Everything in the stock market is cause and effect, only a reasonable price-to-earnings ratio is eternal!
1. In the previous one or two years, by holding a group to push up the Ningde era, BYD, Guizhou Moutai, Haitian Flavor Industry, WuXi AppTec, Sunshine Power, Yiwei Lithium Energy is the institutions, the last three or four months have been pushed to a very high price-earnings ratio by these, and the repeated continuous decline in the back is also the institutions. Everything is due to the repair of all the results, which is also the real reason why the net value of a large number of funds has continued to decline in the past six months and the last three months.
All the hype without a reasonable P/E ratio valuation is hooliganism, and falling in love without the purpose of marriage is a hooligan.
2. Any industry has a reasonable P/E ratio valuation, the normal Ningde era valuation center is 40 times the P/E ratio, even if you are in a good mood, it should not exceed 60 times the P/E ratio, but at that time the highest P/E ratio of the NINGDE era exceeded 170 times. Guizhou Moutai reasonable central P/E ratio is 25 times - 30 times, even if the mood is good speculation should be controlled within the dynamic P/E ratio of up to 40 times, but Moutai up to 70 times P/E ratio. After the votes of small and medium-sized market capitalizations have been repeatedly speculated to extremely high price-earnings ratios, and the market value has become a weighted stock that can affect the large-cap index, once they fall, how can the large-cap index hold on? This is the real reason why the ChiNext index has been unable to stop falling.
3. "Long Time Risk-Free Gambling" is a very good method that I summarized for 26 years and only contributed a few days ago to the blog, which can also be said to be the secret of the real money made in the stock market. I have been hiding it for a long time, and now I am willing to blog out, that is, I see a large number of investors still speculating on the short-term, tangling with the short-term for a few days, a few weeks, a few months of stock rise and fall, chasing up and down every day, and finally three or five years and eight years later can not make money at all, so I am willing to say it.
This method is:
Looking for you at that time think that the industry is good in the next two years, the performance is expected to maintain growth of more than 20% in these two years, but at that time the price-earnings ratio was only about 20-22 times the vote, and then entered a long period of time (it is best to choose a total share capital of less than 900 million). After a year or a year and a half, you feel that its performance has declined, the industry is not working, then sell, even if you keep it for a year you earn 35% and sell. After following the above method of circulation, so that the cycle for eight years, you operated eight tickets, the results are not as good as you expected, none of them have become Maotai, Piece Zai, Sunshine Power, Yiwei Lithium can be such a big bull stock. It doesn't matter, you continue to cycle, because the votes you elected are the top stocks in the industry at that time, the performance growth, and the low price-earnings ratio, which ensures that you have no loss in any stock market crash. With a risk-free basis, you bet on it to become a bull stock, not two, until eight, it took eight years, and still didn't find a bull stock. Then the ninth year, your stock selection method is correct, blindly encountering dead rats, you will finally encounter a vote that becomes a bull stock, this ninth, after a total of three years, let you earn six times. Well, you quit the stock market at this time, because you have succeeded, successfully used only 200,000 starting funds 12 years ago, only for a long time risk-free gambling operation, 9 only bet on a big bull stock, then your current funds are 15.4 million yuan.
I've personally been doing this for ten years, and I did let go of a few bull stocks I encountered, but I still insist on it. As a result, I have not really eaten a bull stock on my own hands, and the return has been 15-16 times, far more than the first place in China's funds in the past decade. Today, I may have come across one, it is related to the next thirty years of human atmospheric warming, I am ready to earn another 3-5 times in the next three years, and then quit the stock market and no longer speculate. Complete 12 years of value investment to earn 77x - 100x miracle.
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