In Baidu, Weibo, Toutiao and other hot search lists, those related to "richest man", "rich list", "rich family", "high net worth people" and other information can attract the public the most.
On November 13, Hurun Report on family safety of high-net-worth individuals in China released the "2021 China High-Net-Worth Family Safety Report", pointing out that the total wealth assets of China's high-net-worth families reached 125.9 trillion yuan, and the investable assets accounted for about 67%. There are 5.01 million "wealthy families" with net assets of 6 million yuan, 2.02 million "high-net-worth families" with net assets of 10 million yuan households, and 130,000 "ultra-high-net-worth families" with net assets of 100 million yuan.
The crowd watched, shouting "can't hurt" and "dragging their legs", and their eyes were full of "envy and jealousy". However, behind these wealth values, the growth history of the rich family, through the rise of the beginning, the development of investment, asset allocation and inheritance wisdom, is more worthy of our in-depth study and learning.
The beginning of the first generation: the time and place are favorable and the people are followed by the trend
Ren Zhengfei said that "big times will definitely produce big heroes." On the road of wealth accumulation, "the times create heroes" is more prominent. In modern times, the Rothschilds, Rockefellers, Gates, Morgan, Ford, Disney, DuPont, etc., which are known as the "myth of making riches", as well as the Rong family and the Liu family in Chinese mainland, the Li Ka-shing family in Hong Kong, and the Wang Yongqing family in Taiwan.
These families are so large that they are shocking, and for them, in addition to the enviable wealth kingdom, the most enjoyable thing is the history of their families, such as the bravery, wisdom, flexibility of the first generation of wealth creation, courage to dare to do, a keen sense of business, and it seems that all good adjectives can be used.
For example, as we know:
Draft: Jin Xiaoque
It is undeniable that the first generation of wealth creation is indeed good at grasping the pulse of the times, discovering and seizing the wealth opportunities that accompany the trend of technology, policy and economic development with keen business insight.
However, the success of the first generation of wealth creation is inseparable from the current factors such as the economic environment (time and place), the background of birth (people), and ideological cognition (pattern) at that time.
Specifically, the beginning of the first generation of wealth creation, basically at the end of the Merrill Lynch cycle and the capital cycle of the depression, at this time the economic trend has been on the eve of recovery, the situation of many "non-performing assets" has gradually become clear, as long as careful observation, the courage to break through and reform, you can seize the "key moment" given by history, so that enterprises can come back to life and enter the booming track.
In addition, the popular background of the first generation of wealth creation is traceable, and even self-made start-ups have an amazing foundation to become rich. He Jiayan, a well-known blogger, has done sampling statistics: only if the family has a certain background can they accumulate and inherit the qualities, resources, or provide conditions for growth required for business success.
Relatively speaking, elite families are more likely to produce super-rich. According to statistics, among China's 22 super-rich, 17 are from elite families, accounting for 77%, of which the upper elite families are more likely to produce super-rich than the average elite family, the ratio is 10:7. Considering that the upper elite families are already very small in the proportion of the population (estimated to be in the top 0.1%), their probability of success is many times higher than that of other families.
Watchmaking: Golden Magpie
Of course, it is not that the more elite the family, the more prone to super-rich people. Among them, the largest official position is Wang Shi's former father-in-law (deputy secretary of the provincial party committee), Cao Dewang's brother is the vice governor, the richest is Wang Xing's father (a regional local tycoon), and Ma Huateng's father is the vice president of the listed company.
Although these rich people come from different backgrounds, they are all uneasy about the status quo in the big times, want to change their destiny, and dare to spell out the fighting spirit and driving force of the sky in order to accumulate excess wealth.
Prosperity: Investment expansion consolidates the wealth empire
The first generation of wealth creation has the original accumulation of wealth, and it is faced with the choice of whether to continue to invest in the small rich, but the goal of the rich is high, and they are not willing to be small and rich, even if they think it himself, the people who broke with him at the beginning do not want to. Therefore, successful enterprises are the power train, driven by the desire to succeed, investment and asset allocation, is the only way for rich families.
For entrepreneurs, to do a good job in investment, you must have a thinking of industry and finance. Different from the general investor, the most critical thing for entrepreneurs is to invest around the main business, the so-called soldier is the main business, the main business is the positive soldier, used to do internal growth, investment is the miracle, do epitaxial growth, and the positive is the industry and finance, the combination of industry and finance can make the enterprise develop and grow rapidly.
We also often see that many of a company's expansionary investments are also around their main business, but different entrepreneurs have different ability to choose time to invest, so the rate of return on investment is also different. From a broad economic perspective, the capital cycle is similar to Schumpeter's "creative destruction" process, and the role of post-boom depression is to clean up the mismatch of capital during boom. Excellent entrepreneurs are good at combining capital cycles to analyze the production process, market structure, competitive landscape, etc. of their industries, and make correct investment decisions.
In recent years, there have been many entrepreneurs involved in the hot VC/PE circle, such as Lei Jun, Ma Huateng, Ma Yun and other big guys, who are very keen to increase venture capital, and Lei Jun has also established Xiaomi Private Equity Fund Management Co., Ltd. to officially announce its entry into the fund circle. The Tencent empire led by Ma Huateng also regards investment as Tencent's long-term core capability and core business.
