Chapter 91: Large funds need to be stable, small funds need to be risky
After calculating repeatedly, Li Feng clicked on it and bought half of Grade A.
"You, you really want to buy it?"
Lin Menghan was a little terrified by what she saw.
"Why not buy it?" Li Feng said, "It's a rare opportunity. If it weren't for this great bear, how could there be such a good opportunity? Crisis, crisis, there is opportunity only when there is crisis."
"Such an obvious investment opportunity, like pie in the sky, aren't you afraid of any trap?" Zhao Xinyue was a little worried.
Li Feng thought for a moment and said:
"High risk, high return; low risk, low return. Investment opportunities like this, with low risk and high return, only come around once a year. Once you do, don't miss it; grab it!"
"Don't overthink investing. But don't overthink it either. Often, all you need to do is respect common sense and apply high school math. As long as you stay on the right path, avoid those dazzling traps, persevere, and move forward slowly, even if it's slow, with the blessing of compound interest, you will eventually achieve your own path to financial freedom."
Li Feng's words made Zhao Xinyue very happy. She rolled her eyes and looked at Li Feng's account, then asked, "How about buying all of this?"
Li Feng put away his phone and scolded:
"Xinyue, you're being greedy again. Big money has its own way of doing things, and small money has its own way of living."
"With small capital, you can take a moderate gamble. If you fail, you can work for a few years and make a comeback, and maybe even more. But with large capital, you need to be cautious. If you lose, it could be hundreds of thousands, millions, or even tens of millions, or even hundreds of millions. You can't earn that back in a few years of work."
"Moreover, in the stock market, losing money is far easier than making money. For the same stock, if it drops 50%, it will need to rise 100% to return to its original position. If it drops 80%, it will need to increase fivefold to recoup the investment. In the market, the chances of a 100% increase or a fivefold increase are far less than the chances of a 50% or 80% drop."
"So, Warren Buffett, the stock god, said that in the stock market, there are three most important things: first, control risk and protect principal. Second, control risk and protect principal. Third, remember the first and second points."
After hearing this, Lin Menghan thought about it, opened her account, and bought half of the position.
Zhao Xinyue, however, was determined and bought all the stocks. She thought to herself, "I only have 90,000 yuan in total, so I can't lose much. With such a good opportunity, if not now, when?"
On that day, the Shanghai Composite Index fell -5.9%, or 219.93 points, to close at 3507 points. In 16 trading days, from its highest point of 5178 points, it has fallen by -32%!
The Shenzhen Component Index fell 2.94%, or 334.71 points, to 11,040 points. From its highest point of 18,211 points, it has fallen a cumulative 39.3%!
The ChiNext Index rose 12 points, or 0.51%, to close at 2364 points. From its highest point of 4037 points, it has fallen by -41%!
In the B City Metropolitan Daily newspaper office, Song Dongpeng looked at this set of shocking figures, the dismal green market, and the index futures of all stocks that had hit the limit down. The market was almost at the limit down, and he was completely stunned. After he recovered, he looked at his capital account and felt a burning pain on his face. He regretted it so much.
"Sigh... After all this trouble, Li Feng was right. 5000 points is the top. Sigh... If I had known, I would have cleared out my position. Now, I've saved up 150,000 yuan with great difficulty and was hoping to buy a house, but now it's down to less than 100,000 yuan. I only have enough for the down payment. What should I do?"
Involuntarily, he turned around and complained to Editor Huo:
"Old Huo, look at me, look at me. Couldn't you have said a few words that day? You're so suspicious and don't trust anyone. Now look what you've done. You've trapped me. I can't move at all."
Old Huo turned his head and sighed:
"Stop talking. I've already tricked you. Besides, even if I hadn't told you that day, do you think you could have gotten past the editor-in-chief?"
Song Dongpeng thought for a moment and said, "It's hard to say, alas—"
At this moment, Lao Huo suddenly had an idea. He nudged Song Dongpeng in the waist with his elbow and said, "Lao Song, you are familiar with Li Feng. Why don't you give him a call and ask him what to do with these two stocks we bought?"
"This - this -" Song Dongpeng felt a little embarrassed after hearing this.
Old Huo became anxious and urged, "Isn't it just a face? What's more important, money or face? If you can't bring yourself to do it, I'll hit you twice." As he said that, he really put his face close to him.
"Get out of here, get out of here—" Song Dongpeng pushed his unshaven face away and said, "Your face is so ugly that even a pig wouldn't push it. Just wait, I'm going to hit you."
As he said that, Song Dongpeng dialed Li Feng's number.
"Hello, Li Feng, I'm Song Dongpeng. Hey, I'm a little embarrassed that I withdrew your manuscript a few days ago. But, alas, that was the editor-in-chief's intention. Don't take it to heart..." Song Dongpeng said somewhat embarrassedly.
Li Feng answered the phone in the trading room and said with a smile:
"Editor Song, you're so polite. We're journalists and editors in the media industry. Writing and retracting articles is a common occurrence, isn't it? It's all work, so why should we be embarrassed? Oh, by the way, we had an emergency a few days ago, and someone from your newspaper came. If you have any questions, feel free to ask me. I know a little bit about the situation."
"Oh, thank you so much." Song Dongpeng smiled widely. This financial manuscript happened to be under his charge. With Li Feng as an insider to communicate with him, it would be much easier to revise the manuscript if there were any problems.
Editor Huo, who was standing next to him, saw that he was not talking about business, so he stretched out his foot, kicked his chair, and winked.
Song Dongpeng nodded, changed the subject, and said, "Hey, Li Feng, there's something I need your help with."
"Go ahead, you're welcome."
"Well, I bought two stocks. Can you help me take a look and tell me whether I should sell them now or not?" Song Dongpeng continued, "Qianshan Pharmaceutical Machinery, the cost was 70 yuan. Alas, I chased the high price of this one, and the other one, Gree Electric Appliances, didn't go up or down."
"This... let me take a look."
After Li Feng hung up the phone, he turned on the computer and pulled up the K-line chart of Qianshan Pharmaceutical. He saw that this stock started from 17 yuan in November 2014 and kept climbing. By March 2015, it had doubled to about 40 yuan. After only one month of adjustment, it took off and reached a peak of 76 yuan on May 27!
Its price-to-earnings ratio also soared from around 70 times to an exaggerated level of 170 times.
This means that based on the current profit level, it will take this company a full 170 years to earn back the company's total market value!
Its concept is also dazzling. It used to be engaged in medical devices, but now it is involved in concepts such as genetic testing, medical examinations, medical testing, and smart wearables, and it has soared to the sky!
Very speculative value.
Gree Electric Appliances is a company that specializes in manufacturing air conditioners. Its PE ratio is only 10. According to the latest dividend announcement, the dividend rate has reached about 6%. In this bull market, it has only doubled. In the industry, it has basically formed a duopoly with Midea Air Conditioner. At the current price,
It is very worthwhile to invest.
————
Move your lucky hands and send a wow for free for love.
Your support is my motivation to update
Continue read on readnovelmtl.com
