Consistent Profits through Long Term Investment

I am a long term value investor who also engages in day trading. My own track record shows consistent Profits from long term investments while gains from day trading is much more irregular, mostly due to good market timing which I am not confident I can replicate in future. Thus, I will be sticking with long term investments as my main strategy to generate profits.

In terms of picking stocks for long term investment, I am bullish on fundamentally good stocks whose prices have been beaten down due to temporary overhanging black clouds. My current picks are Macau's casino stocks listed in HKSE.

The prices of most Macau casino stocks are currently trading near their 52 weeks low due to the following primary factors:
- Covid-19 which affected the number of travellers to Macau.
- Upcoming casino license renewal for all Macau casinos in June 2022. 
- Regulatory clamp down on junket activities which affected the number of VIP customers.

Despite the above risks, I am bullish and currently accumulating the stocks of Macau casinos with a long term horizon. My bullish view is based on the following reasons:
- Covid-19 pandemic will eventually pass. Once China and other Asian countries achieve herd immunity, the number of travellers will eventually restore to pre-pandemic levels. I believe there are pent up demand for gambling, especially from China and HK citizens.
- The license of the current casino operators will be definately be renewed in 2022 as all of them have invested billions in Macau and acted as outstanding corporate citizens, hiring Macau citizens and contributing to local charities and social causes. The uncertainty lies in whether Macau will impose new stringent conditions in the new licenses. However, I believe this risk has been priced in, and that Macau/China govt would be fair. CCP is not like Donald Trump. They are logical, and unlikely to impose onerous requirements given that Macau's economy is still heavily reliant on casinos for their GDP.
- The demise of junkets and VIP customers is a temporary setback. I believe the casinos will roll out their own in-house VIP programs which enable them to reap higher profit margins, as compared to sourcing customers via Junkets. I think the restriction imposed by China on cross border marketing will not have a huge impact as VIPs will sign up directly with the casinos due to pent up demand.

Out of all the Macau casino stocks, I favour $WYNN MACAU(01128.HK)$, as its current stock price of 5.77 is near its 52-week low of 5.36. Its 52 weeks high is 16+ while its historical high is 32+. They cater to the premium mass market which has a higher profit margin. Their Black VIP card is one of the most sought after membership cards among high rollers.

I welcome your views on my long term investment proposal. I am happy to learn from differing views. Merry Xmas and Wishing everyone success in stock investment in 2022!