Category: Money tips Release Date: 2007-04-05
Do "a monopoly" company I think it is the most competitive. This company has pricing power, their fate is in his hands, and their performance will continue to grow, as long as we use a reasonable price to buy such companies, are not annualized loss of. This company's share price will usually every year a new high.
There are two such companies:
1, the product's unique nature. Such as the G-Yun Bai Yao, G Maotai, G Wuliangye. They have in common is people not making their products, making them also a fake. And like the well-known consumer products and strong brand appeal.
2, a unique resource. If G Shanghai airport, which includes Shanghai Hongqiao and Pudong airports. Because there can be no second Shanghai Airport, and the current valuation is reasonable, is a source of profit rise and fall of airline charges, certainty excellent future growth is also very high certainty, no competitors, is a highly monopolistic enterprise. G Huangshan, Lijiang tour, world-class scenic areas, with the Chinese people's living standards improve, people who go to these scenic areas would certainly have more and more, the future growth is foreseeable.
The common feature of these companies is a very easy business, profitability particularly strong, and also our consumption of "necessities" and that their profits will be getting better and better, and their earnings growth does not require conducting a large-scale input from the arising under, so that shareholders will be able to enjoy them due to the continued profitable growth of the dividend income.
Such enterprises through various means of dividends each year, so we have a super-expected earnings, dividends and even through a few years to buy back when the stock was distributed, such as the G Maotai, G Wuliangye, G Yun Bai Yao. Such companies often have very large cash deposits. Share reform, they themselves may at any time with their idle cash to repurchase their own shares, such shares also relatively stable, and will not be ups and downs, which is such a company's share price on the foreign markets will continue to rise grounds.
The G and G Maotai Shanghai airport and outside the company's price-earnings ratio of similar level of comparison.
G Maotai, 2005 PE30-fold increase in the next three years, more than 20% composite; French wine in 2005, PE45-fold, a few years no growth.
G Shanghai airport, in 2005 PE1.8 times, the next three years combined increase of 15%; Hong Kong-listed Beijing Capital International Airport in 2005 PE38-fold increase in the next three years 15%.
G Huangshan, Lijiang travel such companies abroad than we are now much higher levels of PE, so I will continue to "hold" or even the money to buy such as the G Shanghai airport listed company, I am sure that these do not rival Who is going to be able to operate company's business is good, almost free from influence of human factors, such companies are also the most "tough", the most profitable. Every time I go to both of these companies feel these companies are ordinary employees or executives, they are the future profitability of the enterprises are confident that this competitive industry, and those of employees to form a great contrast.
(The author is an experienced investor, this does not mean that newspaper point of view)
