Saturday, October 8, 2016

Ren, the "bloodbath" of Huawei

Four stages of company development

Huawei's headquarters in which we today, is a 1996 groundbreaking, I took part in the foundation soil, when we were both surprised, why ren selected so the middle of nowhere places, rather than in Shenzhen shennan Boulevard near the site? TCL, Skyworth and other enterprises in the deep South to a piece of land next to the road. Now it seems that Nintendo's decision is absolutely right, if only a floor, shennan, there cannot be such a large area. Now this place fit Huawei, Songshan Lake built new bases, larger than the area here.

Here are the owners of SMEs, cannot say Huawei factory look pretty, huge database, I also get set. Copy the now Huawei model of small and medium enterprises have no value. Key to Huawei to achieve 100 million to research what state, what state do to 1 billion and 10 billion, especially Huawei on a venture to second during the conversion process, management system, organizational system, evaluation system, human resources systems management revolution is breaking through.

Research on Huawei, from the development stage. The growth of a company, often in the face of indespensible when kan, must come to a deeper change. Whether it is human resources, organizational change and strategic changes, as long as the turn over, enterprise to a new level; won't turn past will linger on the steps, and then slowly decline.

Its history can be summed up in four stages:

The first phase, from 1987 to 1995, the venture survive. Early leadership team formed by stable till now, this is a revelation of the SME research company.

The second stage, from 1996 to 2004, the second international. I think this a stage is most worth research of, Huawei all of change--human resources system, and management system, and process system, are is in this eight years completed of, this a stage is Huawei faced difficult up, and almost died off of period, especially 2002, and 2003, performance fell, Ren and got depression, also is this a stage, through management change, Huawei sales income became domestic first, and began to overseas, real became international of company.

The third phase, from 2005 to 2010, Huawei business model changes. It's no longer simply selling communication equipment, but offered to make telecom solution providers. Was down rivals, friendly rivals at this stage, competition competition, customer-oriented organizational change as a whole.

2011 till now, we call organization in transition, is the pursuit of cloud integration pipe end, is the company's fourth stage.

October 2013 Huawei cadres Conference slogan is to catch up with the United States, and also in the industry when it comes to disruptive innovation, Huawei will fall.

Ren zhengfei, never mentioned "in transition" and "change" the words, referring only to "sustained improvement, improved", but from the history of the enterprise, Huawei is always in the process of transformation and change.

No money two no market breakthrough?

As with most businesses, Huawei Technologies, business opportunity-oriented. In 1987, ren met a Director of Liaoning rural telephone, introduced Huawei has become a production of program-controlled switchboards (PBX) company's agents.

Nintendo is a soldier, but went to College in the army, when science and technology innovation in the army expert, won the second prize of technical innovation of the whole army, was selected as the top 12 Party Congress, took part in national science and Technology Congress chaired by Guo Moruo. Although he said he does not understand technology, do not understand the second management, but he's vision for technology control and sensitivity to new technologies is not available in other entrepreneurs.

Huawei's first venture period what is it?

First, no market do? Huawei has allied with local postal system, formation of Maubec company through post and telecommunication employees raise equity participation to form a community of interests, raising equity capital of 55 million Yuan. When every city post office, with Huawei as a community of interests, because it is a family, so the product can be sold in. Later, the joint venture sold $ 780 million.

If the thousands of postal employees to Huawei's headquarters, the governance structure the resulting confusion, this is where ren zhengfei, clever, what should I do? They form a community of interests, but on the governance structure, and not let them get to the company's ownership structure.

Second, no money to do, what to attract and retain qualified personnel?

Only two things: first, by pursuing, ideals, beliefs; second, by expected future earnings, which must give equity. A lot of people have a problem, said Huawei's unlisted capital chain how can it continue? Huawei employees finance stock ownership plan began with the 1990, now add up to tens of billions of, Maubec sold $ 780 million, 3COM sold $ 4 billion, adds up to baiyiji the amount of money, even listed estimates also don't melt so much capital, Huawei use these methods to solve the company's fast-growing capital needs.

Employee stock ownership plan and a good, business is growing every year, like give you 100,000 shares today, 50% of the dividend as soon as next year and 50,000 bonus if 50,000 bonus principal and take corporate cash flow is tight but Huawei tells you, based on your performance, I gave you 200,000 units this year, and you get the job done? You see, 50% dividend and borrow money from relatives and friends, and total investment of 200,000 shares. By the third year, and 50% of the dividend, you have to take away 100,000 shares, the company tells you, I give you the 400,000 shares, you get the job done? Retaining talent, but also an internal financing. Of course, this is what the Chinese specific practices under special circumstances, enterprises today to learn, to learn that illegal fund-raising.

Once the start-up period, Huawei faces a lot against the ridge. No independent innovation products, capital flows and dual talent shortages, Nintendo has said that development fails, I would jump off. Huawei's mainstream, the idea that digital program-controlled switchboards were too advanced, we should make it half a program-controlled switchboards, low cost, fast development speed, old term invested close to half of all digital program-controlled switches on. But this time, line a challenged engineers to Huawei's technology direction, half a program-controlled switchboards is an outdated technology, digital program-controlled switchboards should be studied. The old tell the engineer about, I'll give you money, you form a team, you are led to develop digital program-controlled switchboards. This is where Nintendo really good, an engineer some advice on the production line, he dares to let his team do. If the company did not make the digital program-controlled switchboards, Huawei has probably died.

After 1995 Huawei, why change? Just like many enterprises, enterprise development to a certain size, and Princes of individual awareness, management free extensive, personal heroism and enterprise development highlighted the contradictions, the enterprise must be changed.

From "entrepreneur business" to "business entrepreneurs", you round the last few banks

In 1996-2004, second phase of what is the most critical thing?

Huawei total through four games in the development of human resources reform. Startup company for the rural market, who take the Hill, whose apologists emphasized the heroism, spirit wolves, mat culture laid the genes of Huawei's hard work. After entering the mainstream market of the city, dealing directly with China Telecom, China Mobile, Huawei, what measures are being taken?

First of all, the Marketing Department's resignation. In 1996, a Yam and Sun yafang, I called together, said now many cadres after entering the city market concept, capacity to keep up, to introduce competition mechanisms. Sun yafang, proposed at that time, I carry all marketing executives resigned, followed by Peng with expert groups for all evaluation. Nintendo says it's a good idea. When Huawei all cadres swear: "starting today, we have once again accepted the Organization's selection. ”

Selected cadres, including Vice President was sent to the grass-roots level, no one rioted. Since then, the cadres and working left to right, staff can be hired, salary rose to drop the "four" mechanism was launched.

Huawei started functioning after the mass resignation to optimize and improve the professional management capacity at Headquarters. Then catch the human resources building, holding financial build, good strategic management. Total proposed "awkward mechanism", the mess together, front line is the Wolf, and front legs are well developed, the rear support is a Jackal, hind legs are well developed, Western companies is "internal customer", always use a image of the word "hand in glove" is a front end integration. Huawei later introduced IBM, customers of organizations, it is based on.

Enterprise develops to a certain stage, must be collaborative, internal operations are integrated. Many companies in China do not get how to market, based on customers through the process, achieve its internal integration of production and marketing operations? Your organizational model must change.

