High-level votes should be quantitative, and low-level votes should be qualitative. When ordinary people analyze an industry, they will only say - strong policy support, the future space is very large, this is a new industry... These are all

High-level votes should be quantitative, and low-level votes should be qualitative.

When ordinary people analyze an industry, they will only say - the policy is strongly supported, the future space is very large, this is a new industry... These are relatively imaginary.

If the stock price has not yet reacted, this line of thinking is possible. The fault tolerance rate is high.

Once you enter the high, be sure to analyze it quantitatively.  The so-called quantitative, that is, you have to analyze whether he is worth the money.  Once the mistake is made, the valuation is killed, and the performance is easy to fall sharply.

Let's take an example of wind power:

Wind power is a policy-supported industry, the space is not small, and the performance in 21 years is also good.

"However, since 2021, domestic inland and offshore wind turbines have taken turns to reduce prices, and as the wind power projects tendered this year have been opened, the price of wind turbines has reached a new low." In October 2021, the minimum winning bid price for onshore non-tower fan procurement was 2120 yuan / kW, and by the beginning of November, the lowest winning bid price was close to 2000 yuan / kW, with this as a reference, in three months, the minimum quotation of the whole machine manufacturer fell by more than 20%."

—— Whether an industry is good or bad, we can't just look at the policy. The process is complex.

The first wave of hype often overtook the stock price. All good news. Once the stock price is high, it is found that the business operation is not so beautiful, or faces all kinds of competition, the stock price will return to rationality.