Probably the most profitable in 2020!
2020 has just begun, and the overall market for A shares is good. Unexpectedly, the white horse stocks suddenly "horsely lost their horses" and suffered a bad start.
In just a few trading days, the market value of Maotai (600519) in Guizhou evaporated 130 billion yuan in two days, and then Huai Chai Power, which doubled in 2019, suddenly plummeted, and then Hualan Bio (002007) 's stock price crashed ... ...
The sudden fiasco of Baima shares is not difficult to understand:
Now that it is in the annual report period, many white horse stocks have been bought aggressively in the early stage because of the weak market, and the valuation has been raised a bit high. Now once the performance is not as expected, it is normal for the high level to fall.
However, this White Horse stock incident actually reminded us that choosing stocks is very important! So the captain will give you some popular science today, including white horse stocks.
According to the relationship between income and risk, we can divide stocks into these five categories: blue chip stocks, white horse stocks, growth stocks, cyclical stocks, and concept stocks.
1 Blue Chips Let's talk about blue chips first.
The term "blue chip" actually comes from western casinos. There are three colors of chips in western casinos, of which blue chips are the most valuable.
Corresponding to stocks, blue-chip stocks refer to large companies with long-term and stable growth in operating performance. They are generally leading companies in various industries. They can make money regardless of the economic downturn and generally have relatively stable cash dividends.
Blue chips mainly appear in some pillar industries of national life, such as finance and traditional industrial industries.
It is usually not a diversified company, because diversification means that you cannot concentrate on developing a certain area, and the possibility of becoming bigger and stronger in a certain area becomes smaller.
There is another concept that many people may be confused: Is the stock of a large company or a blue chip? In fact, the stocks of large companies are not necessarily blue chips, but blue chips must be stocks of large companies.
Let me give you an example: the Industrial and Commercial Bank of China (601398), known as the "Universe Travel", is a blue chip stock.
First, its volume is very large, with a total market value of more than 2 trillion yuan, which belongs to ultra-large-cap stocks.
And when it comes to banks, the first thing that everyone can think of is the establishment of diplomatic relations between the industrial and peasant industries. These state-owned banks have a high market share.
Second, how is the business performance? Let ’s not talk too much, I am afraid that everyone will not be able to digest it. We mainly look at the operating income and net profit.
It can be seen that from the 10-year period from 2009 to 2018, the year-on-year growth rate of ICBC 's net profit and total operating income were basically positive, except for one or two values.
So it can be concluded that its performance is basically a long-term stable growth.
Third, is there a stable cash dividend?
It has cash dividends every year, and the amount of dividends per share has increased year by year.
Based on these three points, and judging whether the company is specialized in operation and the industry is not a pillar industry of national life, it can basically be judged that a stock is not a blue chip.
If you want to find blue chips, you can also look at the Shanghai Stock Exchange 50 Index. The stocks contained in them are basically blue chips.
The biggest feature of blue-chip stocks is stability, which can be used as a base for new stocks. The possibility of a big drop is not high, and there is a relatively stable cash dividend. However, because of stability, the rise is also small.
2 In addition to the blue chip stocks, there are also some long-term stable performance, high performance growth, and strong distribution capabilities and good dividends, but they have not become blue chip stocks. Such stocks are white horse stocks.
White horse stocks are mainly concentrated in the consumer sector and have continuous demand, such as household appliances, food and beverage , medicine, automotive and other industries, such as Wuliangye (000858), Guizhou Maotai (600519), Gree Electric (000651) and so on.
This type of stock has the characteristics of high growth and low risk at the same time, and the investment value is relatively high, so it is also loved by investors. Institutions, public funds, etc. also like to buy such stocks.
For example, in the third quarter of 2019, the top five industries by market value of active partial equity funds were food, pharmaceuticals, electronics, non-bank finance, and home appliances, of which three were industries with more white horse stocks.
In judging whether a stock is a white horse stock, the main issue is to look at its growth ability based on its ability to make money, and then other performance, how about dividends, and so on.
To make things simpler, you can use the "i ask money" tool, for example, enter "what are the white horse stocks", and it will help you select some stocks.
The other strategy of investing in White Horse Stocks is relatively simple. It is to find a leader, that is, a company with a relatively high market share. More directly, it is to find companies that are more familiar in life.