When entering the international market, need to be process-oriented organization, professional team, a lot of the ideas of cadres and can't keep up with, so this time Huawei has carried out an internal venture. What is business? Enterprise inside a lot of people are born to be the boss of a small material, their ability is very strong, you give them a piece of the market, they will soon be able to open, and once you've said work needed to process, used to wear casual clothes, now wearing a suit and tie, leather shoes, they're not used to, with the Organization against. If your partner is born when the boss, get him out, business time with him.

Huawei's internal business, persuaded 300 of these cadres, you don't do it processes into my Distributor, such as Li is 15 million shares, was 1 dollar a share, and I'll give you a 15 million devices, you sell, sell out this is your venture capital. This time caught up with Huawei's marketing system starting from building their own marketing system into a proxy system, which became a distributor for Huawei 300 cadres.

Marketing big resignation solves what is the problem? Headquarters began to build the human resources department, the Ministry of finance. US businesses are "entrepreneurs of business", the enterprise was my I system makers, I said so, can damage the system. When it becomes "Enterprise entrepreneur" is not the same, the boss also subject to constraints, you must establish the rules of the Organization, there must be a process authority.

Why many enterprises to achieve a certain level, we have no responsibility? Is because you are the only authority, there is no established process authority or expert authority. An expert authority, authority of the process, the full responsibility of the enterprise system can be built up.

Resigned from the 1996 marketing began, Huawei's organizational change is an ongoing process. Period of pioneering a hill to avoid a another person, to go through "all captured public, against Hill culture" phase change, obey orders in all actions, and against ethnocentrism going up again, to the process of time, against seniority, all zero; later on, is to continue to fight against complacency.

Note that Huawei human resource changes, always focus on a few core values.

One is customer-centric. Company organizational structures are large, but the speed of response to market is always sensitive to, customer needs has always been able to grasp, this point is not to wait a year to the ideas put forward, this kind of character from the beginning on the first day.

Second, ren stressed the continued hard work. Human resources mechanisms are continuously activated personnel, cannot slack off. I study Chinese companies found, ren said we need a whip, you move on, Enterprise vitality.

In addition, Huawei also has a great feature is the criticism. From either the General began to keep a cool head, a sense of crisis and criticism. From the market collectively resigned, to the research and development system against young General Assembly, Huawei customer complaints recorded, kept so that researchers can hear. Involve employees in improvement, employee self-criticism, he said not to make mass movements, be sure to exercise the masses.

Looking back, why many businesses don't understand reengineering changes? Don't forget, is the concept behind the process, if your business is power-oriented, self-directed, rather than customer-oriented, more draw your processes, the longer this process is useless. I think Huawei human resource management, the most distinctive is that it builds a set method of how to effectively manage intellectual, intellectuals become bold, Wolf Warrior, rather than become slaves. Intellectuals fear most wars not wolves, cannot take responsibility.

"Evaluation of the ever-present, ubiquitous" do

Ren was asked, do you do? Nintendo answered in one word: money. He offered to Somali pirates, scientific and reasonable "loot" problem. Human resources is the core problem of interest, in fact refers to evaluation. If there is no evaluation, more employees will complain. But people in the most difficult, how to evaluate a person's aptitude, attitude and ability, job?

Huawei best evaluation in the human resource management system, called "evaluation of the ever-present, evaluation everywhere." Today there are islands Huawei bathroom took a photo of myself, said Huawei, in every detail, every aspect of how doing so well, said his company room to have flavor, but always delicious, not sweet. Irregular management was the problem. Huawei will be measured, and how long will lift, there are standard. In addition, Huawei driver access why never late? Precise statistics are doing research.

Zhou's comments 1
Huawei appraisal system, there is one more thing to watch out for, Huawei is not all included in the evaluation? No, all market prices, all spent. A company on the market, especially the market is very sensitive to human. Company is a company in the market, do not use market system, incorporated into the internal management of enterprises will all collapse.

You see companies like Mercedes-Benz, to full outsourcing, Assembly can be contracted out, finally, branding, design, marketing yourself. What the market will not solve it? You see why EMT (business executives) team to take the oath? I sign the Bill to you, there is no rebate, free water, which is the focus of management, to the risk assessment on the market are not likely to bid.

Ren said that early start, who is good and who is doing bad, clearly in his mind. After many people, unable to all evaluation, no standard for judgment, bosses dare to decentralization. Huawei have a saying at that time, bosses are like birds, flying high, boss said makes more and more people not understand, here people thought every day. An organization without a common language, objective standards of right and wrong, a lot of new people coming in will dilute the company's culture. In 1996 we entered after Huawei, Huawei, the most famous is drafting the basic law, the aim is to reach a common understanding, consensus.

Huawei's system really establishes a value of human resources evaluation system, addressing value creation, value, value distribution mechanism. Huawei learn? I think Huawei is behind this human resource mechanism, system is the best system to learn.

Huawei from the start to the second, is different from other places is that the top design is not simply the stones first, his clear thinking, how do I, to whom distribution system tilted. What is the biggest problem facing private enterprises now? Stop-gap, all performance systems, distribution systems are emergency response, lack of top-tier design.

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Huawei then proposed an evaluation system, a carrier of enterprise value creation is the staff. Actually four ways, a value creation capabilities, this is called evaluation; then position in the value creation, called liability and risk commitments performance in value creation, it is attitude; results of value creation, which is to contribute. Based on these four aspects, establish a scientific and fair evaluation system.

Competence, responsibility and attitudes, contribute what assessment, this is the most unique of human resource management of Huawei and most operational things. According to the characteristics of the enterprises, incentives in the future who, what is the distribution center of gravity, what kind of evaluation system to evaluate how much value they create, and how to distribute, and that's all that matters.

Huawei then proposed an evaluation system, a carrier of enterprise value creation is the staff. Actually four ways, a value creation capabilities, this is called evaluation; then position in the value creation, called liability and risk commitments performance in value creation, it is attitude; results of value creation, which is to contribute. Based on these four aspects, establish a scientific and fair evaluation system. Competence, responsibility and attitudes, contribute what assessment, this is the most unique of human resource management of Huawei and most operational things.

"Wolf force full Wolf": Huawei talents come to the fore

Inamori Nikko turnround for two years, no tricks, just two strokes: first, respect and love, respect for employees, allow employees to change from passive to active work; the second is Amoeba, implanted with an accounting system of human resources management, to quantify how much value each team in your organization, each operation. I often say that small enterprises, small enterprises, Huawei and Inamori of Entamoeba histolytica and operation is the same, in fact, is a quantitative value of the accounting system of each.

Huawei human resource is divided into three systems, one is business career path, Huawei first to break the official enterprise in China, I must not be a Department Manager, Vice President of improper, according to the experts this line go, be professional enough, Vice President, also can get treatment, and not just to get the treatment, also has the power to mobilize resources, called "level, authority and accountability." Second, establishing a strict set of service standards. Third, a strict set of acts and facts of qualification certification.

