First recommend two good books to everyone, and then briefly talk about the recent stock selection results and market impressions, and attach a small poem at the end of the article. Good book Master of Strategic Management Michael. Porter's Competitive Strategy. This one

First recommend two good books to everyone, and then briefly talk about the recent stock selection results and market impressions, and attach a small poem at the end of the article.

Good book

Strategic Management Guru Michael. Porter's Competitive Strategy. This book not only talks about the competitive factors and strategies of the industry, but also talks about the influencing factors and laws of the development of the industry. However, due to too many industries involved, the text is boring, and the explanation of cases is too simple, it is often prohibitive. After much trial and error, I found the following chapters suitable for study. Chapter 1 - Structural Analysis of The Industry, Chapter 2 - General Competitive Strategy, Chapter 8 to 10 - Industry Change, Competitive Strategy of Decentralized Industries, Competitive Strategy of Emerging Industries, Chapter 14-16 - Strategic Analysis of Vertical Integration, Capacity Expansion, and Entry into New Business Areas. Appendix 1/2 - Business Portfolio Competitive Analysis Methodology / Methodology for Conducting Industry Analysis.

I think that combining the balance sheet, income statement and business model, from the perspective of Porter's five-force model, we can roughly see the competitiveness and understand the three major strategies. Simply put, is it strong downstream? Strong on the upstream? What is his position in the industry? Is it possible for new opponents to come in? Are there any possible alternatives in the future?

In terms of development space, I think that product life cycle, penetration rate, and demographic economics are the most important thinking directions.

Oak Capital founder Howard. The important chapters of Max's "The Most Important Things to Invest" are as follows: Chapters 5-7 on Risk, Chapters 8-9 Focus on Cycles and Pendulum Awareness, Chapter 15 - CorrectLy Understand Yourself, Chapter 17 - Diversification, Chapter 19 - The Meaning of Value-Added. There are several concepts in the book that are particularly important and should be mastered as much as possible: second-level thinking, risk, capital market lines, cyclicality, correlation between assets, offensive/defensive investing, α and β indices.

Regarding relevance, after nearly a year of case thinking, I have come to the following main relevance.

Political relevance: overseas capital, monopoly, disorderly development, leading to emotional confrontation of the masses or policy attacks.

Spending power correlation: Whether it is all optional consumption or high pricing. In different economic cycles, the impact of targets of the same nature will also converge.

Segmentation industry relevance: The single track continues to pour in because of the outbreak of demand and profits, and the collective under the policy adjustment is hit.

Credit window correlation: Highly indebted enterprises are prone to thunder when the credit window shrinks. For example, full-scale banks and real estate are very aggressive, one prospers and one loses.

market

In the past two months, I have done a round of preliminary screening of A-share, Hong Kong-stock food and beverage companies, and even some catering stocks. In general, except for those who are not competitive or have little room for development, the others are only slightly expensive and very expensive. However, the market in January took a sharp turn, and many targets have fallen by 20+, which is very exciting for 30% of the positions like me, and I feel that the opportunity to be worth selling has gradually approached. Later, the tracking stocks and the stocks to be confirmed will be continuously tracked and confirmed, and other home appliance stocks or Internet companies will be properly analyzed, waiting for the real batting range. In the later sharing, I will learn the lessons of cantonese wine and casual snacks, try not to exceed 5 companies in a single article, and the word count will not exceed 3000, without too much detail.

Speech

Yesterday deliberated a day, to this day early in the morning, finally into a small poem, solo music is not as good as the music of the crowd (dú yuè lè bù rú zhòng yuè lè), to share with you. The writing is not good, look at the tap.

The Year of the Tiger is fat

- Fu Dad

The festival is not half three pounds,

The body fat weighs non-stop.

Wine and flesh sorrow with narrow casings,

The peak circuit turns wider.

May everyone read more and brush short videos, exercise more and eat less snacks, spend more time with their families and drink less, and wish everyone a happy New Year!

@Today's Topic

$Haitian Flavor Industry (SH603288)$$Gree Electric Appliances (SZ000651)$$China Merchants Bank (SH600036)$