Chapter 16 Section 5 Why am I optimistic about the investment of Minsheng Bank?

I am suitable for starting a business but not for keeping a business. I saw that there is nothing new about online games, so now I am going to start a bank again. The front is dealing with consumers, and people want to buy my things.Now I'm buying other people's things. It seems that the experience that can be relied on earlier does not play a big role in this new field. In fact, I am looking for a group of people and experts to study the future macroeconomic situation and what will happen to China in the next 5 or 10 years. At that time, we studied that the future banking and insurance will be very valuable in 10 years.So then I voted for these two fields.This thing basically has nothing to do with what I used to do.

During the two sessions, everyone was scolding the banks for their high fees. Each bank charges more than 100 items, and there are hundreds more.I ran to the branch of Minsheng Bank to ask.Minsheng Bank charges more than 70 items in total, which is less than other banks. I asked these 70 consumer-oriented charging items, such as the fee for reporting the loss, and how much is the fee for reporting the loss of the passbook.I asked them how much the total income is when these charges are added together for one year.The total income of this area is more than 200 million a year.I said, look at the after-tax profit of 19.1 billion in the first half of this year alone.You only earn more than 200 million yuan from fees. Wouldn’t it be great if you don’t charge them all?No bank would dare to do that.

I went directly to Chairman Dong Wenbiao to talk.In the end, he said that if you do this, it is true that Minsheng Bank's deposit guarantee will increase by hundreds of billions.But he said that other banks will come to him to settle accounts.He dare not do it. I thought to myself, if I were the chairman of the board, I would dare.If these charges are abolished, the asset size and deposits of banks will definitely rise sharply.Why do you want it for the 200 million yuan? It only accounts for less than 1% of the annual profit and less than 0.5% of the annual income. You even get a bad name for it, saying that the bank charges too much.How much do you pay for a passbook?I'll call you for free, you can't lose your passbook every day, right?

After the bank receives the deposit, it will be loaned out to the enterprise.Because I have experienced success and failure, I have seen many companies, and I can judge whether those companies that provide loans are reliable, which companies are dangerous to lend to them, and which companies can be assured. I'm going to judge.Because I want to judge the quality of the bank's assets.The most important thing for a bank is whether its loan quality is high or not. If the quality is not high, problems will arise.The quality of loans made by Minsheng Bank is very good. In terms of loans, Minsheng Bank is the kind that would rather kill one thousand by mistake than let one go. As long as there is a slight problem or danger, it will not lend. It is relatively well controlled.

When I invest in it, I feel uneasy, which is helpful for me to increase or decrease my holdings. I am not as simple as looking at financial statements. Before I decide to invest, for example, Minsheng Bank, I must go to Minsheng Bank, go to its middle-level cadres, and chat with them.I want to ask some truths: how is the business of their department, what is the current situation, and what will happen in the future.It is to have a judgment.Whether it is good or not is a matter of judgment. Other marketing experience doesn't help me invest in finance.The past accumulation, these things of consumer marketing, are of little use in this place.

I don't do short-term.Because I can't do short-term, I go in and have relatively large funds. For example, like Minsheng Bank, I invested the most in Minsheng Bank, and I am also a director.The director has a rule that your last transaction cannot be reversed within 6 months.That is to say, if you buy it today, you cannot sell it within 6 months; if you sell it today, you cannot buy it within 6 months.So I can't do short-term, I can only do medium and long-term. I think it is good to invest in Minsheng Bank.I think in another 3 years, I should be able to make a lot of money in this area.I firmly believe in this.

Because Minsheng Bank is the most distinctive one among Bank of China.It is a private enterprise, and among the banks, it is the only one that is truly private. You can see that at 7 o'clock in the evening, among the office buildings in Financial Street, only the lights of Minsheng Bank are on, and the lights of other banks are blind. Then you go to look at it at 11 o'clock. The lights in the rooms of Minsheng Bank are still on, but the other rooms are all blind. This is the difference. Look at ICBC, China Merchants Bank, Agricultural Bank of China, China Construction Bank, etc. They think that I am the eldest son and a big bank, so this business cannot be lost, that business cannot be lost, large companies cannot be lost, middle-level companies cannot be lost, small companies cannot be lost; East China cannot Lost, I want to occupy the steel, I have to occupy the mine, they have this kind of thinking.And Minsheng Bank is a latecomer, a very small bank, much smaller than many banks today.

I invested in two banks 10 years ago, one in China and the other in Minsheng.I invested more money in Huaxia than Minsheng. At that time, Huaxia was twice as big as Minsheng. Now, China accounts for less than 1/5 of people's livelihood. Huaxia is a state-owned enterprise. The vice mayor of Beijing retired to become the chairman. That system is not good. I am still one of the top ten shareholders of Huaxia, but the money is not worth much anymore, and of course I also make money. Now the billions of dollars are all net profits, and I sold them. The mechanism of Minsheng Bank is different, and its corporate culture has a wolfish character.

It's like this: I don't ask for everything, I see which one is the most profitable and which one is the least risky, and I will concentrate on which one.Therefore, small and micro enterprise loans were captured by it. Now there are so many large enterprises and banks across the country, and Minsheng Bank ranks first in terms of loans to small and micro enterprises.Labor, recruitment, agriculture, and construction are much smaller than its share.Small business loans of 500,000 to 5 million are called small and micro business loans, which big banks are unwilling to do. But Minsheng Bank has created a set of routines to do it, and it is very profitable, with a loan interest rate of 13% per annum.

