This book, off and on I read a month, before talking about this book, I will share two ideas, nothing to do with the content of the book, related to reading the book
1. is to study, to understand a person, there is a better way than to read his autobiography, is to look at the book that he reads, the information is very profitable;
2. only successful, you speak the words of someone to listen to, is the There is no right or wrong method absolutely, each field has enough good people, each excellent have their own method, enough success to have enough words;
The whole text is about 4,000 words, you can collect
From the name of high water table start to talk about the name from, take the name from, high roof, meaning that the bottle of water from the top of the high-level Pouring. Metaphorically speaking, it is condescending and unstoppable. It refers to grasping things comprehensively and understanding thoroughly. From "The Records of the Grand Historian"
Isn't it very simple, in fact, what Big Brother's whole book wants to express is also very simple, but simple things are often the most difficult to do
I don't know if in the overall investment market, there are a lot of things we can't see, such as taking ppt financing, not pursuing the profitability of the business model, pursuing the arbitrage of the capital market, etc.
Zhang Lei is very upset about all these things, and he is very happy to see them. Zhang Lei is very tired of these things, and what he hopes to do is to
build an investment organization that really practices long-term investment, goes through the cycle, doesn't just stick to the stage, and creates value
I think that's a very clear statement, but there's a lot of talk in the whole article about how
once an investor gets lazy, and loses the spirit and ability to understand things, then he'll be able to make a better investment, and that's why we've been doing it. spirit and the ability to understand things, they may lose some kind of positive growth instincts
There are some things that can't be done, not from the beginning, and there is some money that can't be asked for, and if the funders don't understand our insistence, we can't rub shoulders with them from the beginning
Between short-term and long-term, risk and return, something to be done and something to be left out, we cultivate our own kernel, and we insist on doing what is right. Things
Long-term structural value investment, is relative to cyclical thinking and opportunism, the core is anti-arbitrage, anti-speculation, anti-zero-sum game, anti-game thinking
Capital is profit-seeking, the capital has a cost of money, the capital, once there is no more leverage, the return is not enough to bring or slowly indefinitely, which indicates a failure, so the time, the short term and the long term will be so much in the eye of the beholder, the short term and the long term will be so much in the eye of the beholder. Only good direction, no good exit mechanism, everything is empty, perhaps this is where he constantly said long-termism is not easy, and he does understand that it is not easy to get money, it is mentioned that Zhang Lei's capitalist is Yale's endowment fund investment team, which is a conservative team, in Zhang Lei's words, this is a team that looks at the long-term value of the team, of course, the high altitude with a $30 million investment to Yale
So much so that in a world where most people are obsessed with instant gratification, those who understand delayed gratification are already ahead of the game
Next, I'm going to break it down into four chapters: methodology/team/value/people
I've been working on this for a long time now, and I think it's a good idea to start with the next four chapters.
First, the method
The best analytical method is not necessarily the use of valuation theory, asset pricing models, portfolio strategy, but rather adhere to the first principle, that is, to trace the origin of the "source" including the basic axioms, the philosophical approach, >
This is a big difference with our previous education, we like to use analogies or draw on the results to guess the problem, habitually will be set into the laws of history, rather than the first principle, back to the basic definition of investment, we have to use the vision of business analysts, rather than market analysts, macroeconomic analysts, and more than the vision of the stock analysts
Many fund bigwigs why as much as possible Do not want to be clear, you have to be rational to the absence of emotional, investment is to earn and not earn, the reason is very simple, a little higher level of people must be able to find some of the market through a period of time common methodology, but follow this logic, forced to implement it is not everyone can do it, which is the principle of the book in the expression of a very important point of view
To go to the refusal of the short-term temptation, the utility of heart and Many natural human weaknesses, while rejecting subjectivity, objectively interrogate yourself whether you respect the facts and common sense, the formation of insights is their own, so that they can be transformed into wisdom, with the growth of the time review
To insist on the things to have patience, to harness emotions, always self-reflection, to maintain a high degree of focus, the pressure can often be dissolved through the focus, the focus means that you have to be willing to say no, the focus is not to say no, the focus is not to say no, the focus is not to say no, the focus is not to say no, the focus is not to say no. Don't go for things that aren't useful to your core goals, even if there is room for more, don't overestimate your self-control, don't underestimate human nature, and avoid the short-term mindset
The biggest obstacle that poses a barrier to our learning is what is known, and we should take advantage of the feedback from the marketplace to continually improve our ability to think holistically and maintain a normal mindset, embrace self-feedback, and self-denial as evolution
p> Give you four investment is very easy in the trap, can be listed as a list of principles
1. value trap, value investment in the value is not absolutely low price-earnings ratio, but a comprehensive consideration of the indicators of the purchase of stocks, investment in this game, the first rule is to be able to play on, the value of the trap in the nature of the corporate profits are not The essence of the value trap is that corporate profits are not sustainable or unpredictable
