Category: Money tips Release Date: 2006-04-16
Holding Shigekura cases, through the operation of a small number of stocks in the bear market still maintained a nearly 15% annual rate of return. I have summarized a number of stock-picking methods.
A small amount of medium and small investors because of funding, so focus on investment is not more than six stocks is a wise choice, more suitable for long-term investment. So how can we find the stock is worth more than a thousand long-term investment in individual stocks it? I concluded the following methods:
The first is 10 not stand. Where a listed company has the following 10 kinds of circumstances any one of the one-vote veto. In this way you can exclude more than 95% of the company.
1, there is the credit companies do not tainted the election. Including: major shareholders of listed companies hollowed, false statements, concealment of information should be disclosed, insider trading, providing false accounting information and so on.
2, the overall downturn in the industry the company is not selected. The overall industry downturn, listed companies would be affected.
Third, the parent company mismanaged companies to not stand. Often referred to as a listed company's parent group, if the group of poor management, then the listing of the company's operating capacity is often almost as bad, and the risk of hollowing out of listed companies will rise.
4, the main businesses are not prominent, diversified operating company does not engage in the election.
Five, enterprise-scale companies do not select too small. Too small for the listed companies did not form scale, high operating costs, a weak anti-risk ability.
6, Ji-ping companies do not select underperformance.
7, 5 years, sharp fluctuations in the performance of the companies do not select. It also ruled out a short time, many listed companies. Significant fluctuations in company performance of company business instability, a higher risk. To examine the stability of the company, five years is necessary.
8, non-cash distribution stability of the company not stand. Stable cash distribution company proved the authenticity of the stability and performance. Fraudulent companies can book profits and not Zaochu Zaochu cash, can only be assigned to send share transfer but not the cash distribution.
9, was questioned by the media companies that are not elected.
10, Zhuanggu, the cumulative gains a huge selection of companies do not.
Following the removal of the above listed company, the company has little choice. If investors feel that all shares have been ruled out, it simply will not buy the stock. If there are shares not being excluded, then the following four conditions on the selection of stocks.
First, select a monopolistic company. Monopolies, including geographical monopolies, resource monopoly and administrative monopoly licenses, technical monopolies. Front of the monopoly by the reliability of ranking high, monopoly is the source of excess profits.
Second, the election in the international competition, have a comparative advantage in industries company.
Third, the election industry leading companies.
Fourth, select the high-priced companies.