This interest rate is high, so it is very profitable in this area, so this area broke out. China is like this. If everyone thinks that the risk is not big, they will all do it, and if they think the risk is high, they will not do it. But Minsheng Bank is very good at this point. It researched, tried, and tested. Later analysis found that the bank loan with the least risk is actually a loan of 500,000 to 2 million. why? If a person wants to take out a loan, it is usually him who is registered with the industry and commerce and provides unlimited guarantees. For 500,000 yuan, he no longer has his wife, house, or car, and he has to go far away to hide his debts and pay off his debts. Is it worth it to be afraid of the police coming to hunt you down?

He will do it for 50 million, and he will not do it for 500,000. He is not worth it for this little money. So in the end, it turned out that the bad debt rate of Minsheng Bank was extremely low. Later, when other big banks recovered and came to do this, Minsheng Bank switched to version 2.0.It used to be called Small and Micro Bank 1.0. What is 2.0 now?In the past, it was for retail investors, and retail investors still had a bad debt rate of 0.3% or 0.5%.It was later changed to a system, that is, an industrial chain. For example, like marble, some people want to borrow money to go to Yunnan and Greece to mine marble.My Minsheng Bank will give you a loan. My bank will pay you for your machine, but my requirement is: you can only sell it to my customers. Then rough processed marble has developed another 100 companies. As my client, rough processed marble can only be settled at my Minsheng Bank and cannot have any business dealings with other banks.Savings cannot be stored in other homes, nor can they take out loans from other banks. Then these are the money to buy this marble, 60% or 70% of the money for the purchase, my Minsheng Bank will loan you, these people are very happy, he only pays 30% of the money, and the remaining Minsheng Bank pays the mine.But in fact, these are all transferred in a computer of Minsheng Bank. In fact, Minsheng Bank did not pay in the end. Then the roughly processed marble must be sold to these two hundred refined processing companies, which are also its customers, and the refined processing will be sold to as many companies as possible, and finally sold to 2,000 marble dealers across the country.This industrial chain is all owned by Minsheng Bank. Other banks wanted to enter the marble industry, but they could not enter, and were monopolized by Minsheng Bank because it signed an exclusive agreement. In fact, after Minsheng Bank finished this, the bank did not pay a penny, and it was all the customer's money.The customer's money is stored here, and the bank says that I will lend it to you. In fact, after the bank's money is loaned to you, the bank charges a handling fee here, and the interest is quite high.He opened up the industrial chain. Other banks can't do it. This is very difficult. It takes two years to open up an industrial chain. Minsheng Bank is now opening up 50 industrial chains. After an industrial chain is successfully opened, it will have an average annual profit of 5 billion. How can state-owned banks do this kind of work, this kind of work is too tiring, only private banks can do it, so why are they so tired. China Merchants Bank is also good, its plate is bigger than Minsheng Bank, but the rapid development period of China Merchants Bank has passed, so China Merchants Bank has been holding internal meetings recently to learn from Minsheng Bank. The development of China Merchants Bank is a bit stagnant now, but it can still rise after the transformation.I also bought it. Minsheng made money for me, and China Merchants Bank lost money. I also bought Ping An Insurance. I am optimistic about Ping An, which is also privately run.Because of this large financial institution, the private sector has a great advantage. You can look at the income of employees. Financial institutions with higher per capita income are safer. If a financial institution pays its employees wages, cuts and shrinks, and then sets wages according to the relevant regulations of the organization department, that kind of financial institution has no investment value. When I went to Ping An to investigate, they just gave 50 million bonuses to 3 Koreans not long ago. Why?Because there was a piece of business at that time, internal bidding and assessment capabilities, the last three Koreans won the bidding, and they really made a very good profit in the end.Ping An honored the bonus as promised in advance.You can't do it if you want to go to the four major state-owned banks, and the private mechanism is flexible. I went to Ping An for research, and I didn't drink with the middle management.But I drank with Ma Mingzhe and chatted with the vice president, because my investment amount is not as large as Minsheng, so I am not so serious. When I first invested in Minsheng Bank, people under me, including my friends, said that all eggs should not be put in one basket.But I originally intended to spend all of it on people's livelihood, and then everyone thought it was not good, so I took out a considerable proportion to spread it out. Looking back now, I see that the dispersion was wrong. People’s livelihood makes money, and everything else loses money. One of my principles: I don't vote for those I don't understand or the research is not thorough enough.I can't study American companies thoroughly, because my foreign language is so poor.In fact, there are some Chinese concept stocks in the United States now.Our company is also listed in the United States.But I definitely don't vote for companies I don't understand. Someone made money from trading in Moutai. I think it just so happened that Moutai’s profits have grown rapidly, with an annual growth rate of 40%. Such a continuous growth of 30 to 40 years, that person just happened to be at this time.If I was asked to buy it, I would not dare to buy it. The price-earnings ratio is more than 30 times. The price-earnings ratio of Minsheng Bank is 4 times, and the growth rate of Minsheng Bank may be faster than it. If you say I don’t buy 4 times, why should I buy more than 30 times? If you buy it, you can indeed succeed, but that is raised by the fund.I won't buy it now, if it falls to 4 times the price-earnings ratio, I will buy it.

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