
看不懂的sol|Apr 13, 2025 06:13
Play the fourth wave of the US stock market! Wall Street Godfather Graham's Selection of High Quality Stocks Hardcore Dry Goods (Conservative)
🚩 1. Sales revenue
• Condition: Sales revenue ≤ 340 million US dollars (subject to appropriate adjustments based on local economic environment and market conditions).
Purpose: To screen out companies with moderate scale and avoid potential risks caused by being too large or too small in scale. Smaller sales may indicate that the company is in the early stages of growth, while larger sales may suggest that the company is approaching market saturation.
🚩 2. Current ratio
• Condition: Current ratio ≥ 2.
Purpose: To ensure that the company has sufficient short-term solvency. The current ratio is an important indicator for measuring the relationship between a company's current assets and current liabilities. A higher current ratio indicates that the company can easily cope with short-term debts.
🚩 3. Long term debt
Condition: Long term debt ≤ net current assets (current assets - total liabilities).
Purpose: To evaluate the long-term financial stability of the company. Companies with high long-term debt may face significant financial pressure, and controlling long-term debt within the range of net current assets can ensure the robustness of the company's long-term debt management.
🚩 4. Long term earnings per share growth rate
• Condition: Long term earnings per share growth rate ≥ 30% (based on total growth rate over the past decade).
Purpose: To identify companies with sustained profitability. A higher earnings per share growth rate indicates that the company has demonstrated strong potential for profit growth over the past decade, which is an important consideration for conservative investors.
🚩 5. Price to earnings ratio
• Condition: Price to earnings ratio ≤ 15.
Purpose: To search for undervalued stocks. Price to earnings ratio is a classic indicator for measuring stock valuation. A lower price to earnings ratio usually means that the stock price is relatively reasonable relative to the company's profitability and has higher investment value.
🚩 6. Price to book ratio
• Condition: Price to earnings ratio x price to book ratio ≤ 22.5.
Purpose: To comprehensively evaluate the valuation level of stocks. The price to book ratio reflects the relationship between stock prices and a company's net assets. A lower price to book ratio typically indicates that investors have purchased the company's net assets at a lower price, thereby reducing investment risk.
🚩 7. Debt to equity ratio
• Condition: Debt/equity ratio ≤ 100%.
Purpose: To evaluate the company's capital structure and financial leverage. A lower debt to equity ratio indicates that the company relies more on its own capital rather than debt financing, which helps to reduce financial risk. For special industries such as public utilities, telecommunications, and toll road companies, the ratio of long-term debt to revenue can be relaxed to a maximum of 230%.
🚩 8. Dividend yield
• Condition: Dividend yield>0 (for 20 consecutive years).
Purpose: To search for companies with stable dividend records. Continuous years of dividend payments indicate that the company has stable profitability and good financial health, which is an important guarantee for conservative investors.
This article specifically thanks OKX for their sponsorship!
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