The four investment schools of the stock market

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For the stock market investment school of distinction there are many kinds, each scattered in these social networking platforms of Zhihu Q & A, today today's headlines, small red book, we have been summarized and summarized to generate four key investment schools, the following will be exchanged with you one by one.

I. Value-based investment

Value-based investment design style refers to the pursuit of perfect stock price in less than the essential value of the company to buy, or in the market is relatively underestimated, and within a certain range of company valuation to buy, in the process of waiting for the value to return to profit.

For value investors, the most important thing is to buy a good deal, buy time is a good friend, may buy a year or two after there is nothing to improve, but every extra year the value of the rollover will be flipped once. In the end, it is only a matter of time before you make money. The key lies in whether the investor is patient and has sufficient mastery and recognition of the company.

Overall, value investing is about buying the best possible company at the lowest possible price.

Growth investing

Growth investing is designed to select companies that have better than historical time averages in terms of estimated profitability and have the potential to grow in value. The core of the growth style is not focused on the market price of individual stocks ssd vps, but rather on the prediction of future stock price improvement can be better than the average of the sales market, so growth investment will generally be high P / E value, low year-end dividend earnings stocks included in the investment category.

Warren Buffett-style investment

Warren Buffett's steady-earnings investment method, that is, rely on the grasp of thousands of several continuous to their own cash flow enterprises, to give themselves cash applicable, and then again to recover cheap high-quality enterprises. As long as the business does not go up particularly terribly, he will not sell it. This type of low-buy, no-sell, steady-earnings type of thinking makes investment relatively easy to succeed.

Technical analysis type of investment

Technical analysis type of investment is a kind of market behavior as the theme of research to identify the market outlook, and follow the cycle of the market to make individual stocks and all financial industry derivatives trading decision method.

Technical analysis is just a way of manipulating, aiming at solutions rather than predictive analysis, depending on following rather than early behavior.

To summarize, you have described the 4 key investment schools of the stock market: value, growth, Buffett-style, and technical analysis.

Naturally that is just a summary of general laws and is not the same as an investment offer. Sales market is very risky, enter the market need to be careful, profit and loss of their own! Well, today is sent to this with you, we will read it again next time.