The days go by quickly.
When Kong Shiyan remembered, she would download the software to check the stock price and the account value. When she didn't remember, she would just live her life peacefully and forget about the stock.
One day, she was tired of reading and opened her account out of boredom, but was surprised to find that the stock price was 48 yuan.
From 25 yuan to 48 yuan, a 92% increase!!
The highest price was 60 yuan. What does this mean? Compared to the purchase price, it has increased by 2.4 times!
How long has she bought it? Only one year!
Kong Shiyan's heart was pounding and she was extremely excited.
"Yun Luo!" she shouted, "Come out and help me see if I should sell the stocks."
Yunluo appeared: "I don't recommend it. Last year's ROE was 60%. Although the stock price rose sharply, it was mostly due to its own scale expansion. The current valuation is not high."
"If I don't sell now, what if the stock price drops later?!" Kong Shiyan was anxious, very anxious.
After three years of frugality and saving, I finally saved 60,000 yuan. But what about now? I bought stocks with my eyes closed, waited patiently for a year, and made 46,000 yuan in one go!
Kong Shiyan thought to herself, fortunately she didn't have a heart disease. Otherwise, she would be too excited and would probably have to be sent to the hospital...
Yun Luo: "If you sell it, what do you plan to do after the funds arrive?"
Yun Luo: "Choose another good business?"
Yun Luo: "Deposit the money in the bank?"
Kong Shiyan hasn't thought it through yet.
She just felt that the stock price had finally gone up and she couldn't miss the opportunity. Otherwise, the stock price would go up and down, and in a few years it would be the same as the purchase price. Wouldn't that be a waste of time?
In this regard, Yun Luo said, "At first, I invested 50,000 yuan and made 20,000 yuan a year. Later, I invested the profits every year and continued to expand."
"After a few years, the asset value will become 100,000. The ROE remains the same, and I can earn 40,000 per year."
"Under these conditions, if someone wants to buy the equity and take over the business, the offer must be doubled. If the offer is too low, no partner will agree to sell the equity."
Kong Shiyan understood what the system said. "So as the scale expands, the market price cannot remain low?"
Yun Luo: "Everyone wants to get involved in a profitable business."
Yun Luo: "Once the stock is misvalued, it will be severely undervalued, and savvy investors will rush to buy it when they find out."
Yun Luo: "If more people buy, the stock price will naturally be pushed up."
"Okay." Kong Shiyan thought that after selling the stocks, she would have no better investment channels, so she simply left the stocks alone.
“I’ll uninstall the trading software later,” she said half-jokingly. “Maybe in a year, the stock price will double again.”
**
Kong Shiyan never imagined that what was just a joke at the time would become a reality a year later.
A sudden outbreak of African swine fever abroad has caused a sharp drop in the amount of imported pork. Domestic pork is in short supply and the price has risen sharply.
Kong Shiyan saw the news and didn't react much at first. Who knew that the price of pork would change every day, and it would double in a short time.
Colleagues kept saying, "Second Brother, your worth can't go up any more! If it goes up any more, you'll have to eat coarse food every day..."
Kong Shiyan pursed her lips and smiled after hearing this.
But the next second she suddenly remembered that she bought pig farming stocks!
...Domestic pigs shouldn’t be infected with swine fever, right?
Kong Shiyan was worried. When she got home from work, the first thing she did was to download the software and log into her account to check her balance.
You don't know until you see it, and you'll be shocked when you do - the pig farming stocks she bought released a financial report, saying that thanks to scientific pig farming, the number of pigs slaughtered this year not only did not decrease, but was 40%-50% higher than last year.
Coupled with the sharp rise in pork prices this year and the surge in net profit, it is expected to be a bumper year.
As soon as the report came out, the stock price soared and actually doubled, breaking through 110 in one breath!
Kong Shiyan's fingers trembled as she looked over the account several times. Finally, she counted it clearly. It said "22" in front, followed by four zeros. It was 220,000.
220,000! Net profit of 170,000! 3.4 times in two years!
Kong Shiyan felt dizzy and her legs were weak, so she subconsciously held on to a chair and sat down.
After a long silence, she asked, "Is it so easy for rich people to make money?"
