Reveal the logic of getting rich

Recently, I saw a video recommended by a friend, which is an activity sponsored by Tencent Wealth Management. Guest speech, the content is very interesting. I have read it several times, and it is arranged as follows.

The topic of the speech is financial management under the new normal, revealing the logic of making a fortune.

First of all, we must understand that the values of financial management or wealth in different countries and regions are different, and sometimes it is not necessarily related to the national system, but to cultural history to a greater extent. For example, everyone knows that the United States is a country with a high consumption concept, while Vietnam, like the United States, has a strong consumption concept. China people's concept of financial management is very different from that of the United States. The older generation of China people are more willing to save money, while the younger generation is more inclined to spend and even borrow money.

There is an interesting situation in China. In the past two years, you have borrowed from the bank at an interest rate of 3%~6%, and in some P2P and trust financing, some have actually achieved more than 10%, which means that you can arbitrage as long as you can borrow money, which is incredible all over the world. This shows that these institutions are using new money to pay back old money, and it is obvious that they will not be able to hold on sooner or later. I have started running now, and there will be more running in the next year or two. This will lead to a large number of defaults.

Another reason for default is that the global economy has entered a period of stock game.

What is the stock game, that is, the cake can't be made big now, so we can only divide the cake and grab the existing stock hand to hand. This is the characteristic of competition. After 20 10, basically, no matter from a global perspective, the hatred between countries or between all walks of life in China reflects these situations. For example, the breakdown of various agreements and organizations, as well as social security problems caused by some low-level people in our country. The key to solve this problem is the development of technology, and there is no big breakthrough in the underlying technology in the short term. Therefore, if someone makes money in current financial management, then someone must be losing money. As far as the country is concerned, it is also very dangerous if GDP cannot cover interest. That is, it may become a "national Ponzi scheme."

Yourself → Family → Friends → Financial Management

The speaker has his own concept of financial management. First, you should invest in yourself. You are in poor health and unhappy in life. How can you spare your energy to do other things? The second step is to invest in your family, take good care of your family, and let yourself have fun outside. The third is to invest in friends and take care of them. It is possible to have friends to help you when you are in trouble. The last step is foreign investment and financial management, because the return on investment of the most powerful investment company in the world is only more than 10%, how can it make a fortune by financial management?

In the last 30 years, few people in China really got rich by financial management, so how did they get rich? If we divide getting rich into active and passive, we find that most people who get rich are actually getting rich passively. Now, after 70 and 80, most of them are married and soon become rich. You may know what I mean. Yes, they got married and bought a house. Do you buy a house because you think the house price will rise to the sky? No, you buy a house because you need it. One example is this. The speaker graduated from a very good university. The top students in his class desperately want to go to Harvard and Yale in the United States, but after more than ten years, these students returned to China and found that they could not afford the house that their classmates who had not been able to go out in China had already bought in the first-tier cities. Those students who were not so good in those days may have done nothing and surpassed them in assets and wealth. By the same token, friends who first entered Alibaba and Tencent were not the best people at that time, but now they are worth over 100 million yuan. Can you say that they take the initiative to make themselves worth more than 100 million?

If summarized by time stage:

From 1980 to 2000, you can make money by physical strength, that is, you only need to work hard;

From 2000 to 20 10, it was the era of asset appreciation. If you do nothing but buy a house (invest in assets), it is better than anything else. Some companies are developing very well, and quite a few borrow money to build factories, and then the benefits brought by the appreciation of land prices are far greater than the benefits brought by commodities.

20 10 ~20 15, this is almost an era of harder work and more death. The more you wrestle with entities whose average gross profit is less than 10%, even some P2P returns are not comparable. If you have some money, you might as well go out to play every day and spend less than 500 thousand a year. Buying wealth management may be better than starting a business.

The core here can be explained by whether the odds are enough. For example, the rising space of houses in Beijing may be twice that of Beijing, because there is a rent-to-sale ratio, but there may be a lot of room for decline; On the other hand, the houses in Chengdu and Chongqing are now less than 1 000 per square meter (when the video was recorded), and there is a lot of room for growth, but they have not risen much for many years, and there is not much room for decline. In contrast, if you have money now, invest in houses in Chengdu to avoid being trapped by the decline of houses in Beijing. That is, you should invest or invest in things with unlimited upside but limited downside.

Here are some words that may be unpleasant. It is very important to stand in the right era or runway, which may have little to do with ability. What the market really makes money is the money brought by the bubble, and the market with full game can't make big money.

Finally, to sum up, efforts can guarantee the lower limit, and luck and cognition determine the upper limit of wealth. Small wealth depends on diligence, and great wealth depends on life. Improving cognition can improve a certain probability, but whether it can be successful or not depends on God.

1. The whole China has entered the global integration environment, and no one can influence people's collective emotions. What is collective emotion? Sometimes it's too high, sometimes it's too lost, and even those who really create value will be left behind.

2. Real value creation needs several generations' inheritance. You can set an example for the next generation, but it's hard to say whether the current environment supports you to set an example.

It can be said that there is no rich generation without speculation, and it is hard to say whether it is active speculation or passive speculation. But without the rich generation, there will be no rich second generation, let alone a century-old enterprise.

4. If you can step on the tuyere, you still have to step on it. Even if you don't get to the center of the tuyere, being a peripheral water seller may be taken away. If you step empty once, you have to step on it twice, and keep stepping on it. The ability to learn quickly and the speed of execution determine your distance from the center of the tuyere.

5. Everything that is reliable or looks reliable has been or will be fully competitive in China, with limited upside and unlimited downside, because you don't know how many competitors are entering.

6. It is ok to start a business at this stage, but the loan business may just wait for death, and the net profit may not even pay interest. The only reliable thing is yourself. Investing in yourself is the most needed and important thing for most people, so that people who are richer than you can continue to invest in you.

Those who are interested in more details are also recommended to watch the original video (about 38 minutes). The link is here.

Speaker profile:

Joy chen, whose net name is "Jiangnan Fenqing", is a well-known financial commentator. Graduated from China Institute of Finance, one of the main founders of the Internet Finance Thousand People Association. He is also the founder of Dehong Asset Management Co., Ltd., a top 50 local private placement enterprise, and was awarded the title of "National Advanced Person" by China Construction Bank Company. He has collected works such as Jiangnan Internet Finance.