Category: Money tips Release Date: 2006-10-19
According to my investment theory, research experience, years of fund management experience, good value investing is not difficult if we continue to buy "four good" good vote, it is expected to be relatively good return on investment.
So what is meant by the "four good" good vote? Is a stock required to meet the following four criteria: a good business, good management, good products, good mechanism, if a company meets the above four points, I had no choice but to call it a stock, and believe that long-term perspective will have a good return.
First of all a good trade is very important, the so-called "men fear choosing the wrong" in a good industry, it is easier to create and realize value. The industry growth rate faster, the growth of enterprise value is often required in the industry, high-growth basis, the history of Marlboro cigarettes, such as in low-growth industry, to achieve long-term growth of the company's rare. At the same time the industry's business model is better, life insurance and aviation on the significantly different airlines around the world are many cases of bankruptcy, but life on the small, the mode of operation in different sectors and uncertainties significantly different, there will be very different enterprises to create value Buffett likes to hate aviation insurance. Another point, enterprise value growth in the demand for cash, as some enterprises may be able to earn substantial profits, but the new growth in profits and it takes a lot of capital investment, earnings capitalized as fixed assets rather than the shareholders dividends. Brand Liquor excellent example in this respect, different formulations and products to protect the enterprise, competition is orderly, but relatively little new capacity for capital consumption, which is why the brand valuation of high-end spirits has always been an important reason why the stock market.
Just as important as good management and good mechanism. Even a good business, but without good management is still difficult to create value, such as attractions such companies, with incomparable natural monopolies, as well as the rapid growth of tourists, but the inefficient management and mechanisms for the lack of high-quality rare return公司.
Another equally important mechanism to see if the majority of state-owned enterprises operating results and comparison after the reform, we would have an idea. From this point of view, the capital market should be tolerant attitude to look at the management of incentives, there is no incentive incentive than long-term development of enterprises a lot stronger.
A good product, the reason is very simple, the production in general Microsoft products and the production of textiles, the face of competition in the industry is obviously different. There are also barriers to product Lynch so-called "niches" that can enable enterprises from the price war, war service, advertising warfare isolate the fierce competition, businesses more easily create a profitable return for shareholders.
Dynamic Portfolio Fund is a good recent cause of the above four value investments, to avoid the subject shares and the "bad" company, from the recent market fluctuations in the holder access to a relatively good returns. Believe that the Fund continued the "four good" good vote to choose the next, long-term holders can help better the enjoyment of China's economic growth, corporate profits increase.
