Chapter 274：

Once the decoration design of homes, companies and other places is really popular, the future of this industry is limitless. "Chen Yi said more and more smoothly, and his thoughts became clearer and clearer, as if the fog in front of him was gradually dissipating, and he immediately saw things as they were, and Li Shan became happier as he listened.

Chen Yi took a sip of water and continued: "As for why this company's market share is expected to increase in the future, I think so. I probably looked at this company and the industry before. This company is in the industry. The market share of the company is among the best, but even so, the company's market share in the entire industry is less than 3%.

In other words, there is a lot of room for growth. Once the company's market share is increased, the benefits will be self-evident. Not only can there be more orders, more revenue, and more money More profits, as the market share increases, the impact on the market will also become greater. Once it reaches a certain level, it is equivalent to grasping a certain price increase right, so that the price can be increased appropriately. The company's profit growth is also very favorable. "

After Chen Yi finished speaking, he looked at Li Shan, scratched his head embarrassedly, and smiled: "For the time being, I think of so much. Many places may not be perfect. Brother Li laughed, I don’t know if I was right. No? Brother Li, do you see what I need to improve and what needs to be improved?"

Seeing Chen Yi finished speaking, Li Shan nodded and said: "You can think of these are already very rare. In terms of your working time, it is already very good, very good, very good. I was not as good as you back then. In the future, your achievements or in this industry, you must go farther than mine. It's great!" Li Shan gave Chen Yi a thumbs up after finishing talking.

Then he said with a cheek: "What you said was what I thought of when I was researching. I didn't expect your thinking to be so similar to mine. It's great. You are very talented. You can consider developing in the direction of a fund manager in the future. "

Chen Yi laughed stupidly when he heard Li Shan's words, not at all the calm and calm look that he had just focused on analyzing.

Li Shan smiled slightly when he saw Chen Yi smile, but then Li Shan changed his words and continued: "However, you are still a bit young after all. When thinking about problems, some areas are not very comprehensive, and you need to pay more attention in the future."

Chen Yi put away the smile on his face when he heard the words, and looked at Li Shan very seriously: "Brother Li, tell me what's the difference in detail? I will think again and again later, and I will also analyze it later. A lot."

Li Shan looked at Chen Yi's modest attitude, and the old man generally nodded: "It is not arrogant or impetuous, modest and studious, it is good. There is no problem with your analysis framework and thinking, and the details need to be improved.

For example, you only said why the overall cake of this industry will increase and become bigger in the future, but you did not explain why the company’s market share in this market will increase. You only said that the current market share is very high. Low, indicating that there is room for improvement, as well as the benefits and impacts that may be brought after the improvement.

If I’m right, you didn’t understand why this company increased its market share. You didn’t ignore it, but because you didn’t understand it, you deliberately avoided it, right? "

Chen Yi felt a bit hot on his cheeks after hearing what Li Shan said, and his face flushed and lowered his head. He knew that Li Shan was right. He did think of this part and did not ignore it, but because he couldn't understand it, there was no reasonable explanation. , So I deliberately ignored the lack of mention. I didn't expect to be pointed out unceremoniously by Li Shan in front of him, and I was very embarrassed for a while.

But Chen Yi is not a person who does not admit that he is wrong. It is kind to say that others are pointing, and it is meaningless to deny after the problem has been said so clearly, so Chen Yi said in shame: "Yes, Brother Li, you are right. I thought about this a long time ago. I didn't ignore it, but I didn't want to understand it. I didn't know how to say it, so I deliberately ignored it. I will change it in the future and there will be no next time."

Seeing Chen Yi’s attitude of admitting his mistakes so well, Li Shan smiled with satisfaction and continued: “That’s right. We must be objective when we invest in investment. Whatever you should do, you have not been in the industry for a long time, and many things are not clear. It’s normal if you don’t understand, you can ask if you don’t understand.”

Chen Yi nodded and said yes.

Li Shan continued: "Then I will tell you why I would judge that the market share of this listed company will increase."

Chen Yi listened attentively when Li Shan wanted his own thoughts.

Li Shan said: "In fact, the logic is very simple. To put it simply, "the strong are always strong." You just said that this company is among the best in the industry, which means that there are more orders and orders than other companies. More resources and greater competitive advantage, am I right?"

Chen Yi nodded in agreement.

Li Shan continued: "This is more conducive to competition and development. In fact, it is not only this industry, but some of the best companies in many other industries are also constantly increasing their market share, such as the air-conditioning industry." Qualified failures" etc., this is an inevitable phenomenon of the development of an industry, concentrating resources and accelerating development."

Chen Yi asked: "In fact, there are some other companies that meet the requirements in the decoration design industry. Why are those companies not? After all, the stock of this company we bought is only among the best in the industry, and it is not absolutely the first. Yeah. If you say that, wouldn’t it be better to buy some of the top companies? This way, diversifying the funds can also reduce risk."

Seeing Chen Yi's face with doubts and humbly asking for advice, Li Shan felt a little guilty, because he really didn't think about it. After all, these were all for dealing with customers, not his real buying logic. Li Shan was only at this time. I found that Chen Yi was not as cheating as I thought, and it was a bit tricky. Li Shan pretended to smile calmly and said: "This is the cost-effectiveness. Do you know what cost-effectiveness is. When we do stocks, the so-called cost-effectiveness is the risk-return ratio, that is, the possible gains and the possible commitments. The higher the risk-benefit ratio, the more appropriate it is. This is comparable.

When the risk-to-return ratio is similar, as you said, you can buy some to diversify the risk, but when the risk-to-return ratio is obviously different, we will not buy some stocks with a lower risk-to-return ratio. That's why we re In the end, only one company was selected in this industry, and the reason for buying heavily. "

After hearing what Li Shan said, Chen Yi suddenly realized, Chen Yi thought: "It turns out to be like this, cost-effectiveness, risk-return ratio, that's how it is." Chen Yi knows that this risk-return ratio is simple to say, but if you want to compare, you need to fully consider it. When it comes to the various risks that may be encountered and the benefits that may be brought, it is necessary to conduct in-depth research on this listed company, otherwise the risk-to-return ratio obtained will not be used at all.