Generally speaking, choosing a good stock is the key to get a good return, and choosing the leading stock in the industry will undoubtedly be the most important. China stock market has been established for more than 20 years, and the stock index has been ups and downs. Although the proportion of making money from stock market investment is relatively limited, as long as it is based on low valuation standards and held for a long time, it can not only resist the risk of stock market adjustment, but also obtain good returns. For example, in the 1990s, ZTE, Salt Lake Potash, Shenzhen Development, Yunnan Baiyao, etc. built warehouses in Shandong Gold, Admiralty Gold, Kweichow Moutai and Baotou Steel Rare Earth. Around 2005, long-term investors can still outperform the market even if the market has undergone a bull-bear transition. Personally, this is a rigorous analysis and research on fundamentals, policies and macroeconomics, which can be summarized as follows: First, listed companies are in sunrise industries or monopoly industries and have certain advantages in resources, technology, brands and property rights. Second, the gross profit margin of listed companies' products is very high, or at least higher than the average level of similar products in the same industry. Take the gross profit margin level as an example, the pharmaceutical industry is better than 65%, the wine industry is higher than 50%, and the tourism industry is higher than 70%. Third, the asset-liability ratio should be about 65,438+00-30% lower than the average of the same industry, the funds can be withdrawn quickly, the cash flow is abundant, and the return on net assets should be more than 65,438+00% higher than other competitors in the same industry, which has a leading edge. Fourth, enterprises have strong ability to resist external risks. For example, domestic enterprises, products or technologies should be in the upstream of the industry, while low-end enterprises or industries have certain dependence on their technologies, products and resources, and they are indispensable. Export-oriented enterprises have a good foreign exchange settlement system, especially those that can resist exchange rate risks. Fifth, the products or resources sold are generally upward in the macro climate, and the demand is strong. In terms of industrial policy, it belongs to the key protection object in the policy of "keeping pressure". Sixth, enterprises have flexible and free pricing power, are not subject to government-directed price limits, and are not included in windfall tax.