How do you build your portfolio?

If Buffett and Peter Lynch form a business, Buffett is undoubtedly the best chairman, while Peter Lynch is the best CEO. Buffett's ideas let you invest in a company from the perspective of shareholders, while Peter Lynch will teach you how to invest in a company from a user's or industry expert's point of view. Buffett wins with Tao, avenues are invisible, and Peter Lynch specializes in technology and wins by surprise. Different ways lead to the same goal, they are all masters of value investment. If they can combine the two ways and skills to guide their own investment practice, it will be a perfect match, a brilliant match, two swords close together, and the world is invincible.

Peter Lynch is an unusual fund manager who believes that ordinary investors can beat professional investors through common sense and reason. In the book, he particularly emphasizes that ordinary investors can discover Daniel stocks earlier than professional investors by observing life. He divides the targets of investment into six different types, namely:

1. Slow growth: this kind of enterprises have entered a bottleneck period of development, it is difficult to have a major breakthrough in the business model, in the survival stage. For example, the traditional printing industry and clothing industry.

two。 Stable growth: this kind of enterprises are often white horse stocks and blue chips in our eyes. This kind of enterprises have gone from the stage of rapid growth to the stage of steady growth. Without large capital expenditure, they can have stable dividends. If the enterprise can find new business opportunities, or if the industry enters the stage of integration, the enterprise may re-enter the stage of rapid growth. The key to investing in such enterprises is to buy in large quantities and hold them for a long time when they encounter crises or stock market crashes, such as Starbucks Corp, Maotai, and people's livelihood; in addition, when the intrinsic value of the enterprise changes, enterprises may enter another stage of rapid growth, such as Tencent and Shuanghui.

3. Fast growth: for this kind of enterprises, growth is the safety cushion of enterprise value investment. Keep in mind, however, that it is unrealistic for any company to maintain a sustained growth of more than 20% of its earnings. The investment certainty of this kind of enterprise is not as good as the stable growth type, so it is necessary to keep track of the enterprise value at all times, and see if it can replicate this successful model when it is successful in a market or region. When investing in this kind of enterprise, it is best to use PEG.

4. Cyclical type: to invest in this kind of enterprise, you need to understand the business cycle of this kind of enterprise, buy when PE is big, and sell at PE hour. Such as coal, oil, paper, steel and cement and so on. If you can buy when the industry is at a low ebb and sell the best part, you can get a good return.

5. Predicament reverse transformation: people do not have a hundred days of good, flowers do not have a hundred days of red. The growth of enterprises is similar to that of people, they will encounter a lot of barriers, if they cross, they will be better, and if they cannot cross, they will stagnate. When investing in such enterprises, you need to carefully analyze the balance sheet of the enterprise, to ensure that the enterprise has a lot of cash, and investors should have an understanding of the future business opportunities of the enterprise, which can make you better judge whether the enterprise has a chance to make a comeback or bankruptcy liquidation. Such as Maotai, NetEase, Inc, people's livelihood.

6. Hidden assets: such enterprises often hold a large number of valuable assets, and the value of such assets is not reflected in the company's balance sheet, such as cost-denominated real estate and long-term equity investments. Need to wait for the opportunity. Such as AVIC International Holdings? Or if the assets have been depreciated, but the value of the assets has increased, the dam assets of hydropower enterprises and the wine cellar assets of liquor enterprises.

Therefore, for ordinary investors, they should build their own portfolio according to their own risk preference. My personal combination is: 40% steady growth + 30% fast growth + 30% dilemma reverse transformation.