Huawei initially established has management and technology two big channel, now is management, and technology and project management three big channel, each a a channel and divided for several grade, like you wants to Dang personnel manager, on must reached this a professional channel level of levels served qualification, served qualification with performance and has relationship, only continuous three years performance reached 12 points, you is qualification application more high a level, this are is linked of.

Someone asked why Huawei talent to stand out? Huawei jobs promotion and ability lines are two lines. Basic conditions of competition are qualifications, which led to any post will have three or four people who meet the qualifications in this place, this is Nintendo's "hungry wolves made full Wolf", this job requires that you work hard, otherwise, there was an immediate successor.

Private enterprises ' biggest problem was a one hole per carrot, the boss will feel no follow talent, a talent reserve system problem. It was suggested that say every day I take part in qualification training, I won't have results, can't you? This is now a lot of the practices of private enterprise, the man is busy in training, the busier I can't afford the training time. Huawei or, if you want to participate in the qualification training, there was a prerequisites, performance assessment a total of 15 minutes, must be 12 or more, this avoids some people blindly participate in promotions, but results did not come out. This abilities, job performance, which got through. We are many appraisal qualifications, performance, and training are all doing, not supporting, Huawei is the responsibility, rights and benefit, four-in-one.

Master ren zhengfei, human nature: how to keep the purity of cadres

The end of 2012, ren wrote an article in the a-hole, profit out of a hole. This rule, all focus to efforts towards a goal, this is called "a hole"; enterprise, many people began misappropriating public funds should be, on companies to cut meat, that enterprises will certainly perish, therefore have to "carry out a hole". Huawei EMT (management team) Declaration, was to highlight the top not abusing power for personal gain, not a part time job, can not engage in related party transactions, your interests must come from the company itself.

Everyone keeps asking leave Ren Zheng Huawei non-OK, I was contacted by the company, the company truly build a solid executive team. 2002, 2003 is the most difficult time Huawei, first run 2001 Li, poaching several hundreds of backbone from Huawei, Huawei's core technology team was almost empty; the same period, ren's mother died in a car accident, Nintendo was to accompany State leaders on visits abroad. This is a very big blow to the old enterprises do so, until the critical moment, even a mother can't take care of.

At that time was the most painful, is its most critical moment, that in two years he has been a little company, basically a team management.

At present, Huawei's 15-member executive team, later entered the company in 1996, Huawei executive team are training, is not airborne, are to participate in a group of young people of the time when the Basic Law of Huawei discussion. Team members are all graduated master degree or above, all are brand-name University of origin.

After enterprises, selected senior cadres must be to morality first, because too many senior cadres of the resources available must be self-examination and self-correction, reflect on oneself three times a day. Lee a porous, surely, we all were cutting meat, is no longer a value judgement, because the temptation is too great.

Huawei checked cadres, cadres themselves put forward corrective measures, we continue, this is where Nintendo really understand human nature and very good. Some members of the media to portray any of the old image of the Devils, but I think Nintendo is essentially a good person, so I wanted to write an article called the great ren.

We now the boss too hard on others, a look at making little mistakes, kill with a knife, so that no one give you dry. The ancient sayings people to detect without acts, sometimes to defend him. Water is not clear, the water is too clear to be a stir; if it is too muddy, went down some medicine to kill kill. Huawei EMT Declaration, not only for senior, now include middle-level cadres. After enterprises, is very important to maintain the purity of the cadre.

Standardization of back-end, front-end personalized

Company history organization is changing as the market expansion. Huawei early and we are now a lot of companies, is the linear function, command yiganzichadaodi command system, and rapid response. This phase continues until 1999, the enterprise later appeared a variety of products, markets, think functional pipe but, so decentralized.

Earliest Kanemasa teacher held a Division transformation that year, one of the old, say you are GE, GE is a decentralized Department, enterprise's overall competitive advantage is not up, into the internal system of concentration camps, the headquarters has no authority, bad big enterprises, programmes for teacher to smithereens.

Huawei's global matrix organizations, district, region, vertical, Office management functions of the Office floor, after the matrix and processes are too long. So in 2006 and based on the response to customer organizations strengthen customer base management optimization system. Beyond 2007, let people hear gunfire to make decisions, called the heavy brigade, Marines, integrated front-end, back-end specialized, that is old and later proposed "iron triangle" organizational model.

The so-called "iron triangle", is truly market-oriented end-customer Manager, solutions experts, delivering expert front-end for a customer, based on these three types of people to make decisions.

United States war is like playing video games, like reconnaissance experts, topography experts, military experts of the Group of three deep into enemy territory, see army of Saddam Hussein, immediately draw up battle plans, directly command missile aircraft represents one by Saddam's army to break out.

The premise of the game is what? Must be professional in the background, otherwise the resulting confusion. Huawei has come today, power can be awarded the "iron triangle", as long as it spent billions of. Huawei reform Office Director said about advisory fees of more than 20 billion yuan to build a technology platform, test platform, product manufacturing platforms, global platform for sourcing, marketing, financing, human resource platform platform platform, knowledge management, administrative services platform, common data platform ten platforms, so that the "iron triangle" receive the professional support.

Standardization of businesses to the back-end, front-end personalized for different customer needs, with different combinations of products and services. Professional support line if you do not have access to the background, and the more you give him power and he is farther away from you, but you have the ability, but also rely on support from Headquarters. If no professional capacity at Headquarters, you authorize first, enterprises are self-employed, so we are now a lot of companies are sole proprietors of the concentration camps.

For example, when Huawei was how to break into the African market? First is the front line to do research, learn to sell equipment in Africa, must be to get the President, he is both the head of armed forces, big business people. How to become friends with the President? Found on cockfighting, President of Huawei research is very deep, in order to comply with local Manager to immediately draw up battle plan, feedback to the company headquarters, headquarters immediately come Cockfighting experts in China, study cockfights and the African origins of Cockfighting, Cockfighting elected to take pictures of China's best, writing books about Chinese culture of cockfighting. Ambassador to China, called on the President, give the cock book. African Presidents to visit China if proposed to see Cockfighting competition, we design game. This is the entire organization customer-run, once you find strategic opportunities, all the resources available to you, which is why a lot of people after leaving the company, including other companies poach from Huawei Vice President, mostly unsuccessful causes.

Procrustean, determined to learn

From 1998 began, Huawei system introduced world level management advisory company of management experience, in integrated development, and integrated supply chain, and human resources management, and financial management, and quality control aspects and IBM, and HAY, and MERCER, and PWC, and de service, and Germany national application Institute, more than 30 more than enterprise cooperation, short-term within seems spent has money, but long-term view, old any think this is human capital, not seeking talent all, but seeking talent by with.

This pretty much like Samsung's view. Samsung and Huawei have similarities, management and training of cadres must be his own, rarely hiring from the outside, their cultivation of talents the same values, strategy execution ability and able to "force a hole, profit out of a hole." But professionals, Samsung believes that I am entering a new field, top technical talent cultivation on their own do not come out, so Lee took office after the implementation of Samsung entering a new field, not his talent, but dig, whose highest technology in the world, I use the international market three to five times the price of the best team to dig. Experts also made a calculation, when treatment 1 time times higher when corporate culture to keep people functioning, when the treatment three times times when corporate culture failed, Lee Kun-hee is to use three to five times the market price that year digging people around the world.