Her capital is small, only 50,000 yuan. If it were 500,000 yuan or 5 million yuan...
Kong Shiyan didn't dare to think about it too much.
Yun Luo: “Neither.”
Yun Luo: “Some people start their own business with great effort.”
Yun Luo: "Some just happened to catch the trend, such as buying a house."
Anyway, each of them has their own unique abilities, and being able to make money is a skill.
Kong Shiyan was in a mess, her mind was blank. After a while, she asked in a negotiating tone, "It has increased so much, should I be able to sell it?"
Yun Luo: “Okay.”
Yun Luo: "You can wait a little longer."
Yun Luo: "When the swine fever happened to hit, speculative funds would rush into theme stocks and drive up the stock prices."
Yun Luo: "Wait for the speculation funds to pour in, then it will be more cost-effective to sell it."
"What is speculation capital?" Kong Shiyan was confused.
Yun Luo explained: "Recently, there has been a swine fever overseas, and the price of pigs has been rising steadily."
"Speculation funds will tell stories or deliberately create panic to make people believe that the impact of swine fever is not temporary but will last for several years."
"Pig farming stocks will benefit from this, and the net profit in the next few years will be quite considerable, so it is very worthwhile to invest in."
Kong Shiyan was even more confused. "Even if there is swine fever and a large number of breeding pigs die, won't the market return to its original state after the epidemic is over?"
Yun Luo: "Different people have different views on the same thing."
Yun Luo: "Some people think the impact will be one or two years, some think it will take three or four years to recover. As for what will happen in the end, no one knows."
Yun Luo: "When it's over and we look back, we'll know how long it lasted and how big the impact was. In the meantime, everything is just speculation."
Yun Luo: "Some people are overly pessimistic, some are overly optimistic. If you guess right, you're awesome, but if you guess wrong, you're stupid..."
"So there must be people who believe that African swine fever will have a long-term impact on the pork market?" Kong Shiyan concluded.
Yun Luo nodded: "Those who believe in it will rush to buy pig farming stocks, and then other funds will follow suit."
Kong Shiyan thought for a moment and said, "Then wait a little longer."
Facts have proven that the system is always right. What she should do is not to question it, but to learn and understand it.
Kong Shiyan clenched her fists and made up her mind to obey the system's instructions.
In order to buy and sell in time, she did not delete the stock viewing software and trading software this time, but left them on the desktop and checked them every day.
**
A week later, the determination was shattered into pieces.
The stock price was jumping up and down, which made Kong Shiyan tremble with fear. She felt that her heart was beating too fast and she was having a heart attack. She was about to die...
Finally, Kong Shiyan asked with her last breath, "Is it too late to delete the software now?"
Yun Luo: "Don't delete the software at this critical moment."
Yun Luo: "You can hold the bottom area for a few years and wait patiently for the price to rise. If you want to leave the overvalued area, you must leave quickly."
Yun Luo: "The price offered by the person who took over is high enough, and I can make money for several years in one go."
Kong Shiyan: "I'm afraid I can't control myself..."
Yun Luo: "Then sell it and don't wait any longer."
Kong Shiyan: "But you said that the price might be higher if we wait."
Under the gaze of the little man in the suit, her voice became lower and lower.
As an adult, I have long understood that the world does not revolve around me, and all I can do is adapt.
I don’t have the patience to wait, but I still want to make money. How can such a good thing exist in the world?
As soon as she said this, Kong Shiyan felt that she was being pretentious.
Yun Luo: "If you can't wait, it means you can't make that much money. You can sell it now."
Yun Luo: "Learn to admit defeat and give up opportunities outside your circle of competence."
Yun Luo: "Master a money-making model, repeat it over and over again, and you will naturally become rich over time."
Kong Shiyan thought for a moment and said, "I think I can struggle a little longer."
**
For three consecutive months, the stock price fluctuated between 105 and 140.
It has gone up a little bit, and I’m afraid it will fall back later, so I want to sell.
It has fallen a little, and I am afraid that it will start a plunge, so I want to sell even more.
Kong Shiyan thought about clearing out her inventory countless times every day, but she held back.
In the fourth month, pork prices began to rise again. Affected by the price fluctuations, pig farming stocks also surged.