In addition, the investment of the rich, as well as a higher pattern of asset allocation strategy, it can be said that scientific and reasonable asset allocation is a solid foundation for the achievement of the peak of the giants. For families with huge wealth, the essence of "money to make money" is to use money to purchase resources and wisdom to achieve steady appreciation of wealth under professional operation.
Here we have to mention the "other hand" of the top rich - the family office. As a professional service institution for wealth management, family offices can provide personalized, systematic and private asset allocation methods for rich families, and more efficiently realize the preservation, appreciation and inheritance of wealth from generation to generation.
According to The Global Family Office Report 2020, compared with general family investment, the asset allocation of family offices is relatively balanced, and there are more types of assets allocated. From the perspective of allocation ratio, cash assets accounted for 7.6%, bond assets accounted for 16.3%, equity assets accounted for 32.4%, unlisted equity investment accounted for 18.7%, real estate assets accounted for 17%, hedge funds accounted for 4.5%, REITs accounted for 1%, and precious metals accounted for 0.8%.
Allocation of large class assets in family offices
Cartography: Utility research
It is worth noting that gold, as the "king of precious metals", is also often included in the asset allocation of family offices, mainly because of gold's hedging function and outstanding function as an anchor and portfolio stabilizer for global currencies.
At present, the real demand for family offices in the domestic wealthy class is becoming more and more intense. According to the "2020 China Family Office White Paper", the total number of family offices in China is about 2,000-3,000, and during the epidemic in the past year, 36.9% of participants said that the return on investment of their family offices has increased satisfactorily.
The so-called "let professional people do professional things", the contribution of family offices in the field of family wealth management and inheritance, is remarkable. From 1882 John F. Kennedy Since D. Rockefeller established the world's first family office, the family office has gradually become a weapon for the rich family to manage wealth, plan and inherit, and break the curse of "three generations of wealth".
Lineage of the Wang Clan: System Planning + "Four-Veined Excalibur"
If entrepreneurship is gambling, investment is a bit metaphysical, and asset allocation is scientific, then family inheritance is both wisdom and art. From the beginning of the 20th century, the spell of "no more than three generations of wealth" has become a sword hanging over the head of the rich, and there are many hard work of the first generation of wealth creation, because the family wealth has not been passed on well and the family wealth has been wasted.
A set of data released by the China Association of Small and Medium-sized Enterprises shows that the average life expectancy of family enterprises in China is only 24 years, and less than 30% of family enterprises can enter the second generation, less than 10% can enter the third generation, and only about 4% of them can enter the fourth generation.
It can be seen that the inheritance of the family is not an easy task, so for many generations of wealth creation, the most difficult thing is not to start from scratch, not to accumulate wealth, but to inherit enterprises and wealth.
In fact, family inheritance is not only the inheritance of wealth, but also the inheritance of spiritual, cultural and ideological essence. "It is better to teach people to fish than to teach people to fish", in terms of family wisdom, only by truly passing on the essence of family prosperity from generation to generation can the family prosperity be sustainable.
Zeng Guofan once warned his brothers and nephews in the family: "No matter the chaos of the world, the wealth of the family, but to be able to guard the eight characters of the Xinggang Gong and the eight books of Yu, it is always a superior family." Later generations also confirmed that, as Zeng Guofan hoped, the Zeng family continued to this day, still shining and thriving. In the past 200 years, his family has more than 240 outstanding descendants, and has made significant contributions to society in many fields, including many outstanding talents in diplomacy and mathematics such as Zeng Jize, Zeng Guangquan, Zeng Jihong, and many have studied in Europe, the United States or Japan, and obtained doctoral and master's degrees or obtained the titles of academicians, professors, researchers and other titles.
The writer Ma Boyong once wrote such a passage: The inheritance of a family is like a good antique. It has been cared for and polished by many people, quietly precipitated in a long time, and slowly, this inheritance is like an antique, wrapped in a layer of delicate and mature pulp, calm and warm, exuding an ancient atmosphere.
Antiques are tangible, and the inheritance is intangible. It cannot be seen or touched, but it seeps into the bones and blood of each descendant of the family, becoming a spiritual bond between family members, and even becoming a part of their character and even their destiny.
Image source: Photo.com
Some people say: "Family inheritance is a combination of blood, wealth, culture and people." This "four-veined Excalibur" is interlocked, and doing a good job of inheritance can make the family prosperous forever. Among them, the bloodline can be regarded as the health of family members; the context is a family spirit and soul, the root and soul, including family style and tutoring, spiritual beliefs, value orientation, behavior habits, business talents, etc. Networking is an important resource for family members to connect with society, and family charity is a good way to pass on networking.
In general, there are almost no obstacles to the inheritance of family wealth in hardware, a check, a paper agreement can be smoothly passed on to the next generation, and it is difficult to inherit "software" such as family culture, family spirit, and business philosophy. Only by regarding family inheritance as a major systematic project and focusing on the spiritual quality of the core part of the inheritance can the successful inheritance of the Wang family be truly realized.