Mathematics is the basic language for describing the world
Investing is no exception
To obtain sustained excess returns
The subject matter held must satisfy the following formula
( compound growth rate in the next ten years + dividend yield in the next ten years ) / current static PE
greater than 1.5
preferably greater than 2
Determination of ten-year compound growth rate
Must pay attention to business model and moat
10-year dividend yield
Clearly determined by free cash flow, financial condition and the integrity of major shareholders
Static PE is only 2/3 or even half of the sum of the first two (both with % removed)
Indicates that there is a significant expected difference
stick to this formula
Can eliminate more than 98% of the targets
This way you can invest in your spare time
The main business is to accompany the family and enjoy life
Hope this formula can make friends
noise isolation
Focus on value
investment success
Pleasure
$China Gold International(02099)$
$China Property & Casualty Insurance(02328)$
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