Letv Kangmei Pharmaceutical, an iconic company, lost a lot of money, mainly because of their self-righteousness.
Receipts of 20 13 and 20 15 are far more popular than the current concept. Letv's share price rose to around16 billion, as well as Huayi Brothers/All-pass Education/An Shuo Information ... Who was not confident at that time? I clearly remember that a beauty fund manager once spoke highly of LeTV. She said, "LeTV will have a market value of 654.38+000 billion." Yes, the little girl guessed right, and LeTV rushed to the market value of 654.38+060 billion.
It is very important to avoid big troubles in investment. Sometimes we often come across a company or product, even if it looks simple, but there is no feeling at all, so don't touch things you don't know, don't buy companies with obvious problems, so you won't lose a penny!
What we want to avoid is the embarrassment of buying Maotai at a high price for seven years without making money.
The price of buying maotai stock at a high price. At the end of 2007, the closing market value of Kweichow Moutai was 209.524 billion, corresponding to the net profit of that year of 2.966 billion, and the static P/E ratio was as high as 70.64 times. The price for investors to buy Kweichow Moutai shares at such a high price is:
1) Ten-year compound rate of return loss of 8.83%: From 2007 to 20 17, the net profit of Kweichow Moutai increased from 2.966 billion to 27.079 billion, with a compound growth rate of 24.75%. Investors should have earned an annual return of 24.75%. However, due to the price-earnings ratio of 70.64 times paid in 2007, the ten-year compound rate of return fell to 15.92%, with an annual loss of 8.83%.
2) Investors paid the time cost of more than 6 years: in the case of pre-tax dividends, they lost 50.80% in 2008; By the end of 2009, the annual loss of/kloc-0 was 22.50%; By the end of 20 10, the three-year loss15.70%; By the end of 20 1 1, the loss for four years1.70%; By the end of 20 12, the five-year profit will be 8.00%; By the end of 20 13, the six-year loss was 28.70%; By the end of 20 14, the 7-year profit 13. 10%.
People will definitely use "holding Maotai for a long time will eventually make money" to explain the rationality of buying high-quality company stocks at high valuation. But after seven years of suffering, only when I am in it can I know what kind of suffering it is. Most people will begin to doubt their life, so they will not be able to savor the mellow taste of Moutai.
3. Avoid the unknowns of the future.
The future is unknown, and it is difficult to judge a company's business prospects in the next decade. We are faced with the variables of policies, industries, enterprises themselves and competitors. To do the right thing, there must be a reason to do it right, and of course there is luck. It is really difficult to grasp the market prospect full of variables and the fluctuation of people's hearts in the stock market.