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, exhibiting an interest rate inversion.
The average PE of the stock market has exceeded 40 times, indicating that many stocks are overvalued.
The trading volume of the stock market is increasing.
Everyone is in high spirits, showing off in the stock market makes it easy to make money, a major correction is not far away.
The index continues to hit new highs, many stocks take turns performing, constantly introducing different themes, causing stocks in the sectors to rise.
When several of the above signs appear, it is necessary to consider preparing for a rainy day, waiting for the arrival of a bear market, and being greedy when others panic.
According to historical data analysis, the stock market cycle is approximately around 10 years.
When newly built houses are not attracting buyers and a large number of auction houses emerge in the market, this phenomenon indicates that ordinary people cannot afford loans, suggesting an economic downturn is imminent. If the economy does poorly, the stock market will also be negatively affected.

Free Cash Flow is more important than EPS.
Avoid companies with one-time contracts unless they can secure recurring orders from the same customers.
🤩 Growth stocks in adolescence generally come from rapidly growing small and medium-sized enterprises, but these companies distribute less dividends.
🤑 Mature companies in middle age transition from rapid growth to stable profitability, typically distributing high dividends as blue chip stocks.
Buy/sell stocks
Buy
🎯 Prepare > Identify 5-star companies worth investing in
🎯 Endure > Patiently wait for the desired stocks to drop to the lowest point
🎯 Be decisive > When adjusting close to the low point, act quickly, buy in 5 batches at different price points
Sell
🎯 Preparation> During the peak of the bull market or when the stock price exceeds intrinsic value
🎯 Endurance> Patience to wait for the best selling time
🎯 Ruthless> When the bull market is nearing its peak, act fast and sell all stocks in different batches at different price levels

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...

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...

✨ Invest not to become rich overnight, but to slowly accumulate wealth ✨
We should think backwards and not go with the crowd and go with the flow. When everyone agreed on the stocks we bought, in fact, the stocks we bought were probably overvalued and no longer cheap and beautiful.
When the stock market is bustling and people are flocking to buy in for fear of missing out on opportunities, we must rationally sell stocks and leave the market.
When a bear market hits, everyone is afraid to sell. We should keep up the deal, boldly buy undervalued high-quality stocks, and then hold them for a long time.
✨ Never let greed and fear influence investment decisions ✨
Long-term investment is not about holding for a long time; from a business perspective, we only need to buy a few 5-star companies that we can understand, have stable growth in performance, and have moats.
If the stock price overreflects the value of the company now/in the next few years, or if the company has deteriorated, you should sell/stop losing.
✨ Rome wasn't built in a day; I want to go to heaven one step at a time ✨
Investors usually seldom trade, but once they take action, they all return home with a full load.

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.