Those who are focused will eventually win the future

Today, I got back together with Boss Ma, whom I hadn't seen in three years. We talked about some of the things that have happened in recent years, and I also reported to Boss Ma on the overall investment situation in recent years. I originally thought that Boss Ma had not had a smooth life in recent years, and he should also live a normal and smooth life.

My instinctive thoughts were really too idealistic. I always thought that other bosses were doing better than me and better than me. In fact, whether it is a hit worker or an entrepreneur, it is not easy for anyone to live. He said that in 2019, the boss who owed him money for the company ran away (because the cash flow was cut off), resulting in him not being able to get back hundreds of thousands of dollars, which was his most difficult time.

Boss Ma said that the profit margin of the manufacturing industry is 3 to 5%, all of which are advanced funds to do business, and the boss who owes him money to the company runs away, and the business cannot be done.

Whether it is doing business or part-time work, there are path dependencies, that is, if you are used to a certain business, you will always do this business. Three or four years have passed, and the company's main business is still metal stamping parts business. In addition, he invested a portion of the money he made in the metal stamping parts business into new businesses, including primary market venture capital and a new fiscal and tax advisory business.

I think that he is conducive to moderate diversification of risks, the newly opened financial and tax consulting business is an asset-light business, the primary market venture capital investment business is an investment and wealth management business, and the return on investment can reach tens of times, hundreds of times. These businesses will do well and will far exceed the company's main business and have the potential to win the future.

I mainly do secondary market stock investment business. I will invest limited funds at a reasonable price in the stocks of high-growth and high-quality enterprises with first-class managers, long-term investment, batch trading (that is, buying in batches, selling in batches), dynamically adjusting positions and controlling drawdowns according to the dynamic changes in the stock price and intrinsic value of high-quality enterprises.

Do stock investment in the way of doing business, pay attention to the business model, moat and growth space of the enterprise, invest in those high-quality growth enterprises that can create social and economic value, accompany excellent entrepreneurs, advance and retreat with the prosperity of the country, be friends with time, experience the ebb and flow, and eventually win the future.