In the near futureWorldseriespokerThe fall in the share price of Nvidia has attracted the attention of many investors and has been discussed by many people. However, Dago was attracted by a story about how he made a hundredfold money on Nvidia, that is, O'Keefe 's investment in Nvidia.
In fact, there are many investors who make money on Nvidia, but there are very few who can make more than 100 times as much as O'Keefe.
Dago summed up the process of O'Keefe 's investment in Nvidia, which began in 2013 when no one was interested. At the time, Nvidia was positioned by O'Keefe as a financially sound company with a dominant market share, and many of Nvidia's valuations at the time seemed inexpensive, such as a price-to-earnings ratio of only 14 times earnings, but had a compound growth rate of 20 per cent over the past decade and the company was buying back shares.
It can be found that when O'Keefe bought Nvidia, the valuation was very cheap relative to the growth rate.
The most commendable thing, however, is that O'Keefe has been holding for a long time after buying, which is inseparable from his continuous tracking of Nvidia. Because when O'Keefe first bought, I didn't think Nvidia had a hundred times the potential.
However, in the process of holding, O'Keefe saw the application field of Nvidia products, from the high growth of the game field, began to expand to other areas, including in-car computers, deep learning and so on, especially in the field of deep learning. After seeing these changes, O'Keefe increased its position in Nvidia in 2015.
Interestingly, however, when people's enthusiasm for Nvidia grew and nearly 90% of analysts suggested buying the stock, O'Keefe suggested selling Nvidia and downgraded its position, the biggest reason being that Nvidia's valuation was very high.
Dago summed up that O'Keefe 's buying and holding of Nvidia began at a cheap price, continued with the continuous expansion of Nvidia's product applications and excellent financial performance, and reduced its position when overvalued.
Today, Dago counted the 100-fold data of A-shares. Since listing, more than 120 companies have risen more than 100 times from low to high, covering a wide variety of industries, involving about 25 industries, with a relatively large number of companies in the pharmaceutical and food and beverage industries. However, looking for clues from the industry may not provide enough logical support.
However, when these companies generate a hundredfold increase, they all have one thing in common: operating income and net profit continue to grow. Although its hundredfold increase is due to the increase in valuation, it comes more from the continued improvement in performance, which is consistent with Nvidia. And the 100-fold increase from low to high is basically more than five years.
In addition, three of the stocks that have risen a hundredfold have been ST, and there is no shortage of individual stocks in the real estate industry. These stocks have all declined significantly in the past three years. If you fail to sell at the top of the stock price, even if you buy at the low point of the stock price, you will not be able to generate a high return in many cases.
It can be seen that the most important principle of looking for 100x shares is to find a company with sustained high growth and high return, while to generate a hundredfold return on 100x Niu shares, you need to keep track of it. With the follow-up study of stocks, the industry and companies will gradually change their perceptions and views, so as to adjust their positions.
Here, I'd like to share with you some ideas from a recent book on how to find a hundred-fold shares:
1. Growth, higher growth. A hundred-fold share means a compound growth rate of 25% for consecutive years.
2. The multiple of preference undervaluation must be weighed between price and other factors.
3. Moat is a necessary condition. Hundred-fold shares require a high rate of return on capital for a long time. The strong moat is the barrier for the company to get high profits.
4. Do not invest in companies with large market capitalization. If you start with an acorn, you will reap an oak tree; if you start with an oak tree, you will not reap the same amazing growth. Although it is not a necessary condition, searching for 100x shares in small companies is more likely than in large ones.
5. Great investments take time. Even the fastest hundred-fold shares take five years, and more commonly, 20,25. Investors need to overcome their impatient nature and not indulge the strong impulse to "take action" and want to "do something".
To tell you frankly, Dago himself does not have such a hundredfold holding case, so I also want to follow up and hold such a hundredfold stock by learning the case of O'Keefe. Investment requires lifelong learning. There are always dreams. What if they come true?
All right, let's get back to the market. In fact, the recent trend of the Shanghai Composite Index makes people feel quite boring, it is always a range shock, there is nothing more to say. The focus of attention is still the breakthrough direction of interval concussion.
With regard to the long-term direction of the market, Dago's view has always been very clear. Of course, you can also refer to the articles of Brother Po and the second elder brother, and you will certainly get some different inspiration.
In terms of plates, many of the sectors with the highest gains yesterday, such as communications, computers, gold, etc., are on the decline list today, while medicine, which was relatively weak yesterday, is on the list of gains today. During the concussion market, this is an obvious feature of plate rotation. When there is no obvious driver, the persistence of ups and downs is poor.
Bank stocks strengthened this afternoon, when it strengthened, most other sectors have a significant decline, indicating that the siphon effect of funds is still relatively strong. The banking sector has been adjusted for three or four days, and the trend of this plate is related to the breakthrough direction of the market.
Today, the two stocks led by the banking sector, the Bank of Chengdu (601838) and the Bank of Jiangsu (600919), both set new highs for nearly a year. These are the city commercial banks with high performance growth. Do you still remember the rhythm of the banking sector that Dago said before? First there are big state-owned banks with less risk pressure, followed by banks with excellent performance and high growth, and finally other banks. At present, the whole is in accordance with this rhythm.
One of the plates that has been strong for the past two days is airport shipping. The airport shipping index hit another high for the year today.
The logic of airport shipping is relatively clear, as explained by Dago yesterday.
The two stocks that led the gains today, Shenzhen Airport (000089) and Huaxia Airlines (002928), have released first-quarter results. The offensive line of funds is still relatively clear, that is, the direction of improvement and landing in the first quarter.
Most individual stocks in the aviation and airport sector have not yet released first-quarter data. The key to whether the sector can continue to strengthen in the future depends on the subsequent performance of other individual stocks.
