How Should We Understand That Gem Is More Than 60 Times Earnings?

< p > buy a good company at a reasonable price < a href= "http://www.91se91.com/news/index_s.asp" > stock < /a > better than buying a mediocre company stock at an undervalued price.

This remark has changed Buffett's investment strategy for cigarette butts.

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< p > remember that some people have said that A shares have a magic ratio of 60 times the market winning rate, that is, when a stock index market wins more than 60 times, it will meet with the top of history, and then there will be a sharp fall.

According to the 2013 performance estimates, the market share of the gem is roughly 70 times that of the current market, but now the gem is still hot, especially when the new stock market has been continuously sought after by market funds, and many Internet software stocks have been trading continuously, making many conservative investors unaware of it.

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< p > How do we view the gem breaking the curse of 60 times market wins? The statistics of gem can be divided into three parts according to the market value scale.

1/3 the growth rate of the stock market with the largest market value was 32.3%, while the 1/3 medium market value growth rate was -0.3%, while the 1/3 minimum market share growth rate was -14.5%.

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< p > the statistics show that the performance of gem is obviously divided. Some of them are quite good companies. They have achieved high growth, but at the same time, there are quite a few batches of achievements, even downhill "a href=" http: //www.91se91.com/news/index_c.asp > /a.

Their existence makes the number of gem calculated by arithmetic average method look worse than the [2.06%] standard.

In turn, it is mainly based on the ranking of the market capitalization to select the gem index of the sample stocks, because most of them contain high growth companies, so the share price is soaring.

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< p > can be seen clearly here. The gem index can not represent all the stock of the gem, but now some people take the average performance of all the stocks of the gem as the reason to criticize the market competition rate of the gem index, which is also a bit improper, which is the main reason why they do not understand the board.

We have time to take a look at the 29 constituent stocks of the Dow Jones index. Most of the 29 stocks are world-class firms familiar to China. They are the envy of Chinese investors and the rising US stock system.

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< p > if you remove these enterprises but choose the index of stocks after market capitalization, you will find that the US index is also not rising.

Then you look at Hongkong, China, and you will see similar phenomena.

Because: no matter which stock market in the world is excellent, there are few minority shareholders who make money.

Don't wrestle with pigs, don't buy junk stocks.

< /p >

< p > remember that some people have said that A shares have a magic ratio of 60 times the market winning rate, that is, when a stock index market wins more than 60 times, it will meet with the top of history, and then there will be a sharp fall.

According to the 2013 performance estimates, the GEM market is currently about 70 times the winning rate, but now the gem is still hot, especially when the new stock market has been continuously sought after by market funds, and many Internet software stocks have been trading continuously, making many conservative investors unaware of it.

< /p >

< p > How do we view the gem breaking the curse of 60 times market wins? The statistics of gem can be divided into three parts according to the market value scale.

1/3 the growth rate of the stock market with the largest market value was 32.3%, while the 1/3 medium market value growth rate was -0.3%, while the 1/3 minimum market share growth rate was -14.5%.

This statistic shows that the performance of gem is obviously divided. Some of them are quite good companies. They have achieved high growth, but at the same time, there are quite a number of low performing companies, even downhill companies.

< /p >

< p > their existence makes the arithmetic average method a number of gem indicators appear to be relatively poor.

In turn, it is mainly based on the ranking of the market capitalization to select the gem index of the sample stocks, because most of them contain high growth companies, so the share price is soaring.

< /p >

< p > can be seen clearly here. The gem index can not represent all the stock of the gem, but now some people take the average performance of all the stocks of the gem as the reason to criticize the market competition rate of the gem index, which is also a bit improper, which is the main reason why they do not understand the board.

We have time to take a look at the 29 constituent stocks of the Dow Jones index. Most of the 29 stocks are world-class firms familiar to the Chinese people. They are the envy of Chinese investors.

< /p >

< p > of course, some analysts believe that the average market win rate of the top thirty of the GEM market is nearly 80 times, and the average growth rate in 2013 is about 40%. Is it also overestimated? First, time is the best margin of safety.

We want to see that now is February 2014, the gem will announce 2013 annual report and a quarterly 2014 quarterly report. If we invest in driving, we should look ahead and occasionally look at the rearview mirror. If we continue to grow 40-50% in 2014 according to the 2013 end results, the average market earnings of the thirty market capitalization of gem will be reduced to about 50 times.

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< p > Charlie Munger once said: buying a good company stock at a reasonable price is better than buying a mediocre company stock at an undervalued price.

This sentence has changed Buffett's a href= "http://www.91se91.com" /a strategy.

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