Huawei is not through high salaries and people, but by way of cooperation and the world's top companies, who specializes in I who.

When ren led its executives visited the United States company, IBM, Bell Labs, HP and other companies, come back soon wrote an article, saying only to learn from the big companies, will enable us to avoid detours, pay school fees, "IBM's experience was summed up billions of their cost, their suffering is the precious wealth of mankind".

In 1998, IBM consulting, spent 560 million Yuan, he proposed "rigid and optimization, and then cured" one size fits all. Cannot be the formalism, the introduction of this mechanism in two or three years of the same. He said any thing, since is a good thing, if you are feeling more kick, that it does not advance, you do not feel comfortable, just shows that people's good.

Zhou's comments 2
You can try, to put your company truly international standard, one size fits all, is going to cut the foot to be beheaded, it's not that easy? Ren is indomitable, first cut into his foot, learned to adjust, and then cured. Some Chinese companies with international consulting firms in order to market bag skin look good.

This is called "secondary school and sports, Western learning for uses", not true. Huawei or financial systems, human systems, personnel systems, a system a system change, international consulting firm to help design the best diagnosis then do not let you go, until the problem is resolved.

Ren: "bloodbath" talents

Ren zhengfei, though not dealing with local businessmen, but the world's leading entrepreneurs, he one a visit. He believed that only deal with people higher than you, you can feel the pressure, you will progress faster, you can only modestly was a student, to learn something.

Zhou's comments 3
As an organization, not only to the boss hen, the team also wants to see yin, or whip or use every day, if not the promoter inner energy, who have no idea. Can't do "serious aspirations" are "higher than" cannot be a step goal-setting, and step by step established, to strengthen the team to form a positive feedback.

Entrepreneurs are not rich. I wrote an article, entrepreneurs are people who will never be enough money. Why do will never be enough money? Because of the Director-General, much larger than money is the entrepreneur. So why talk about integrity? Integrity to use other people's money.

Today, ren zhengfei, enough money, to his dream, is not enough. Entrepreneur is the most important thing is a life into a dream, this is a very important energy promoting human progress.

In addition, he is basically to read one or two books a week, watch a few magazines, and his thinking is very active. He is a must read by the reader's Digest, not only myself but also to others.

Huawei management of all campaigns, or flora and fauna or the United States, Mao Zedong, the army, are learning through live case. Wu Chunbo teachers have a summary.

Huawei to learn from foreign countries: the United Kingdom system, United States innovation, Japan's lean, Germany specification.

Huawei is also learning from the party: eight regulations, self-criticism, hard work. 2013 new "eight rules" treat to lead, for example, does not allow subordinate superiors.

Learning from the army: battle, calling fire, Colonel Commander, West point, iron triangle.

Enterprise Learning: Huawei art fish by the end of 2012, Shun Feng Express, old term for all executives to sea-free meal.

Learning from animals: wolves, Lions, spiders, ants.

Learning from plants: all of Mikania micrantha.

Learn from the building: dujiangyan, Roman gardens, the great wall.

Learning from television, to books and learning, learning, learning from the eclectics to employees ... ...

Nintendo is basically plagiarism, then based on their innovation, so I think ren's talents, entrepreneurs will be lifelong learning.

Ren zhengfei, the Professor as a consultant, their offices and the old offices next to each other. Nintendo did not deal with the media, but every time to debate with professors in the problem. He struck the table with you at times, the debate he went, in a moment, he shakes it back again to chat with you, find you criticize his views had become his, and said from his mouth than your level higher and better quality!

On one occasion, the China business daily interviewed me, I said many times "bloodbath" we, the people's views. To the Northeast, then Nintendo saw this story on the train, said: "Peng Jianfeng said is right, I'm going to ' wash ' their knowledge! ”

Zhou's comments 4
Teacher Peng said a Word, "wash", knowledge is only "wash" finish is for you.

What is the decision? Using the part of the public knowledge, a lot of your personal knowledge, and intuition.

Many successful bosses have not read a lot of books, but personal knowledge, perception, and summing up the refinement, to extrapolate. Good things are never simple to replicate, ren zhengfei also went to see IBM company, but he did not repeat the way IBM. One of the most valuable knowledge is personal awareness, managing that part.

Next fall will be Huawei

Huawei ahead of what the problem is? In mid-October 2013, Huawei has just opened a cadre at the end of the General Assembly, three CEO one ask a question:

First CEO suggested that Huawei's next target be? Huawei dared to shout out beyond the United States goal?

Proposed second CEO, Huawei from scale growth to pursue long-term growth?

There is a CEO has made, Huawei, how to deal with disruptive innovation? Huawei presented to increase prospective study, to do basic research, not only the pursuit of market. The so-called customer-oriented, not only to adapt to customer needs, and exceed customer needs.

Huawei's 2013 reform, and technology development, in addition to the success rate of assessment and examination failure rate, do basic research, how many times you fail as an objective, encouraging risk taking and try every day to feed some of the people there, "the mark" to do the original creative. This is a key transformation for Huawei.

There is one trick is to focus resources, principles of pressure, quickly followed. Nintendo made, but we are not a public company, when in need of resources, you can bet money on strategic investments.


In addition, is to build a broad base of customers. Without a wide customer base, disruptive innovation, once missed, Huawei will soon fall. But if you have a wide customer base, my other products can be quickly converted into what customers need, companies can still get a very good development.

Real estate residents into three investment one of the top 5 investment strategies help you Fortune

And with the recent property market regulation policy-intensive and the Beijing eight available, during the golden week, real estate market showed a significant decline. Single on Beijing market view, Zhongyuan real estate data displayed, past 3 years national holiday Qian 6 days new homes and second-hand sold total for 717 sets, and 510 sets, and 408 sets, and this year is for 356 sets, which, new commodity residential (not containing guarantees room) network signed volume only for 204 sets, and September 1 to 6th compared plunged 73.7%; second-hand residential network signed volume only for 152 sets, and September earlier compared plunged 96.5%.

Accelerating property prices caused many investors who haven't shot dropped glasses, so under the market, how can investment in real estate, investment property under what circumstances can money rolling in, take a look at these.

1, know what kind of House are most likely to appreciate

Advantages of location, fully furnished, close to the school district and a good surrounding environment, with more such appreciation, the greater the House. Secondly there are preferential policies under the influence project, planning, support of the Government, also has appreciation potential.

2, determine the appropriate investment strategy

House for rent, but it may not be much room for appreciation in the future; some projects and on the contrary. So before buying a House, be wipe test for investment locations. First, clear the area's future planning; the second is a clear target housing appreciation potential; the last is clearly regional tenant types and needs.

3, a balance between short-term and long-term

Prices will rise, but it certainly will not keep rising if collapsed, once it has been tied up in the property market there was tragedy. So learn to balance short-term and long-term relationships, optimize portfolios will be possible today.

Preferential policies for 4, use the time to buy a House

Learn to "opportunistic", drawing on all real estate transactions in the discount, as well as managing the opportunity to buy a House, such as the project at the opening, in order to attract homebuyers will have preferential treatment principles.

