Mr. Zhang Lei recounted his own growth experience, from NPC to Yale, all the way to a well-deserved social elite, which is his platform and starting point, has been one step ahead of the norm, which is the result of his efforts during his teenage years. After graduating from NPC and joining Minmetals, the platform of state-owned enterprises gave him the opportunity to have an in-depth understanding of the real economy in the early stage of his career, and allowed him to use this platform to see a broader world abroad, and thus chose to study abroad, embracing Yale, and from then on with the investment of an unbreakable bond. This time, it is the result of his active choice.
The author shares his learning and insights from the process of investing in the small white man to the big brother in the process of beating the monster, read up quite a lot of **** Ming, such as the mentality of learning, long-termism, the pattern of view, character and values, and so on, especially the author believes that "the investment of this cause to the end, reflecting the true nature of your personal and values. " In fact, is there anything that isn't like that? Can penetrate the time cycle and the crowd and all kinds of information fog, to the end of the competition is the character of the people, mentality and pattern, success is admittedly need luck and opportunity to cooperate, but, what kind of person in what kind of way in the pursuit of success, may be the most important.
The following are notes and thoughts from the reading.
***Mercifully.
42 Thoughts
Chapter 2 Value Investing Enlightenment
Being curious and inquisitive about new things, and constantly breaking through one's own inertia
> Keeping yourself open at all times is the most important mindset for learning. Whether it's universal wisdom, basic principles, or unique insights, I'm open to them all. To
>> Keeping yourself open at all times is the most important learning mindset. Whether it's universal wisdom, foundational principles, or unique insights, I'm open to them all. Embracing rather than resisting innovation has become an important theme for my future investments.
New Haven at the crossroads of modern history
Often the goal of learning is not to learn per se, but rather to enrich and refine the system of thinking during the learning process, which ultimately becomes internalized into the characteristics of each different individual and manifests itself in problem solving.
> > The biggest feeling is that once you have mastered the rigorous analysis system, in-depth historical evidence method and complete thinking framework, analyzing and solving problems is a particularly interesting thing
Approaching the Yale Endowment Fund
> > My thinking about investment
- For the "Risk "While most people assess this numbing concept in finance by looking at the volatility of the variance of investment returns, I was asked from day one of my career to look behind the numbers and ignore the standardized variance in the "rearview mirror": what kind of top-down/bottom-up fundamentals were at play? /bottom-up fundamentals are driving returns and volatility? What are the factors that bias expected capital gains? And what are the underlying correlations and linkages between these fundamentals?
- Even though investors have not asked for their money back, we still insist that "it must be returned". This is how we want to thank them for their trust and support. One's career is too long to do anything detrimental to the people who helped you, or that could haunt you for the rest of your life.
"Old Friends" opens
>> It's a time too boisterous to lose, too good to miss, too comfortable to be silent, too daunting to be boring.
Alas, I think I also have these three qualities, just missing a leader
> The first is a good character, the second is the love of learning, and the third is able to suffer.
The "maverick" in the big market
> > A business opportunity should not look at its past revenues, profits, nor simply look at its revenues, profits today or tomorrow, these paper figures are important, but does not represent all. The core of the real concern is, what problem it solves, whether it has given society and consumers to improve efficiency and create value. As long as it is a business that creates value for the society like crazy, its revenue and profit will be realized sooner or later, and the society will eventually give it long-term rewards.
The gene determines that it is not possible
>> Choosing to do value investing is determined by the gene that gave birth to HighTop, and we have been convinced from day one that it is not possible. On the one hand, the boiling era has given value investors a unique expectation for the rise of China based on rationality and beyond rationality; on the other hand, we have a unique history of observing the development of financial markets in the West from a close distance, and we have seen a return to the essence of the spirit of investment in institutional investors, and these years of practical experience and theoretical constructions have undoubtedly set up a very high standard of action for us. Among them, value investment, as a power that can cross the cycle and fog, has become the core of the expression of high level genes.
To be an evergreen fund
At the beginning of our self-reliance, we chose to be an evergreen fund for value investment. Whether then or now, an evergreen fund is a rare model in Asia, but we still insist on doing the right thing for the long term, specifically the following three things.
>> We don't have to do everything. We only do things that make sense.
