Chapter 39 How to become a stock king?

Style: Romance Author: stock market hunterWords: 1255Update Time: 24/02/20 15:07:46
January 21, 2023 is a Saturday and also New Year’s Eve!

The stock market is on holiday. After a busy year, Yuan Sheng and Zhang Sheng agreed that the two families would go to Yonghui Supermarket in Pengshi to purchase New Year's goods, as long as they were food and children's toys. Yonghui Supermarket is a listed company and has all kinds of daily necessities.

Yuan Sheng and Zhang Sheng each bought seafood, chicken, roast goose, pork belly, pork... and stood there watching the children choose toys...

Zhang Sheng is a person who is very good at finding opportunities. He said: "Why does everyone say that Moutai is the king of stocks?"

"It's very simple. King means the highest status! Moutai has been the highest price of A-shares for many years in a row. It is not the king of stocks. Who is the king?" Yuansheng said.

"There are more than 5,000 stocks in the A-share market. It's a bit embarrassing to tell why a wine company has been at the top of the A-share market all year round. Look at the American stock market. The top stocks in stock price and market value are all in the technology category. What a shame! "Zhang Sheng hates that iron cannot become steel!

Yuan Sheng smiled: "The first reason is that if other stocks don't give away shares, there may be a few stocks that can challenge Moutai's stock price, and Moutai is very smart. In the past 10 years, its stock price has been high, and it has never given out shares. A stock only pays cash dividends, so its stock price cannot drop. For other stocks, 10 shares will be given out for every 10 shares, and the stock price will drop by half immediately after the bonus."

"The second reason is that the technological content of listed companies in our country is generally not high, and their ability to make money is even weaker. Look at Moutai, the net profit is expected to be about 62.6 billion yuan in 2022, and the net profit per share is 49.8 yuan, and it will remain the same every year. An increase of more than 20%.”

"Let's assume that if one of our A-share high-tech stocks earns a net profit of 62.6 billion per year, a net profit of 49.8 yuan per share, and can grow by more than 20% every year, then it will not be difficult for its stock price to surpass Moutai!" Yuan Sheng said.

Zhang Sheng nodded: "Yes, among our technology stocks, there are very few that can earn a net profit of 2-3 yuan per share, and most of them can only be prosperous for a few years before going downhill, and each year is worse than the last. Why? How can Moutai survive more than 20 years since it was listed on August 17, 2001 and has increased more than 500 times?”

"It's very simple. If you look at the A-share listed companies, there are more than 5,000 listed companies. Which one's products cannot be obtained by ordinary people at ex-factory prices? Only Moutai!"

"The ex-factory price of Moutai is 998 yuan, and the recommended retail price of Moutai is 1,499 yuan. Ordinary people don't even think about these two prices! Many businessmen want to purchase goods at this price, and they have defeated two chairman of the board by giving away money! At present, these two Moutai chairman are living in prison. We ordinary people can only go to the store and spend 2,600-2,800 yuan to buy it."

"If someone gives you a box of Maotai, 6 bottles in total, but you don't drink it, and the whole box is sold to a private store, he will give you 2,200-2,400 yuan for recycling a bottle; if it is a single bottle, his recycling price is about 2,100-2,100 yuan. -2200 yuan."

"If you can buy it at ex-factory price or suggested retail price, you can make a fortune!" Yuansheng said.

Zhang Sheng was convinced: "Yes, China as a whole now has a surplus of products. In any factory, if you have the sales ability and can sell a large amount of goods, you are a hero! You can get a lot of bonuses! Only Feitian Maotai doesn’t have to worry about selling! And it has done so for more than 20 years! It’s so rare.”

Yuan Sheng said: ""In 2006, Lin Yuan was interviewed by China Central Television. He said: He will hold on to Moutai until its products stop selling! On the first day of 2007, it was 328 yuan (resumption price), and now it is 10,050 yuan (resumption price). Moutai has increased another 30 times. "

Zhang Sheng smiled slyly: "Can I still buy Maotai now?"

Yuan Sheng: "You can make a profit by buying any stock at a low price, and you can make a profit by buying Moutai at a low price. However, Moutai's glorious period has passed, and the subsequent stock price cannot reproduce the glory of the past. Therefore, it has risen more than 500 times. Maotai is not a good product for research, speculation, and investment. Just like 1978-2014 are the golden years for buying a house. The earlier you buy, the more you will earn. Wait until 2019 before buying a house or speculating. It’s too late to buy a house. The reason is that house prices have already risen over the past few decades and are no longer a good investment. The same is true for Moutai!”

The children all chose their favorite toys. Yuan Sheng and Zhang Sheng paid the money and drove home... (To be continued)

PS: Today is New Year’s Eve, I wish my readers a happy New Year! May everything go well and make you a fortune in the Year of the Rabbit!

I'll try to write a chapter tomorrow.