5, diversification

Never put your eggs in one basket. Recommends that the total real estate investment ratio should not exceed 60% of the total assets of individuals, because of State macro-control will still give investors a certain risk.


Investment property and ordinary just need to buy a House there is a big difference, with a long-term vision and a solid knowledge of real estate is a must, now's not time to buy a House can make money in the property market.

China was staging the third Fortune shuffle: who will be the losers?

With the changing times and the transformation of China's economic structure, unfolding the third Fortune reshuffle is inevitable. In accordance with current trends, shuffle is a continued process of wealth, so how do you avoid being washed or become a winner in the shuffle is outstanding issues that are before us.

Bole equity investment team in the era after long-term study found that, since China's reform and opening up, has endured two Fortune shuffle, is undergoing a third round of reshuffling of wealth:



Timid is bold of the shuffle for the first time, so how big is China's first batch of rich is not knowledge, but bold. In the process, with the currency and inflation after reform and opening up to, and accumulation of wage who suddenly feel the relative devaluation of wealth harder and harder. This is Fortune rise along the coast in Southeast, Central and Western regions, in particular cause of the sharp decline in wealth in the Northeast.

Second big shuffle is a knowledge and insight for those who lack knowledge and insights of those who shuffle, the shuffling took place 15 years ago, is expressed in a large number of excellent private-owned enterprise's rise, such as Huawei, Tencent, TCL, and those so-called "profiteering" decline.

Currently ongoing third Fortune shuffle is a new way of thinking to an older way of thinking of shuffling, in the past three years and the next 10 years will be repeated piece of drama.

Why the past 3 years and the next 10 years, will put the third Fortune shuffle? Why 30 years one of the largest reshuffling of wealth?

This is why these rich make money from the past 30 years, Foundation exists to make money now? If you no longer exist, the shuffling of wealth is a very easy to understand events.

Form and content of the third Fortune shuffle is what?

1, and real estate investment wealth became the third winner of the reshuffle, and become the next 10 years only to fight inflation and devaluation of investment tools

Last year, time Bole equity investment teams in China first proposed "no equity rich" and "the next 8 years, China's greatest investment opportunity in equity" point of view, and people.

Capital markets staged dream of wealth, new wealth myth has nothing to do with bear market, is proving the correctness of this conclusion.

Real estate prices go beyond the salary rise is a typical reshuffling of wealth, and no new wealth is being created, as well as the lateral flow of funds. In this mode transfers of wealth, large cities and some second-tier cities and House residents should automatically become beneficiaries of the wealth transfer, residents in the other parts of the country and are unaware of the wealth shrink. Regions, the gap is widening between urban and rural areas, and the growth of small and medium cities in the Midwest engine fire, few urban prosperity and cover most of the city's depression.

Real estate investing to wealth became the third winner of the reshuffle, there are several key reasons:

First asset shortage still exists in China, release of large amounts of currency (China's GDP is far less than the United States, but the monetary issue than the United States), and did not place. Public venture, equity investment, not many people are familiar with and areas of expertise.

Second house prices as the world's first is an inevitable trend. China's housing prices have risen dramatically, however, due to China's large population, 10 years or so and have the potential to become the world's largest national GDP, meanwhile, also is the largest country in the world wealth. Chinese like big cities, like education, medical city, in this case, there will be too much money chasing the first-tier cities as well as some second-tier cities. Price increases inevitable. Once China's GDP as the world's first, coupled with China's large population, it will have a huge "siphon effect" of neighboring countries and regions will continue to edge. Does not rule out another 20 years, Japan may become the edge. Reproduction Tang dynasty, house prices first, it is entirely possible.

However, we must remain sober-minded is, three or four-wire net outflow of cities, especially in the cities, housing prices are relatively low, but there is a huge bubble, because the bubble itself is relative to demand and purchasing power.

2, wealth in the hands-on and disappearing leverage

Horses of our time equity investment group found that last year's stock market crash, many high net worth individual investors of all failed mainly due to the hands-on and leverage over the past 30 years successful experience in industrial investment and real-estate investment, many wealth owners thinks he can do everything, baodatianxia.

Reflect on events of the last two years: bankruptcy of usury and the crash occurred, led to millions of households a night back to liberation.

The main reason:

Hands-on: does not need much of a professional in real estate foreign investment, mainly due to the real estate over the past 10 years, average home prices are up more than 10 times, and up not down, just like the stock market for 10 years. Retail investors will become God. But the stock market appears to be simple, complex, professional players may not make money, not to mention business people.

Leverage: a unilateral in a rising market, is the use of leverage, however, China's stock market and gambling is no different, using leverage, equal to gambling. Never seen borrows money from gamblers to gamble, and, using leverage, even betting on 100 times, as long as there is a failure, can result in wasted, one-night return to liberation. Why can't stocks using leverage, and real estate investments can do it? Real estate using leverage, even if prices fall, and do not require additional collateral, but stock markets fell once, is a certain need for increased security.

3, still stuck in the past success, but did not see coming. Outstanding: many companies on the blind project, only knows how, getting into funding difficulties.

Blind directly involved in new activities: typical case was Hunan, Hubei.

Blind expansion of production capacity, capacity on the die engages in Shanxi Xinhai, LDK, Suntech, is a typical case.

Blind only knows how, on project: Sichuan Changhong's successor, Zhao Yong, Chairman of the plasma project.

Eager to earn quick money into loan-sharking or real estate: today a large number of three or four tiers of small real estate business with funding dilemma, loan sharking burst in Zhejiang Wenzhou and other areas.

4, difficult to adapt to the Internet the coming civilization, civilization and space age, still in the thinking of traditional industry, dreams of the traditional industry to continue recovery

With mobile Internet at its core, human access to space civilization. Intelligent, non-scene, no contacts, no paper, this is a typical sign of Internet space and civilization, and these iconic products corresponding to the sign industry is an alternative to traditional industries, and formed a lethal strike:

Off-site sales will gradually beyond the sale, the Alibaba group, represented by the off-site sale will completely defeat the General merchandise supermarkets. Original business type will change radically. Alibaba, a company, annual transaction value of more than 1 trillion yuan, is the sum of top department stores supermarkets.

The micro and micro-blogging services represented by the new media, gradually replace newspapers, magazines, television broadcasts, mainstream channels of information dissemination.

To smart phones as a representative of a new generation of intelligent consumption, paperless age and off-site, space civilizations prepare solid material Foundation.

Virtual spending gradually exceeding the physical consumption, spirit consumption beyond material consumption, represented by Tencent, era of virtual consumer, means that humans not only consume food and beverages, housing and clothes, more spiritual level of virtual consumer.

3D printing changing the manufacturing State. Printing machines out of spare parts, food, clothing, and it will be the biggest revolution in manufacturing.

To electric vehicles and shale gas as a representative of new energy technologies to be influencing and changing core of human energy patterns. This event makes coal and other conventional energy decline is inevitable.

