Core Viewpoint - The article emphasizes the importance of a structured stock selection process, highlighting the need for independent thinking and a clear investment philosophy to identify potential stocks effectively. Group 1: Stock Selection Methodology - The use of stock screening tools is primarily for observing market trends and identifying key phases in stock movements, such as transitions from one stage to another [1] - A systematic approach is advocated, where stocks are prepared in advance based on their expected performance, rather than impulsively buying [1] - The article discusses the significance of understanding market rhythms and using various formulas to identify entry points for investments [1] Group 2: Stock Selection Philosophy - The first mathematical principle of stock selection is "less is more," which emphasizes narrowing down stock choices based on personal investment beliefs, such as focusing on performance growth [3] - The second principle is "compound growth," which suggests that ideal stocks should exhibit minimal drawdowns and consistent upward trends, avoiding erratic price movements [4] - The third principle is the "Matthew Effect," which describes how successful stocks tend to attract more investment, leading to a cycle of increasing returns for those stocks while weaker stocks struggle [5][6] Group 3: Investment Strategies - The article suggests that a focused investment strategy, based on a specific belief system, can lead to more effective stock selection and better overall performance [3] - It highlights the importance of maintaining flexibility in investment positions to adapt to market changes and avoid losses from poor-performing stocks [4] - The discussion on the Matthew Effect illustrates the tendency for stocks that perform well to continue doing so, reinforcing the need for investors to align with strong market trends [5][6]