Stock School: What Stocks Are Good?

With the development of the market, our investors are gradually maturing, such as we now.

However, in the past, investors who are still using this method have significantly reduced, instead of gradually moving toward value investment and subject matter investment.

Because the foundation of the subject matter is also the discovery of value, the mainstream investment method has been pformed into an investment method based on value discovery.

The way to invest in the market is value discovery, which has played a very important role in guiding the market.

But the institutions have the strength to conduct a comprehensive analysis of the listed companies, and ordinary investors can hardly do that, so the market gradually evolved from the former listening to "human" theory to the current weird value investment method.

Weird is not such a thing.

Friends who met before making a stock meeting always asked, "what stocks are good?"

Then there was no more.

Now there are second questions: "why?"

This is a great progress, because we have begun to pay attention to the listed companies, rather than just think of the listed companies as a symbol of investment.

There are three different answers to the question of why.

The answer: the company has a good future.

Answer 2: the performance has been greatly improved.

Answer 3: dynamic PE has the advantage of valuation.

The above three answers are all must be obtained, but investors are over after obtaining the answer, so this method is weird.

Now we can see ordinary investors in the TV media every day as guests (who haven't said that these people have the corresponding qualification certificates) to predict the market and recommend stocks.

These guests also provided the answer after putting forward "what stocks are good", but do not provide answers 2 and 3, but we know that good companies are not necessarily good stocks.

A good company can not buy a reason. In fact, we can find many good companies without investment value.

Then what is the standard of good stock?

This requires us to comprehensively answer the question of "why".

The answer is necessary. In order to avoid stocks with no valuation advantage, we still need answers 2 and 3.

From the result, it is OK to have the answer, but to get the answer, it is necessary to get the answer first. Therefore, logically, the answer is not redundant.

Why did guests never mention the answer?

The second answer involves the expected performance of the company, and the answer involves the location of the company's future stock price. This is not an investor's ability to solve with time, energy and financial resources. It also needs capability. Many of the data, such as PE, raw material prices, product prices and so on, require great wisdom.

So it is very difficult to get the answer and answer 3. It is far from enough to check information by Baidu.

Although it is not easy to get the answer and answer 3, but we always hope that we can win the market longer, so this step will sooner or later go.

Of course, if someone else's stock is provided with an answer, there is no answer.

Perhaps we ourselves do not have the ability to get the answer yet. And when the other people ask you, "what stocks are good", the best answer is "do not know".