5, the third shuffle of wealth trends and winners

Big reshuffle one of the trends and directions of wealth: knowledge and entrepreneurship becoming mainstream way of wealth creation

According to the wealth of Nations and all the classic economic theory, wealth generation from the labor and resources. Wealth structure and population structure of corresponding angles, more developed economies in the world, only Hong Kong and mainland China basically has nothing to do with the degree. This situation has nothing to do with education is almost impossible. When the era of easy money in the past, China will go back to the real era of relying on technological progress and integrity to earn money.

Reshuffling of wealth trends and directions II: simple "money begets money" era will be gone, the era of low interest rates for a long time will destroy those high interest costs

Simple of "money health money" of times past: past 10 years China created wealth of mainstream way not relies on honest labor, and not relies on wisdom and hard business, but relies on assets of bubble, relies on money health money, this bubble throughout whole social: bulk mineral bubble, and collection products bubble, and luxury bubble and so on, many people almost a night rich: 2015, society of wealth level almost is 2000 of 40 times times, but, actual GDP just growth has 300% just, Severity of the bubble can be imagined.

Asset reshuffling of the trends and directions of three: labor-intensive and manufacturing are replaced by brand owners and owners of core technology

Fundamental change in China's comparative advantage, low labour costs rising, but high labor costs are still relatively cheap, in this case, labour-intensive industries have gradually eliminated or transferred, and to brand + technology owners, so they will be the big reshuffle winner of wealth. Typical cases is Huawei.

Asset reshuffling of the trends and directions of four: better to be the head, a lion will be end

Under the principle of winner, the industry's often left no more than 5. This means that China will have thousands of enterprises or to close down or acquired.

Chinese people like to be your own boss, did not measure their ability and level, resources, over the past 30 years the brutal stages, Robin Hood era, this is possible today, can become the winners will be those with entrepreneurial spirit and quality of the staff.

Today in Europe, Japan and the United States have been heard from in 10 years business surges. It does not need so many bosses.
Public entrepreneurship, and innovation, the ultimate outcome must be "on the rotting bones."

Thinking over the past 30 years a key condition for the success of the rich and (why are they rich), which is a prerequisite to understand today the third Fortune cards

Bole equity team of the times study found that over the past 30 years the rich become rich, in fact, is highly correlated with the environment at that time, is a typical "hero". Must now be analyzed, these environmental factors continue to exist, if not, whether wealth must shuffle.

1, 30 years of reform and opening up has created a very successful investment is conducive to China's rich to the external environment, and everywhere is filled with opportunities to create wealth

Global bonus: making reform and opening up China's integration into the global, with the integration of the global economy, especially labour, technical and financial integration, making China the largest beneficiaries;

Elements of bonus: 30 years of reform and opening up, including factors such as labour, land and capital, growing spring breeze blowing from the southeast coast to the Mainland, formed transferred.

Dividends system: the system is a bridge and link between the contact elements, is key to substantially enhance the efficiency of elements. 30 anniversary, is the process of releasing system of bonuses.