In just one month, the stock price rose 30%.
In the fifth month, the stock price rose 4%.
In the sixth month, the stock price fell 12%.
Kong Shiyan could no longer bear the stimulation and sold all 2,000 shares at a price of 131 yuan.
If she waited another two months, the stock price would have soared another 40%. Unfortunately, she couldn't wait any longer...
Although she didn't sell it at the highest point, Kong Shiyan was still very satisfied with the return on this investment.
In less than three years, the return on investment was 524%. In her life, she had never seen a more profitable business than this.
"What should we do next?" Kong Shiyan's mouth curled up high, and she couldn't calm down.
Yun Luo: “Repeat profit model.”
Yun Luo: “Choose excellent stocks, buy them when they are undervalued, and hold them for a long time.”
Yun Luo: “Wait until the company loses its growth potential, or the stock is over-hyped and the valuation is too high, then sell it and look for the next business.”
"It's that simple?" Kong Shiyan couldn't believe it. "This money is too easy to make!"
Yun Luo: “When you buy a quilt, you don’t believe that you will make money by buying this stock.”
Yun Luo: "When the stock price was consolidating at a low level for a long time, how many times did you think about changing stocks?"
Yun Luo: "I was afraid that I couldn't hold on, so I deleted the stock-watching software several times and didn't dare to pay attention to the market."
Yun Luo: "It can be seen that holding shares of a good company for years is not as simple as you say."
Kong Shiyan blushed and said hesitantly, "This is my first time investing. I have no experience, but I will learn it later!"
At this point, she paused, "Pig farming stocks just happened to encounter swine fever, so the prices were driven up very high. What about other stocks? Did they rise?"
Yun Luo: "You can see it with your own eyes."
Do it when you think of it.
Kong Shiyan looked through the stocks that she had deleted over the years one by one and checked their current prices.
When she saw this, she was shocked - home appliances, real estate, medicine, and environmental protection all doubled in value in three years!
You know, it has been a bear market in recent years.
The market went up and down, but the index did not change much. Many stocks went down. Who could have expected that the stocks she picked would perform so well? !
Yun Luo: "Short-term prices are irrational, long-term focus is on ROE."
Yun Luo: "Over time, good undervalued stocks will definitely rise."
Yun Luo: "This is called 'value return'."
Kong Shiyan: “I believe it.”
She couldn't help but believe it.
There is a home appliance stock whose share price has doubled, but its valuation is lower than it was three years ago.
Looking at the ROE in recent years, it is 65%, 72%, and 65%, which is frighteningly high every year.
"I understand." Kong Shiyan took out a pen and paper and took notes quickly. "Good company, low valuation, long-term holding means guaranteed profit!"
Yun Luo: “…”
Yun Luo: “Not really.”
She named another pig farming stock and motioned Kong Shiyan to search for it.
Kong Shiyan didn't understand why, but she just did as she was told.
The page jumped and displayed a line of large characters, "Performance changes! More than 2 million pigs starved to death, expected loss of 300,000!"
Kong Shiyan, "..."
Is it okay to raise pigs and starve the pigs to death?
The author has something to say:
Pig farming stocks, such as Muyuan shares, from November 2016 to October 2019, the price increased from 13.1 to 98.5 (7.5 times)
For example, "Young Eagle Farming and Animal Husbandry" had no money to buy feed, and 2.7 million pigs starved to death... It has now been delisted
**
Stock copy talks about stock picking techniques.
[ROE>20% in the long term, PB<2, it is easy to pick out bull stocks. 】
[The premise is that the performance will not change suddenly, and the data is not made by false accounting (Shenwu Environmental Protection learned that it made false accounting, and the stock price dropped from 37 to 1.2, and delisting is expected)]
[If you buy the right stocks, you will get a very high return. If you buy the wrong stocks, you will be the next fledgling eagle if you are unlucky]
[In 2018, many stocks had disappointing performance, and even some blue chip stocks failed to hold up. So when investors asked what to buy, everyone recommended buying funds.]
White horse stocks refer to stocks with long-term excellent performance, high return rate and high investment value. Because their relevant information has been made public, their performance is relatively clear, and they also have the characteristics of excellent performance, high growth and low risk, so they have high investment value.
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