The Federal Reserve to raise interest rates can not shake A shares, full of opportunities how to select stocks?

2022-06-19 0 By

Two days ago, the Federal Reserve will raise interest rates in March, the market is expected to raise interest rates by 50 basis points, bearish hit, the US stock market fell, but A shares were actually stable, it is big funds with the bearish news of interest rates to increase the amount of money to raise, unfortunately, retail investors stop loss chips were the main force to take away.Look at the north capital, yesterday’s net inflow of 1.72 billion yuan, today continues to inflow of 4.838 billion yuan, foreign capital are killing A shares, what are you still worried about?Tell you, A shares is really a great opportunity at present, the valuation is very low, the dividend is very high, the current A shares is the global valuation depression.The market is full of opportunities for value investors.Bad not only is not a reason to sell, but is a good opportunity to buy cheap goods, we and the main fund is standing in the same direction, they suppress us to follow the suction.Of course, investment can not be bought blindly, once the choice is undeserved, encounter retreat, then have nothing to return to.It’s important to pick stocks. We want to pick big companies with real strength, which are like big ships sailing on the sea, steady and unafraid of wind and waves.But instead of big ships, many people choose small sailboats because they are fast and exciting.Shares of friends said: “look at the people are driving flagship docking success, keep changing the boat, envy in the heart.”But know that a small sailing boat can’t stand a big wave, and one big wave can kill you all.Many people always rely on frequent trading in the market to make quick money, in order to get rich quickly, this is just wishful thinking.In fact, what can make your investment success is not the fluctuation of the stock price, the stock will go down, only the growth of the company is not easy to fall back.Where is the growth?It’s shareholders’ equity, and shareholders’ equity divided by total equity is net assets per share.The continuous expansion of the scale of the company, the continuous growth of shareholders’ equity, which is the growth of the company to make money.And why did the rise in share prices fall back?Very simple, because the rise and fall of the stock price is the main force and makers in the push, their purpose is to aim at the pockets of ordinary investors, try every means to let retail money flow to their pockets, once they successfully shipped, the stock price will crash instantly.In order for a company to survive, it has to make money. If a company can’t make money, it has to go out of business.Therefore, the shareholder equity of the profitable company is increasing, and the shareholder equity growth is not easy to fall back.Why do we choose stocks with low price-to-book ratios?The idea is to make sure that the cost of investing is not too high, that you don’t exceed shareholders’ equity too much. Imagine if you bought a stock with a price-to-book ratio of five or six times, does it matter to you if the company makes money?It doesn’t matter at all.Through our long-term practice, it is true that individual investors can also make money in the stock market for a long time.Rather, we choose good companies and grow with them, so that the ship of good companies will carry us steadily to the other side of success.Remember, for most individual investors, you can’t expect to make money by predicting the market, because the market is unpredictable. If you do it too often, you will eventually fail. I used to be too short, and was almost buried in the sea of stocks.In fact, Warren Buffett and Peter Lynch have all said that they have never seen anyone accurately predict the market, and they say that they can’t predict the market either.If even a master can’t predict the market, how can you predict the ups and downs?I have never bought a stock to predict whether it will rise or not, and I have made this point many times.All I can do is look at its long-term performance, look at its profit growth, look at its long-term dividend record, and I buy a share of the profits of the company.As a result, when you don’t expect stocks to go up or down, you often wait for a windfall. I bought stocks with a dividend yield of more than 5% and often waited for stocks to double. Last year, I sold four stocks that doubled.The # stock market platform has opened the appreciation function for some quality creators, and TODAY I also open this function.If you think my daily articles will be helpful to you, you can give me a gratuity. it is also a kind of recognition and affirmation for my daily efforts.I believe good things will come to good people, and this will be reflected in future investment returns.Sometimes, it’s just amazing.