Photo by Markus Spiske on Unsplash, this article comes from WeChat public account: people and gods work together (ID: tongyipaocha) span> , author: God people were excited
1. Why did the fund lose, but the people lost?
At the end of the year and the beginning of the year, as usual, there are topics related to money.
Last year was a bumper year for public fundraising. For the first time in history, most active public fundraising outperformed the index, but there was a fate that could not escape. Some surveys found that most of the citizens ’income did not run last year Winning the index naturally lags far behind the funds invested.
We know that most of the fund’s shares have been bought by ordinary “citizens.” Why did the fund run out but the citizens lost?
In fact, this is not a year-by-year phenomenon, but it is true every year.
Ordinary people invest in financial management, either by themselves, researching and investing in a direction they are familiar with, and realizing knowledge; they can also buy professional funds through professional institutions to enjoy professional wealth services, but there is one thing No one can help you, is the concept of wealth.
Most people ’s outlook on wealth is distorted. The most typical phenomenon is when the stock market is hot, when junk stocks sell gold prices, and when funds are selling the best; when the stock market is deserted and high-quality assets sell cabbage prices, It was also when the fund was left unattended.
If you want to acquire wealth for a long time, you must have a correct outlook on wealth. Today ’s article will start with a particularly important ancient teaching about wealth—there is no way to get into the door.
2. Why make moneyCan’t rush?
Literally means that you ca n’t make money in a hurry.
For these ancient teachings, the attitude of many people is: it makes sense, it does n’t matter. Because it is a little different from reality, after all, there are too many examples of making quick money around us. Moreover, isn’t money all fast money? Many people think that when they have the opportunity, earn a wave of quick money to settle their lives, and the rest of the money, slowly earning money, isn’t it good?
To say how to make quick money, the stock market has the most, and most people in the early days came to make quick money. I have done stocks for more than 20 years. I have seen countless people making quick money. The insiders of relatives and friends make money, there are those who study hard to make money with Zhuang technology, there are those who pay heavily to pay attention to the group to make money, and those who are buddhas make money in Maotai.
The results are no exception, they all “returned” back. Listen to the insider making money and people who are good at betting on the group, all died in the failure of borrowing money to gamble and reorganize. Those who are good at Zhuang technology, after the Zhuang stock disappeared, the money made was slowly lost. The type of Shigekura is counterfeit Kangdexin.
What makes you fail is often the method that once made you successful; what destroys your self-confidence is that what you are sure has suddenly disappeared.
Speaking like this is very fatalistic, but it is actually the essence of making money in terms of investment—subjectively, you make money by ability, money by knowledge, and money by courage, but objectively, time is The essence of capital appreciation.
Let ’s leave aside a handful of people like Jack Ma who rely on the opportunities of the times and the power of capital. There is a difference in the ability to make money, which is the difference between long-term annualized income of 20% (Warren Buffett level) and 5% (Ordinary financial management). . Let’s suddenly make a big profit of 100% of profits, we should ask ourselves: then what?
The long-term annualized return is the long-term average. If you use a certain method to earn 100% in a certain year, You can imagine that if you continue to use this method, you will get extremely low or even negative returns in the future, until the average return returns to normal in the end,
Many people do n’t understand this, but the problem is that they ca n’t stand loneliness, because the growth of wealth is not the upward slash, but a combination of parabola. The first half of life is slow and there is a breakthrough in the middle After the bottle was strong, it was slow, and finally encountered a bottleneck.
The reason is not difficult to understand. The growth of wealth depends not only on time, but also on the stock of knowledge and wealth, as well as whether you have a good way. These all take time to accumulate.
Of course, with the help of multiple wealth growth channels or professional financial management strengths, we can break through the bottleneck of growth in stages and let growth become a wave.
Everyone knows that there are risks to investing, so all of them just want to take a handful of fast money and leave. This is the real reason for “funds make money, and people lose money.” Therefore, “there is no way out of the door” has three meanings.
3. First, focus on big opportunities, don’t waste time in small opportunities
There is a rule for doing business. You cannot satisfy all customers. If you try to do this, youThe cost will become extremely high, and the price will lose competitiveness. The best way is to follow the “Eight and Eight Principles”, that is, 20% of the customers will bring 80% of the income, and the 20% of the customers who have served well will make 80% of their money before they say it.
The same is true for wealth accumulation, focusing on the few big opportunities that can bring 80% of wealth. At this time, the thing that is most likely to interfere with your outlook on wealth is “doing nothing by hand”.
In fact, no money is made in vain, and you usually underestimate the difficulty of making this money.
In the past, when I was running an advertising company, there were often very close customers who let us “by the way” do some business that I usually do n’t do. At the beginning, I felt that the money I made from the door, the existing customer relationship, but also the expansion Why not do some business areas?
But after discovering it, I found out that these businesses are not “stand and make money” at first. I am unfamiliar with the business and it is easy to take a detour. Customers are looking for you to save money. The cost is high, the income is low, the loss is large, and the quality of the final output is not good, and it also hurts the customer relationship.
The same is true for wealth accumulation. Recently, it has risen a bit, and readers who follow my regular vote often ask me if I should sell it first and then buy it on dips.
Why the fund makes money, and the people who buy the fund lose money because many people not only want to earn the money that the fund ’s net worth has risen, but also want to earn the band spread. As a result, they have earned sesame seeds and lost watermelons.
Why buy a fund and only earn a rise in net worth and not a swing in price? Because these two types of money are essentially different: “Net worth rises” is essentially money for economic growth. It is a big opportunity for everyone to sit in a sedan chair together. “Band spread” is essentially a game, and everyone else loses. The image of money is that everyone cuts each other with a knife. Of course, money is hard to make.
