China's stock market may not enjoy the growth of premium

 China's stock market may not enjoy the growth of premium
Ai Wei those who do not enter. The other, non-recommended long-term investors do not look at my blog, here you need not get any information. This is purely a vision and no real ability of the small retail ignorance opinion, only discussion.
reason to write this, perhaps mainly from the East in the circle line of the discussion table, and the group of retail and consumer industries in relation to some discussion, the views on this to make some simple, laughed.
Perhaps the full title of this article should be changed to the quality of their own. profitable growth > GDP growth in the environment, and we are dealing with the rapid development of industry itself, most power companies to achieve profitable growth from its ongoing capital investment. In short, a 10% return on net assets the enterprise, its profitability is the need to expand to 10 times 10 times from investors, and its rate of return is still maintained at 10% level of discount achieved the level of investment, investors can not be obtained because they put more than 10% of any excess revenue rate of return.
From this point of view, the quality of their business there changed, simply that China's GDP growth in 10% of the cases, compared with GDP growth of just 2% -4% of the mature market, obtain higher levels of some of the premium, and perhaps may be wrong. The final premium may be dependent on the efficiency of capital use, rather than the potential size of the rate of expansion of capital.
the most simple truth is, I naturally would want to choose to invest with those who need to earn 100 million and 30 million to the project each year, and will not invest in those investments earn 1,000 million and 60 million items per year, although the absolute amount of the latter seems more certain.
Thus, we can often noted that I chose from the company point of view, rather than industry or macroeconomic point of view to analyze the reasons. of course, can not be completely ruled out at a certain time, some industry sectors than others is always easier to make money, such as past cyclical industry These naturally also have some investment record, but these investments are basically not span the entire economic cycle, but only half cycle of the investment options,UGG boots, although these may be more trouble doing it.
happens, there is some of Buffett's investment cases, can be listed in the following. (Disclaimer: I am not studying Buffett's long-term investors)
. within the furniture store in Las
This is a private company located in Omaha,cheap UGG boots, Buffett in 1983 with 5,500 million to acquire its 80% stake. In the amount of b, inventory levels of only c, cash-flow speed is dr will learn more than the business school to 86%.
the acquisition period, the enterprise book value of $ 172,600,000, in 1986, profit was 403.0 million, while Buffett's purchase price was $ 315,200,000. and then get out of the 125 million Buffett U.S. special dividend, which is drawn the majority of non-operating cash, which is effectively improve the return on net assets of one of the best.
. Boxi Mu Bo Ximu jewelry store
Buffett the company's operating factors is described as follows:
1, stocked varieties are available,UGG boots clearance, priced rich
2, senior management attention to operational details of the day
3, a faster turnover rate
4,UGG shoes, smart procurement
5, very low expenses
Buffett said want, regardless of the company's understanding of the great, or several cases above, for our understanding of consumer, retail and chain management of the forms may be helpful.
example, we watch or how to analyze the East which Xinyu constant profit The high-end watch retail industry and their respective competitive advantage? how to analyze Ajisen Ramen turn sets a lower rate of possible levels of store expansion may result in damage to the net assets yield a problem? or if a similar way, Walker Group enterprises, to complete the acquisition if the investment opportunities it may bring?
believe others, who may not make honesty, sincerity alone has the carry; suspect those people who do not are fraud, fraud has been the first to the market carry hh Changes in behavior, always do not think that is based on the investment basis. If this bring more confusion mentioned, it'd better forget it.