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How do retail investors choose a high-quality long-term stock?

Release Time:2021-05-23 Topic:How to choose a good stock Reading:321 Navigation:Stock Liao information > Gourmet food > How do retail investors choose a high-quality long-term stock? phone-reading
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Stockholders and investors have seen that the A-share market holds stocks for more than five years. Many stockholders will choose to hold Kweichow Moutai. However, the success of A-share Kweichow Moutai cannot be replicated and is unique. A good annual rise may not necessarily continue to rise well in the next ten years.

Of course, if you choose a stock that holds more than five years in the A-share market, Kweichow Moutai can be used as a reference. According to the successful case of Kweichow Moutai, I want to choose a stock in the A-share market. Those over five years must meet the following five conditions:

Condition 1: This stock has no major problems, such as major violations or invisible landmines

Condition 2: must be a leading company in the industry

Condition 3: The stock price is undervalued. A severely undervalued state is the best.

Condition 4: Stable performance growth, high dividend rate

Condition 5: Stocks with policy support, resist risks Capable stocks.

According to the comprehensive consideration of these five conditions, the only eligible stock in the A-share market can only be selected from ICBC. ICBC is basically a stock that has been held for a long time for less than five years. The following details are based on ICBC analysis.

(1) Industrial and Commercial Bank of China is a state-owned enterprise. The state-controlled stock management system must be quite strict, not like an individual enterprise. There is the possibility of some major violations.

So from the perspective of ICBC’s structure, there are no major problems with ICBC’s stocks for the time being. Even if ICBC has any problems, I believe they can alleviate dangers. Such stocks have thunderstorms. The possibility is particularly low.

(2) Industrial and Commercial Bank of China is the real leading bank and the real leading enterprise in the industry. The stocks of leading enterprises will certainly not be too bad.

After all, those who can sit on the top of the list must have a great advantage in the industry, occupying a large market weight and share, and the stocks of this type of company are worth owning.

(3) ICBC’s stock price is 5.42 yuan, earnings per share is 0.886 yuan, and price-to-earnings ratio is 6.11 times. According to these data Judging from it, ICBC is completely undervalued.

At present, ICBC is indeed seriously undervalued. Seriously undervalued stocks are most suitable for long-term value investment. There is no problem holding them for more than five years.

(4) ICBC’s performance is very stable, basically maintaining steady growth every year. In 2020, ICBC’s overall net profit will be 315.9 billion yuan, with an average of about 860 million yuan in profits every day.

From the perspective of ICBC’s performance, both operating income and net profit have maintained growth, which shows that ICBC’s performance is stable. The dividend rate is also quite high. The annual dividend rate is between 3% and 5%. It is difficult to find such stocks in A-shares.

(5) The Industrial and Commercial Bank of China is one of the most important banks in China. Putting ICBC as the head is enough to show that the development of corporate banks is fully supported by policies.

After all, the Industrial and Commercial Bank of China is a state-owned enterprise. State-owned enterprises are based on the premise of their development goals. Everything is based on national interests. It is fully in line with policy development and is supported by policies.


According to the above analysis, first take Kweichow Moutai as an example, and summarize the five major conditions of value investment based on the successful case of Moutai; secondly According to these five conditions, stocks are screened from A shares, and the only one that meets the conditions is only industrial and commercialThe bank stock.

ICBC stocks are indeed very consistent with long-term holdings for more than five years. As long as you hold them safely for five years, you don’t know how much gains will be made, but at least the capital of stock speculation is safe, holding other bad things I am afraid that there is no security guarantee for the capital of stocks.

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