Category: Money tips Release Date: 2006-09-12
Recently, there are investors always ask me the same question: "Your Awkwardness, such as the G Maotai, G Wuliangye, G Yun Bai Yao, G China Merchants Bank, G copper have waited, you have to sell when there is no one to buy? "Moreover, G Maotai, G Wuliangye, G Yun Bai Yao in the past few years, significant increases in total, now no one dares to buy, and they think that these stocks have been divided up the large number of bodies, holding the degree of concentration is very high, and even some people think that I was these shares to "prop up", so that investors do not buy my stocks, these stocks quickly sold on such remarks.
First of all, I also think that the cumulative increase in these stocks have been large, may not be the best time to buy, but I would not sell the shares of these companies, I would firmly "hold" these companies. Because the upward trend in the stock of these companies have been established. These companies every year reaching a record high in itself an indication of their level of profitability every year highs. As far as I follow, which the company's operating condition, and there is no trend of deterioration, but also operate in the right direction, profitability levels exceed my expectations.
Indeed, at this stage very few people buy these "high-priced shares", but that does not change the upward trend in these stocks because these stocks have been "nobility separate ways," the same good, they (including me) will not be sold of such stocks. In fact, the risk of holding these stocks are some exceptions, you have to insist that these stocks are "Zhuang Gu", then I think it is resolutely optimistic about our investments in these stocks a consortium of groups, which is between the Commonwealth of is not connected, but thought the joint. This way of thinking, "a high degree of coherence", enabling a high degree of liquidity of these shares locked, causing stock prices hitting new highs.
In the international market, such companies have, for example, HSBC, the Hong Kong market since the 90s of the last century, I have been watching its movements, in the past 16 years, its shares rising every year, the stock almost every year has hit a new high, while its turnover is very low and there were a number of agencies, director of line of possession, this is the Hong Kong people say "do not invest in stocks such as HSBC to buy," each of HSBC Bank can be a good profits and returns for investors, that is what I say "stock up, is a manifestation of corporate earnings." Profitability of the business enterprise of good or bad "litmus test", and no external factor can not be changed.
I think the final price up or down are a manifestation of corporate earning power. Short-term stock price is a reflection of supply and demand, if no one bought, stock prices must fall down to someone who has bought so far. Is actually able to sell the stock price. Even though I want to sell their shares, but also in the stock market to choose the right time to sell. I would not choose to deal, "light" when you sell shares in the hands, I need to see the market there is no one "accept", there is no one to buy. I will adopt a "you do not buy, I do not sell" investment approach. I look at you, you have to want to buy before I sell.
This is not to say that I sold the stock would fall and, if so, from the start I would not choose such a stock. In most cases is this: I sold it, will continue to rise, this is good company. To know, really good company whose stock is not to sell to determine who buys whom, but has its own laws. Such as the issuance and listing of the Bank of China, many people believe that bank shares will lead to expansion of the existing listed bank shares fell, I think that this will not affect the performance of listed bank shares underlying causes. If G China Merchants Bank, its management taken care of, the Bank of China listed China Merchants Bank will not affect the profitability of G can be said to move with the G line of business has nothing to do, how it can affect the final price does move the line? I think that G shares of China Merchants Bank is the banking profitability of the best companies.
In short, I sold the stock timing is very flexible, which is "speculative."
(The author is an experienced investor, this does not mean that newspaper point of view)
