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Lin Yuan: Why do retail investors lose money regardless of whether they are in a bull market or a bear market? Many people don't understand how to make money in the stock market, it is actually the essence of our investment in the stock market is to invest in profitable companies.

author:Xu Xingji 2018

Lin Yuan: Why do retail investors lose money regardless of whether they are in a bull market or a bear market? Many people don't understand how to make money in the stock market, it is actually the essence of our investment in the stock market is to invest in profitable companies. It is best to make money on companies that have monopolies, and others can't compete with you. It is better to have the share capital of the baby, the brand of giants. We can make money both for profit growth and equity expansion. How to find such a company? There are several criteria: First, the product is single. Don't think that singleness will increase the risk of the enterprise, in fact, it is wrong, the singler the better. For example: like the stomach digestion tablets produced by Jiangzhong Pharmaceutical, although many companies can produce, this one drug in Jiangzhong accounts for more than 1 billion, and other companies add up to this drug to account for a few percent of the share, indicating that this enterprise has the core competitiveness of products. Second, the brand is long and the profitability is strong. Like Ma Yinglong hemorrhoid cream, hemorrhoid drugs have long been monopolized by Germany in foreign countries, but they can't enter the Chinese market because there is a Ma Yinglong on top. The brand of Ma Yinglong predates Tongrentang and has a history of hundreds of years now. Third, strong enterprises that compete in the market. The ultimate competitiveness of this enterprise is its monopoly on the market.

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