How important is industry research for investment?

From a practical point of view, industry analysis plays an important role in investment, which helps investors quickly complete the preliminary judgment of the company's investment value.

Of course, investing is a big concept. I think it should be divided into two aspects: individual investment and institutional investor investment. Individual investors prefer to invest in a two-tier market.

Aside from those who are well-versed in investing, industry analysts don't do much for other ** investors, and although industry analysis is useful, they don't have time to pay attention.

They may prefer to spend time following trends and rumors. For them, there is no need to conduct in-depth research on an industry, as long as it is enough to be able to judge the fundamentals of an industry by feeling. When I worked in the sales department, I had a very tense relationship between China and Japan, when many people came to the sales department to buy military personnel.

This shows that Xiaofen does not pay attention to the ** industry, but they do not have time to study this industry and lack the ability to learn. They will make industry judgments based on the little information they have on their hands, but they are often inaccurate or do not reflect the value of their investments. Organizations are different, and industry analysis plays a very important role in this process.

Investment managers and investment directors of investment institutions will have some of the industries they are good at and have a deeper understanding of these industries.

In addition, investment institutions will also obtain professional research reports in various ways to deepen their understanding of the industry. For investment, different industries and different stages of the same industry will have different investment values and evaluation methods. Understanding the industry can correctly judge the basic situation of the investment enterprise, so as to improve the success rate of investment.

In addition, the importance of industry analysis can be reflected in the new wealth list of the annual analysts. Every year, the success rate of analysts has increased significantly, which shows that the entire investment landscape values industry analysis. On the other hand, it also shows very little and accurate qualified industry analysts.

I think if you want to invest, from a practical point of view, industry analysis has a considerable impact on investment, which can help investors quickly complete the initial judgment of the value of the company's investment.

I think it should be divided into individual investment and institutional investor investment. Individual investors tend to invest in the secondary market, except for those who know investment professionalsFor other investors, industry analysis is not very useful to them, or although useful, they also don't have time to focus on industry analysis. They may prefer to spend time following trends and gossip.

For them, it is not necessary to conduct an in-depth study of an industry, it is enough to judge how an industry feels. My internship in the sales department was a period of tension, especially during the period of tension between China and Japan. Many people go to the sales office to buy military **.

This shows that the small spread is not about the industry, they just don't have the time to do research and lack the ability to graduate. They make industry judgments based on the few things at hand, but they are often inaccurate or do not reflect the value of their investments.

The second aspect:Institutions are different, and industry analysis plays a very important role in this process. Investment managers and investment executives of investment institutions have several industries that they are good at and have a deep understanding of these industries.

In addition, investment institutions will be able to obtain professional research reports in various ways to deepen their understanding of the industry. For investment, different industries, different stages of the same industry have different investment values and valuation methods, understand the basic situation of the industry and make correct judgments on the proposed investment enterprises, so as to improve the success rate of investment.

I think industry research is not weather forecasting, but the researcher's judgment of the industry. I think the importance of paying attention to industry research depends on what type of investor you are, or what you are investing in.

A good investment starts with industry research, which is a map, pointing out the demand, the driving force of industry development, market size, business model and competitors.

In the case of unfamiliar industry, it is not advisable to conduct due diligence or invest in the enterprise. To become a professional investor, doing industry research is the first step. Industry research provides the beginning and foundation of everything in the early investment process, and is the basis for all early investments, which can help investors understand the boundaries of the industry and choose the subdivided industry.

First, the purpose of industry research.

1. Understand the problems or needs to be solved by the industry;

2. Understand the scale of the industry and the stage of development it is in, and judge the timing of intervention;

3. Analyze the various factors and degrees that can promote the crackdown on the industry to judge the value and risk of investment;

Second, industry selection.

Doing industry research does not mean that every industry should be studied in depth, but should be selected from several aspects:

1. The industry you choose is what you like and are interested in, or at least it is not contradictory.

2. The selected industry must be large enough, with sufficient capacity and output value, and the industrial chain is long enough.

3. Steps of industry research.

Clause. 2. Conduct in-depth interviews with founders, industry practitioners, and researchers in related industries. This is an important source of first-hand information.

Clause. 3. Sort out the general laws of industry development, value chain and core data of the industry, including the situation of the industry at home and abroad, the practices and conditions of foreign benchmarking companies, the industry chain situation, the profit situation, and the market size, growth rate, and competition concentration.

Clause. Fourth, put forward the industry's best views or industry consensus conclusions. The purpose of industry research is to guide investment practice, and it is necessary to put forward one's own views and judgment on trends.

Clause. 5. Continue to pay attention and review in a timely manner. In the face of the industry you are concerned about, you need to update it in a timely manner and iterate on important information and opinions.

Fourth, the structure of the industry research report.

The industry research conducted by early-stage investment does not need to form an industry research report for each field of research, and the key is that the conclusions drawn can guide practice. Generally speaking, a complete industry research report mainly consists of three parts:

1. An introduction to the history and origin of the industry, the current situation of the industry and the development of the industry that can be foreseen.

2. After research, data collection and data analysis, the introduction of the endogenous environment of the industry, the external conditions, including the situation of competition in the market, the strength of the policy, the constraints of the law, etc., as well as the development and changes of the industry so far.

3. The business model, industry barriers and competition of the industry (find out the most valuable enterprises in the industry and study their investment value).