Key Points Summary of 'How to Select Growth Stocks'

If a company is still in its startup phase, investors can only speculate—based on its business plan blueprint—about potential problems or strengths it might have; such speculation is far more difficult than observing established, mature companies. The success rate of truly outstanding companies emerging from the startup stage is extremely low. Young, entrepreneurial companies are often led by one or two individuals with exceptional talent in operations—but they inevitably lack other indispensable capabilities. They may be inventors or production experts, yet remain completely unaware that even the best products require sophisticated marketing. Investors generally cannot convince these individuals that they themselves lack complementary skills, nor can investors point out where such needed talent might be found. Startup companies should be left to professional investment institutions. Such institutions possess strong management expertise and can provide timely support as soon as weaknesses emerge during the company’s early development. Do not overlook high-quality stocks traded over-the-counter (OTC). Third, do not buy a company’s stock simply because you like the tone or style of its annual report. Fourth, do not assume that a high P/E ratio necessarily means future earnings growth has already been fully priced into the stock. Fifth, do not quibble over minor price differences. Once you’ve identified a stock you truly believe in, avoid using limit orders when buying—instead, buy at the market price. Paying slightly more is trivial compared to the profits you’d forfeit by failing to acquire the stock altogether. Chapter 9: Five Additional ‘Don’ts’ for Investors. First, do not overemphasize portfolio diversification. Putting your eggs into too many baskets inevitably means many eggs won’t land in good baskets—and once placed, you cannot possibly monitor all baskets constantly. Buying shares of a company you don’t thoroughly understand is often far riskier than holding an insufficiently diversified portfolio. If you hold stocks in highly cyclical industries, their prices will swing dramatically with economic conditions—so higher diversification is necessary to achieve balance. If your investments are limited to fundamentally sound large-cap companies—and you select growth-oriented stocks among them (e.g., Dow Chemical, DuPont)—aim initially to hold at least five such stocks. Note, however, that their product lines should overlap only minimally. If investing in relatively early-stage startups, allocate no more than 10% of your total capital to any single such company. If investing in high-risk small-cap companies, allocate no more than 5% of your total capital to each. Second, do not hesitate to buy stocks amid fears of war. Throughout the 20th century—with only one exception—the U.S. stock market plunged sharply whenever large-scale wars erupted anywhere in the world. Yet after each actual war concluded, most stock prices ended up substantially higher than before the war—even higher than pre-war levels anticipated during the period of fear. Over the past 22 years, there have been at least ten international crises raising the specter of major warfare. Each time, stock prices tumbled sharply amid war fears—only to rebound strongly once those fears subsided.

A Massive, Massive, Massive, Massive, Massive Bull Market in Global Bank Stocks

In yesterday’s article comments section, a reader shared names of value-oriented fund managers—including Yang Jinghan and Huatai-PB New Financial & Real Estate Fund. Yet today, virtually all top-performing financial and real estate funds hold almost no real estate stocks. Instead, they’re predominantly invested in bank stocks—with insurance and securities firms as secondary holdings. Otherwise, they couldn’t possibly have delivered such strong performance. The ‘Big Four’ state-owned banks have surged dramatically. Starting this week, heightened market volatility followed hawkish remarks by Wally (likely referring to Fed official Christopher Waller) over the weekend—causing banks, PetroChina/PetroChina (‘Two Oil Giants’), and coal stocks to jointly serve as hedges against market turbulence. Coal stocks began falling sharply yesterday—having risen too much, and further coal-price increases could trigger regulatory intervention (a tongue-in-cheek reference to China’s ‘A4 paper’ policy). Today, despite surging oil prices in U.S. markets overnight, the ‘Two Oil Giants’ plunged—purely baffling. Only bank stocks—especially the Big Four state-owned banks—stepped up alone to stabilize the market. (Storage remains key!) Yesterday, Bank of China hit an all-time high in share price. Since 2021, every Big Four state-owned bank has delivered over 100% gains. It’s truly fascinating: six years ago, the dominant narrative was China’s unstoppable consumption upgrade—a grand epic driven by its massive population. Today, that story has given way to narratives of peaking population and deflation. And yet, businesses once dismissed as ‘low-quality’ have delivered a five-year bull market. Back then, a popular strategy was ‘A-share consumer stocks + U.S. tech stocks.’ These days, it’s evolved into ‘A-share dividend-yield stocks + U.S. tech stocks.’ While A-share bank stocks enjoy a powerful bull run, global bank stocks are simultaneously experiencing a massive bull market—whether listed in Hong Kong, Europe, Japan, or the U.S. A Massive, Massive, Massive, Massive, Massive Bull Market in Global Bank Stocks Though lacking a clear, unified global industry trend like technology or liquor sectors, bank stocks across major markets still exhibit strong price correlation. 1. Top performer: Italy’s UniCredit Bank—total return (including dividends, adjusted for reinvestment) reached 10x. We all know Europe’s economy is sluggish, largely absent from the current AI revolution, and mired in challenges—from immigration issues to the Russia-Ukraine conflict. Yet look at its banking sector: Spain’s Santander Bank, Netherlands’ ING Group, Germany’s Deutsche Bank, Switzerland’s UBS Group, and France’s BNP Paribas—all delivered solid price performance. HSBC, listed in Hong Kong and sharing identical shareholder rights with its UK parent, soared over 450%. Compared to the U.S. market’s tech- and growth-heavy composition, Europe lacks prominent tech stocks—but does host globally operating giants in consumer staples and finance. Thus, in Western markets, indices like the Nasdaq and S&P represent growth, while European equities broadly represent value. 2. U.S. financial stocks aren’t standout performers here—but Canada’s Royal Bank of Canada and Toronto-Dominion Bank, along with Australia’s Commonwealth Bank, posted equally impressive gains. 3. Asian bank stocks are also in a full-blown bull market. Japan’s Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group rose roughly 8x and 7x, respectively. South Korea’s KB Financial Group gained 400%—not matching Samsung or SK Hynix, but still highly profitable. Singapore’s DBS Group rose 350%. Hong Kong–listed Big Four banks—Agricultural Bank of China, Bank of China, China Construction Bank, and Industrial and Commercial Bank of China—are self-evident winners. Yet compared to peers above, they seem comparatively modest. Globally, aside from India—which entered a major bear market over the past two years, dragging down share prices—virtually every well-known bank stock worldwide has enjoyed a robust bull market. So while domestic bank-stock rallies in China are certainly driven partly by insurance-company allocations and dividend-seeking strategies, I believe deeper, globally synchronized forces—beyond mere capital flows—are also at play.

RBC cuts target for DuPont stock from USD 176 to USD 160

Oct 20, 2026

RBC Capital lowered its DuPont price target to $160 following Q2 revenue growth of 4% and a 48% rise in adjusted earnings per share. Investors await Q3 results to assess valuation amidst a high trailing P/E ratio.

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