It is best to have a record of continuous operation for more than 5- 10 years for inspection: that is to say, at least after a complete round of economic cycle fluctuations, we can fully understand its business performance in peaks and valleys, and we can know the business philosophy of this enterprise, for example, the business results faced after the active expansion of peaks and valleys are very different. /kloc-intrinsic value growth rate over 0/0 years: this is the most important business indicator, which is simple but often ignored. Different enterprises have different intrinsic value evaluation standards. For example, the growth of net assets is the most important thing for bank stocks. Gree Electric (00065 1), represented by light assets, should pay attention to the growth of net profit; The unprofitable e-commerce takes the growth of operating income as a reference indicator. Long-term ROE level: it also involves specific analysis of specific situations. Every industry and even every enterprise has a different evaluation system. The general rate of return of heavy assets industry is 15%, and the rate of return on net assets of light assets industry is above 30%. Industry Attribute: Is there a need for continuous huge capital expenditure? Or is it an excellent example of "one book is profitable"? Are technology updates and business models slow to change? Are there competitive forces outside the business ecosystem involved? Market capacity: Is there a sustainable demand? Where is the bottleneck and the general location of the ceiling?
Behind the financial statements: not only listen to what they say, but also see what they do. In essence, financial statements are a true description of the company's operating behavior. The interpretation of the three tables can show whether the management is honest and whether the business philosophy is conservative or radical. Business model: whether it has the characteristics of "moat model" in the long run. Ownership structure: whether the management holds shares and the shareholder structure. Corporate governance structure: excellent system, systematization and smooth operation. Management level: The most important reference index is the business philosophy revealed by public statements and long-term financial data. Whether words and deeds are consistent for a long time and conform to business common sense, such as capitalization or expensiveness of R&D expenditure, will show whether a company's accounting treatment is conservative or radical.
The job of investors is to accumulate excellent listed companies and track and estimate the intrinsic value of listed companies. The right price requires patience and luck, and how to accumulate and evaluate these objects in advance can only be promoted by continuous research interest, so as to ensure that when the right price appears, you can know enough and dare to buy.