2. growth trap, the investment target should be in sustained growth, the growth rate should be at least higher than the overall economy, otherwise it can not be held
3. risk trap, the search for the margin of safety, the situation to think of the worst, look at the worst case scenario occurs after there are what secondary damage, there is no inversion of the body to look at the time of the disaster there is no self-help Everything is going to be stripped, split to the point where it can not be split
Second, the team
Zhang Lei said, with reliable people to do interesting things, is one of the reasons I have been enjoying my work very much
I remember that the "Nifty Culture Manual" said, "Why do you want to come to our company, a very high level of the applicant replied that. Because there are people here who are better than me, they are great, talent really attracts talent, positive cycle
Requirements for myself as a manager in a business
Really understand and practice value management, large companies can run on inertia, startups refine their operations at the beginning, refinement is not just cost reduction, the opposite is to be in the customer's shoes to determine the The value structure of products, services and processes, only the customer needs to have value, on the basis of which to establish a complete value chain to enhance the overall efficiency
The building of the corporate culture
The corporate culture in the beginning of the start-up to establish, can not be a problem, and can not be pushed down to start over again
1.Adherence to the pursuit of truth
2. Dare to fight and want to lose, sports team culture, have the strength to fight, the spirit of assistance, can be a chaperone, with the results to speak
3. Open communication and exchange
Definition of a reliable person
Self-driven, time-sensitive, empathetic, lifelong learner
Giving a sense of long-term mission and sense of achievement, the self-esteem of the real top talent does not need to be taken care of, everyone knows that work performance and contribution is the most important
Understanding of the organizational ecology
1. Learning, learning organization, there is a life to reproduce, there is the spirit of passing on the spirit of self-immunity to be able to deal with the changes, and the ability to not be surprised. Facing the problem of clear thinking, judgment and deduction, there is not moved by the spirit of meditation, not only to the other side, there are paths to arrive, combat mechanisms and the spirit of the combination of instrumentalization and craftsmanship
2. Empowerment, the function of the organization is not to assign tasks, but to match the interests of employees, expertise and organizational development needs to be resolved, empowerment type organization is a cultural carrier, the employees Because of the enjoyment of the culture here, so as to obtain identity, mission identity
3. decentralization, so that the person who heard the gunfire to make decisions
4. ongoing, management to do only one thing, that is, how to fight against entropy increase
Third, speaking of value
Purchase of low valuation of the stock is not the value of
Buying low valued stocks is not a sustainable source of investment returns, it is the continuous creation of value by the enterprise that is the core of the concern of the enterprise is what problem it solves, whether it has given the society and consumers to enhance the efficiency and create value, as long as the enterprise that creates value for the society like crazy, its income and profit will be realized sooner or later, and the society will eventually give it long-term rewards
In the industrial change, Zhang Lei has talked about several directions
1. 1. From connection to integration
Innovation 1.0 era is essentially the innovation of the business model, the use of Internet technology to do "connectivity", innovation 2.0 era is the key to integration, and is no longer simply copying the experience of others, and simply superimposed on a variety of technologies and application scenarios. There are two directions
1) innovation is no longer limited to the consumer Internet field, life sciences, new energy, new materials, high-end equipment manufacturing, artificial intelligence and other fields
2) the innovation and digital transformation of traditional enterprises, the direction of better cost, more efficient, more refined management continues to be iterated in the field of information, the consumer scenario, the manufacturing scenario, the supply chain scenario, Capital operation scenarios, eliminate bait value chain role distinction, remodeling business logic; empowerment of traditional industries, online traffic is becoming more and more expensive, there are a lot of fundamentals of the company is very good, high-tech empowerment of traditional enterprises, technology is not the power of subversion, but a kind of harmony and re-engineering of the power
2. R & D and innovation in the life sciences Medical and pharmaceutical industries have a very strong and strong potential. p> The pharmaceutical and medical industry has strong consumer attributes and technological attributes, high barriers to entry, and at the same time has the characteristics of growth, profitability, anti-cyclicality, etc., you can build a dynamic moat, he is thinking in the whole industry chain 1) medical and health care services, how to stand in the patient's perspective, to build an all-around pre-hospital, in-hospital, post-hospital health service system; 2) how to How to solve information asymmetry by digital upgrading 3) In the field of drug R&D, how to realize industrial stratification and hierarchy, and how to apply AI technology to fully interpret the medical data to help accelerate the iteration of drug R&D enterprises He invested in the following companies: Directly announced, WuXi PharmaTech, TIGER Pharmaceuticals, Fonda Holding, Kelaying, Aier Ophthalmology, Jinhui Medical, Jin Xin, Myray Medical, Shanghai Microsystems, and Kelaying, and the company is now in its third year of operation. 