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LegiEX's gains come from both types of stock

Well, LegiEX's returns are in both categories of stock. Many people are curious as to why LegiEX's returns are higher than those of its peers. How is it controlled? How can let yield keep long-term upward.

The secret of LegiEX's earnings:

A: business is good. The performance of such enterprises is high gross margin, high net profit margin, no need to make large investment frequently, no high research and development costs, good business sustainability, in their own industry has obvious advantages. Moutai, for example, just needs to dig a wine cellar and can produce almost indefinitely, without new investment costs. For example, the Haitian flavor industry, only need a large yard, and then purchase soybeans, you can brew not worry about sales of soy sauce. For example, the Yangtze river power, as long as there is water, you can always generate electricity, do not have to buy raw materials, there is endless money every year.

For example, after long-term competition, midea has become a well-known brand with a mature intelligent manufacturing production line. It has become a platform for home appliance brands. Your boss sells good appliances, and midea is 1000 yuan cheaper than you to steal your business.

For example, yili, is also a brand platform, you Muslim is not sold good, I ammoshi have a higher point of return to the channel, because I have money, I beat you to death. The power of brand platforms should not be underestimated. Business is good to do, the characteristics of a lot of, we ordinary people with very common sense can be judged. Its business is good.

Two: business is not doing well enterprises.

The performance of such enterprises includes low gross margin, low net interest rate, frequent large investment, high r&d or sales expenses, low business sustainability, and no advantage in their own industry.

For example, various upstream industries, such as metals, steel and coal, including other raw material industries, and even pig and chicken farming, are generally more cyclical, because they are in the upstream, no matter how the price is, they have to maintain production, so the premium capacity is weak, and the risk is nowhere to be transferred.

For example, the share prices of several giants in the infrastructure industry have also underperformed. Although they have huge revenues, their net profit margins are extremely low, and their final profits are insignificant. Many of them are government-issued ious, which can be said to be helpless and painful businesses. For example, bright dairy in the milk industry has a net profit margin of 3%, while yili in the same industry has a net profit margin of more than 8%. We can imagine how helpless and painful it is to be a bright business, with little profit, little cash flow, and unable to increase the sales expenses.

Business is difficult to do, a lot of characteristics, we just need to know to give up, we can easily filter out 95% of the stock