Mathematical description of investing

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

$China Gold International(02099)$

$China Property & Casualty Insurance(02328)$

$CNBM(03323)$

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