3. Embracing Consumer Transformation Two directions of upgrading and segmentation, which one are you going to take up Retail is a service, content is a commodity, and what you see is what you get, and consumer goods contain both material and spiritual dimensions. Upgrading and downgrading of any individual dimension, but composite, dynamic, subversive, different segments of the product field, geography and age class to produce new consumer trends; the concept of the new consumer, the product and its brand contains a full range of requirements for communication with consumers in the service process, retailing as a service, the content of the product, what you see is what you get, the material composition of the product power and cultural composition of the brand power **** the same as the composite perspective for understanding the new consumer trends First of all Consumption is no longer a mass-oriented consumption, but a personalized consumption with me as the main focus, and the flow of the economy from the thin margins to the attention of the individual differentiated needs and the value of the whole life cycle of the single customer economy, the mass of users through the social network to form a powerful interaction with the public. The mass of users through the social network to form a strong interaction, better consumer experience to form the head effect in the industry Secondly Lifelong value of consumers Overall positioning: how to think about the spiritual essence behind the product, to give more sense of life rituals, so that consumers can experience more happiness Sales segment: how to provide quick feedback and timely replenishment from the supply chain perspective, while enriching the reachable retail channels and purchasing experience Promotion segment: how to identify diversified consumers, understand the key needs that are truly quantitative, and spend the least amount of time to make decisions Finally, back to the initial R&D and design segments, to remove attributes or designs that are not needed by the consumers, and to achieve. Finally Use data to make the front-end intelligent, pivot the back-end, and use back-end algorithms to know the front-end scenarios, and satisfy changing needs with more segmented scenariosGood consumer scenarios are the key to building brand power The future of retail is no longer driven by scale, function, or supply, but by individuality. The future of retail is no longer scale-driven, function-driven, or supply-driven, but personality-driven, service-driven, and demand-driven. The value chain is integrated through technology platforms such as sensing, data, and user operations, which turn passive into active in the capture of consumers, combine technological, social, and cultural elements with consumer experience, and reshape the multi-scene, omni-channel, and omni-chain shopping mode. Dynamic growth The industrial Internet is really scary, the consumer Internet is physical, the industrial Internet is chemical 1) games to change the payment, e-commerce, retail, education and more industries, such as Alipay public service game / shouting to friends to cut a knife of the social game / gamification rewards the task of prompting shopkeepers to complete the business of the key indicators 2) the Internet business model of the Integration of innovation, such as Meituan's super app / WeChat communication software, you can enjoy shopping, transportation, music, payment, etc.; 3) online and offline omni-channel Internet innovation, dual-teacher education (live and offline) / fresh food retail exploration Consumer Internet creates a lot of scenarios, and algorithms, arithmetic, and data to use these scenarios, and then through automation, networking, intelligent way to present the scene. networked, intelligent presentation. Traditional industry upgrading, traditional industry + artificial intelligence + big data + cloud computing, the formation of the industry as the base, technology as the index of the power revolution. data is the means of production, there are processes to operate, there are algorithms to sublimate, data, algorithms and processes to promote each other in a positive cycle, the value of the business, the user-defined products, software-defined processes, the logic of industrialization transformed into a digital logic, lean management reconfiguration of the operational efficiency Fourth, speaking of the people must be to follow his full set of systems 1. has the concept of long-termism, long-termism includes three points, adhere to the original intention, keep evolution, no end game, here in the no end game to speak of a difficult to judge things, subsidies will continue to devour the will of entrepreneurs and the confidence of investors, the burning of money in exchange for something to look at as a capital or cost, thinking about the infinite end game of the business model, ahead of time To create a new paradigm of service or product 2. Have a deep insight into the industry, the key to change and unchanged insight, do not be constrained by experience, respect the industry's common sense, find the unchanged, and can not be confined by the existing law, find the change, cited two examples, very representative, one is 7-11, unchanged customer demand for convenience, became a variety of services Another is Jindoduo, people looking for goods, that is, commodity-centered, goods looking for people, that is, people-centered, take the unity of time and space to promote the overall efficiency of higher costs lower. In fact, in my point of view, more appreciate Pinduoduo, I do not know how this road can be killed out; 3. Have a focused execution, the righteousness of the input, the small things to the extreme 4. Have a strong empathy, here is a point to do the first customer and the first employee, the ecology of the talent through a better way of organizing the creation of the mobilization of everyone's enthusiasm and motivation. The last of the last Still, the three sentences spoken by Zhang Lei in the major speech platform, highly summarized in Chinese philosophy First, to keep the right and surprising, to adhere to the "right way" on the basis of stimulation of innovation Second, the water is weak, but take a dipper, in the limited talent to do their own best part Third, the peach and plum do not say, the next from the fish, do their own thing, success will naturally come to me
The first is to make the best of the situation, and the second is to make the best of the situation.