Chapter 32: Spike House Prices

January 14, 2023 is a Saturday, and Yuansheng is reviewing stocks at home when the doorbell rings.

When I opened the door, I saw that it was Zhang Sheng again, carrying two bottles of Moutai and a big bag............ "This is a product of Ma 7 Ji, it tastes good, bring it to you to taste." Zhang Sheng said with a smile.

"Come in, and you can get a few packets of Qianliufu's bacon back in the afternoon........ If you come and go, we will drink wine together at noon.

"Okay, yes!" Zhang Sheng smiled, his face full of impropriety.

They went to the study and talked about stocks.........

Zhang Sheng was puzzled and asked: Most people lose money in stock trading, why do 210 million people have securities accounts so far?

Yuansheng said with a smile: This is the cumulative account that has been owned since 1990, and now, it is good to have 40 million people who are really active in the stock market. Many people have set it and haven't opened their accounts for several years.

"Yes, I know an acquaintance who hasn't bought or sold stocks for five years......... Mr. Zhang said.

Yuansheng said: The magic of the stock market lies in the fact that no matter at any time, no matter how sluggish the market is, there are always bull stocks that rise against the trend and provide opportunities for smart people, so it is attractive and endless.

You look at the stock of Shenhua Holdings, which opened at 2 yuan on July 14, 1994 and closed at 8.03 yuan, the most amazing thing about it is that if you use the review price, you will find that on July 14, the day was minus 166.8 yuan to open, and it rose to 43491.45 yuan (compound price) on June 15, 2015.

Negative 166.8 yuan to 43,491 yuan, because there is a negative number, it is inconvenient to calculate, if we open at 1 yuan, the increase is 43,000 times, assuming it is 0.1 yuan to open, the increase is 430,000 times, assuming it is 0.01 yuan to open, the increase is 4.3 million times............. So, you bought Shenhua Holdings at the opening on July 14, 94, and sold it at the highest point on June 15, 15, making more than 4.3 million times.

Look at how many businesses in the world can increase by 4.3 million times in just 21 years? It should be very little.

Looking at the most admired real estate investment by Chinese people, has it risen 4.3 million times in 21 years? There should be no, therefore, the real bull stock rise can completely kill the increase in house prices, in the coming years, Yuansheng will review the history of the big bull stocks one by one, everyone knows that the rise of more than 500 times of Moutai stocks, there are also more than 10,000 times the increase of love shares (has been delisted)...........

Zhang Sheng: "In the stock market, most people like to hunt down popular stocks that have emerged and everyone knows, is this the right way? ”

Before answering your question, let's take a look at a true story (the name will be changed so as not to cause trouble), Yuansheng said-------

"Biya makes his own car? Are you crazy! If you do, we'll polish Bia's stock! ”

In 2002, when institutional investors learned that Wang Niuren wanted to build a car, they called him angrily.

But Wang Niuren has made up his mind, and he has become the world's battery king, and he is about to start a new and hopeful journey.

Twenty years later, those investors who had opposed Wang Niu Ren regretted it. Under the leadership of Wang Niuren, Biya will achieve an operating income of 216.142 billion yuan and a net profit of 3.045 billion yuan in 2021.

Its new energy vehicle sales in 2022 will reach 1.8635 million units, surpassing Tesla's 1.31 million units and becoming the new global No. 1 new energy vehicle sales volume.

The outstanding performance promoted Biya's market value to exceed one trillion yuan at one time, becoming one of the very few A-share bull stocks with a market value of one trillion yuan. Wang Niuren is also worth 145 billion yuan, ranking 14th in the "2022 Hurun China 100 Rich List".

Charlie Munger once recommended Wang Niuren to Warren Buffett: "He is a hybrid of Edison and Welch, both a brilliant inventor and a good entrepreneur." ”

Wang Niu people themselves are from a technical background, and they have always respected technology as king and innovation-oriented in BYD, so the engineer culture can prevail in BYD and has continued until now...........

Wang Chuanfu has a great strategic vision and began to invest in the research and development of new energy vehicles at the beginning of car manufacturing. But he is not stubborn, relying on the business transfusion of fuel vehicles, batteries and mobile phone OEM, he finally survived to the moment of the outbreak of new energy vehicles, and his ability to grasp the opportunity is super good!

