Investing for life, a little trick every day
How long does it take to make 500 million? Google, Apple in minutes!
Today, Futubull dreams and you will be dancing around the world.
First of all, how much does it cost to live well in Hong Kong? Everyone's answer is different, and we count on HK$500 million. So how long does it take for the average person to make 500 million?
It is difficult to save a lot of money just by using artificial labor. But if you invest in some fast-earning company stock and ride a fast car, won't you be able to earn your first barrel soon? Let's take a look at how fast the top four companies with the highest market capitalization are making money in several life-related areas of the US equity market.
*Note: Market capitalization is the data for January 26, 2024. The following time to earn HKD 500 million is only based on an estimate of 2022 net profit. Net profit cannot be guaranteed. Net profit can simply be understood as the money earned in the end. A uniform percentage of the value is calculated in HKD for currency conversion at the exchange rate on the closing date of the results reporting period. A year is calculated in 365 days.
Looking at these graphs, you may have a rough sense: There are differences in the industry, some industries seem to be making money a little faster overall, and some are not. So when you want to find a fast money-making company, choosing the right industry is an important factor.
When it comes to stock selection, a company's monetary performance is an extremely important consideration. By not using a company that is similar to the 500 million speed in the figure above, it does not mean that there is much difference in their ability to make money. At the moment, the speed of the coin is accelerating, it is not surprising how fast it will be. Futubull would like to draw attention to 3 points when it comes to assessing the ability of the coin.
First of all, we can measure our earning capacity from different angles, and we generally focus on gross margin and net profit.
What does that mean? If you want to know the competitiveness of a company's products or services themselves, look at the gross margin.
It is a gross profit after subtracting direct costs from the company's operating income, and then divided by operating income. Net profit is based on gross profit, minus the final profit received after some other expenses, so the net profit ratio (net profit/operating income) reflects the company's final comprehensive profitability.
IN ADDITION TO THESE TWO LEVELS, THERE ARE EPS THAT ANALYSTS OFTEN USE, AND BUFFETT IS VERY CONCERNED ABOUT ROE, AND INDICATORS SUCH AS ROA.
The ideal value of these indicators does not have a clear standard and is strongly related to the industry itself. But it is generally considered that a gross margin of more than 40%, a net profit and ROE of more than 20%, and an ROA of over 10% are better.
However, it is not possible to make a high value of a single indicator at a single point in time, the company's ability to make money is strong. WE ALSO NEED TO EXTEND THE LONGITUDINAL CONTRAST CYCLE TO SEE HOW IT GROWS; WE ALSO NEED TO EXPAND THE SCOPE FOR CROSS-INDUSTRY COMPARISONS TO MAKE A MORE COMPREHENSIVE ASSESSMENT OF EARNING CAPACITY.
How do you look at the extended cycle? For example, for the net profit rate, looking at the annual growth rate during 2018-2022, it would be better to have a higher and more stable growth rate. On this basis, it is possible to combine more information points to predict the sustainability of its growth.
What do you think about expanding the scope? It is possible to combine the different levels mentioned above and the extended cycle view. Pick a few companies within their industry and compare the averages to compare how they perform on key metrics, and what is the level of long-term growth of these key indicators, as shown in the figure below.
Well, Futubull tells you about the contents of the coin today, and hopefully it will help you get to the coin better. What do you plan to do after you see it? Welcome to the language exchange! Visions!