Chapter 4 Value Investing Methods and Philosophy
>> Investing can generally be analyzed at three levels: industry, company, and management. Look at the industry should pay attention to the business model, what is the nature of this business, what is the logic of making money; pay attention to the competition pattern, is an oligopoly or full competition; pay attention to the growth space, be alert to the kind of sunset industry that has been cribbing; pay attention to the threshold of entry, is not anyone can be imitated; and so on. Look at the company should be concerned about the business model, operating model and process mechanism, how large the management radius, how the scale effect, there is no core competitiveness. Look at the management should be concerned about the founder has a pattern, how the executive force, there is no efficient organization to create thinking and ability, there is no entrepreneurial spirit.
From 20 years of retail research
Precise customer, precise product, precise profit model, not greedy for more, adhere to the focus and long-termism.
> First, Costco's goal is to get its most wanted customers in, and get those people to generate the most spending. So it set its membership fee at $65 to bring in people who actually came in to buy something. This was innovative at the time, and many people even thought it was a scam company. Second, it simplified its supply chain by making only 3,000 inventory holding units in select categories. In this way, the purchasing scale of a single product increased dramatically, larger than Walmart's, which made its goods cheaper per unit than Walmart's. Third, Costco buys goods in at very low prices and sells them to consumers at cost, no longer considering pricing, and the company's revenue comes mainly from membership fees. Interestingly, however, for some items with very low cost prices, consumers don't believe that the price will be that cheap, or don't believe that goods that are that cheap are good, so Costco sets its prices higher than the cost but slightly lower than its competitors' prices. In this way, its revenue comes not just from membership fees, but also from retail price differentials.
Research-driven
> > Instead, it shifted the focus of R&D to improving existing products, and stopped developing new products as a game changer, thus ignoring the opportunity of consumer upgrades
There is only one moat in the world
Upgraded Competitiveness
> If one can innovate continuously amidst the changing tides of the times and the market environment to innovate continuously, with the ability to jump from one curve to another, we can assume that it has the ability to not
> > Word Jump started from today's headlines, a personalized information recommendation software based on data mining technology, and incubated in a short time Jitterbug, watermelon video, Volcano small video, Fly Book, Wukong Q&A, Tu Bug, Micro Headlines, Tiktok, Flipagram and many other applications. The core of byte jumping is a strong product iteration can
>>. Business competition is essentially to look at the pattern, to look at the value, to think in higher dimensions, from a larger framework, a broader perspective to see what kind of value to create for consumers.
The ecological model of investment
The human factor is the most important factor! I know this very well!
> Evaluation of entrepreneurs have a lot of dimensions, including the height he can reach, that is, the ability; also includes the stability of the ability to maintain the stability, that is, reliability; and more importantly, to create value for society's original intention, that is, there is no meaningful thing to do. For investors, looking at people is doing the biggest wind control, which is more important than financial wind control, as long as the person picked the right person, the risk is naturally small
Chapter 5 Self-cultivation of value investor
> > Engaged in the process of investment, I gradually found that the investment on the one hand, is the search for the truth, exploring the external world; on the other hand, is to seek the tranquility of the mind, and The inner world of observation. I'm afraid it's hard to succeed in investing when you can't win outside and you can't control yourself inside.
Just as many people "know a lot of things but still can't live a good life", there are many truths in investing that have been mentioned repeatedly, but many people still don't understand them when they apply them. For example, "when others are afraid, you have to be greedy; when others are greedy, you have to be afraid," "the price is what you pay, and the value is what you get," "profit is just an opinion, but cash flow is a fact! ""You can only sell cheap if you buy cheap""Never use the cost of buying as the basis for a decision to sell"......
So, value investing is an uncompromising practice, the road is sometimes bustling, sometimes cold and quiet, but has been walking on this road, there are really not many people. Can have more value investors peer,*** with the discussion and consultation, whether for the investment industry or for specific investors, is a good thing.
Chapter 6: Walking with the Great Pattern Viewer
>> The pattern is large, but far away; the pattern is small, but close to also blocked.
Have a long-termism philosophy
>> If you limit your vision to the next three to five years, or focus on a specific business, many people around you are competitors; but if you look at the long term and keep evolving, there are very few people that you can compete with because not everyone is able to plan for the long term. So the biggest value of staying evolved is that competitors will disappear, and you are the real competitor.
Focused execution
>> the spirit of man is not to do a good job, but to do the small things to the extreme, believe that "I am powerful
Choose with whom to travel, more important than the faraway place to go
>> with the discovery of a great business model compared to the great pattern of view of entrepreneurs, entrepreneurs and the courage to travel with you.
