Stock market runs faster than the economy by about 6 months, unless it is a sudden event like a "black swan" incident.
Here are some signs of a storm:
The 10-year US Treasury bond yield exceeds 3%, higher than the weekly interest rate of listed companies.
The 10-year US Treasury bond yield is lower than the 2-year US Treasury bond yield, resulting in an inverted yield curve.
The average PE ratio of the stock market exceeds 40 times, indicating that many stocks are overvalued.
The stock market trading volume is increasing.
Everyone is all smiles, showing off how easy it is to make money in the stock market, a major correction is not far away.
The index keeps hitting new highs, with many stocks taking turns to stage fireworks, constantly introducing different themes, causing stocks within the sector to rise.
When several of the above signs appear, it is important to consider storing provisions for a rainy day, waiting for the arrival of a bear market, and being greedy when others are in panic.
Based on the analysis of historical data, the stock market cycle is approximately around 10 years.
When newly built houses remain unsold and a large number of auctioned houses emerge in the market, this phenomenon indicates that ordinary people cannot afford loans, hinting that an economic recession is approaching. If the economy falters, the stock market will also be negatively impacted.

Net cash companies have relatively low risks.
Except for finance and utilities, companies in other industries with net cash - debt have good free cash flow.
Having the right people, trustworthy management is important. It is best for the management's major shareholders to hold at least 20% of the shares.
It's best to concentrate investments in 5 high-quality companies, diversify across different industries, then diligently do the homework, track the status of the companies held, and decide whether to continue holding or sell.
The more successful the investor, the less trading they do.
Being burnt in the stock market often leads to overtrading, speculators staring at the quote table, unable to eat or sleep well. Frequent trading only brings mental stress, puts the body in a tense state, and harms health, for that little profit, why bother.
Value investors have plenty of time to engage in activities they enjoy, such as reading, exercising, and spending time with family and friends, while patiently waiting for their wealth to grow.
Short-term investors need to bear the pressure brought by fluctuations in stock prices, which can greatly harm their health.
✨Being able to buy is the apprentice, being able to sell is the master.✨
Long-term investment is not for a lifetime, but a long-term growth. Hold for a long time. When the stock market is overheated, the stock price rises too fast, with a PE ratio of more than 25, and the stock price is seriously overvalued, it's a good time to sell.
If the company's performance deteriorates and the next performance is not expected to improve, or if the performance does not grow QoQ / declines QoQ, it is necessary to sell off the shares.
Investing in dividend stocks is a conservative and safe option...

Buy stocks when they are undervalued, sell them when they are overvalued.
Value investment emphasizes patience and waiting, yet most people lack patience. If we want everyone to choose
1) Immediately eat a piece of cake
2) Eat 3 pieces of cake five days later.
Most people would choose 1) to seek immediate pleasure.
✨Using defense as offense is a low-risk investment strategy✨
Harness the power of compound interest, using time to achieve wealth gradually like water dripping on a stone and sand accumulating into a tower.
In value investing, you can assume that you have enough money to buy a large amount of stocks from a company, are you willing to make the purchase? If the answer is yes, then this company is worth buying.
✨Don't do business if you're not familiar with it.✨
Stocks are similar to business, you should only purchase stocks that you are familiar with, making money within your own circle of competence.
Stock investment is like doing business with others as shareholders. Investing in stocks with the mentality of making quick money will make it difficult to earn money.
🤩 Characteristics of an excellent enterprise
✅ Profit margin exceeds 20%
ROE above 10%.
Possessing free cash flow.
Dividend yield higher than bank FD.
Top 30 shareholders hold over 75% of the shares.

In the past history, approximately every 10 years, there will be a financial storm.
When the media is spreading good news about the economy, we should quickly exit. Because the stock market is very close to its peak, it's cold at the top.
✨When pessimistic news fills the media, it's time to buy✨
Money does not enter the urgent door.
Stock investment is like a marathon long-distance race, it requires step-by-step progress, maintaining a certain speed.
Slow is fast, fast is slow.
Slowly is faster 😉
To get rich in the stock market, it is important to focus on EQ emotional intelligence, because the biggest fatal blow to investment is the losses caused by greed and fear leading to buying high and selling low.
When the stock market falls, doubting life, panicking to sell shares at a cheap price, makes it difficult to accumulate wealth.
Do not blindly believe the target price given by investment banks, think like an entrepreneur, that's what smart investors do.
In the stock market, winners rely on their vision, use their brains, and never rely on the words of experts to get rich by hearsay.
✨Banks and insurance benefit from inflation.✨
Real estate appreciates, new owners borrow more money from financial institutions, but also have to pay higher insurance premiums.
Banks' cash comes from depositors, while insurance companies receive insurance premiums from collection.
Banking is the mother of all industries, as long as the economy thrives, banks and insurance companies will perform well.
📈 When bank interest rates are low, money will flow out of banks into the stock and real estate markets
When bank interest rates are high, the stock market will fall, and money will flow to banks to deposit in fixed deposits.

