Excerpted from Zhang Lei's new book Value.

Excerpted from Zhang Lei's new book Value.

1, adhere to the three philosophies of investment: surprisingly honest, take only one scoop when the water is weak, and find your own way without saying anything.

Surprisingly honest: on the basis of adhering to a high degree of moral self-discipline, independent personality and obeying rules, adhere to professionalism and concentration, have a big picture view and seek long-term success; At the same time, we should be within the scope of the rules, not stick to form and experience, be brave in innovation, and win by surprise.

Take only one spoonful of weak water: weak water is deep, but only one spoonful is enough to drink. Investors need strong binding force. They must resist the strong desire not to miss anything beautiful, and at the same time, they must find their own opportunities. Reject the investment of Tiannv.

Tao Li goes without saying: don't care about the social reputation or value created in the short term, what you should care about is the value created in the long term. Returning to the original heart and looking for happiness requires introspection and reflection in the investment process.

2. Understand the four dimensions of time value: span, compound interest, choice and compound interest.

(1) correctly understand the span of time: it takes tens of thousands of years to study human history; It takes at least five thousand years to study the history of civilization; It takes at least a hundred years to study business history; It takes at least several decades to study an industry or a company. To study different companies, we should look at different time spans, look at the longer history and future according to the nature of things, and make clear its time category.

Longevity is not the result, but the belief that the idea you believe can certainly travel through time. We should look at everything in the long history.

(2) Time creates compound interest: In the mathematical formula of compound interest, the principal and rate of return are just multipliers, while time is exponential. This means that with the extension of time, the compound interest effect will become more obvious. We should understand that the moat that deepens with the passage of time is an "asset", and the longer the time, the more unfavorable it is to the business, which is a kind of "expense".

(3) Take time as a choice: Many times, success lies not in what you did, but in what you didn't do. Allocate time to things that can bring value, and compound interest will do. What kind of problems and people you invest your time in are the basic factors that determine the success of your investment.

It is far more important to study big problems and pursue the fuzzy correctness of big problems than the perfect spirit of small problems.

(4) Time is the best answer: Time is an important criterion to test the correctness of investment decisions. We should not only trust our own judgment and research ability, but also be highly vigilant about all the results. Unconsciously check whether the final judgment is correct. Once you find that your judgment is wrong, adjust it immediately.

If you don't quit investing in a company/thing for five years or 10 years, it seems to be a "long-term investment", but if you don't go back to iteration, it will become an excuse to be lazy in thinking and action and become meaningless.

3. Life's "Three Fires" Theory: It doesn't matter what can be burned, such as money, house and material wealth, but what can't be burned is the most important. To sum up, there are three things, that is, a person's knowledge, ability and values. This is also the "three fires" that really belong to you.

4. Three basic requirements of value investors: rational curiosity, honesty and independence.

Reason may be late, but absence is never right.

These three aspects all emphasize "rationality", that is, rejecting short-term temptation, utilitarianism and many natural human weaknesses. At the same time, it also means rejecting subjective assumptions, asking questions with suspicion and scientific methods, and looking for answers.

Curiosity is always full of curiosity about the world, from thinking about the internal logic of social progress and business evolution to thinking about how enterprises can operate to maintain sustainable competitive advantages.

Honesty is a self-correcting system. Don't deceive others, but also be honest with yourself and have a clear and objective understanding of yourself (advantages and disadvantages).

Independent, independent spirit of exploration, independent consciousness and views on things, not blindly following authority or acting according to the views of most people, but getting answers according to their own research and thinking. Only by thinking independently and constantly questioning objectively whether you respect facts and common sense can you form your own knowledge. Moreover, such knowledge will be transformed into wisdom, which will increase exponentially with time.

5. All the quick money comes from the following reasons: the game under asymmetric information, the speculation in the fierce pursuit, and even the power rent-seeking.

Think big, think long-term, think long-term.

6. Investment can generally be analyzed from three levels: industry, company and management.

Looking at the industry, we should pay attention to the business model, what is the essence of this business and what is the logic of making money; Pay attention to the competition pattern, whether it is oligopoly or full competition; Pay attention to the growth space and be alert to the sunset industry; Pay attention to the industry threshold and see if anyone can imitate it.

Looking at the company, we should pay attention to the business model, operation model, process mechanism, how big the management radius is, how the scale effect is, and whether there is core competitiveness.

It depends on the management's emphasis on the founder's pattern, execution, thinking and ability to build an efficient organization, as well as entrepreneurship.

7. About the moat

There is only one moat in the world, that is, entrepreneurs constantly innovate and create long-term value crazily. This moat should be long-term, dynamic and open.

As long as it is an enterprise that creates value for society, its investment and profit will be realized sooner or later, and society will eventually give it long-term returns.

8. Contemporary China view: the superposition of urbanization, industrialization and informatization.

Golden sentence:

(1) Talk about osmosis: when you are hungry, look at it as meat, when you are cold, look at it as fur, when you are lonely, look at it as friends, and when you are sad, look at it as music. -You Mao, a famous southern poet and bibliophile.

(2) Talking about refusing speculation: Although it is a path, it will be considerable; He who is afraid of mud is a gentleman. -"The Analects of Confucius" "No matter how small the skill is, there must be some merits, but persistent study of these small skills may hinder the pursuit of lofty undertakings, so gentlemen do not do these things."

(3) Talking about the future of China: At a new turning point, the sparkling struggle is poking the sky, which is a hieroglyph of 5,000 years, and that is the eyes that people will stare at in the future. -poet Kosuke Kitajima

(4) Talking about faith: Some people see it because they believe it, while others believe it when they see it.

(5) Talking about facing the heart: Robert Frost said in his famous poem The Road Not Taken, "I chose a different road, which is of great significance to my life." I chose the less traveled one, which made everything different. )

Before the sword, the river's lake instantly. I would like to cross Qian Fan and go back to my youth (I have stepped into the society before I am ready, experienced many people and things, and can still keep all the childlike innocence of young people when I see you again. This sentence is the author's understanding of his life and the passage of time, and it is also a message to graduate students. May you walk for half your life and the teenager return! )

(6) Talking about loneliness: Life between heaven and earth is like a passer-by.

Meaning: People born between heaven and earth, like travelers, are eager to go home and quickly return to dust.

(7) Talking about curiosity: "You and I are both sons of the stars. Every cell writes the history of the whole universe. When you stare at yourself, you also see the outline of the universe. " Astronomer and science fiction writer carl sagan. What drives the progress of human civilization has always been our innate curiosity and thirst for knowledge about the truth and the unknown world.

Recommended books:

Christassen's Trilogy of Innovation: Innovator's Dilemma, Innovator's Answer and Innovator's Gene.