It was very interesting for Warren Buffett to buy a Korean company back then, that is, someone told him that Korean companies were cheap!
Then Lao Ba went to the manual and picked up a bunch of blue-chip companies with 2-3 times PE.
In the past, you would have doubted whether this method would work in modern times, and it felt like there was no such cheap **.
Hehe, there really is, let's open big A shares and search for bank stocks.
Low valuations everywhere, PE are between 3-4 times.
Isn't this Graham's cigarette butt stock investment?Moreover, bank stocks still have growth potential.
With such growth, **low valuation**, why not buy it?
The answer is simple, because everyone doesn't buy it, and they don't like it.
This reminds me of how people evaluated value investing back then, saying that people who engage in undervalued investment have masochistic tendencies.
Why?Because value investors tend to buy extremely undervalued cigarette butt-like stocks in an extremely pessimistic market. This kind of reversal requires a long time of waiting and perseverance.
However, the profit is certain. Because **underestimated. And there must be at least 50% profit margin.
You can't ** the economy, but you know that banks will always be there.
So now you can learn from Lao Ba to pick up cigarette butts in bank stocks, build a portfolio, and then go to sleep. In the future, as long as the economy improves, the current profit margin of bank stocks is not only 50%.