I read a research report by Oriental Wealth on Industrial Bank, and its views are very good, and its views expressed are that the bank's "commercial bank + investment bank" strategic execution is expected to exceed market expectations, and the traditional bank is different from the traditional bank, the traditional bank earns spreads and the industrial bank earns spreads + (forward) options.
Moreover, the bank's internal executives are also voluntarily buying bank stocks from the secondary market, and the amount is not small. If a company can attract executives to buy its own stock, it must be very confident in its own company.
On February 21, 2022, IB announced that from January 13 to February 18, 2022, the heads of some subsidiaries, branches and head office departments (including their spouses and children) voluntarily purchased 16.93 million shares of IB shares from the secondary market with their own funds, corresponding to an increase of about 370 million
The research report mentioned that the stock may become the leader of the current round of banking markets, and the research report believes that the stock is the most cost-effective bank stock, with its PB only 0.71, and the valuation is extremely cost-effective.
Whether it can become a leader is not something that can be predicted in advance, and often the stocks that institutions are publicly optimistic about can rarely become the leader. As Buffett said, he's never seen anyone accurately predict the market.
For the research report, we must look at it objectively, that is only for reference, and can not be used as an absolute authority, and everyone should also treat it rationally when reading the research report. We must have our own independent thinking in investment, and I also agree with bank stock investment, but I have my own standards.
The direction of bank stock investment, I think the most important thing is high dividends, in my two lows and two high standards, the dividend yield is required to be more than 5%, because in my eyes, bank stocks are asset investment, we are enjoying the returns brought by assets. That is, to hold and make money.
Look at the following bank stock, this is my preference, look at its dividend yield of 6.43%, which is very satisfactory. I went to see the industrial industry mentioned in the research report, its dividend yield is only 3.5%, some have not yet met the feeling of demand, if its price can be reduced again, it would be good.
Investing in bank stocks is actually buying passive income, that is, buying the attitude of the company. How much money do we get from owning this company each year, and can this revenue grow steadily? This is a problem that investors should consider, buying bank stocks can not consider whether its stock price will rise.
The purpose of investing in bank stocks is to be a money master, you are not speculating in stocks, in fact, in the end, we do investment, just to one day be able to achieve financial freedom, to be able to survive without work one day. Oh, hope to lie and earn!
Only passive income can give you the final financial freedom of the end, you have to look at the rent collector, how cool, two days a month to work, one day to collect rent, one day to read the water and electricity meters. In stock investment, dividends are the key way to achieve this goal, and every year is to sit and wait for dividends to arrive.
I'm heavily positioned in bank stocks, and currently bank stocks account for half of my total position, and I hold four bank stocks, so why hold so many stocks? Because we must follow the principle that heavy stocks do not exceed 15% of the total position, the bullish industry will buy more stocks.
In fact, my point of view and the oriental wealth research report are consistent, optimistic about this year's bank stock market, as for which bank stocks can stand out, in fact, no one can estimate the matter, because this market is originally unpredictable.
Friends, what do you think of bank stocks? Welcome to leave a comment, like my article, please like to pay attention to it, XiaoLiu loyalty to you to pass on the right investment philosophy.
The above is a personal opinion for reference only, the stock market has risk investment needs to be cautious!