However, the timing of admission is very important. During the period of economic prosperity and recovery, the white horse stocks are expected to usher in a round of rises. At this time, the admission is better, but the specific price of the stocks should also be used to make decisions.
3 There is also a type of growth stock that has higher growth than that of White Horse Stocks. Companies are often at a stage of rapid development, and the growth rate of performance far exceeds the growth rate of the entire industry. Such stocks are growth stocks.
This type of stock often corresponds to some small and medium-sized companies with development prospects, mainly high-tech and science and technology, and usually have technical moats, that is, they have very scarce technical capabilities in the market.
For example , the University of Science and Technology Xunfei (002230), its speech synthesis core technology represents the highest level in the world, the technology moat is very strong.
Furthermore, because more funds are invested in future development, the dividends of growth stocks will generally be relatively small.
When investing in growth stocks, we should focus on the future of the company. Judging from various aspects whether it can grow rapidly in the next few years. If the judgment is correct, it will bring you a great investment income.
But this is more difficult than investing in white horse stocks, because the emerging markets where growth stocks are located have too much uncertainty, and no one can accurately estimate the future development of a company.
As a result, the industry of growth stocks will change with changes in the economic structure. For example, in the early part of this century, the industries in which growth stocks were based were real estate and chemicals, but since 2013 they have become media, computer and electronics.
Second, even in a certain period, a certain stock seems to fit the characteristics of a growth stock. But it is likely that in the near future, the company's explosion will become worthless.
A typical example is LeTV (300104).
In the two years of 2014 and 2015, LeTV Network got the limelight and had a nearly perfect industry chain, spanning multiple industries such as video websites, film and television entertainment, television, mobile phones, automobiles, sports, finance, and cloud computing.
However, at the end of 2016, the crisis of capital chain rupture broke out, and finally ended with delisting.
The biggest mistake made by investors who invested in LeTV before was to ignore LeTV's lack of technical foundation.
Therefore, investing in growth stocks still tests the ability to choose stocks. The biggest risk is that you choose the wrong stocks and hit the mine.
4 cyclical stocks come again, talk about cyclical stocks.
Cyclical stocks are highly related to the macro economy. Generally speaking, when the economy is booming, its market demand will rise, but when the economy is depressed, its demand will weaken, and its performance will rise or fall accordingly.
Its industries include:
Bulk commodities as basic industrial materials, such as iron and steel, coal, non-ferrous metals , crude oil, agricultural products (000061), cement, etc .;
There are also manufacturing industries such as machinery and shipbuilding, shipping industries such as ports and ocean shipping; and non-necessities industries such as automobiles and real estate.
Investment cycle stocks, bought when the industry is in a downturn, and sold when the industry is picking up, usually get good returns.
But the biggest risk is that the cycle is misjudged.
This requires a deeper understanding and judgment of the macro economy, and top-down investment based on economic fluctuations. This involves all aspects of knowledge and information, which is very difficult.
5 Concept stocks Finally, whether it is blue chips, white horse stocks, growth stocks or cyclical stocks, they may belong to a certain concept or topic.
For example, we say that the concept of new energy vehicles may contain many stocks, such as Chuangli Group (603012), Longxing Chemical (002442), Jiangsu Guotai (002091), Qianjiang Motorcycle (000913), China Power (600482) ) Wait for the stock.
What does that mean? That is to say, as long as renewable energy vehicles are attached to it, it can be said to be its "concept stock".
But this is like a hot topic on Weibo, it comes and goes fast. If we want to invest, it is best to buy when the heat is not very obvious and sell when the hotspot reaches its peak.
However, the requirements for investors are relatively high, and investors need to pay close attention to the latest trends and hot events of national policies.
If there is a certain lag in operation, the money will not be locked but it will be stuck. This is a very common occurrence.
The captain summarized a form for everyone to compare and view:
There are more than 3,000 stocks in the A-share market. First, according to your risk, return, and term preferences, combined with your own capabilities, choose the type of stock that suits you, and then go to the specific stocks.
This is a bit similar to "draw a circle on the ground, and then throw stones into the circle." It is a good way to save effort and effort, everyone can try it.
This article first appeared on WeChat public account: rookie wealth management.