How to choose stocks for long-term investment

How to choose stocks for long-term investment

How to choose stocks and what stocks to choose. For new investors, there is no information advantage, so "long-term investment" must be the best investment strategy. Which stock to choose is the first problem to be solved in long-term investment. Bian Xiao sorted out how to choose stocks for long-term stock investment here for your reference. I hope everyone will gain something in the reading process!

1. Select low-priced stocks.

Low-priced stocks are also called third-class stocks, and the price per share is usually lower than 10 yuan. In fact, the advantages and disadvantages of choosing low-priced stocks are traceable. As long as investors pay more attention, it is not difficult to find some high-quality stocks. The following five principles are for your reference:

(1) The income is stable. Some low-priced stocks have suffered losses year after year, so there is no need to choose such stocks. The only exception is that some low-priced stocks are about to turn losses into profits, and the future profit prospects are very good. This is another matter and can even be regarded as a speculation factor.

(2) low-priced stocks that are technically resistant to decline. In the context of the market crash, if some low-priced oversold stocks can stand the test, it proves that the bottom of these stocks is very solid and belongs to the ideal potential varieties.

(3) The entry threshold is very high. This mainly means that some majors are irreplaceable. Even if you have money, you may not be able to reach people in this industry.

(4) The gradual decline is deep. The lower the absolute share price, the better. Looking for opportunities in low-priced stocks mainly follows the idea of price game, so it is advisable to choose stocks whose decline is greater than that in the same period and whose stock price has obvious comparative advantages in the whole market and similar stocks.

(5) The market potential is particularly great. If an industry has limited future development space, even if it meets the above four conditions, it cannot be regarded as a stock worth investing because its future profit is limited. If the above five conditions are met, this low-priced stock will have unlimited future "money".

Step 2 choose blue chips

Blue-chip stocks are suitable for long-term investment, often because the speculation theme of such stocks has been realized, and it is impossible to skyrocket in the short term, but there is still some potential in the long run. Important indicators to measure blue-chip stocks can be summarized as follows:

(1) Earnings per share and price-earnings ratio. Earnings per share is the most commonly used and popular indicator in today's stock market, which enables investors to see the performance returns of listed companies at a glance. This index directly reflects the relationship between the market price of common stock and the current earnings per share.

P/E ratio = price per share/earnings per share

(2) Net assets per share, return on net assets and price-to-book ratio. This is the most direct and effective indicator to measure the profitability of listed companies. In particular, the return on equity, which reflects the income level of shareholders' equity, is the most comprehensive financial ratio. Of course, when using ROE, investors should pay attention to both net assets per share and price-to-book ratio.

(3) Financial statements of the company. The most reliable way to choose blue-chip stocks is to consult the company's financial statements. Generally speaking, companies with excellent indicators mentioned above are more worthy of investors' trust. Investors can also find excellent companies by investigating the dividend policies of different issuing companies.

(4) Pay attention to the net profit after deducting non-recurring gains and losses, earnings per share after deducting non-recurring gains and losses, and net cash flow generated by operations per share. Net profit and earnings per share after deducting non-recurring gains and losses have eliminated the suspicion that some companies pieced together profits. Investors can see at a glance how much money the company has earned by its major. The net cash flow generated by the operation of each share will help investors to have another understanding of the gold content per share and be more conscious when choosing blue chips.

3. Select the reorganization unit

This often happens in the stock market: when batches of "junk stocks fly to the sky", many people can't understand it. Until the hype reached a high level and it was announced that it was reorganized into high-tech stocks, many of them were transformed into "high-tech blue-chip stocks" and delivered, and the stock price has peaked. After all, most of the restructured shares are operated in the dark.

There are the following criteria for selecting the restructured shares.

(1) Choose from traditional industries. That is, industry restructuring stocks. Most of the restructured stocks appear in traditional industries. Mainly involved in traditional industries such as textiles, steel and commerce.

(2) The plate is medium or small. The restructuring cost of small-cap stocks is relatively low, and it is easy to be reorganized, which is convenient for bookmakers to control the market and boost the stock price. It is easy to be favored by mainstream funds in the market, and once it is selected by the main force, it will rise rapidly. The total share capital is generally less than 65.438+0.5 billion shares, and the tradable shares are generally less than 70 million shares, mostly 25-50 million shares.

(3) Reorganize shares at a low price. At a medium or low level, the starting price can easily double. Generally in 5- 15 yuan. In history, most of the restructured stocks that doubled in price rose from low prices.

(4) Its assets are in good condition. Net assets and provident fund should not be too low. That is to say, the reorganized company must have a certain "financial background", so that after the relative holding is realized through reorganization, the effect of 1 yuan control over 5 yuan can be achieved.

(5) The performance is moderately low or even slightly insufficient. If the performance is poor, the annual income can only be meager profit at most, losing money or being treated better soon. Because, the more a listed company loses money or faces special treatment for delisting, the greater the pressure of restructuring, and the easier it is for listed companies to restructure.

