Barledo’s Law (also called the 28/20 Law), also translated as “Pareto’s Law” in some places

It is an Italian economist named Barledo in the late 19th and early 20th centuries. (Pareto) discovered.

He believes that in any group of things, the most important only accounts for a small part of it, about 20%, and the remaining 80%, although it is the majority, is secondary, so it is also called 28 law.

The most widely circulated saying is: "80% of revenue comes from 20% of customers." It is also called the 20/80 rule.

The February 8th phenomenon often referred to in my country's stock market is actually that 20% of stocks rise, and 80% of stocks fall or do not rise.

In a correction market, only 20% of the time it is rising, and 80% of the time it is falling. And many of us investors have been busy, frequently in and out, not only exhausted physically and mentally throughout the year, but also suffered heavy losses, which is really thankless. The real masters spend a lot of time resting in this kind of market, waiting patiently, and when the opportunity arises, they will act like a rabbit, and they will hit the mark without delay. After a few rounds, considerable gains were achieved. Not only is this easy and comfortable, but you can also enjoy the fun of making money in the stock market while achieving considerable profits.

The Shanghai and Shenzhen stock markets have had an opportunity to make money every year for the past 13 years (even when the market index fell by 80% in 1993, there was a big rebound), but the size of the opportunity is different. Why do 80% of people still lose money? It’s because they don’t grasp the timing of entry and exit well. After making money, if you don't lock in the profits and continue to take action when the market peaks, you will either be deeply trapped in the market's decline, or your losses will increase in the process of continuous cutting. When his mentality was completely ruined and he became less courageous and did not dare to take action rashly, the big market came and he missed the mark. This vicious cycle is a common characteristic of many losers.

The 80/20 rule and application rules in the stock market: 80% of investors in the stock market only think about how to make money, and only 20% of investors consider contingency strategies when losing money. But the result is that only 20% of investors can make long-term profits, while 80% of investors often lose money.

20% of people who make money have 80% of the correct and valuable information in the market, while 80% of people who lose money do not collect information carefully for various reasons and only get 20% of the information through stock reviews or TV.

When 80% of people are optimistic about the market outlook, the stock market is close to the short-term top; when 80% of people are bearish about the market outlook, the stock market is close to the short-term bottom. Only 20% of people can shovel the bottom and escape from the top, and 80% of people buy and sell when the stock price is halfway up the mountain.

80% of brokerage commissions come from 20% of short-term customers' transactions, but 80% of investors' profits come from 20% of the number of transactions. Therefore, unless you have skilled short-term investment skills, do not rashly participate in short-term trading.

The large-cap index stocks, which account for only 20% of the market, play an 80% role in the rise and fall of the index. When studying and judging the trend of the market, we must pay close attention to the performance of these index stocks.

Only 20% of stocks can become dark horses in a market round, and 80% of stocks will fluctuate with the market. 80% of investors will miss the dark horse, but only 20% of investors have a chance to be with the dark horse, and even fewer can truly ride the dark horse.

80% of investment profits come from 20% of investment stocks, and the remaining 20% ??of investment profits come from 80% of investment stocks. 80% of investment income comes from 20% of transactions, and the remaining 80% of transactions can only bring 20% ??of profits. Therefore, investors need to use 80% of their funds and energy to focus on the most critical 20% of investment stocks and 20% of transactions.

20% of institutions and large investors in the stock market hold 80% of mainstream funds, and 80% of retail investors hold 20% of funds. Therefore, investors can only make stable profits by grasping the trends of mainstream funds.

Successful investors spend 80% of their time studying and researching and 20% of their time practicing. Failed investors spend 80% of their time doing real trading and 20% of their time regretting it.

The stock price is in a state of quantitative change 80% of the time, and it is in a state of qualitative change only 20% of the time. Successful investors spend 20% of their time participating in the process of qualitative changes in stock prices and spend 80% of their time resting. Unsuccessful investors spend 80% of their time participating in the process of quantitative changes in stock prices and spend 20% of their time resting.

A comprehensive view of the February 8th phenomenon in the stock market Yuanyi

As of October 25, the Shanghai Composite Index closed at 5562 points, marking an increase of 107.9% since 2007. What's more, the Shenzhen Component Index rose from 6,647 points in 2006 to 18,175 points on October 25, an increase of 173%. This exceeded almost all investors' expectations. However, what is even more unexpected is that while the index is making great progress, many stocks have returned to the price levels in April this year or even at the beginning of the year. In January and February this year, the average price of the Shanghai Composite Index was around 2,800 points, and it did not exceed 3,500 points before mid-April. That is to say, many stocks not only failed to rise simultaneously, but also went back on the road, returning from the end to the starting point. This is the truth behind the "February 8th phenomenon" that we are familiar with.

The quantitative limits outlined in the "February 8th Phenomenon" are not strict and clear, and the specific reference is not fixed. Some people also use the term "19 phenomenon" to express the same meaning. In order to avoid semantic confusion, the author treats them equally. The core refers to the phenomenon that the rise of a few stocks and the marginalization of most stocks exist. Of course, these few stocks have some unique characteristics, such as belonging to leading companies in financial real estate, energy resources, petrochemicals, and machinery manufacturing. They have heavy weights, good performance, and inherent imagination accompanying macroeconomic development. space. Based on this standard, all other stocks are classified as alternative.