Consumer upgrade bonuses: consumption upgrade and export growth three times a group of wealthy people.
30 years of reform and opening up, China's economy has experienced an overall growth, all walks of life from the ruins into a comprehensive prosperous, with three consumption upgrading and export growth.
The first consumer upgrades: 80 from hundred-Millennium-level, replacing the watch for color TV sets, refrigerators, washing machines, sewing machines and bicycles, clothing, food, shelter.
Second consumer upgrades: 90, thousand-million-level, for computers and mobile phones into the millions, achievements of Bill Gates and Microsoft, Lenovo and founder.
Third-grade of consumption: 2000 years later, move from the million level of hundreds of thousands of Yuan, even million level, as represented by the cars, real estate, into ordinary, the achievements of the large real estate owner and mine owner.
2, 30 years, mainstream investors on the lack of government regulation and the rule is intrinsic to the success of the basis and conditions
Low access to policy information and advantages: only the southeast coast and in big cities.
Cheap labor: low wages, low benefits and high strength.
Low cost of land.
Low cost of environmental damage.
Technology and low costs of imitation and plagiarism.
Low and uncontrolled access to State resources.
Rising asset prices.
Imperfection of the legal system and policies, monitoring is not in place.
Why is China after 30 years, there will be shuffling of wealth-the changing context and background, the same knowledge structure and cognitive level of inevitable led to Fortune cards
Era Bole equity and concludes the following reasons:
1, world time, changes have taken place, but more people in his mark, impossible thoughts and thinking has not changed, even the danger has appeared not to know.
This is particularly reflected in a number of successful people in more than 50 years of success, they still stick to the successful experience of the original, the status quo is still not willing to acknowledge the reality of coming.
Horses of our time in the equity of the project company did find that they are hard to change. Facing a global environment, 10 years if enterprises do not, there must be a fatal problem, and this is the crux of the problem is corporate leader's conservative and rigid.
2, 80% above does not have the existing wealth mastery and ability to control this wealth: knowledge structure, the level of recognition, vision, moral qualities, there is a huge limitation.
We need to see is that now have made the wealth of people, does not mean that its competence and integrity than others.
A lot of people's knowledge and ability, vision and not with the increase of wealth and growth.
3, 30 accumulated problems, could not pay people: Chinese financial-asset bubbles; comprehensive real estate bubble in China; China's heavy chemical industry.
Era Bole equity investment team believes that more than 30 years of reform and opening up, eventually there will be an opportunity to pay, even though we think that property prices in China will become the world's first, but does not mean that there are no huge declines in the price of, even after a significant decline in Hong Kong property prices after several, have increased substantially.
We have accumulated such a huge financial assets devaluation pressure is tremendous. If China's favorable balance of trade has made, then combined with the Renminbi the next water slows down, devaluation pressures will ease, otherwise, the devaluation of the renminbi is only going to get a lot of pressure.
Excessive heavy industrialization in China, the output of major industrial products, almost all of the world's first. Next, capacity will be an ongoing and lengthy process. In the process, is also a process of constant reshuffling of wealth.
4, changing environments and backgrounds, unchangeable knowledge and cognitive level reshuffling will inevitably lead to wealth.
Following the emergence of marked the dawn of third money shuffle:
Completed China's heavy chemical industry: iron and steel, cement and electrolytic aluminum production more than 70% of the world, makes the space industry almost ceased to exist.
After becoming the world's first export, general difficulties in 2012 annual import and export volume estimated growth rate does not exceed 7%.
Shortage area, marked the end of the bonus stages of China's population, rely on existing child policies, demographic dividend will be at least 15 years to be felt.
Three consumer upgrade eventually led to serious asset bubble and the serious deterioration of the environment in China, China has become one of the world's most inhospitable countries.
In this case, once the conditions for the survival of the rich and the basis for fundamental change, asset reshuffle is inevitable:
No deposit information advantages, the country has basically formed the reform and opening up.
Labor costs continue to rise, leading to labor will become more and more difficult in the future, general manufacturing and low value-added labour-intensive enterprises to big area of bankruptcy.
Rising raw materials prices will be a persistent rise era, the vast majority of prices of raw materials will be stagnant for a long time.
The rise of the Central and Western regions and Viet Nam and Cambodia to open, the formation of new competitors: cheaper labor and land costs.
Improvement of the legal system, and increasingly expensive.
There may be a wider range of RMB devaluation: the ratio of financial assets can be found in long-term devaluation is a big trend.
Lack of proper investment channels, while the original business is largely up to the development of space. Bank deposits, by 7% per cent a year, stocks fell every day.
Victims have emerged, martyrs ' blood is expected to be in vain. Wenzhou, Ordos to the bursting of the housing bubble, could well be overshadowed by the recent one or two lines of China real estate madness.
Jiang Guo Yun: in China the third Fortune big reshuffle winner
With the changing times and the transformation of China's economic structure, unfolding the third Fortune reshuffle is inevitable. In accordance with current trends, shuffle is a continued process of wealth, so how do you avoid being washed or become a winner in the shuffle is outstanding issues that are before us. After much research and demonstration, Bole equity team of the times believes that equity net flows into real estate investment in the future of the city and 10 years to value and investment against inflation, stick to business, embrace mergers, are important mainstream choice.
One
Bole team thrashed the times concluded that, for purposes of investment, urban real estate investment equity net inflows and the past 3 years and the next 10 years the most effective methods of wealth, including relatively low risk of equity investment, real estate investment has stage experience some bubbles. Select equity, choice urban real estate investment net inflows, should be capable of being third in the shuffling of wealth in a position of comparative advantage, have a great chance to become the winner.
1, the review of the past 10 years investment history and looking into the future, only the equity investments are most likely to fight inflation and a positive return on investment, but also to invest in most of the time, the reasons are as follows:
Changes in economic development over the past 10 years, and Bole of the times team found that only equity return on investment is steadily rising, falling or in other industries, or industries may face disappear. And we see the following facts:
Falling yields on bank financial products: about 10% years from down under 4%;
Yields in the bond market decline: apart from the fair last year, bond yields and yields on other bonds of the year overall was downward trend;
General industrial investment income also fell: there is no doubt that General uncertainty surrounding the investment is the largest in the past few years, especially the traditional industry and energy-intensive heavy industry;
Real estate yields are declining: in the past 10 years, while real estate is one of the best performing industry, but for the last three years, rose has evolved into a handful of cities increases, real estate investment regional risks have appeared, three years ago, real estate and even in a period of serious difficulties.
In contrast, equity market, based on yields from two aspects: one is listing probability and to market, is listed after the rate of return.
Listing probability greater listing period is shortened. The China Securities Regulatory Commission is essentially a lower listing threshold, has been asking for three consecutive years in the past, and there are no profit declines over the past 10 years the probability of reporting enterprises through the issuance of audit is 78%, now pay more attention to compliance and disclosure, reporting through the past 3 years the probability of issuing up to 88%, up full 10%.
From the market, IPO listing easier, from the third to the IPO is only 1.5 years.
Judging from the listed yields, market yields also rose steadily, now China's stock markets, only the shares yield whether it is bull market or bear market, are very high! Recent trends in a year or more.
In addition, judging from the equity investment environment and space, also in a very good state of development:
After 5 years of interpretation has developed excellent PE institutions, specialized more and more. Only after a shuffle, and they knew that those institutions are credible and what strength is very strong.
China's IPO is a huge space: the United States has nearly all listed companies, China currently has more than 3,000 enterprises, considering that 10 years later, China's GDP reached or exceed United States, 10,000 Chinese listed companies completely normal. In other words, the next 10 years, China had 7,000 companies listed, this is what a great cake.
China's significant improvement in the environment and promotion of equity exits: exit new three Board listing, mergers and acquisitions, IPO and many other exit option for equity investment the exit environment provides far better than in the past.
2, the net inflow of cities real estate is the second choice, is also a good way to invest, with the equity investment difference is, there is a high risk of real estate, tier and second-tier cities, after all, the short term prices have been large.
Why net population inflow of cities is also a good way to invest in real estate?
First, Chinese investment in real estate of helpless choice
China has a shortage of assets, declining yields on financial products, release of large amounts of currency (China's GDP is far less than the United States, but the monetary issue than the United States), and did not place. Public venture, equity investment, not many people are familiar with and areas of expertise.
Second, investing in real estate is a Chinese investment habits
Chinese farming civilization, with a fixed place is a habit, even those who have emigrated to overseas countries of choice for Chinese and overseas Chinese will continue to purchase a home as an investment.
Third, Chinese people tend to flock to big cities, a severe a herd mentality.
Chinese like big cities, like education, medical city, in this case, there will be too much money chasing the first-tier cities as well as some second-tier cities. Rising home prices in these cities is inevitable.
IV, housing prices in China as the world's first is an inevitable trend.
China's housing prices have risen dramatically, however, due to China's large population, 10 years or so and have the potential to become the world's largest national GDP, meanwhile, also is the largest country in the world wealth.
Once China's GDP as the world's first, coupled with China's large population, it will have a huge "siphon effect" of neighboring countries and regions will continue to edge. Does not rule out another 20 years, Japan may become the edge. Reproduction Tang dynasty, house prices first, it is entirely possible.
3, the essence of equity investments with an equity investment, but due to too many factors influencing the winning stock investments, especially the factor is human nature, hard for the average person to overcome, so equity investment in equities does not belong to this article is about.
Bole equity investment team of the times believes that winning stock investments must meet the following three conditions:
(1) beyond normal asymmetric information: information because everyone knows there is not much reference value of investments;
(2) with anti-psychological qualities of human nature, if it is animal of reflective thinking and psychology, best not to invest, investment is the key psychological quality control over their emotions and make a rational judgment;
(3) have enough patience and waiting: for equity financing, you need enough patience and confidence of investors.
Since the common it's hard to have more than three conditions, and buy stocks lost money is a normal thing. So much in a variable, under the conditions of uncertainty is so great to buy stock in a way that wealth is being washed away. Even is professional players, we also can strictly argument, its returns must greatly below equity investment, according to value investment of theory, engaged in of are is investment, in equal level and equal conditions Xia, a can not need overcome too more of humanity, and another must overcome humanity to constantly for judge, humanity hard overcome, more once judge, more once errors of probability, so, stock investment must bad Yu equity investment. A little mathematical knowledge people should understand this.
Two
If we want to avoid shuffling of wealth, should have a kind of way of thinking? We clearly good equity investments and real estate wealth is the value after the main way, for the wealth of the whole global concept, there must be a correct way of thinking.

Bole team thought of the times, only to establish the correct way of thinking and methods it is possible to completely avoid third money shuffle. Was thinking, after all, decided to act.
1, let go of the past have had experience in a whole new perspective to meet the investment.
Are difficult to change, especially those who completed in the wealth accumulation. Maintain the previous experience often become shackles or grow.
The rise of the new economy, especially the coming of the Internet age, has completely changed the original production and way of life.
2, the industry must comply with the direction of national economic restructuring, otherwise, often becomes the object of persecution, victim of the times
We select and direction must be consistent with the direction of national economic restructuring. State strategic industries are the focus of development in the next 10 years. New consumer business and health for national development and lasting power.

3, there is no appropriate team cannot easily intervene in unfamiliar industries with special people to do professional things is the key to investment success in transition
People is a decisive factor. Unlike past simple processing and manufacturing industries, and industries are now is a combination of money, capital and knowledge capital. Even investment banking, was also very professional. In that case, rushed into an unfamiliar industry, the risk of failure is great.

