A few days ago to see a point of view, judging a industry is good to see how many of his competitors, generally less competitors the industry is good, this view has some truth, we often say that the stock investment business, follow good good company, good price to buy the stock; choose industry is very important, the general is Niugu good in distribution industry.
Today I briefly tell me how to choose?
In my opinion, to choose the industry important point:
- Industry earning ability / easy money;
- The ability to continue to make money.
First of all, what the industry to make money? Some industries are more prone to make money, some in the industry is formed in competition advantage.
The characteristics of the industry are easy to make money:
- Monopoly: banks, airports, high-speed, utilities
- Franchise (scarce): patent medicine, high-end liquor, luxury goods
- Of high customer stickiness (addiction): tobacco, wine, game
The formation of advantage industry in the competition:
- In the emerging industry growth stage, the ceiling is high enough: the Internet
- Mature industries with stable demand: consumer goods, pharmaceutical
- Competition pattern of stability, only a few game player monopoly market: home appliances
- Do not need a lot of investment assets in the asset light industry; reflected in the financial indicators of long-term gross margin, net profit margin, higher ROE.
Secondly, the sustainable ability to make money.
- Stable performance, non periodic consumption, public utilities (airports, high-speed, hydropower)
- Is easy to form a moat, the sustainable competitive advantage of industry
Generally speaking, enterprises have a moat:
Intangible assets (brand, patent, franchise): pharmaceutical, consumer
High switching costs: network system
Network effects: Social Network
Cost advantage: Appliance scale advantage
Simply say that there must be “brushes”; or is a monopoly, has richly endowed by nature resources, either the advantages of scale, brand, patent, there must be at least one.
“change” of the industry, easy accumulation of competitive advantage: finance, liquor, white goods
The 1. stock index rose 2.6%, 100 stock trading, eight reasons caused by soaring
Summary of the media currently has eight positive factors caused the market to do more emotional renewed:
- (1) China stock market continued to overweight, north capital crazy shopping spree.
- (2) The balance of social financing significantly exceeded market expectations.
- (3) The Sino US trade negotiation optimism to boost market sentiment.
- (4) 5 banking subsidiary approved trillion of new funds to.
- (5) The 74 fund companies started opening “signal bomb”, only 162 equity funds have full warehouse operation.
- (6) The external market carnival, Asian markets this week, a good start, Japan and South Korea stock market opened higher oil prices hit a year high.
- (7) The enterprise annuity annuity market occupation speed.
- (8) The central bank or to “expand the table” to support the steady growth of credit creation.
Review: Rose, what news is good news, we should be more vigilant, of course I am not to immediately take action to reduce.
2. Shenzhen of the United States issued letters of concern, because the chairman of speech released in advance of the performance
The Shenzhen Stock Exchange to the United States issued letters of concern: the investigation, your company chairman and President Fang Hongbo in Chinese forum published in January 12, 2019 2018 is expected pretax profit of more than 26 billion yuan “on your company performance early in your speech, in January 14th the company disclosed performance pre notice time.The “Stock Listing Rules (2018 Amendment)” the provisions of article 2.15, the listed company and the relevant information disclosure obligations in the designated media announcement shall be issued or in any other way to answer the questions of the reporters said, leaking undisclosed material information to the news.
Review: Finally drew, GREE has nothing to say, Liu won.
3.: GREE electric 3 billion 610 million to distribute to all shareholders for every 10 shares were distributed 6 yuan in cash.
February 18th evening news, GREE announced the 2018 semi annual equity distribution program: according to the company’s total share capital of 6015730878 shares, every 10 shares to all shareholders a cash 6 yuan (including tax), total cash dividend of 3 billion 610 million yuan, balance to the future distribution.
Review: A good and persistent bonus, dividends is very important.
Risk warning: the investment targets, both represent only the personal opinion, does not make recommendations accordingly, trading, risk.