It is uncertain whether the sharp increase in profits will lead to the simultaneous increase in prices. For example, there is a company whose profits have increased substantially year by year and its growth is excellent. In the future, it will definitely become a super-large company that attracts worldwide attention. But the stock price is as high as 1 100 million yuan a share. Do you think you can make money at this price? Therefore, even if the quality of the company is high, it is more important that the price you buy must be reasonable. This is why China developed so fast from 0 1 to 2005, but its share price did not rise. Because the big bull market 200 1 years ago made most stock prices rise too high, and their prices far reflected the growth of the company.

Therefore, if you want to make money through the growth of listed companies, you must buy stocks at a reasonable price, otherwise you won't make much money at all. For example, the current pharmaceutical stocks are really excellent, with excellent growth and anti-risk ability, but can they be bought at this price? I don't think so! Their prices have fully reflected the growth of this industry, and their future increase is estimated to be the same as that of the broader market.

Many times, reasonable price is more important than the growth of the company.