I recently read "Shi Ji Huo Shi Biography". After reading it, Ling Tong strongly believes that the future of the crisis industry is bright, and there is no need to find a specific reason for its improvement in the future, because it is in an extreme The downturn is the reason for its recovery and improvement. This thought was a strong feeling after reading "Historical Records of Huo Shi Biography".
Historical Records record the business theories and business activities of Ji Ran and Bai Gui, two famous businessmen in ancient times. "When people give up, I take, and when people take, I give" was proposed by Bai Gui. Bai Gui believes that the first element of business success is to be good at observing changes and utilizing changes. He advocates using regular changes to make profits. The so-called regular changes mean not to Pay attention to the specific causes of changes and grasp the inevitable changes. Bai Gui's business strategy of "I take when others abandon, and I give when others take" is a regular change that must be like this. The rule here is that due to a large number of If people give up, the price will definitely fall, and the fall of the price is the reason for the rise. If the reason for the rise is available, the rise will happen sooner or later! Whenever there is a massive sell-off, buy it. Is this sell-off caused by the global financial crisis? Or is it caused by huge investment losses? Or is it the lack of attention caused by the rising prices of raw materials? As long as people give up, I will take it.
Another businessman, Ji Ran, proposed that if the price is extremely expensive, it will become cheap; if the price is extremely cheap, it will be expensive; if the price is extremely expensive, it will become cheap; if the price is extremely cheap, it will become cheap. When the goods are extremely expensive, they should be sold immediately and treated as dirt; when the goods are extremely cheap, they should be purchased immediately and treated as jewelry). As for what caused the change in wealth, these businessmen were not concerned. However, our investors have long been obsessed with the reasons for price changes and cannot see the overall situation clearly, ignoring the law that the price drop itself is the reason for the rise.
After all, what Lingtong wants to say most is that the important thing is to grasp the inevitable regular changes. If it falls too much, it will rise, and if it rises too much, it will fall. This is the basic law. When people are afraid to buy, when everyone abandons it, it is the best opportunity to buy. This is also the rule. Don't seek specific reasons for rising and buying. Once there are specific reasons for rising and buying, the actual stock has no buying value. Once there is a reason for rising, people should stop selling and there will be no chance. . Therefore, to truly seize the opportunity, you must start at the difficult stage when you can't see the specific profit at all. At the same time, we must understand and believe that price changes always change in the opposite direction. Rising prices will always turn into falling prices, and conversely, falling prices will definitely turn into rising prices!
If we buy when we see no profit at all and everyone is selling crazily, we will definitely be able to buy an excellent price. However, since there is no specific news about profit and increase, , so it is impossible to form a rapid rise after buying. If you seek to rise immediately after buying, you will never be able to buy at a good price, and you will never even make money. As the saying goes, you can't make money in a hurry. Buy when everyone is selling crazily, and when everyone is not optimistic about it, after buying, it will definitely not rise soon. After buying, time must pass, because change takes time! It is not objective to buy for the sake of tomorrow's rise. The time difference between tomorrow and today is too short, and there is no possibility of major positive changes. Any positive change always takes a long time.
At this point, the ancient businessmen Ji Ran and Bai Gui respectively provided greater ideas. Ji Ran pointed out: When there is a drought, you need a boat, and when there is a flood, you need a car. Wait for floods; when there are floods, prepare your vehicles for drought). This is the law of business and management. In the eyes of ancient businessmen, all business actions are preparations for the next year or many years later, waiting for the passage of time to realize profits. Bai Gui proposed that when there is a surplus of goods and sell them at a low price, buy them; when there is a shortage of goods and demand a high price, sell them. When the grain is ripe, buy grain and sell silk and lacquer; when silkworm cocoons are formed, buy silk and cotton wadding and sell grain. Neither businessman worries about tomorrow. Their business behavior is not to prepare for making money tomorrow, but to prepare for the longer future.
Ji Ran and Bai Gui believe that when doing business, we must make use of the "time-use" relationship. The "time-use" relationship means that the time when people need a certain product and the time when the product is in sufficient quantity are not the same time. When things are plentiful, people often don’t need them, and the prices are low. When people need things, they are often in short supply. Merchants take advantage of this time difference and buy when the supply is sufficient and prices fall. Then as time changes, things will naturally become scarce, and people will be short of them. If it is needed and the price is high, then the merchant will sell it. Lingtong believes that the essence of changes in "time usage" is to make full use of the different supply and demand relationships of commodities at different times or spaces, resulting in different prices, to obtain benefits. In the eyes of the two big businessmen, price difference is created by time, price difference is a function of time, and time is the mother of price difference.
In an extreme dilemma or extreme sell-off, if you adopt the strategy of giving up and taking what you want, and then wait for the passage of time to create a new supply and demand relationship and price, you will naturally make money. Don't try to make a profit the next day after buying at a low price. This is impossible. Don't wait for any specific profit before buying, it is already too late. When extreme difficulties, extreme pessimism, extreme selling and extreme negative situations occur, it is the best time to buy, and as time goes by, the benefits will naturally appear.
There is no need for investors to search, discover, or predict what will be profitable. Investors only need to wait!
This is the basic law of business and investment, and it is also what Ling Tong learned after reading "Historical Records of Huo Shi Biography"!