Stone-Turning Value Investment Handbook-technology industry

1. The behavior of stock trading based on enterprise value is called value investment
2. 300 years of stock history proves that value investing is a way to earn money over the long term and sleep well at night
3. Looking for a future long-term money-making enterprises, when the stock price is lower than the value of the enterprise to buy, with the future enterprise profits more and more, the share price will rise, the future price difference between the price and the current buy value is the main source of income investment
4. Good industry: A company that can thrive in the future
5. Good enterprise: In the fierce competition situation, the future profit still can continue to increase the enterprise
6. Good price: The stock price must be lower than the enterprise value a certain proportion of the stock is worth buying
7. Enterprise value is the evaluation of enterprise earning ability
8. The value of an enterprise is actually the sum of the profits it can earn in the future.
9. Roe: The sum of the earning power of an enterprise, the higher the better, generally less than 15% of enterprises can not consider, 30% of the enterprise is very good
10. Gross margin: measure the profitability of the company's products. The greater the value of the product, the easier it is to make money.
11. Earnings per share: Represents the profit earned by each share, preferably sustained, steady and rapid growth
12. Free cash flow per share: The cash that can be given to shareholders on behalf of the profits earned by each share, preferably sustained and steady growth. In essence, the purpose of investment is to obtain the free cash flow of the enterprise.
13. We are looking for roe greater than 15%, high gross margins, once per share earnings and per share of free cash flow continued to grow, future earnings per share and free cash flow per share of the continued growth of enterprises
14. Consider buying when the share price falls below a certain percentage of the valuation, and consider selling when the share price is higher than a certain percentage of the valuation or when a more attractive stock is issued
15. Must not borrow money to invest
16. Hai Kang Wei is the domestic video surveillance industry leader

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Stone-Turning Value Investment Handbook-technology industry