Fundamental Analysis Is The Most Advantageous Weapon For Retail Investors.

Looking at the recent stock price sorting, the top 10 high priced stocks are basically Internet stocks, and the first all through education has surpassed Moutai and closed 222 yuan on Friday.

What is the valuation of all inclusive education? 54 times the net market rate.

Pay attention to the market price ratio! The P / E ratio is even more than 400 times.

And the whole gem is basically a situation.

So, is basic analysis + valuation useful in A shares? It's useless.

Because both A shares, US stocks and Hong Kong stocks are capital markets.

The capital market is a market closest to nature -- the survival of the fittest, the law of the jungle, and the big fish eating small fish.

In this market, who decides the share price? Some are large shareholders, some are Baotuan.

Some are QFII and social security, some are brokers, but they are not retail investors.

Moreover, these big fish often join together to deal with retail investors. They have the advantages of capital, information and policy. Basic analysis and valuation are just a fig leaf for them.

This should be Buffett's words, short-term stock price is the voting machine.

But I want to say,

Analysis and valuation are the most useful weapons for retail investors.

In the second half, stock prices are weighing instruments for a long time.

Big fish want to eat small fish, or attract small fish, or find a place where small fish get together.

Similarly, organizations have to attract retail investors and find ways to seize the weakness of retail investors and attract retail investors.

What are the weaknesses of retail investors? Rising and falling, no judgement, herding, psychological weakness, love petty gain, and making quick money.

Then, creating a continuously rising share price will attract retail investors.

Fundamental analysis is the best tool for individual investors to overcome their weaknesses.

If the basic analysis is clear, it will not be a big fish.

At the bottom, you want chips, continuous decline, I am sorry, I am not fooled; similarly, the gem continues to rise rapidly, want to deceive me to pick up the disk, there is no way.

In this way, I naturally became a little fish that would not be eaten by big fish.

While overcoming weaknesses, we should also develop our own strengths.

What are the advantages of retail investors? Their own money has no capital cost and small amount of money, so they can pick and choose stocks quickly and quickly.

The advantages of retail investors are precisely the weaknesses of the institutions. For example, Moutai has changed the number of high priced stocks over a number of years, and Moutai has never dropped the first tier, relying on the highest net asset per share and the highest earnings per share.

As for the blue chips with good fundamentals, you only need to buy at the lower valuations, and will not lose money for a long time. It is only ten times a year.

However, please feel your conscience and think about it: as a retail investor with no money, no information and no technology, why can you make huge profits by entering the stock market?