The idea model for making money must be long-term, stable and sustainable profitability, as reflected in sustained cash flow, excessive gross margin and profits. Such characteristics are generally found in the consumer goods industry, and products have addictive properties, such as cigarettes, alcohol, and some properties such as hypertension, coronary heart disease.
There are many pharmaceutical companies in the world with very large market value, such as liquor company of MAOTAI in China. Those company with monopoly have few competitors and have market pricing power. The continuity of consumption continues to make the company profitable.
As a result, the share price of company continue to record hi, which indicating its continued improvement in operating capacity, improved product competitiveness, increased market share and profitability, and the industry growth.
Market volatility is inevitable, and it affects the mood of most investors, while only a small number of companies in the market will continue to rise. Most of the time, the stock price of companies is not rising, and rising time is only about 3%. So you have to have a good understanding of the total industry, the company, and the market, to seize the moment that is available, just as the days of the great migration of African animals takes place in particular place for a few days a year.
There's a date. There are around 100 Nobel Prize winners in the world now, and the world's top 2000 universities have basically included the world's top scientists, average 300 scientists and professors per university, makes 600000 people. The top 2000 companies with 200 tech leaders and top engineers, 50 top executives, per company, totalled 500000. All three add up to 1.1 million, which is basically the number of top talent in the world. The world population now numbers more than 7 billion.
In fact, all excellence is scarce, and the core of investment is to find out such scarcity. You need to focus on the most profitable companies, and time, energy and resources are very limited.
Awaken Force Post @ 2018.8.6
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