Chapter 110 Real Estate is the Mother of Economy
Li Feng analyzed:
"Whether it's Gree Electric or Midea Group, their main revenue comes from the air-conditioning business, which is closely related to the real estate industry."
"Therefore, their industry cycles are consistent with the real estate industry cycle and belong to the real estate industry chain. If we want to study the home appliance industry, we must also study the real estate industry."
"Why is real estate involved again?" Zhao Xinyue's brows furrowed deeper and deeper.
She felt like she was playing a Russian nesting doll game with Li Feng, one ring inside another, one inside another, and it seemed like there would never be an end.
Lin Menghan opened her eyes wide, as if she had discovered a new world.
Li Feng used a whiteboard marker to write the word "real estate" and said, "You must remember that no matter where you are, real estate is the mother of the economy and cannot be ignored."
"Mother of Economy?" Zhao Xinyue heard a new term again.
Li Feng nodded and continued:
"The real estate industry chain is long and large-scale, involving 60 industries, such as finance, cement, steel, building materials, home appliances, chemicals, construction machinery, home furnishings, and so on. Prosperity and loss all depend on each other, and we are all on the same boat."
"So, the real estate industry is not just a simple industry issue, but also a major economic issue."
After a pause, Li Feng continued, "So, starting last year, our Guo Jia began to lower interest rates and reserve requirements, and gradually relaxed real estate policies to stimulate the economy."
"Now that the stock market has stalled, it's very likely, and extremely likely, that these released funds will be channeled into the real estate industry, and through step-by-step fund derivation, further stimulate the economy."
"Fund derivatives?" Lin Menghan looked at Li Feng, eyes full of confusion. "What fund derivatives?"
Li Feng wrote the word "Bank" on the whiteboard, then drew a straight line between Bank and Real Estate, and said:
"Everyone knows that the stock market and real estate are two major pools. Many people naively believe that if the real estate industry fails, the funds squeezed out will flow into the stock market."
After hearing this, Zhao Xinyue asked, "Isn't that so?"
"That's totally wrong!" Li Feng emphasized. "This is a conjecture based on an understanding of basic economic laws."
"Real estate is a credit amplifier and a currency engine. A 30% down payment can generate 70% of the loan. This then flows through real estate developers and into other parts of the real estate industry chain, where it is further amplified, resulting in an extraordinary increase in credit..."
"A bad real estate market won't squeeze out money. On the contrary, it will, to a certain extent, cause a collapse in the currency, leading to monetary tightening, absorbing and eliminating money, and dragging down companies in dozens of industries along the supply chain! Not to mention the outflow of funds into the stock market."
Zhao Xinyue was stunned when she heard this. She felt that a lot of knowledge in her head had been overturned.
Li Feng continued, "So, although Gree and Midea are both excellent and somewhat underestimated right now, it's not the time to go all out yet. We need to pay close attention to real estate industry policies."
"If the real estate industry policy is reversed, it's time for us to go all out!"
"So what stocks should we invest in now?" Zhao Xinyue sighed, feeling that they had been discussing for so long but in vain.
Li Feng looked at Lin Menghan and asked:
"Menghan, you should have been following Kweichow Moutai. Let's talk about its interim report and, more importantly, the current state of the liquor industry."
Lin Menghan gathered her hair and introduced:
"Kweichow Moutai's semiannual report is very good, with operating income of 15.779 billion yuan, a year-on-year increase of 10.17%, net profit of 7.888 billion yuan, a year-on-year increase of 9.11%, and earnings per share of 6.91 yuan. Government spending has dropped below 5%, and pre-sales have reached 2.337 billion yuan, a year-on-year increase of more than 50%."
"The key is that revenue has returned to double digits, profits have turned around, and retail prices are holding up. My father just received news that the price of a batch will be raised to more than 850 yuan."
"As for the liquor industry, to put it simply, Moutai is in short supply. Compared to the previous two years, the turnover is very fast. If you want to get some, you have to pay in advance to place an order. The retail price has already increased significantly," Lin Menghan said. "By the way, my dad said, if you want to buy, buy a few boxes now. I'm afraid you won't be able to get this price in the future."
"As for other liquors, they are still not selling well. There is a lot of inventory backlog from previous years, and the brand is not strong enough. The market sales are not as strong as Moutai."
"The ducks know first when the river water warms up in spring,
Li Feng nodded and said, "It's pretty much the same information I have. I've been to several shopping malls selling Kweichow Moutai these past few days, and the production dates are all within three or four months. Several stockholders on the forum have shared similar news: the liquor industry is about to recover from its 2013 bottom, and Kweichow Moutai is the leader, and the symbol is this excellent interim report and the market conditions it reflects."
"Furthermore, Kweichow Moutai has another unique feature: its products are not only not afraid of being overstocked, but actually appreciate in value over time. This gives it a special financial attribute, which is why it's said that the older the wine, the more expensive it is. Nowadays, a bottle of wine from decades ago can fetch hundreds of thousands of yuan at auction."
"Then buy Kweichow Moutai?" Zhao Xinyue licked her lips and said.
She has a lively personality and loves trading. When she hears about buying stocks, she instantly becomes excited.
Li Feng nodded and said, "The liquor industry has been adjusting for three years since 2012. That's enough time. This is a rare opportunity. Buy 30% of the stock!"
"What about the other positions?" Zhao Xinyue asked.
"You can first set up an observation warehouse on Gree Electric Appliances, and continue to observe other investment opportunities. As time goes by, there will definitely be more investment opportunities." Li Feng put down the whiteboard pen, returned to the computer, took out his mobile phone and started placing an order.
He spent more than 100,000 yuan on buying the car and brought home hundreds of thousands of yuan. Now, there is only 3.2 million yuan left in his account.
After thinking about it, Li Feng opened the trading software and saw that Kweichow Moutai opened 2% lower today. The transaction was active, and it was worth millions or even tens of millions in minutes. The one million yuan he had placed was only 50 lots, and it was sold at 190 yuan in minutes. Gree Electric bought 50,000 yuan.
Lin Menghan thought about it carefully, gritted her teeth and invested heavily, buying one million yuan worth of Kweichow Moutai.
Zhao Xinyue saw it and asked in surprise: "Menghan, why did you buy so much?"
Lin Menghan explained:
"Just think of it as stockpiling liquor. My dad used to like to stock up when Moutai was in short supply. Now, the peak sales seasons of Mid-Autumn Festival and Spring Festival haven't arrived yet, and my dad said he's already sold 70% of his annual sales. Add to that the price increase at the terminal, and I think buying now is a sure thing."
After hearing this, Zhao Xinyue was moved. She made up her mind and bought all the shares immediately. However, she found that she could only buy 500 shares, and she couldn't help but pout.
Finally, she looked at Li Feng again and asked, "Li Feng, look. Meng Han has already invested heavily, why don't you buy a little more?"
Li Feng shook his head and said:
"Menghan has a unique understanding of the liquor industry, so she dares to invest heavily. I don't have such a deep understanding, so I only buy 30% of the position at most."
"If there are any more, I won't be able to sleep."
————
Fellow investors, times have changed. Don't buy real estate or liquor stocks now. (2023)
————
Move your lucky hands and send a wow for free for love.
Your support is my motivation to update
Continue read on readnovelmtl.com
