Okay, here is the translation following your instructions: Security Analysis Practice

Author: Lin Senchi
Publisher:
Publish Date: 2005-10-01
Features: Smart investing relies on fundamental analysis. Whether institutional or individual investment, referring to and learning from the accumulated knowledge of predecessors is an indispensable gateway for those who aspire to be masters of capital. In the stock market, many see the trees but fail to see the forest; those who possess the ability to see both trees and the forest are rare and highly valued, serving as role models for others. —“Jiangxiang Pen,” the authoritative financial commentator Lin Xingzhi, Lin’s Practical Securities Analysis is a must-read for aspiring stock traders and investors. Its clear and meticulous thinking, when applied to analyzing the notoriously difficult Chinese-related stocks, is truly a blessing for readers! Do your own homework, but referencing its reasoning methods will undoubtedly be beneficial. — Hong Kong Ming Pao
Investing requires learning from the past to understand the present. A sense of history is essential. Mr. Lin’s method of observing and analyzing issues from a historical perspective is worth referencing and learning from. — Dr. Lee Kok-fan, Vice Chancellor of The University of Hong Kong
Overall, the Book serves as a guide for securities analysis, and stock investors can refer to its methods to conduct their own research on companies’ strengths and weaknesses. If put into practice, it is believed that by the time one reaches the “earthy” age, they will have accumulated some wealth, and there will be no need to have three children to provide for old age. They can then retire in peace, and the Hong Kong Special Administrative Region government’s responsibility for elderly care can be significantly reduced. — Hong Kong Ming Pao
Clear thinking, correct viewpoints. The fundamental analysis methods described are more practical than those currently used in fundamental analysis. The arguments are not dry, and the numerous case studies are easy to understand. Using Hong Kong experience to understand the prospects of state-owned enterprises is an excellent starting point. Changes in mainstream investment concepts and the implementation of new national policies all indicate a convergence with the Hong Kong stock market. — Zuo Anlong, a renowned securities program host on the Financial Channel
With over 20 years of investment experience, the author, advocating for quality over quantity, teaches securities investors how to select long-term holding stocks. These “tall horses” have seven key characteristics, the most important being that their businesses are in high-growth regions and that they possess market economy patents. The author provides a detailed analysis of 12 stocks that have consistently been part of the Hong Kong Hang Seng Index over the past 20 years, as well as their economic patents. The author believes that Hong Kong’s high-growth period is over, while China enjoys a prosperous future for decades to come. The Path to Investment takes representative listed companies from China’s six major industries—power, oil, telecommunications, insurance, banking, and highways—as case studies, enabling readers to grasp the steps and tools of fundamental analysis. Through fundamental analysis, readers can thoroughly understand a company’s operations, efficiency, financial condition, and business environment, thereby reducing investment risks.
The three-step process for selecting high-quality companies is as follows:
(1) Consider the macroeconomic perspective: Is the economy in a high-growth take-off phase?
(2) Does the company possess market economy patents?
(3) Use fundamental analysis techniques to thoroughly examine the company’s past performance, various return ratios, cash flow, future prospects, management style, and “intrinsic value.”
When investing in stocks, the ideal buying price is best when it is lower than the “intrinsic value.” The book does not involve any complex procedures, making it understandable for the general public. By choosing high-quality companies for long-term investment, one can achieve wealth.