Generally speaking, the investment income of value investors in ** comes from three factors.
That is: investment income = dividends + profit growth + market difference.
That is, the income of value investors in the first is the three elements of corporate dividends, corporate profit growth, and market price differences.
Today, let's analyze the profit model and difficulty of the following three elements.
The first element: corporate dividends.
First of all, it is necessary to know that the dividends of the enterprise are not the investor's money, but a part of the real profit of the enterprise.
Therefore, companies that can share money and are willing to share money generally have a more reliable financial position and pay more attention to shareholders' equity.
And those companies that can continue to share money show that they have the ability to continue to make profits.
The money-making model of the dividend factor: holding shares to earn dividends.
When investing, choosing companies that can continue to pay dividends is more ideal for investors who value collecting equity and intend to hold shares for a long time.
The second element: profit growth.
For some value investors who prefer to invest in growth stocks, profit growth is more important.
Profit growth has two effects on investors' earnings.
One is the increase in profits, and the same dividend payout ratio can increase the dividend yield.
Second, the profit growth rate has increased, which can correspond to the increase in market valuation.
The money-making model of profit growth factors: ** future performance, compare the performance growth space, and earn the benefits brought by the development of the space.
The third element: the market spread.
In the long run, stock prices always fluctuate around value.
The reason for the volatility is human involvement, when the first volume is sold, the stock price will be raised. When the ** volume is sold, it will suppress the stock price.
As a result of the volatility, the market spreads.
The money-making model of the market difference: buy low and sell high.
Among them, buying low and selling high are divided into two types: long-term and short-term, the long-term is to earn a bear market**, and a bull market to sell. Short-term is a band that is done for a short period of time.
Advantages and disadvantages of the three modes.
As mentioned above, there are three profit models around the three factors of dividends, profit growth and market fluctuations, namely equity investment and equity holdings* Performance growth, earn growth income;Buy low and sell high, and make long-term or short-term swing investments.
These three models should be the basic ways for value investors to make money in **.
Here is a comparison of the pros and cons of these three modes.
As you can see from **:
The first model, holding shares and earning dividends, has the lowest risk and the least difficulty, but the time to cash out is the slowest.
The second mode: earn money for the growth of the business. The risk and difficulty are high, the time is uncertain, and if you do it right, it will definitely be faster than holding shares.
Why is the second model, that is, making money for the growth of the enterprise, which is more difficult and risky?
The reason is simple, that is, most people can't understand enterprises. Therefore, it is difficult to make mistakes about the growth of corporate profits.
The third mode: earn the market difference.
It is divided into long-term bands. i.e. bear market**, bull market sell. This is relatively easy.
However, it is also important to note that, unlike the market as a whole, some perform well in bear markets and average in bull markets. Therefore, this kind of bear market**, bull market selling strategy, is more suitable for related **, such as CSI 300 and other indices that can represent the trend**.
The other is to do short-term bands. This is more difficult and risky. But once you are familiar with a certain **, it is also feasible.
My choice. For me, I think I need to move closer to being a flexible value investor, so I can't limit myself to one or the other.
In individual investment, the three modes can be used together to achieve a certain balance.
That is, use the safest holding income as a defense.
Use companies with large investment performance space as an offense.
Then the bears are bullish and the bulls flee.
Finally, occasionally do a swing on the very familiar ** as a jungler income.
Pay attention to it, and don't get lost ...... investment