Lightyear FX: Financial Analyst, Financial Media Person, Amateur Research Trading Technical Analysis. Stay on top of the latest cutting-edge technology information and share the most in-depth industry insights with you. The following content is from Just2Trade.
One. The three-good principle of choosing bull stocks
1. Good industry should go first
1) Whether the industry leader has a first-mover advantage
2) Whether the industry has a sufficiently high threshold
3) Whether the industry has bargaining power relative to its upstream and downstream
4) Whether there are disruptive changes in the industry due to new technological changes
2. Good company = threshold + growth
1) It does things that no one else can do
2) It does things that can be done repeatedly
3. Sell timing
1) When the stock rises to the target price, it will choose to sell
2) There is an essential deterioration in stock fundamentals
3) Stocks with better value for money were found
Two. New features of bull stocks in the next 10 years
1. Branding
1) For personal use and gifts
There is a face problem with hospitality and gifts, and consumers will buy more and more expensive gifts. As a result, the profit margins of high-end products are much higher than those of fast-moving consumer goods.
2. Oligopoly
1) What the state gives and what the market gives
The monopoly given by the state is often accompanied by price control, so only the oligopoly generated by market competition and industry reshuffle has pricing power.
3. Resources
1) Relying on resources and relying on smelting and processing
Resources are undoubtedly the bottleneck for China's economic growth model, and companies that are bottlenecked in any industrial chain tend to have higher bargaining power.
4. Patents
In the past 10 years, pharmaceutical cattle stocks have dominated branded traditional Chinese medicine, and their patents are mostly "ancestral secret recipes", not to mention R&D capabilities, strictly speaking, more like consumer goods or resource products. Pharmaceuticals are undoubtedly an area with great pricing power, so the government must play the role of a price regulator to weaken the pricing power of pharmaceutical companies, which is also the core content of medical reform.
5. Three elements of stock selection
1) Valuation
A good company is not a good stock if it is expensive.
2) Quality
No matter how cheap a bad company is, it's not a good stock
3) Timing
Even if it is a good company that is cheap, the stock price may not rise for a long time without a catalyst.