The sharp rise in a few stocks is not for nothing. One is performance. According to statistics, in mid-2007, 1,518 companies in Shanghai and Shenzhen achieved main business income of 3,688.518 billion yuan and net profit of 371.641 billion yuan. Among them, the top 151 and the bottom 1,367 companies achieved main business income of 2,753.026 billion yuan and 935.492 billion yuan respectively, accounting for 74.64% and 25.36% of the total; they achieved net profits of 300.915 billion yuan and 70.726 billion yuan respectively, accounting for 80.97% and 80.97% of the total. 19.03%. Assuming that the profit status of listed companies in the second half of the year is the same as that in the first half, then the average price-to-earnings ratio of the current market is 51.92 times. Among them, the current price-to-earning ratios of 151 and 1367 companies are 42.05 times and 65.73 times respectively. Judging from this, the valuations of these minority stocks are not excessive, and there is even room for growth.

Second, the rapid development of the macro-economy, the continuous growth of domestic investment, and the significant improvement in the profitability of major industries have promoted the accelerated growth of profits of listed companies, especially the leading companies with monopoly advantages. In 2007, the profit growth of China Merchants Bank (23.86, 0.18, 0.76%) and Shenzhen Development Bank may more than double. The bull market in the A-share market has caused the performance of companies such as CITIC Securities (24.03, -0.29, -1.19%), Haitong Securities (24.33, -0.13, -0.53%), Hongyuan Securities (17.10, 0.05, 0.29%) to appear An increase of several times or even dozens of times. The performance of China Life (26.34, -0.58, -2.15%) and Ping An (43.00, 0.08, 0.19%) also achieved substantial growth. This adds imaginative wings to the soaring price of a few stocks.

Thirdly, the return of H-shares has continuously strengthened the ranks of blue-chip stocks, often teasing the nerves of the market. Each return will further strengthen the advantages of blue-chip stocks and strengthen investors' blue-chip thinking. The fueling of institutional investors such as funds makes the interpretation of blue chip stock market real and concrete. In particular, the pursuit of heavyweight blue-chip stocks in anticipation of stock index futures has contributed to the differentiation of trends. As far as the Shanghai Composite Index is concerned, the top four heavyweight stocks are Industrial and Commercial Bank of China (5.01, -0.04, -0.79%), Bank of China (4.09, 0.01, 0.25%), China Life, and China Shenhua. In order to protect their own right to speak, funds, regardless of whether they are new or old, large or small, must allocate these heavyweight stocks, and newly issued blue chip stocks will undoubtedly become the targets of chasing and carving up.

With these "killer trump cards", heavyweight stocks and heavyweight blue-chip stocks not only soared in stock price, but also won a good reputation as "value investment", which can be said to be both fame and fortune. This is the inevitable result of the current situation. Correspondingly, those who are classified as different can only accept their defeat.

The rise of heavyweight stocks and blue-chip stocks has its reasonable side and is the result of China's economic development. The latest ranking of the global market value of listed companies shows that among the top 20, Chinese companies occupy 7 seats, among which PetroChina surpassed General Electric of the United States to rank second. Chinese companies entering the rankings are all large state-owned monopolies in the fields of energy, finance, and telecommunications. This is something that has never happened before and something we have only dreamed of. But this is completely different from the specific market trends of heavyweight stocks and blue-chip stocks, although there is a relationship and involvement between the two.

For example, blue chip stocks are about stability, return, and value investment. The above-mentioned latest ranking shows that the price-to-earnings ratio of Exxon-Mobil, which ranks first on the list, is only 13 times, and the price-to-earnings ratio of a Russian company on the list is less than 11 times, while PetroChina's price-to-earnings ratio is 23 times, and China Mobile's is 43 times. China Life Insurance is 66 times. If we follow the concept of value investment, the valuation of domestic heavyweight stocks and blue-chip stocks is definitely high. As for stability, growth, sustainability, and even returns, at least so far they are still at a stage that needs to be tested, and there are no rules and regulations. Therefore, in the final analysis, the hype of heavyweight stocks and blue-chip stocks is still inseparable from "storytelling".

The 28th phenomenon and your life: 20% of people succeed------------------80% of people fail

20% of people make money from the neck up--------80% of people make money from the neck down

20% of people think positively-------------- 80% of people think negatively

20% of people buy time----------------80% of people sell time

20% of people find a good employee----------80% of people find a good job

20% of people dominate others------------ --80% of people are dominated by others

20% of people do business----------------80% of people do things

20% of people value experience--------------80% of people value academic qualifications

20% of people believe that actions have results------80 % of the people think that knowledge is power

20% of the people think what should I do to make money------80% of the people think of what I should do to make money

20% of people love investing----------------80% of people love shopping

20% of people have goals--------- -------80% of people like to think blindly

20% of people look for answers in questions----80% of people look for questions in answers

20% of people are taking a long-term view------------80% of people are only looking at the present

20% of people are seizing opportunities-------- ------80% of people miss opportunities

20% of people plan for the future--------------80% of people don’t think about what they will do today until they wake up in the morning

20% of people act according to successful experience----80% of people act according to their own wishes

20% of people do simple things--- -------80% of people are unwilling to do simple things

20% of people will do tomorrow's things today------80% of people will do today's things tomorrow

How can 20% of people do it------------80% of people can't do it

20% of people take notes---- --------80% of people are forgetful

20% of people are influenced by successful people--------80% of people are influenced by losers Influence

20% of people are in good condition --------------80% of people have bad attitude