<h1 class="pgc-h-arrow-right" data-track="1" > introduction</h1>
The Petrind Lynch investment method summed up in one sentence is to buy familiar stocks and buy stocks around you.
<h1 class="pgc-h-arrow-right" data-track="3" > investment points</h1>
The best place to look for 10x stocks is to start near your home and invest in stocks you're familiar with.
Investing without research is as dangerous as playing a game of stud poker without looking at cards.
The larger the company, the smaller the increase. When you buy stock in a giant company like Coca-Cola, you don't expect its stock price to rise 4 times in two years.
Whether the stock you buy goes up or not has nothing to do with whether you invest in technology or not. Even if the stock rises a hundred times, it will fall, and when you buy it, it is only the judgment of people at the moment, as long as the fundamentals do not change, you have not bought wrong.
A stock is like a story. Pick a good story and listen to the story.
A fall has a bottom line that is 0, but a rise has no upper limit. Going long has the opportunity to buy ten times or even a hundred times the stock, so why should you go short?
The practice of buying subsidiaries that are destined to lose money is called "diverseification," while I call it "diworseification."
<h1 class="pgc-h-arrow-right" data-track="11" > six investment types:</h1>
Slow-growing type
Those who work in stable jobs but have low salaries and fairly limited opportunities for promotion are among the same
In the slow-growing type, this kind of person is equivalent to an electric power company like the American Electric Power Company, library management
Officers, primary and secondary school teachers and police officers are all slow-growing stocks.
Companies that are usually large and long-established are expected to grow slightly faster than gross domestic product
Sooner or later, those fast-growing industries that are popular will become slow-growing industries
Steady growth type
Those who have good salaries and promising prospects for promotion, such as middle managers in companies, are a steady growth type, equivalent to the Coca-Cola Company and RalstonPurinas among migrant workers.
Growth is faster than slow-growing companies. The average annual growth rate of profitability of this type of company is 10% to 12%.
Keep stocks in stable growth companies, which are always a good protector of your portfolio during a recession or downturn
Fast-growing
Actors, inventors, real estate developers, petty entrepreneurs, athletes, musicians and criminals are all potentially fast-growing types. These people are more likely to fail than the steady growth type, and once these fast-growing people succeed, their incomes may increase by 10, 20, or even 100 times overnight, making them the equivalent of Tacco Bell or Stop & Shop stars.
Small scale, newly established, strong growth, the average annual growth rate of 20% to 25%. If you can choose wisely, you will find big bull stocks that can rise 10 to 40 times or even 200 times.
All you need to do is find one or two of these stocks to dramatically improve the overall performance level of your portfolio.
Fast-growing companies don't necessarily belong to a fast-growing industry. Even better are fast-growing companies that don't belong in fast-growing industries
Periodic type
Those who seize the opportunity to make a large sum of money in a short period of time and then rely on that income for a long time that is not earned are cyclical, such as farmers, waiters at hotels and resorts, pull-back players, businessmen who run summer camps, and sellers of Christmas trees. Journalists and writers are also roughly "cyclical," but they have the potential to see a sharp increase in wealth that makes them potentially fast-growing stocks.
The process of company development is to expand, shrink, expand and contract again, and so on.
Automobiles and airlines, tire companies, defense industry companies, steel companies, and chemical companies are cyclical companies
Cyclical company stocks are the most misunderstood of all stock types. Because the major cyclical companies are large, well-known, it is natural for investors to confuse them with trusted, steady-growing companies.
Timing is key to investing in cyclical company stocks, and you must be able to spot early signs of a company's business decline or boom.
Dilemma anti-transformation
Distressed anti-transformation companies are the kind of companies that have been hit hard and are on the verge of filing for bankruptcy protection.
"Funding to save us otherwise at your own risk" Depends entirely on whether the government can provide corresponding loan guarantees
"Who would have thought" type of dilemma anti-transformation company. Who would have thought that a stock in a utility company that fell from $10 to $3 in 1974 would cost investors so much money? Who would have thought that the company's stock price would rebound from $3 to $52 in 1987, making investors so much money?
"The problem is not as serious as we expected" type of dilemma anti-transformation company. When a company encounters a much smaller disaster than initially anticipated, there are often significant investment opportunities
A distressed anti-transformation company of the type "bankrupt parent company contains a well-run subsidiary". For example, the world's largest toy chain company, Toys R Us in the United States. Toys R Us spun off from its parent company, Interstate Department Stores, and its stock price rose 57-fold.
A "restructuring-tomaximizeshareholder-values" type of distressed anti-transformation company is a means by which companies divest unprofitable subsidiaries that should not have been acquired in the first place.
Street children, the homeless, the poor, the bankrupt, the laid-off and other unemployed people, as long as they continue to struggle and forge ahead, they are at risk of becoming a dilemma and reverse transformation.
Hidden asset type
Those who themselves do not depend on labor at all and live on family wealth belong to the hidden asset type like gold mine stocks and railway company stocks, such as those who are full of idleness all day long, men and women with trust funds, large landowners, rich families with fine clothes, and others.
Such hidden assets can be very simple, just a lot of cash, and sometimes hidden assets are real estate.
To summarize the six types of investments:
When you buy stock in a fast-growing company, you're actually betting on the future of that company
The probability of making more money is greater. Think about investing in the newly founded Dunkin'Donuts company
It's like investing in the famous movie star Harrison Ford, and investing in Coca-Cola
It's like investing in a corporate lawyer with a steady rise in income. When Harrison Ford was in Lowe
When Sugi is a carpenter wandering around looking for work, the investment is similar to that of the Coca-Cola Company
A lawyer for a firm that has grown just as steadily seems wiser, but look at Mr. Ford starring in "Stars."
You wouldn't be like that after a hugely successful movie like Ball Wars, his income changed dramatically
Thought about it.
A practicing lawyer can't earn a 10-fold increase overnight unless he wins a big game
Divorce lawsuit. However, while doing the rough work of clearing the barnacles shells from the bottom of the ship[1], he took the time to write novels
People have the potential to be the next Hemingway (be sure to read Hemingway's Little before you invest
say). So investors want to look for promising fast-growing companies and keep pushing that up
The price of the stock, even if such a company currently has no income at all, or the income is very small
The stock price is insignificant compared to it, and it doesn't matter.
<h1 class="pgc-h-arrow-right" data-track="46" > different types of stocks</h1>
It is absolutely impossible to find an investment rule that applies universally to all types of stocks. For example, growth stocks and cyclical stocks are certainly not invested in the same way.
To be continued...
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