Category: Money tips Release Date: 2006-01-13
Dividend return is the nature of investment
A friend of mine told me that he won a gold in the Congo gold mine, reserves of astonishing high gold content of ore, if I can provide funds, then I get invested the corresponding gold ownership, of course, he was responsible for mining operations.
So now I am faced with the choice, I is a subscription warrants or not? To support my subscription What are the conditions? First, I consider this is certainly not the gold mine is true, my first consideration is that this friend who reliably unreliable, it is the most important and most basic judgments. You must also take into account capacity, if not at all understand the operation of gold mines, but on impulse bought the "gold mine", then the risks are also high.
If he let me confidence, I will continue to consider: This gold is not really that good, is not able to entrust other people to confirm. I would like to study the safety Congo-Kinshasa political insecurity, gold mining costs and a comprehensive comparison of the current price of gold, and refer to the information on fighting for the future price of gold to be a judge, as well as see "Gold Rush" the profitability of this business relative to other years, trading is not cost-effective. The most important end result is this: I do not consider the performance of the mine per year growth in the number, I would eventually need to consider only a year doing we can be divided into the number of dividend, which is the essence of investment companies. Of course, this friend asked me a business should be a feasible plan and planning.
This is the nature of investment companies, I have a lot of venture capital and industry friends in the investment community are to this idea, this person may from time to look through the investigation, reliable, and then look at this business may be feasible, the last to see how much money can be divided into each of their own. Of course, depends on cost-effective is not worth the price of shares. Because if you spend millions to invest, and management are not reliable, you are ultimately a transfer of shares will not work.
However, the pre-market frenzy of the time, many of the new number of investors entering just-do, listen to a lot of news had the courage to buy stocks. Want to buy cheap stocks and wait for someone else to buy a higher price and make a profit. The market is now a very hot --- but we all forgotten when the bear market, many of the same day below the IPO issue price of history.
Is not that the company's stock code? Why, when you invest in a company, the less cautious, but buying a stock it may be very bold. Seems to invest in stocks and investment companies there must be different.
I have found that people in the history of Europe and the United States Investment Company's very cautious when stressed fiduciary responsibility, emphasizing dividend return. But the emergence of tradable shares, investors split into two factions, one or the stock as a company to analyze the investment with one of them put the stock can be viewed as trading tools.
So stock trading tools in one hand, you can rely on quick profit buy low and sell high. Therefore, the analysis on the stock produced a different approach. One group is to study human nature, because the change in share price reflects the people's greed and fear, if relying on buy low and sell high profits, then it must accurately grasp of human nature. And any analysis, such as various types of technical analysis, etc., if not able to have an accurate portrayal of human nature, then this method is without any meaning.
The other group is the study sent to a company's core elements considered. However, I would like to stress here is that if you put industrial investment and equity investment in the company's method of analysis is equivalent to a big mistake.
Constant growth stock investment story
Investment companies were the first to emphasize that dividend income, while investing in stocks first judge whether an enterprise's future cash flows discounted. Future growth of the higher, the greater the value of stock investments. Therefore, growth of investment in the stock will never change the story, and investment companies are not necessarily yes. In many cases, you do not need to be on the first go to a business a few months to figure out in depth the security of investments safe. In fact, you first need to invest in stocks is to learn to grow up listening to stories!
So, whether your own research or listen to other people, we must hear the story of the stock's growth is attractive and feasible. The story, as the industry leader�啦story monopolistic advantages, as long as no growth, are no good.
Growth story, there are many types, for example because the downstream demand driven, high-growth stock performance, high-growth, such as the stock has been re-driven from an ugly duckling into a white swan extraordinary increase in stock performance. This growth story is especially pleasant. Without barriers to entry, poor profitability of companies belonging to no growth story stocks, this stock will need to avoid, unless changed dramatically.
The stock market is the place to listen to the story, filled with a variety of growth if it is true story, but investors need to distinguish is that this growth is not credible and reliable, you need great efforts to study the growth of the authenticity of the story, while others are more realistic, growth has reflected the current, you need to do is dare to buy.
In fact, grow up listening to stories is one thing, on the other hand is quite a growth story, which for some time in the future more Kaopu. For example, I recently saw two companies, a company's business is to scrap the printer cartridge recycling toner cartridges within the re-processing into a new environmentally friendly toner cartridges, toner cartridges and then only the new price of 40% of the price of exports to Europe and the United States. And this business because of environmental issues the state will only allow a few enterprises have done, and this industry is emerging, and future development of huge, so the stock is growing very well. Another company is doing software outsourcing, software outsourcing is emerging industries, development of space is not small, but careful study found that the threshold is very low in this industry, then the stability of backward in the growth of the stock, if I have the only two words of stock options I am sure that choose the first stocks.
Investment companies is to look at the nature of dividends, investing in stocks is to listen to the essence of the story to grow. However, the problem is that because the stock has a fluidity and variety of choice, at any time you can have infinite choice, this way, investors forget that one of the main essence of investing in stocks.
