Category: Money tips Release Date: 2007-04-23
All along, the stock market have a "how to find a good company" and "good company whether it is a good stock," controversy. HSBC Jintrust Fund's investment Deputy Director-General Lin Tong-Tong believes that good company is usually good stocks, and found, do not easily let go.
Great companies also make money
Good company in the end it will be good stocks? Lin Tong-Tong mentioned that the U.S. "Fortune" magazine, published in the magazine's annual top ten U.S. companies, but most people do not use this as an investment basis, because we feel that good companies will be more expensive, from a good company who does not necessarily make money. However, the latest data shows that from 1983 to 2004, if you are under the "Fortune" magazine published annually by the most respected of the 10 U.S. companies to buy shares in the same amount of each investment in each of the "Fortune" announced the 10 company bought the same day and the day of release in the next year to sell the 10 shares, then buy the new list were the 10 stocks, then you will continue to, significantly beating the S & P 500 by a representative market index! In fact, your average annual return would be 17.7%, while the S & P 500 is 13.0%.
This is something that some people do not understand because the U.S. stock market for so many years, the mature market should be effective and efficient market will not allow investors to have the opportunity to earn extra income, and this extra income from everyone to see "Fortune" best companies ranking. Sometimes, however, is such an unexpected thing, and good company's stock may be more expensive as you imagine, has been fully reflected in the next room to grow, but not a lot of investors who tried to grab the dark horse fancy, so stock prices but cheaper. "Or, really good company, such as" wealth "as the Top of its true value and not just through the financial statements to analyze them, those who are the invisible balance-sheet assets, they are more valuable, but neglected the wealth of . "Lin concluded.
Growth is a key indicator of the Optional Unit
Lin Tong-tong that can make money, like the White Horse Unit. However, he cautioned that, although the United States, White Horse is making money, China's situation may be different. China is in a period of change and growth, everything is full of prosperity has changed. Some companies exposed Zhengrong of the Tau Kok, but they are away from the Wal-Mart, General Electric and Coca-Cola is still a long distance. In China's stock market, investors are looking for are those who will one day have the opportunity in our country's "wealth" on the entry list of the company, not the same as the U.S. top ten companies. Therefore, growth will be a very important indicator.
He said that both the present size and history of the length of a sustained growth of good companies are in fact the same, with the following three yardstick to measure what, good company would naturally come to the fore: enterprise core competitiveness; growth of whether it is endogenous type; right Indicators of financial and industry forecast and analysis.
Enterprise core competitiveness, the unique core competencies can help a company keep out competitors, to ensure a certain level of growth rate and profit margins, otherwise, an influx of a large number of competitors, the company's growth will and the profit margins to block will be the average profit level of lead. This competitiveness may be monopoly of resources may be proprietary technology, it could be the brand, but it is not easily replicated, is unique, are the other competitors in a race is difficult to cross obstacles.
"Hard to find good companies and found, do not easily let go." Lin Tong-tong said that he was the incoming fund manager Dragon Fund, which is also focused on growth stocks, and if found, he hopes to be a longer hold . Because compared to timing, choice shares easier, but once selected, the long-term holders of the gains may be greater. From another perspective, growth is also the best way to resist the decline.
