribution of shares instead of cash. 　　 　　

Nine, companies questioned by the media do not choose. 　　　　

Ten, Zhuang shares, the cumulative increase of large companies do not choose. 　　　　

After excluding the listed companies, there are few companies that can be selected. If investors feel that all stocks are excluded, simply do not buy stocks. If there are still stocks that have not been excluded, then select stocks that meet the following four conditions. 　　 　　

First, choose monopolistic companies. Monopoly includes location monopoly, resource monopoly, administrative licensing monopoly, technology monopoly and so on. Monopoly is the most reliable form of monopoly, and monopoly is the source of excess profits. 　　 　　

Two. Companies that have comparative advantages in international competition. 　　　　　

Three, select the leading companies in the industry. 　　　　

Four, select high priced companies. This is not in line with most people's ideas. But the fact is: the lower the value of the stock, the easier it is to overestimate it, because its absolute price looks cheaper; the more expensive the stock is, the easier it is to be undervalued, because many people can't afford it. In my years of investment, almost all of the good returns for me were high and medium priced stocks, and the overall investment in low-priced stocks was a loss. 　　 　　

Of course, after selecting stock through the above methods, we must master the timing of intervention.