Profit growth is the driving force behind the rise in stocks.
Having a mindset of investing in buying stocks is equivalent to investing in other people's businesses, but we cannot participate in the company's daily operations.
Companies in the consumer industry that produce daily necessities are generally less affected by economic cycles, because regardless of the economic situation, people still need to purchase daily necessities.
We should avoid products/services that are very similar with no significant differences, as customers will only compare prices, leading to intense competition and thin profit margins.
It is best if the product is in a monopolistic market.
Economic moat.
Patent rights.
Limited licenses, difficult to obtain.
Monopolistic markets, such as hydroelectric power.
Cost advantage, higher production efficiency compared to others, low costs.
Difficult to replace, products/services can be seen/used everywhere.
Cyclical industries like agriculture, metals, semiconductors, autos, and manufacturing will have their ups and downs.
When the PE ratio of cyclical stocks is very low, it may indicate the peak of the cycle.
Do not invest in companies you do not understand.
Focus on researching specific industries, look for industries with no competitors, niche markets.
When a single customer contributes more than 50% of revenue, it poses a risk. If the major customer reduces orders due to pessimistic outlook or chooses another supplier, it will have a significant impact on the company.
Do not stare at the quotes all the time, afraid of missing the buying and selling opportunities. The speculative mood fluctuates with the rise and fall of stock prices, even if there are delicacies, they taste bland.
It's better to miss than to make a mistake.
Use fundamental analysis to follow up on public...

We should do what we can, focus on investing in a few stocks we understand, don't be greedy, throw fishing nets everywhere, want to embrace left and right, and make all the money in the stock market.
A stock portfolio that is too fragmented cannot bring high returns. We should focus on investing in no more than five ⭐ stocks, preferably from different industries, to reduce risk.
You must read the QR and AR reports carefully when they come out.
✨ One minute of cultivation, one point of harvest ✨
Pies don't fall from the sky for no reason. If you want to invest and get rich, you have to work hard to do your homework. You must never think that the tips given by others are accurate, and rely on them to develop.
If you have the right mindset and work hard to study the fundamentals of the enterprise, you will definitely be richly rewarded.
✨ Invest and get rich, don't be impetuous, have whimsical dreams and become rich overnight ✨
There are no shortcuts to investing and becoming rich; you must step by step. Over time, you will definitely reach the end.
Don't use a gambling mentality to invest in stocks. You may be blessed for a moment, speculate successfully, expand yourself, and bad luck later, and it will be easy to throw back everything you've earned.
✨ Flowers don't have a hundred days of red, people don't have a thousand days of good ✨
Good luck cannot last a lifetime; if you don't wake up in time, you will fall sooner or later.
There are no shortcuts to investing; getting rich overnight is a fantasy. Don't believe in secrets that can be developed in the short term; instead, you should follow the steps and slowly accumulate wealth.
✨ BUY LOW, SELL HIGH ✨
Real value investors welcome the arrival of a bear market, provided they have plenty of cash, because at this point they can drop to the ground without much effort...

Investing is not about getting rich overnight, but slowly accumulating wealth.
We should think in reverse, not follow the crowd. When everyone agrees on the stocks we buy, in fact, the stocks we buy are likely to be overvalued, no longer cheap and good quality.
When the stock market is hot, and everyone is afraid of missing out and rushing to buy in, we must sell stocks sensibly and leave the market.
When the bear market comes, everyone panics and sells, we should stay calm, buy boldly undervalued high-quality stocks, and then hold for the long term.
✨Never let greed and fear affect investment decisions.✨
Long-term investment is not about holding forever, it is about looking at it from a business perspective. We only need to buy a few stocks that we understand, have stable and growing performance, and own 5-star companies with moats.
If the stock price has already overvalued the current/future value of the company, or if the company has deteriorated, you should sell/stop loss.
✨Rome wasn't built in a day, don't expect to achieve success overnight.✨
Investment gurus rarely trade, but when they do, they come back with full hands.

The benefits of value investing often lead to longevity, as famous investment masters have lived over 90 years.
The main reason for this is that value investing emphasizes patience, investment results need time to mature. Therefore, these investment masters are calm in their daily lives, have stable emotions, feel little pressure, indirectly leading to longevity benefits.
During the wealth accumulation process, there is plenty of time for enjoyable activities, such as reading, exercising, spending time with family, and more.
Short-term speculators need to bear the stress of stock price fluctuations, which can greatly harm health.
Stock investment is like doing business with others. We must take it seriously and be interested in investing. It is hard to earn a huge fortune in the investment field if you approach it with a quick money mindset.
Only through long-term investment can one become wealthy.
Buy when undervalued, sell when overvalued.

Many investors eager for quick success often adopt aggressive short-term investment strategies when they are young, thinking that being young is an advantage. Even if they fall, they believe they have plenty of time to get back up.
To become wealthy, one must proceed step by step, adhering to the principle of long-term investment that focuses on defense over offense, dreaming of achieving success in one step.
For older investors, capital preservation is more important. The ideal investment approach is to buy blue chip stocks that pay rich dividends annually.