What kind of company is a good target for investment? Check it out from these aspects: (The following is the information the editor has collected for you on how to choose a good company when buying stocks. I hope you like it.) First, is it an industry leader?

Do you know whether these industries create value for society?

For example, the pharmaceutical industry and consumer industry are very good, and they can be seen through at a glance.

If you can't find it in the supermarket, no one around you has heard of it, but the financial statements look good, then delete the discretionary stocks decisively.

It is not that simple to see through the military industry, but we can be simple and just don’t do it if we don’t understand.

Second, check whether these stocks are held by most funds and whether they are included in some indexes. If the funds are unwilling to touch them and cannot even be used in the indexes, you have to think carefully and study them, but don’t

You overestimate yourself too much, and giving up decisively may be the best choice.

Third, switch to the monthly level to see if the trend in five, ten, and twenty years is strongly upward.

If the above three points are met, then select a few to study carefully, conduct in-depth research, and follow them for a long time. Finally, leave a dozen or so. Intervene at the right position, persist for a long time, and let time reward you.

In fact, you have selected the most awesome companies in China. They are the most awesome teams, the most awesome business models, and the most awesome sales teams in the country.

As long as you don’t step in at the craziest time and as long as you hold it for the long term, what are you afraid of? The Internet era is the best era. You don’t need operations, public relations, or management. The best people in the country will help you work. Then

It's a beautiful thing.

How to choose the best among the best? Take Kweichow Moutai as an example (just an example, you are responsible for the profits and losses of the transaction).

First, it is the top national brand (super brand) in the liquor (consumer) industry, with good reputation, low advertising costs, long history and sustained and stable profitability.

Second, its products are unique and cannot be produced or copied locally. This is a high moat.

Even if what others do is better than it, but not as famous as it, they still have to compare it with it and give it free advertising.

Third, it has strong independent pricing power and its products are not afraid of backlog (the more backlog, the more valuable).

Moreover, supply exceeds demand, and the market share is only about 0.1%. Many people are worried that certain reasons (which I will not go into) will cause its consumption to be curbed. There is no need to worry, because the market share is too low.

, the food is so good that in addition to giving it to others, rich people also want to drink it themselves, and there are many rich people.

Fourth, its average profit growth rate is about 30%.

The gross profit margin is as high as over 90%. It is natural that it is the first listed company and the stock price is the first.

Moreover, it has abundant cash of its own and has strong ability to resist risks.

Fifth, R&D costs are extremely low. Products are paid first and then sold, so there is no problem of not receiving accounts receivable.

Moreover, the most important production equipment, the cellar, basically does not require maintenance and will not become obsolete and depreciate in value. On the contrary, the value of the cellar will increase because the wine produced becomes better and better as it ages.

Many industrial companies' main equipment will be obsolete after a few years of use. They have to spend money to buy equipment. If there is no good profit, it will be difficult to make money.

So we have to use a critical eye to select stocks.

Those who want to inquire about news, do bullish and bearish calls, and do technical analysis are all busy working for securities companies and sending money to bookmakers.

If you want to be a value investor, first clear out your self-selected stocks, choose good companies, and be a friend of time.

What are the main aspects of a good stock? 1. Financial and operating conditions. Enterprises face many risks and uncertainties. In addition to making money, they must also have a stable financial structure and abundant cash flow to resist various potential risks.

However, the asset-liability ratios of different companies will vary greatly. The debt-to-asset ratios of banks, securities companies, insurance companies, and real estate companies are usually higher, and it is more suitable to compare companies in the same industry.

At the same time, the debt ratio is not the lower the better or the higher the better. If it is too high, it means that the company can use the money of suppliers or customers for free. This is a sign of the company's strong competitiveness, but there is a risk of the capital chain breaking.

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Therefore, it is appropriate for the debt ratio to be within a reasonable range.

Another indicator of a company's financial status is cash flow. Corporate activities can usually be divided into three types.

The first is business activities, such as enterprise production, sales of products, provision of services, etc.

The second is investment activities, such as purchasing financial products, making investments, etc.

The third is financing activities, that is, obtaining more funds, such as issuing additional stocks, issuing bonds, or borrowing money from banks. These are financing.

Since financing activities are external blood transfusions, and only the company's operating activities are truly blood-generating, we usually not only require the company's net cash flow to be positive, but more importantly, the company's operating cash flow must be positive.

When we choose excellent companies, they must not only have huge profits, but also have sufficient cash flow and a steady stream of blood to maintain the life of the company.

2. Industry After understanding the general operating situation of the company, we also need to focus on analyzing the industry it is in. After all, we often say that standing on the wind, even pigs can take off.