What is a great enterprise? How to invest in Crown Jewelry?

With the increase of listed companies and trading varieties, it is more and more difficult for investors to choose, and the leading stocks can no longer meet the needs of stock selection, because the number of leading stocks is increasing day by day. It can be seen clearly from the prospectuses of various companies. Huangpo sells melons to brag, but in detail, everyone is a leading stock, just as everyone can become a circle, and a threesome must have a teacher. We need clearer standards. If you could only invest in 10 companies in your life, what would you choose? This is Buffett's question, and he also answered it: choose the jewel in the crown, even if it is a small one.

What is the jewel in the crown?

The jewel in the crown can be compared to the best investment target in this market. Every country's securities market has one or two gems that can represent the crown jewels, which is the investment target that every investor dreams of. However, due to the influence of cognition, price, market and other factors, only a few people can deserve to have this crown jewel.

Why choose the jewel in the crown?

1. Naturally

Choosing the best is the best reason, but good things are often expensive. It is difficult for ordinary people to spend so much money on such expensive things, and it is not worth it. The reason is that they don't know the valuation. If they can have a firm grasp of the valuation, then everyone will buy and dare to buy the best things, because stocks are calculated by shares, no matter how expensive the stocks are, they can still afford them.

2. Compound interest effect

Compound interest is the eighth wonder in the world. The only reliable way to surpass the average level in the stock market is to hold the above-average or even great company target, and this target is the jewel in the crown. It is not difficult to find it. The difficult thing is whether you can fully communicate this series of problems. There are so many temptations in the market that no one can resist these short-term temptations.

How to choose the jewel in the crown

Several main characteristics of great companies

1. Good prospects

First of all, the industry is a sunrise industry with no ceiling. Secondly, the company is the absolute leader of the industry and the leader of the industry.

2. Great products

The company's products are in short supply and demand is indispensable, and there are no competitors and substitute products in the short term.

3. Great management

A great enterprise must have a group of great managers, which is the soul of the enterprise, otherwise the enterprise cannot last long.

Buy time: the prince is in trouble

This is the best way to buy great companies, that is, when the negative news is overwhelming and the company's fundamentals have not fundamentally changed, such as melamine in milk powder in 2008, alcohol restriction of liquor plasticizer in 12 years, and centralized procurement policy of generic drugs in 18 years.