Category: Money tips Release Date: 2006-06-23
Recently, the new shares issued faster. Many people in the secondary market from the stock market to sell shares to the pumping of new shares, some people have asked me, will not sell the stock they own shares to the smoke, I do not do this.
First of all, I have full warehouse operations, no money, my investment portfolio has a good lineup, and will not be affected by external factors, then I will still stick to the "turtle policy", holding the hands of high-quality companies, waiting for an opportunity.
In fact, the new shares, and the old shares had been listed for me, there is no essential difference, according to my standards will only buy some I think the most high-quality portfolio of companies. If I found a better price of new shares in a company, I would buy, but I recently found no new shares have a particularly good company. Judging from the current market situation, the old stocks of a number of price-earnings ratio of 15 times, or even 7 ~ 8 times the leading companies of high quality to choose, I have no reason to buy a 20 times price-earnings ratio of the new company. For example there is such a high growth of China Merchants Bank listed banks, why buy a high price-earnings ratio of the Bank of China than it does? While living in the fierce market competition, industry, Air China has also issued more than 20 times price-earnings ratio, but in a monopoly industry, G Shanghai airport is only 17 times its price-earnings ratio, and higher growth performance every year.
Speculation must also have "the right theoretical guidance." The final share price will fully embody the "corporate profitability", "serious underestimate" is no more than 12 months, one year will be given to correct the market, which has the world's "iron law."
In the past have also told us that pumping new shares may also lose money, the new shares below the offering price is also a common thing, and I bought an old stock, Wuliangye, Yunnan Baiyao, Maotai, China Merchants Bank and other firms, but almost every year Listed hit a new high. That is why I emphasize that buy high-quality "company" rather than to buy "stock." Expansion of short-term impact will be to hold my hands, the company's stock price, but not the end of about their share price.
Of course, my portfolio, especially in the amount of each stock of how much is based on each stock price (which includes, risk size, earnings level, the next three years, financial indicators such as growth overall judge) to decide the . These combinations only I know that it is flexible, because each month I will hold my portfolio company of track, according to the specific situation, I will adjust the amount of each stock portfolio. Such a composition, can I fall in the stock market, the total market value will be no major shrinkage, so I said to myself more firmly holding the confidence of the investment portfolio. If there is a drastic shrinkage of the market value (30% or more), maybe I would not worry, I also believe that confidence is at stake there will not be compensable cases only, and keep your total market value of the relative stability is very important. This requires me to conduct multi-stock portfolio, this would reduce the risk of stock market volatility.
Tape to determine who should be up today, and tomorrow to determine tape to fall, they do, I think it is actually gambling. I sometimes feel that they are both absurd and pathetic, but without them, I do not make any money, and from this point of view, I should thank them. In addition, according to my follow-up investigations, I am currently holding company, ending in June is not an operating performance was worse than I expected.
(The author is an experienced investor, this does not mean that newspaper point of view)