It's a great pleasure to work with people who are sympathetic to each other and who are willing to go through thick and thin!
>Taking care of each other
>> The mistakes are made, and in turn, the process of "upgrading and experience" is realized. The biggest risk of entrepreneurial activity itself is to remain unchanged and not dare to take risks, and if entrepreneurs do not take risks, investors are taking the biggest risks.
In fact, innovation is not a risky process. Entrepreneurs should control the risk reasonably, not to blindly risk, but also not the pursuit of zero risk.
> Unchanging
Chapter 7: Organizational Excellence for Continuous Value Creation
> > The journey of a startup has its high moments and its dark moments. In the complex entrepreneurial environment, a positive and optimistic spirit and management culture can keep it from getting into trouble. Therefore, organizational management of startups has gradually become a widely studied and discussed topic. The status quo is that most entrepreneurs spend so much energy on the urgent issues of survival and death that they hardly have extra energy to spend on the internal management of their organizations; at the same time, it is difficult to find a unified and effective management paradigm in various forms of startup organizations. However, there is no doubt that organizational and management innovation is the core driving force for companies to kill off competition, and at some point, it even becomes a key variable in determining the success or failure of entrepreneurship.
In 1912, Frederick Taylor (33), the father of scientific management, proposed the theory of scientific management. At its inception, the language of management originated in the language of engineering, which viewed employees as human resources to be used, organizations as machines that could be accurately adjusted and controlled, and management as something that could be determined, predicted, and planned.
This is probably more likely to be the case in the start-up phase, when a group of people with converging values work toward a goal. But after an organization grows to a certain point, doing nothing is too idealistic.
> In my vision, doing nothing may be a better goal state, where managers provide management principles that fit with the company's culture, rather than mechanical management systems or management tools. Management is no longer about overcoming arbitrariness and disciplining the ineffective and the non-compliant, but about building an energy field suitable for entrepreneurship and innovation. In an organization with self-growth momentum, the original kinetic energy at the beginning of the birth of the organization and the drive to interact with the outside world is always greater than the resistance due to management friction and external competition, so that the organization can create a suitable working atmosphere to give full play to the creativity of each employee.
Activate the organization: create a good small ecosystem
>> One, to be based on learning, learning-oriented, rather than to maximize short-term gains. Specifically, first of all, the learning organization should have vitality, able to reproduce like life, have the spirit of "passing on", have the ability to continue to live; secondly, the learning organization should have the function of self-immunity, able to deal with changes, in the face of the problem of clear thinking, judgement and deduction, there is the spirit of Zen, not only can think of the other side, but also able to think of the other side, can think of the other side, can think of the other side. Can think of the other side, but also can think of the path to reach the other side; Finally, the learning organization should have the mechanism and spirit of systematic combat, the combination of tooling and craftsmanship, just like in modern combat, a soldier in the front line of combat has a complete toolkit, and these toolkits are specially developed and supported by the rear team.
Breaking into the smart era: industrial Internet
>> In October 2013, Zhou Shengfu created Cargo Lala in Hong Kong, China, and with the founding team's keen sense of the market, it entered the mainland in 2014, connecting the two ends of the car and cargo with a platform model, which has been rapidly developed. Its core highlight lies in two points: First, with the data-enabled advantages of the mobile Internet, it realizes the optimal aggregation of cargo owners and capacity, matching the capacity that best meets the demand to the most suitable cargo owners; on this basis, with the continuous accumulation of user data, the configuration of the capacity is also being optimized, upgrading from simple matching of cars and goods to benign interaction, for example, letting experienced carriers serve the more personalized cargo owners to improve the platform's overall service experience. Secondly, relying on excellent innovation, execution and localized service ability, the rapid formation of the platform scale and vehicle network density, through the "intelligent logistics" and other technical means, the scale advantage is really transformed into a cost advantage, reducing logistics costs. It is based on the above characteristics, cargo Lala in the founding of a short period of time, created an average of 10 seconds to respond to the industry within 10 minutes to reach the new standard. Cargo Lala's practice of technological innovation, rooted in deep experience in logistics operations, with the technical advantages of the Internet, big data, to enhance the efficiency of logistics information technology, improve the production and life of the freight drivers, but also interpreted "the best technology is not subversion, but to stimulate the huge potential of the real industry"
Value Creation Empowerment
>> Customers are the definers of value, with the right price, the right quality to meet the right customer needs, then the value can be fully expressed; manufacturers are the producers of value, how to meet the requirements of the definers, which tested the cognitive ability of the producers and the level of organization and production.