Choose unpopular stocks

The so-called unpopular stocks are all stocks that have not been hyped for a long time and have low stock prices. Bankers prefer long-term stocks because it is easy and cheap to collect chips from such stocks.

The following are the precautions for choosing unpopular stocks:

(1) Don't choose stocks that have fallen all the way after the big hype of the previous year.

(2) Don't choose stocks that fell unilaterally last year.

(3) Choose stocks with little fluctuation and long-term low sideways. This kind of stock makers have enough time to open positions, which is expected to make up for the increase.

Choose white horse stocks

At one time, a strange phenomenon appeared in China stock market. The more stocks you are optimistic about, the fewer people you buy, and the lower the stock price. This is the real reason why white horse stocks make money.

Investors can choose white horse stocks from these angles:

(1) white horse stocks with high transfer. If listed companies achieve excellent performance and cooperate with the introduction of generous distribution plans, it will often have a strong stimulating effect on the stock price.

(2) White horse stocks with good growth. Although the performance of some listed companies is not particularly excellent, they can maintain long-term sustained and stable growth with good growth. Most of them have large plates and stable performance, so it is easy to get relatively stable income by investing in such companies.

(3) Steady white horse stocks. Judging from the principle of conservatism, the potential of excellent performance, low P/E ratio and high turnover is worth studying. The performance of such stocks is excellent. Generally speaking, the ROE is above 10%, the P/E ratio is less than 20 times, the financial situation is good and the operation is stable. Because of its excellent performance, it constitutes a strong support for the stock price, so it is very suitable for stable investors to invest for a long time.

(4) A new class of white horse stocks. When the stock market is in the bear market stage, some new white horse stocks listed in the depressed market are positioned on the low side. Some of these stocks have good growth, rich potential themes and certain expansion potential, which are easily concerned by mainstream funds in the market.

(5) White horse stocks with incremental funds. If a white horse stock has excellent performance and rich distribution plan, it will certainly attract market funds, but the intervention of such incremental funds must be in a moderate state, and the stock price cannot rise too much.

In short, the choice of white horse stocks, in the words of Warren Buffett, is: "Not only should we choose top excellent companies, but we should also be seriously underestimated by the market."

Choose dark horse stocks

Dark horse shares is the focus of long-term investors' attention, and the key lies in its unclear or hazy subject matter. Once this stock is selected and intervened in time, it will often rise by a large margin.

When choosing dark horse shares, you can refer to the following skills:

(1) Find the following stocks according to the information of listed companies:

① No shares (i.e. no legal person shares, no state shares and no internal employee shares). This kind of stock is easy to buy.

2 stocks with high net assets, high after-tax profits and high distribution themes.

(3) stocks with the lowest circulating share capital.

The main business of listed companies is sunrise industry, which belongs to the national key development industry.

(2) Pure technology:

① After long-term consolidation, lead the decline to break the pressure price or sky-high price.

(2) Those who have a long-term high ②RSI will not follow the stock market.

(3) stocks with rising bands and rising frequently.

4 stocks that rise when they fall to the support line.

(3) Macro policies:

(1) Due to the change of national policies, it will greatly benefit the development of a certain type of listed companies. If the real estate tax is reduced, it will be beneficial to the development of real estate developers. For another example, the state should pay attention to automobiles and related stocks when vigorously developing the automobile industry.

(2) stocks that do not fall after major negative returns.

(3) The capital stock structure is not up to the statutory standard, and it is ready to expand the scale to meet the standard.

As a new investor in the market and a long-term investor, it can be described as a "stable" word! Of course, stability is relative, and long-term stocks also have many distressing things, such as false statements of listed companies, profiteering out of nothing, self-deception and clarification announcements. Therefore, long-term stock selection should also be cautious. After reading these stocks that are suitable for long-term, what are the similarities between them? There are six points: small market, poor performance, low price, asset reorganization, sunrise industry and long-term operation. Among them, asset reorganization is the key.

Take growth stocks as the first choice for investment

As the saying goes, stock selection is not as good as stock trading. This fully illustrates the importance of stock selection. A good stock should not only maintain the upward trend, but also be resilient in the downward trend and rise against the market. There are more than 2,000 domestic stocks listed on Shenzhen Stock Exchange, and more new shares will be listed in the future. Faced with many stocks, which stocks should investors choose first according to their limited funds?

To be sure, only growth stocks are the first choice for long-term investment. Because, only the continuous growth of performance will bring the stock price after ex-rights. On the other hand, if the performance fails to grow at a high speed, it will be difficult to create a market for filling rights, just as Kweichow Moutai quickly fills rights after many high-speed transfers, the key lies in the sustained high-speed growth momentum of performance. Therefore, only growth stocks with sustained high growth momentum in future performance are the first choice for investment.

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