What are white horse stocks and black horse stocks?

White horse stocks are a type of stock often chosen by value investors. They have large scale, stable performance and show a stable growth trend. In the industry, it is in a leading position or a monopoly position, its products are highly competitive in the industry, and the company has extremely strong market competitiveness. According to Buffett's theory, companies with extremely deep moats are white horse stocks. Thousand Layer Gold Stock Trading Funding

Black horse stocks refer to stocks that have performed generally before and have not been paid attention to by market investors. They are suddenly stimulated by a certain kind of good news, and their profits may grow explosively in the future. In the short term, Within, stocks with very strong trends.

The difference between white horse stocks and black horse stocks

(1) Performance growth method

White horse stocks are familiar companies with high market share and stable performance growth; Black horse stocks have low market attention, weak market competitiveness, and explosive growth in performance.

(2) Scale

White horse stocks are usually relatively large in size and are large-scale blue chip stocks with high recognition by investors; black horse stocks are usually small in size and have mediocre performance in the past. or short-term positive stimulus.

The above two points are the main differences between white horse stocks and black horse stocks. In actual practice, black horse stocks are hard to come by. Although white horse stocks have low expected returns, they are more stable and have a high margin of safety. The specific choice must be based on actual investment needs.