Creating a new starting point: reassessing the value of real economic giants
>> If venture capital is to cultivate the most innovative challengers for the industry, and growth-stage investment is to shape the most competitive leaders for the industry, then M&A investment is more like standing in the industry's point of view to reshape the industry, leading the industry to transform and upgrade the logic and path.
Chapter 10: The pursuit of a rich and rewarding life
> > The first is to "keep the right and use the strange", that is, to stimulate innovation on the basis of adhering to the "right way"; the second is to "keep the right and use the strange", that is, to stimulate innovation on the basis of adhering to the "right way"; the second is to "keep the right and use the strange". The second is "three thousand weak water, but take a dipper", that is, a person should be in the limited talent to do their best part; the third is "peach and plum do not say, the next from the groove", that is, as long as you do their own thing, success will come to you.
>> If a person has rational curiosity, honesty, independence of thought, plus some empathy, and the mentality of a long-term struggle, then the success is only a matter of luck and the law of large numbers.
A long-termist view of talent
Think hard and express yourself in order to interact more with the world and let more people know about you, and remember that you will gain new insights in the cutting edge, and maybe you will actually get the chance to be helped.
>To be brave enough to express yourself is to strive for the rare opportunity to learn and be helped.
> > To be brave enough to express yourself is to strive for the rare opportunity to learn and be helped.
Education and talent are investments that never exit
>> I hope to connect startups, entrepreneurs, and scientists through investment and public welfare, connect investors who insist on value investing, connect business minds with scientific knowledge, and connect business civilization with humanism
>> The entrance of the future is science
>> The entrance to the future is science and education, and there is a fundamental path to solving many of today's real-world problems: scientific and technological innovations, especially in the basic sciences, that are both humanistic and humanistic.
Using "technology +" to make positive and games
>> Third, stay curious about the world, about all the things around this ecology, even beyond this industry. I've said before at the Future Forum that "humans are born curious," and if there's one trait we're born with, it's curiosity.
Fourth, be a well-rounded generalist. Because technology is constantly changing, you yourself have to change and become more well-rounded. People who are always evolving have a chance in the future.
Understanding trends, having empathy, staying curious, and being a well-rounded generalist are the four traits of a new era CTO, thank you!
Speech on November 23, 2019, at the High Tide 2019 Annual CTO Summit.
These are the four dimensions that everyone embracing the new era should cultivate, which are instructive whether an entrepreneur seeks to operate and grow, or an individual pursues a rich and fulfilling life. mark, do it.
> Understand trends, have empathy, stay curious, and be a well-rounded generalist, these are the four traits of a new-age CTO,
On the self-cultivation of an investor
> > We **** the same research, but also independent decision-making, not only to play a large platform on the mechanism of mutual correction of each other's errors, mutual feedback advantage, but also to allow everyone to have the freedom of independent judgment
The core of the enterprise to survive and develop.
> > The first position of the pattern view is whether you can create long-term value for the society constantly and frantically
> > Investors are more than the quality and heart, and entrepreneurs are more than the quality and pattern view
Qiu Guolu: Gao Ting is the capital that really combines the primary market investment and the secondary market investment very well, and combines the investment with the industry, and it is the capital that provides the solutions. It is a capital that provides solutions. The expansion of this circle of competence is all-encompassing, not only in terms of insights and knowledge. Let me ask you a few questions, which were collected from the students of Golightly Institute of Value Investing. One of them asked, "If you could 'travel' back in time 15 years and meet Zhang Lei, who had just founded Golightly at that time, and you could say one thing to him, what would you say?"
Qiu Guolu: You would tell him to buy a house in Beijing, right?
Zhang Lei: Too much to say. Not about buying a house in Beijing. I think the most important sentence, or to carefully choose their colleagues, choose partners, choose investors, to choose well. These careful choices, as long as there is a little deviation, may bring a different result.
Mindfulness, "delayed gratification"
All things in the world do not run out of this truth.
> or to have a good state of mind, a good family, a good body. Investing in this business carries on to the end, reflecting your personal real disposition and values. A healthy environment and mood is the result of long-term practice. Success admittedly requires luck and the cooperation of chance, but whether you can be happy to do investment, is in your own hands.