Recently, there is a popular movie – Hidden into the dust, the biggest feeling for Xiaobing is that “it is not the suffering that is terrible, but the rich suck the blood of the poor in turn.”
Putting it in the stock market, is it not like this? We thousands of retail investors are not the stockholders’ version of horses with iron, living frugally, chasing hot spots in the stock market, playing the board, always by luck, I am the one who runs fast , but the result is that the capital is still subsidized with labor income. How unfortunate, maybe we Xiaosan should try to think like a famous investor.
Buffett spent about $1.3 billion to “buy the bottom” of the global chemical giant BASF. BASF’s current total market value is $38.5 billion, with a shareholding ratio of more than 3%. It is highly likely that it will continue to increase its holdings. Continuing to walk out of the bull market, Xiaobing believes that Buffett’s investment in BASF may be based on the following points:
1) He is optimistic about the future energy stock market, chemical industry is a pro-cyclical sector in the downstream energy sector, energy rises, and its prosperity is improved;
2) Chemical industry involves all aspects of life. As the world’s largest chemical company, its anti-risk ability should be very strong. The European natural gas problem just gave a good opportunity to enter the game at a low price;
3) BASF invested 10 billion euros to build an integrated petrochemical base in Zhanjiang, Guangdong. Its core purpose is to seize China’s advantages in the chemical industry and supply global partners.
Buffett’s two major works in China, PetroChina and BYD, have achieved extraordinary success. Wanhua Chemical, known as China’s BASF, is likely to take this opportunity to get out of the market. In the past two years, all listed companies that Zhang Lei has invested in have announced the news. Afterwards, they all ushered in a big rise. Xiaobing was most impressed by GCL-Poly Energy. Zhang invested about 1.1 yuan, and it rose to 3.8 yuan in January 2021. Institutions in my country have always followed blindly, and Xiaobing believes that this time is no exception.
Wanhua Chemical is not only a Buffett concept stock, but also has its own catalyst. MDI and TDI have risen by about 3,000 and 4,500 respectively in the past month. The core is also a European problem. In the cold winter of this year, the two are very likely to reach more than 25,000. , Wanhua Chemical will have a production capacity of 3.65 million tons of MDI and 800,000 tons of TDI next year. Its unit production cost is only 11,000 yuan, and its net profit per ton may be as high as 10,000 yuan. The net value of its polyurethane segment may exceed 40 billion yuan. In the new material sector, many production capacities have broad development space. If eventual factors push up, the net profit of Wanhua Chemical may reach between 40 billion and 50 billion next year, and the company’s flexibility is extremely high.
Hold Wanhua Chemical and embrace a bright future!
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