Of course, in the early stage of wealth accumulation, if it is those small opportunities that are really easy, it is also possible to make money by the way, but as you grow older, you must learn to give up those occasional opportunities to earn extra money.
I often received some advertising copy and strategy work in the early days because it didn’t take up much time and was related to my work, but I gave up because it was not what I really wanted to write.
A lot of people think that the two cannot coexist? The answer is no. If you get more small opportunities, the structure of people will become smaller, path dependence will be formed, and real opportunities are ignored.
So I would rather write a manuscript, Earning a poor manuscript fee, because of the latter, so today’s public account. If you just write advertisements according to your customers’ preferences, you will probably write yourself down.
People who want to make all the small money can end up with nothing they should make.
Doing business and career is even more so. Not only don’t pay too much attention to the small money, or even spend the small money constantly. There is a saying “Cai scattered people gather”-scattered small money, the popularity of the gathering is great fiscal.
The above is easy to understand, but what many people are confused about is judging questions, such as what is a big opportunity and what is a small opportunity. Is it possible to make big money is a big opportunity, can small money be a small opportunity?
4. Second, focus on the steady returns of long-term growth and abandon short-term speculative thinking
When my son was born, please wait a month. Aunt Zhang. This person is alive, diligent, and has a good reputation.
Auntie Zhang is also a wonderful girl. She came to Shanghai for seven or eight years, worked as a hairdresser, bar bartender, opened a manicure house, and a Chinese medicine massage room. For each job change, the middle transition time is used as a month. 嫂 to fill, the lack of liquidity, also do 嫂 for a period of time.
We often say that a person cannot keep up because of a lack of perseverance. But taking Auntie Zhang as an example, she always has perseverance when she transfers into a new industry, and she can quickly join the industry. But it turned out that she once told me that if she only did Yue Yue, her savings now would have to be multiplied by 10.
Aunt Zhang’s problem is that she has a stubborn belief that she doesn’t make any money because she hasn’t found any industry that can make money.
In fact, many people have the same idea as Aunt Zhang, always thinking “What to do now to make more money” instead of “What are the long-term stable ways to make money”?
What is the difference between a big opportunity and a small opportunity? My answer is simple, long-term sustainable growth, and strong certainty, even if the profit is small, it is a great opportunity; it can only bring short-term riches, the certainty is ordinary, even if the profit is high, it is a small opportunity.
Everyone who has run a restaurant knows that there are some humble snack restaurants that have been open for a long time. The profit is higher than a restaurant that is not far away and the unit price is several times more expensive, because the former has a long-term stable and stable passenger flow. There is no requirement for the craftsmanship of the chef. It can be said to be a stable business with a “moat”; the latter has a bright surface and is actually very fragile. The departure of the head chef results in a different taste, which may lead to the loss of old customers and the business will change quickly. light.
The fund industry has a “winner’s curse”, the previous year’s earnings champion, and the next two or three years, it has a high probability of losing. Because of the factors that determine the short-term investment income, the market style has the greatest impact. Therefore, the core style of the fund manager of the income champion must be exactly the same as the market.
But the style is always feng shui, and even the best fund managers can’t give up their core style. Then in the next two or three years, they can only “eat the soil.”
So you ca n’t choose a fund to see the return for one year. You should even observe whether the fund manager can maintain a stable style, especially when the market style is completely “countercurrent”. Profit, this is more important than the short-term profit level. In order to pursue performance, many young fund managers are always chasing the market style without their own persistence. In the long run, they tend to underperform the market.
5. Third, you can make money continuously if you make money happily
On the road to life, the speed of acquiring wealth is uneven. Some people get rich first and then poor, some people get poor first and then get rich. Some people ’s assets rise steadily along the way. Some people ’s wealth is like a roller coaster … These wealth curves originate from Different methods of wealth:
Rich-thin-poor: Use the wrong method to make a lot of money by luck, and then slowly lose:
Poor first, then rich: endure long-term accumulation of capital and knowledge, and finally accumulate at the right time:
Stable growth: As mentioned earlier, we have broken through the bottleneck of wealth in stages through professional knowledge or professional institutions.
Riding a model: Chasing short-term rich opportunities with speculative thinking. Wealth fluctuates randomly.
Which road is better? The study of economics tells us two principles:
First, the principle of loss aversion : The pain of losing one million is much greater than the happiness of getting one million;
Second, the principle of diminishing marginal utility : The happiness value of the first one million is the largest, the second one is the second, and then the value is diminishing, and it does n’t matter how much money you make.
The two principles exclude the “rich first, then the poor” and “roller coaster” types. Even if their ultimate wealth is greater than ordinary people, life is still more pain than happiness.
For the rest, it is obvious to the naked eye that “steady growth” must be better than “poor first and then rich”.
So, the most painful way to make money with the same income is to earn a wave of fast money, and then slowly lose it; the happiest way to make money is to make normal money and lose less when others lose money point.
Buffett is no exception to this rule, but he is very powerful in the superposition of “steady growth” and “poor first, then rich”. Although he has a talent for making money, he actually belongs to the “steady growth” of the first half of his life. He regards the accumulated wealth of the rich as the “poor” of “poor first and then rich”, and uses the second half of his life to “throw up his wealth”.
Is the purpose of investing in wealth management to increase the number of wealth? Of course it is not, but a sense of security and happiness, so the most important principle of the concept of wealth is “cannot damage happiness and simply pursue wealth growth”.
After all, you always make more money because of happiness, not happiness.
This article is from WeChat public account: man and gods Fen (ID: tongyipaocha) , Author: God people were excited