Stock investment is essentially the selection of a business model. Some industries may not appear glamorous in their business models, but they are actually quietly making a lot of money. On the other hand, some industries may seem impressive on the surface, but in reality, they struggle to make profits. As the saying goes, a man fears entering the wrong profession, and a woman fears marrying the wrong man.

For example, in 2023, the A-share listed company Shilan Micro realized a net profit attributable to the parent company of -35.78 million yuan, marking the first loss since its listing 22 years ago. In terms of dividends, the company did not distribute cash profits in 2023, nor did it convert capital reserve funds into additional capital or distribute in other forms.

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Some investors expressed dissatisfaction: "May I ask your company, after being listed for more than 20 years, raising more than 9 billion yuan in financing, and distributing only 500-600 million yuan in dividends, is this how Shilan Micro repays investors with your actions and measures?" At the performance meeting, an investor "questioned" the low dividend ratio of Shilan Micro. In response, the company's senior executives said, "The semiconductor industry is still very hard."

The semiconductor industry appears to have a broad development prospect and belongs to the high-tech industry. However, the competition is also very fierce. Listed companies in the semiconductor industry must invest a large amount of funds in research and development every year, otherwise, they will be eliminated by competitors. Originally, they didn't make much money, and they still need to invest heavily in research and development, so naturally, the money that can be distributed to shareholders is not much.

In contrast, some industries make money much more easily. A few days ago, I saw a young man who works in a crematorium and helps people with tomb-sweeping as a side job, making 700 yuan in just half an hour. He only works two days a week, and the rest of the time is freely disposable. What technical difficulty does this job and industry have? It must be profitable every year. What else do you need a bicycle for?

If I had to choose between being a shareholder in a semiconductor company and a company like this, I would definitely not choose the semiconductor company. Who knows when the semiconductor company will be eliminated by competitors due to fierce competition? This is the reason why a certain financial big V chooses to invest in Fushou Garden. There are also the game industry that makes players unable to stop, and the liquor stocks that are easy to get addicted to, which are all his heavy positions.

I personally highly agree with the industries he has chosen. These seemingly unremarkable industries are actually industries that make a lot of money quietly. It is very easy to make money from children, women, and the elderly. Stock investment, to some extent, is to make money by utilizing human nature.

Recently, my son participated in the civil service training and paid 980 yuan after only a few lessons. If he is admitted, he will have to pay another 8,000 yuan to the training institution! This is a legitimate robbery of excessive profits! Under certain historical backgrounds, some industries are obviously much easier to make money than others.

Therefore, in my eyes, the good industries include the game industry, cosmetics industry, pharmaceutical industry, health product industry, funeral industry, tobacco and alcohol industry, and training industry. The real masters of stock investment pay great attention to these seven industries and sectors.These industries are characterized by high profits, certain competitive barriers or franchises, high input-output ratios, abundant cash flow, simple and understandable business models, and generous dividends, making them very suitable for ordinary people to invest in. This is also what Buffett said: "The reason we have been very successful in investing is that we focus entirely on looking for 1-foot fences that we can easily cross, and avoid those 7-foot fences that we are not capable of crossing."

In other words, when investing, one should choose companies with simple and understandable business models and avoid those that are complex and difficult to understand. Only in this way can the certainty of investment success be relatively high.