Professional people to do professional things, in other words, don't do it without professional, otherwise can only bear the agony of defeat.

Three

We want to win the third asset shuffle, also need to stand on high ground, knowing some basic methods in order to make the right choice. Era Bole equity investment team believes that third money shuffle is definitely an intense process, of usury and the 2015 2014 stock crash was just a rehearsal for the tragedy, more durable and more terrible chronic shuffle yet, so we need to stand on a vantage point to understand the third Fortune cards, to guard against being shuffled.

1, focus on their future business, do your best and most advantageous work
Only those in the blue ocean market and prosperous industry, focusing on its main, deep penetration to do business, to lasting success and wealth to become the third largest winner in the shuffle. In fact, a blue ocean market, in fact, no urgency to diversify economies in transition, and instead concentrate on core business development prospects. Japan and Germany has the largest number of hundred years small businesses, hundreds of years to focus on one product or one field, but who have lived 100 years or more.
China's reform and opening up more than 30 years, there is also a law, those companies that will do business perfectly, in fact, develop good, even a giant:
Huawei's only communications equipment and its related industries for decades, can resist the temptation of making quick money, become the most outstanding high-tech enterprises in China, the world's top 500 enterprises of China in the leader. There is no doubt that Huawei if engaged in the real estate industry, certainly has a lot of advantages, but they did not do so, otherwise, it is impossible to achieve impressive results in the field of communication.
Vanke from supermarket business, real estate, thus becoming China's largest real estate company.
Chili sauce for decades to do only one thing: condiment sauce.
Looking back at many companies, the small, but in many industries, prematurely to diversify its business. Do anything, but not to do anything, in fact, this is also a typical flippancy, as a result, industrial upgrading will be difficult to achieve, there is even a Chinese group to Japan to buy toilet funny facts.
2, for trying to finance for people to circumvent shuffle, you must understand the basics of financial management:
Asset allocation mix between the safety, profitability, liquidity, rather than dreams and good liquidity and yield, and safety products, if there is such a product, it must be a scam.
Professional people to do professional things is a huge gap between professional players and amateurs, don't assume that you know everything, what money you want to make, or are reluctant to let others make money.
Raw than cooked, cooked as well: once you have selected good products and institutions can be trusted, and not easily changed, or because it doesn't immediately change the beginner's mind. Awareness and understanding of a body is, after all, takes time, investment is the biggest taboo is always greener!
Logic, I believe that common sense, rather than believe in miracles: the majority of individual stocks is a process of loss of individual stocks can make money is a miracle, therefore, need to think about their own logic of the stock market to make money and possibilities.
Believe the probability rather than gambling: investing in long-term outcome is the result of a probability, therefore, lost the final result will be all in gambling. Using leverage in the investment in securities is a typical gambler mentality.
3, embrace mergers and acquisitions, cross-border and cross-border
For ambitious entrepreneurs, the acquisition is an important method for bigger and stronger.

For a not big and barely surviving business, mergers and acquisitions are also a good choice. That anachronistic, better be the head of a lion, sooner or later, the enterprise into the end position.
Across the territories, in particular by selecting and identifying professional teams across borders is likely to be successful. Because cross-border often meant to subvert, one vision and no framework for a new way of thinking, then, using a professional team to carry out cross-border work, and ensure that expertise. Looking back at the past 10 years, many great businesses across borders: Apple phone, Tesla does cars. Cross-boundary will be the norm, to be prepared. Therefore, even if it is the industry's leading enterprise, but also thickened walls, widening the moat, which is a daily must move.
4, greater investment in financial institutions, and for the next 10 years, asset management may be the most valuable investment financial institutions, banks and securities firms have already invested missed the window period.
Bole after long study of the times found a common investment law: made over the past 30 years to large areas of a successful investment focused on investments in financial institutions, asset manager the next 10 years may be the most valuable investment financial institutions. The past 30 years, many companies have diversified attempt, even invested project itself consciously and unconsciously, we found that investments in industry, far below the success rate on investments in the financial sector.
80-90 a large number of enterprises investing in banks, both Shenzhen Development Bank, China Minsheng Bank, China Merchants Bank, and Societe Generale Bank, Bank of Beijing, Bank of Ningbo, investors have made dozens of times or even a hundredfold in return. Began in the 90 's a lot of business to invest in securities, whether it's investing in major brokerage CITIC Securities, guosen securities, guotai Junan securities, or investment by small brokerages guohai securities, sinolink securities, has made dozens of times in return. For example, Beijing urban construction, ya GE you. Investing in insurance agencies, also achieved a very good return.
"Why investment in financial investments to achieve massive success? And investments in the industry may face a greater risk of failure? ”
(1) investment is a matter of probability, the growth of financial institutions closely linked with the development of the national economy and the transformation of the economic structure. As long as economic growth, under normal circumstances, financial institutions are able to share a piece of the action.
(2) 80 investment in banks: China's rapid GDP growth, banks are the largest beneficiaries. Most comprehensive high GDP growth is good for the banking industry because relevance is the strongest of the banks and the national economy.
(3) 90 investments in securities: stock investors in China from zero to more than 200 million people today, a stunning development, so today's smallest listed brokerages, there are tens of billions of market value.
"Why, next 10 years asset managers are likely to be one of China's most valuable investment areas? ”
(1) the deepening of China's financial development will be mainly in the field of wealth management and wealth management as the core institution, undoubtedly will be the most beneficial. Disintermediation and specialization of investment of the Internet makes the traditional banks and brokerages faced a great deal of transformation and survival, and beneficiaries are asset managers.
(2) has proved countless times in the past, today's Europe is tomorrow's China, when conditions are right, the time is around 10, so 30 years after reform and opening up, standing in the global heights, will China's industries are compared with the developed countries in Europe and America, we found that the asset management industry is one of the largest remaining gap.
This gap is reflected in the breadth and depth of two aspects:
(1) the breadth of speaking, China's wealth management is still in the stage of personal finance, more than 90% people remained in their care of their wealth, and 90% of the West's wealth to a commercial operation and management.
(2) speaking from the depth, currently China's largest dedicated wealth manager is only around 800 billion yuan RMB and United States maximum of more than $ 5 trillion, gap up to 40 times more than China's GDP reached United States of 60%, and in 10 years is expected to catch up with the United States.
Gap means space.
3, the trend of investor structure of institutions is evident, China's institutional investors have a lot of space
United States institutional investors accounted for more than 90%, while China only 20% through usurious interest rates and after the events of the crash, Bole firmly believes that the times, non-professional investors will gradually withdraw from the market. Institutional investors will predominate.
China's economic transformation has been a key moment for the investment as a whole, has reached a crucial moment. Shuffle itself means wealth with economies in transition over the past 30 years performed the first and second Fortune shuffle the smoke had gone, but the third Fortune shuffling going on, we must be constantly vigilant and deal with it calmly, must not be taken lightly. Each of us wants to be the third big reshuffle winner rather than a loser of wealth.

This paper tries to elaborate history and logic, hoped has the help to everybody, irregularities, please be understanding. Hundreds of words, era Bole is a case!