I. From the industry perspective
1, the stock is located in the industry has a broad space for development, that is, whether the size of the market is large enough, the industry's ceiling there, that is, value investors say the industry's track is long enough, the industry's users there, is a niche field or mass field.
2, the stock is located in the industry's industry in that cycle of development, development or recession?
3. Is there a competitor in the market, what is the competitor doing, what is the stock doing, and what is the stock's advantage over the competitor? Can this advantage be maintained in the long run?
In short, the stock must be in an industry that can ride out the economic cycle, or is less affected by it, such as the food and beverage and pharmaceutical and medical industries.
Two, from the perspective of the stock itself
From the micro stock perspective, we start from the quantitative financial analysis and non-quantitative management, research and development are point of view to determine whether a stock can be held for a long time.
1, stock financial analysis. Mainly focus on the company's profitability, solvency.
2, non-quantitative aspects. Mainly from the company's management is efficient and excellent, with ambitious sentiments, R & D capability is in the industry leading position, invested in R & D efforts and resources and so on.
In short, financial analysis determines the current value of a stock, and non-quantitative analysis supports whether the future is worth holding for the long term.
Summary: the combination of the two aspects, grasp the main contradiction, and finally concluded that the intrinsic value is much higher than the price of the stock's secondary market, then the stock is that there is a long-term holding.
Long-term holding method refers to the selection of high profitability or high growth of the stock, purchased after the long-term holding, not easily thrown out of the method, that is, long-term investment in a certain kind of stock method.
Short-term investment compared with long-term investment, short-term investment, short-term operation only in the stock price rise and fall frequently and have a certain range of significance; and in the continuous development of the economy, the stock price tends to rise steadily (daily rise and fall is limited) stage, the pursuit of the difference between the profit is very difficult and need to pay a considerable fee, it is appropriate to invest in the long term. From the foreign stock market, the stock market, although the ups and downs, but from a long-term perspective to analyze the stock price, you will find that the stock market price up to a certain price, it will be relatively stable, and long-term stock investors tend to benefit from a lot.