First: choose a runway with good situation and high income. The track refers to an industry, a tuyere and a concept. Secondly, in the high-quality runway, analyze the fundamentals of enterprises, and the process is as follows: select enterprises whose ROE has been higher than or equal to 15% for 7 years with the ROE index value, because ROE > 15% is basically standard;
Exclude companies whose share price is too high, which may lead to equity premium. You can use the PB index value of P/E ratio, and the PB corresponding to 30% ROE is 8 times; 20% corresponds to 4 times Pb; After selecting some stocks, eliminate cyclical industries, eliminate net profit and loss, and eliminate stocks with high reputation and poor technology that have fallen below and are in a downward trend.
Select strong stocks, the total market value of strong stocks is not large, the enterprise is in sustainable development, the profit is rapidly improved, and it is more valuable for investors to use. When choosing value stocks, value stocks have certain appreciation space, and have the characteristics of low P/E ratio, high P/E ratio and high dividend. The stock price is stable and can be invested for a long time. Choose leading stocks in the industry. Leading stocks are usually the best companies in an industry, which have an influence and role on other stocks in the same industry and can be invested for a long time.
Looking at the field where stocks are located, it is best to choose the field or hot industry where stocks are closely related to people's lives. In fact, it is a necessary field for everyone's daily life or a potential field in the future. Industries closely related to people's lives include pure grain and wine, medicine and household appliances. This part of the field is also the easiest enterprise to leave Dark Horse, such as Kweichow Moutai Group, jiangsu hengrui Medicine, Yunnan Baiyao Tincture, Gree Group, Boss Kitchen and Bathroom, etc. All originated in this field.