Some people feel that A-shares are not a valuable investment.
If you don't refute this sentence, it's right or wrong.
Because everyone's understanding of value investing is different.
But even if there is really no value investment, it does not mean that there are no good listed companies in A-shares.
Many people will ask, what is the standard for a good listed company and a high-quality listed company?
1. Be able to make money.
Whether a listed company can make money is the most important criterion to measure whether it is a high-quality listed company.
It's not the only criterion, but it's definitely the number one criterion.
What is the value of a listed company that does not make money?
Only listed companies that can make money and listed companies that can make money can have the so-called fair pricing, the so-called value, and the so-called valuation.
Listed companies must not only be able to make money, but also be able to make a lot of money and make more and more money.
Therefore, a listed company that can make money, even if the stock price does not rise, is a high-quality company.
There are many reasons why the stock price is not rising.
Among them, one of the most common reasons is that the stock price is too expensive and the bubble is too big.
Stock speculation is about good companies and good prices, both of which are indispensable.
2. Can dividends.
Whether it can pay dividends is also an important criterion for testing whether a company is good or not.
Companies that can make money are bound to pay dividends.
It's just that there are some stages, and it is normal not to pay dividends, after all, the company is still in the development period and needs money.
However, most listed companies have already sold their shares and made money when they were listed.
Theoretically, they are not short of money, and the amount of financing is quite small.
Then, when they make money, they should give back to the shareholders who spent money to buy their shares.
Of course, the majority of dividends are still the major shareholders of the company itself, the actual controller, who account for the highest proportion of shares.
Therefore, dividends should be normalized and beneficial to all stock holders.
Not paying dividends can only mean that the company has no money, or has transferred assets in other ways, and can earn more than dividends.
For example, some listed companies, after the shareholding ratio continues to decrease, will use affiliated companies to account and distribute profits to their own pockets in another way.
However, any listed company with the normalization of dividends can be regarded as a high-quality company, even if their net profit does not increase significantly, it will not affect the positive circulation of a listed company in the secondary market.
3. Anti-risk.
High-quality listed companies must have a strong ability to resist risks.
This anti-risk ability does not necessarily refer to the anti-risk ability of the stock price, but the anti-risk ability of the company.
That is, when there are some fluctuations in the market, when the industry has a downturn, whether it has the ability to resist risks.
Of course, the ability to resist risks will be reflected in financial indicators to a certain extent.
For example, the debt is relatively low, the cash reserve is relatively sufficient, the accounts receivable are relatively small, and the inventory is not large.
High gross profit and high net profit represent absolute pricing power in the industry, and it is also an important dimension of risk resistance.
The core anti-risk ability of a listed company is partly reflected in the financial indicators, and partly the company's combat effectiveness and the strategic vision of the helmsman.
Because, the market is always changing, no company can prosper forever, there will always be ups and downs.
The person at the helm determines the direction of the company's development and is also a very critical point.
Some enterprises, because of the sudden departure of the helmsman, began to embark on a road of no return, and gradually went astray.
4. Steady growth.
Steady growth refers to a certain range of stable growth in profits.
In fact, this essentially depends on the industry track and the comprehensive ability of listed companies in the industry.
The vast majority of listed companies do not have the ability to swim against the current.
When the torrent of the times begins to eliminate you, there is no way to resist at all, and the so-called steady growth is very difficult.
Therefore, a listed company with stable growth is also an important criterion for judging whether a company is of high quality.
In contrast, the proportion of consumer listed companies that can achieve stable growth will be more.
However, behind the steady growth, the pricing power and sales channels of listed companies are the key.
Only with sufficient pricing power can sales and net profit increase without market expansion.
Even if there are high-quality listed companies, it does not mean that investing in them will definitely make money.
There are many deviations between stock speculation and value investing.
Most of the funds are made by speculation and by cutting leeks.
A small part of the funds are made by value investment, which is the current status quo of A-shares.
In mature markets, there are more funds to speculate on the leader, because there is no shortage of funds in mature markets, only high-quality targets.
But the A-share market is actually short of money.
The more the market is short of money, the more "deformed" it is, and the funds do not have much confidence in long-term investment, so they like to speculate on the theme of cutting leeks.
In addition, the proportion of retail investors is still very large, which determines that funds want to make quick money rather than slow money.
When the market lifts the T+0 and price limit restrictions one day, it means that the market is relatively mature.
Because the market is no longer worried about the ups and downs, professional institutions will not play games to send money to each other.
The current high-quality targets are closer to cyclical speculation than value investment.
At a certain stage, value investing is also a concept to speculate, from a very low price to a very high position in the short term.
Therefore, good companies are like gold, buried under the sand, and in this market environment, it is difficult to be found.
Instead of waiting for the value to develop, it is better to earn the money now, which is what the money is thinking in the moment.
It is not easy to choose a good company, and it is even more difficult to make money by investing in a good company.
Because human nature is also greedy, they are eager to buy at the lowest price, and they are eager to buy and then it will rise.
They can't go through the test of three or five years, watching the stock price go up and down, and there are floating losses in the account from time to time.
Capital is profit-seeking, not philanthropic, and when capital thinks that there is no investment value in the short term, they will still abandon those high-quality companies.
Therefore, many people will feel that it is better to concentrate on the skills of timing than to work hard to find a quality company.
Investment can only be said to vary from person to person, don't kill with one shot, or make a conclusion at will.
On the road of stock trading, whether you choose to invest or speculate, there is no absolute right or wrong in itself.
In the end, the numbers in the account, which is the profit and loss ratio, will tell us the answer.
In the end, which is higher and which is lower, which is superior and which is inferior, and which is right and which is wrong.
The charm of the market lies in the fact that you can make money by buying low and selling high, and you can choose freely what kind of listed companies to buy.