The third lecture of the last issue introduced to you the stock selection secret of Warren Buffett to earn hundreds of millions of net worth, mainly from a qualitative point of view, to tell you that Buffett's stock selection direction is in the **, such as listed companies with franchise rights or exclusive patent recipes;But qualitative is always qualitative, and many friends are still confused in the practical operation of stock selection after reading it, because there are too many options!Among the more than 5,300 listed companies in the A** field, which ones are in line with the direction of Mr. Buffett's stock selection?
Before creating this article, the author also went to the Internet to search for "A shares, money printing machine" as a keyword, and roughly read the following related articles, all of which were unknown;The only reliable article mentions high gross profit margins, and the other few articles simply use Sinopec and Industrial and Commercial Bank of China, which have high revenue and net profit, as "money printing machines". It's a bit far, so let's return to the theme and share with you what I think are A-share listed companies that meet the characteristics of money printing machines.
First of all, I will introduce the methods and technical routes of these 11 listed companies. In recent years, after reading more than a dozen books introducing Buffett's first-value investment philosophy, I have extracted the Buffett's specific stock selection concept mentioned in these more than ten books according to its importance and priority, and converted it into indicators in the financial reports of listed companies, including asset valuation, business performance, profitability and so on.
After completing the above step, the qualitative stock selection concept of Mr. Ba is converted into the qualitative stock selection index of the financial report, stock selection is a simple thing, I can use the big data quantitative stock selection strategy, one click real-time from more than 5,300 listed companies in Shanghai and Shenzhen to screen out the listed companies that meet the characteristics of Buffett's "money printing machine", only 11 listed companies were selected.
The 6th and 8th in the above list, Antu Biological, Jichuan Pharmaceutical, and Shouxian stocks, have been selected many times in my big data quantitative stock selection strategies, and they are also the key focus of the author's self-selected stocks.
The sixth place, Antu Biotech, specializes in the research and development and manufacturing of in vitro diagnostic reagents and instrumentsThe main products are classified according to the detection method or application field, and are divided into the following categories: immunodiagnostic reagents, microbial detection reagents, biochemical detection reagents, molecular detection reagents, immunity, microorganisms, molecules, clinical testing and other auxiliary equipment, covering many directions from infectious diseases to non-infectious diseases. At present, earnings per share are 2 yuan, the valuation is reasonable, the recent increase is large, it is not recommended to chase high, 45 50 yuan is an undervalued area.
The seventh place Jichuan Pharmaceutical, the company's product line mainly focuses on pediatrics, digestion, respiratory and other fields, and the main products are Pudilan Anti-inflammatory Oral Liquid, Rabeprazole Sodium Enteric-coated Capsules, Pediatric Soy Qiao Qingre Granules, etc. At the 2023 China Traditional Chinese Medicine Industry High-Quality Development Forum (2022) and the 3rd China Traditional Chinese Medicine Brand Building Conference, Jichuan Pharmaceutical ranked 11th in the "2022 Top 30 Chinese Medicine Listed Companies" and 12th in the "2022 Top 100 Chinese Patent Medicine Enterprises". In June 2023, the 2023 China Pharmaceutical and Health Industry Symbiosis Conference was held in Huzhou City, Zhejiang Province, at which the 2022 China Pharmaceutical Industry Top 100 series list was released, and Jichuan Pharmaceutical ranked 7th in the "Top 100 Chinese Medicine Enterprises in China". The outbreak of mycoplasma pneumonia and influenza in the second half of this year is expected to boost the company's 2023 financial performance to a new high, and the valuation is expected to recover.
The eighth place Shouxian Valley, specializing in the breeding, cultivation, processing and sales of Ganoderma lucidum, Dendrobium officinale, saffron and other precious Chinese medicinal materials varieties breeding, cultivation, processing and sales, the core products mainly include Shouxian Valley brand Ganoderma lucidum spore powder (broken wall), Shouxian Valley brand broken wall Ganoderma spore powder, etc. The project of "'Dendrobium officinalis No. 1' new variety breeding and standardized organic cultivation demonstration of Dendrobium officinale was listed as a national technological innovation project, and the "High-tech Industrialization Demonstration Project for the Breeding of New Varieties of Dendrobium officinalis" was listed as a national high-tech industry development project, and the brand Dendrobium officinale products of Shouxian Valley were rated as "China's Good Dendrobium" by the China Association of Traditional Chinese Medicine. Shouxian Gu presided over the formulation of world-class standards for Ganoderma lucidum spore powder, and its position in the industry is unquestionable, and the current valuation is undervalued.
To explain why these 11 listed companies can be called "money printing machines", my stock selection strategy focuses on evaluating the following indicators: first, the depth of the company's moat, which involves the position of the company's gross profit margin and net profit margin in the same industry;The second is the steady growth trend of operating performance, mainly observing the ROE return on equity;At the same time, it also includes the willingness of listed companies to pay cash dividends to shareholdersThis is followed by a look at the health of cash flow, whether it has earned real money**, rather than the paper wealth on the income statement.
Only when the listed company meets the above screening indicators at the same time can it be preliminarily shortlisted;Finally, and most importantly, the "continuity" of the above traits, which Buffett particularly values and emphasizes, should last for at least 5 to 10 years.
See, stock picking is that simple;The above stock selection strategy can be entered into the Straight Flush Asking Wealth platform, one-click screening.