There are too many so-called strong stocks, and there are excellent representatives from all walks of life, but there are very few great companies.

According to Dan Bin, Vanke, Maotai, Ping An, China Merchants Bank, etc. are expected to enter the ranks of great companies. Among these companies, I personally recommend Vanke (because of Wang Shi’s charm), but Moutai is definitely the company that can best transcend cycles. Just pay attention to the margin of safety and intervene on dips.

Let me also give two examples to briefly talk about the excellent companies that I think (currently also targets that deserve serious attention).

1 The stock price of Huaxin Cement is nearly half lower than that of foreign investment (I believe everyone knows that foreign investment is shrewd, and the loss of bank assets illustrates the problem). China's development model of building bridges, paving roads and building houses is unlikely to change in the next 20 years. The demand for cement can be imagined, and it is now facing post-disaster reconstruction. Small cap, low PE, steady growth, I think the future development speed will be at least not slower than Vanke. The cost is not a big problem. If you are interested, you can continue to study it in depth.

The value of this short- to medium-term attention is very high.

2 Yili shares have limited short- and medium-term value, but they are the possible future big bull stocks that I am most concerned about.

The indicator of market-to-sales ratio (total market value/sales) can well reflect its potential value. Sales of nearly 20 billion and a total market value of only 12 billion indicate that the current profit margin is extremely low. However, the dairy industry is developing rapidly and dairy companies are facing consolidation. I firmly believe that the dairy industry is just like the real estate industry that was sluggish a few years ago, waiting for opportunities to explode. Where is the opportunity? It requires constant observation.

Don’t underestimate the price-to-sales ratio. The lower it is, the more valuable it is. It is more effective than the price-earnings ratio and the price-to-book ratio (it is definitely a reliable statistical result).

The current market, which is neither ideal nor rational, is likely to push Yili's market value below 10 billion. Please pay attention to dips.

Comes with a quote from private equity hero Mr. Li Chi: Good stocks and good prices are successful investments. If you often try to relax standards, you will eventually lose your principles, and you will eventually die without principles.