Selected from the rose of time In short, we hope that the selected enterprise meets several criteria: 1. Have a long and stable business history; 2. There are high barriers to competition. Even monopoly companies

Selected from the roses of time

In short, we want the businesses we choose to meet several criteria:

1. Have a long and stable business history;

2. There are high barriers to competition. Even monopoly-type enterprises, preferably non-government-regulated Huaduan:

3. Managers are rational and honest, and put the interests of shareholders first:

4. Financially sound, low debt and high return on net assets, abundant free cash flow;

5. We can understand, can grasp the enterprise.

As an investor, we should study more about business operation, simply called "production, supply, marketing" aspects, only a well-run enterprise, has investment value.

How we assess value (when to buy and sell)

When we choose a good company, just as we picked a diamond. What matters next is at what price to buy.

Academically, the intrinsic value of a business is strictly defined as "the discounted present value of cash that a business can generate over the rest of its life." The calculation of intrinsic value should be a classic example of "easy to say and hard to do" in this world. Intrinsic value is an estimate, not an exact value, and it changes with changes in interest rates and revisions to forecasts of the company's future cash flows. And Buffett humorously said, "There are some things that have to be done privately." Although intrinsic value is difficult to estimate, there is a clue that in the long run, the percentage change in intrinsic value is usually proportional to the percentage change in the book value of the business. In fact, there are many ways to evaluate the price of a company, such as the price-to-earnings ratio method (P/E), the price-to-book ratio (P/N) growth rate - price-to-earnings ratio method (P/E/G), the cash flow discount method, and so on. But one thing is certain, the valuation of a company needs to be qualitatively combined with quantitative, and the combination of science and art can estimate the reasonable investment value of a company. Since even the investment guru Buffett has flashed his words when talking about valuation, please don't blame us for not publishing the valuation method of essence acid!...... How do you value a business? Please leave a message in the comment area;