It's been said that if you want to do something great, you have to do something that takes five, 10 or even 20 years to do.

Wang Chuanfu and BYD are nothing more than that, so they both succeeded!

Yuansheng further said: No matter what industry, you must have an over-the-time vision in order to make a big profit. For example, in any year from 1980 to 1998, if you buy a house in the core areas of Beijing, Shanghai, and Shenzhen, and sell it again in 2017-2019, you are a big winner. On the contrary, when the people of the whole country know that real estate is the most profitable variety, and then you invest in real estate in 2019-2020, most investors will be in front of the trap...........

"Yes, in hindsight, the opportunity is lost..... Zhang Sheng echoed.

"In the stock market, the ability to spot opportunities in advance is more important and the speed of realization is faster, so let's take stock of the bull stocks in recent months......... On July 29, 2022, the opening price of 69.05 yuan to buy 1 million Huada Jiutian, on August 8, 2022, the closing price of 138 yuan was sold, and 1 million yuan has become 1.9985 million yuan, almost doubled. ”

Yuansheng continued: "On October 19, 2022, the opening price was 53.81 yuan to buy 1.9985 million yuan Yongxin Zhicheng, and the closing price on November 21, 2022 was 80.27 yuan to sell, and the funds have become a little more than 4.4 million yuan. ”

"Then on December 21, 2022, I opened at 17.13 yuan to buy part of CommScope Chemical, because it is difficult to buy all the shares of the Beijing Stock Exchange at the opening of 4.4 million yuan, and I will grab the stocks by myself, so I can only buy them step by step, buy on dips, and when it retreats to 16.24 yuan, it can be full, so that its cost is about 16.6 yuan. On December 28, 2012, after seeing 23.29 yuan, the position was cleared, and the transaction could be at least above 22 yuan (closing price). At this time, the capital has become about 6 million yuan. ”

Yuansheng continued: Use the 6 million yuan again, open a full position on January 6, 2023 (or open a full position within 1 minute) of Baili Tianheng, the approximate transaction price is 29 yuan, and the transaction price is about 48.5 yuan before the close of trading on January 13, 2013. In this way, the investment of 6 million yuan has become 10 million yuan.

Look, in just over 5 months (July 29, 2022 to January 13, 2023), through speculation in 4 stocks, 1 million yuan has earned 10 times and has become 10 million yuan. Of course, this is a theory, in practice, a 5 discount is 5 million yuan, and a 2 discount (this difficulty is not big) is 2 million yuan, which has been doubled.

Doubling in more than 5 months, and then using another 6 months to replicate such hype, and then double, 2 million yuan will become 4 million yuan, which is equivalent to a year, you have turned 1 million yuan into 4 million yuan, earn 4 times a year, and you can already kill 99.9999% of shareholders in seconds.

Zhang Sheng sighed: The stock market is such a magical place......... Full of hope, it gives endless opportunities to those who know how to do, and at the same time, it is also a place where the ignorant repeatedly waterloo..........

"Yes, many people in real life in order to do something, or give red envelopes, or gifts to the handler or supervisor......... In this respect he is clear........... In the stock market, he is very picky, always wants to learn from cattle people for free, and communicate in the name of beauty......... In fact, real cattle people are more willing to realize by themselves, or read the information repeatedly, so that they can benefit more........ Therefore, there is a reason why many people have been trading stocks for many years, but have not been able to find a way to make money that suits them. ”

"If he doesn't change his method, he will still achieve nothing in another N years, because the most profitable quantitative institutions now, the outstanding big V, are all teamwork. Quantitative institutions only recruit graduates from famous universities (who can be admitted to famous schools means that they are smart people, and smart people are easy to do anything), and can become the best among the big V, which is distinguished from countless stock speculators, and there must be two brushes. This kind of cattle people are now also fighting in teams (in the Internet era, they are now recruiting cattle all over the country, working separately in various places, discussing stocks, and writing articles)....... You are an ordinary person, but you are alone, why do you fight to win a few people, or dozens of smart heads? Yuansheng said with deep understanding.

Zhang Shengdao said: In any industry, there is always a reason for success, and there is also a reason for failure.......

(To be continued)