Chapter 26 The heart of money follows the heart of the heart

Qian Xin follows people's hearts, as evidenced by two stories. During the "SARS" period, I sold a company's equity to a private company, worth hundreds of millions of dollars.The owner of that company and I are very good friends. We sneaked away to Hangzhou and stayed in a hotel owned by another friend.My friends dare not say that we are from Beijing. Anyway, if we don’t go out, we have everything ready to eat and drink.I was there to talk about the sale of equity.I discussed with that friend and said that we are too familiar with each other, and I am too embarrassed to talk about it. It is better to let the people below talk about it first, and if we can't agree, we will come forward.Afterwards, the people below talked and talked, and in the end, there was a gap of 40 million between what we wanted and what they were willing to give.We decided to meet in Shanghai, have a meal, and talk about this matter.I have been thinking about how to say, if asking him to compromise really does not give him face, there is another way is to break it in half, he wants 20 million more, and I want 20 million less.

Later, I thought of a way and said to him: "Dude, if I don't write the 40 million in the contract, the board of directors will not be able to explain it, because the reserve price authorized by the board of directors is so much. You can't accept it now, so you Pay the money before 40 million, and I will transfer the account for you. You can give the 40 million whenever you like, even 100 years, but you have to write it down. For me, it is a long-term account receivable , it’s not a bad debt anyway.” That’s what I let.He said, "That's okay, I'm going to play, and I don't want to eat any more", and left.Halfway there, he called me and said, "I think I took advantage of you. I pay half of it. You transfer the account to me first. After I'm done, I'll use it as a mortgage for a bank loan, and then loan another 40 million yuan." I’ll give it to you.” Later, I did so, and gave me no less than a penny.Because the whole price was still low when I sold it, so now he has made billions just from this.After this transaction, the relationship between the two of us is still very good.

There is also a single transaction, the total amount is about 800 million.The other party buys, we sell.They are faced with a decision problem, yes or no.So I gave a suggestion, you can give me less than 100 million yuan first, and put this 100 million yuan on the side first. If the part of the assets I sold to him is bought by him for real estate, it will not reach 7,000 yuan per square meter Well, forget about the 100 million yuan, I let him make some money; if it exceeds 7,000 yuan/square meter, he will give me 100 million yuan.In this way, he has a choice. If the risk is too high, he will spend 100 million less. If the market is good and he makes money, he will give me a little more.Once this is done, we will talk about it right away.

Jean's knowledge is especially important in China, because Chinese people value face.But if the Americans don't say it, he will take it seriously.Our World Trade Center projects are now competing for 1 dollar and 5 cents, but the lawyer's fee for the negotiation is 800 US dollars per hour.This also leads to a very interesting topic, what is the relationship between money and face in China?Generally speaking, when he asks you for money, he has face. For example, those who bought our house were all discounted by friends. The more face you have, the more you take advantage of your friends.A house is 1 million, I give a little discount, he will take 10,000, which makes him very face.In the West, this is illegal and an unfair trade, because for the same thing, the price is the same for strangers and the same price for acquaintances, which means defrauding strangers, and acquaintances conspire with you to take advantage.Strangers take advantage of acquaintances, and strangers buy at a high price.People who have face in China are people who take advantage of others.This is most evident in the Northeast.When I arrived at the restaurant, I took a look: "Ah, Brother Zhang is here, it's all mine." Brother Zhang has face, and he "eats" the speaker's money when he has face.People who take money from a friend's pocket have face.How much is face worth?See how much money you can get out of other people's pockets.People often call me, saying that XX wants to buy your house, do me a favor, how much is this phone worth?I said that it is worth as much as you say, and he said, okay, then you can give him 5 points.These 5 points are the value of his face!

What is face?Simply put, face is a set of procedures, a set of performances that belittle oneself and elevate others.American missionary Ming Enpu believes that the reason why Chinese people value face comes from their love of drama.Life is like a scene in a drama, every character must come on stage decently and step off amidst applause and praise, otherwise he will "not step off stage".When people in Shaanxi talk about saving face, they say, "Just respect people."People with face are always above you and below you.In society, face means many privileges, passports, and a qualification to take money from other people's pockets.So to study face in China, the last thing is to learn to find face in the world. If you have face, others will help you.Another characteristic of face is that it can be exchanged at equal value and can be circulated.Friends of friends of friends, you can also get a discount when you come to me, that is, the face is in circulation.Face can still be saved, I always give you face, and you will give me face when the time comes.Face is ultimately implemented in economic interests, and it will have a relationship with money.

Doing business in society is nothing more than making everyone comfortable in the world.I generally take a "6–3–1" approach. "6" is situation, which is compulsively required by society and law; "3" is economic benefit, which is to settle accounts; "1" is face, which is compromise.For example, when I buy someone else, I must adopt the posture of someone buying me. Obviously I am very strong, but if I say I am weak, he will look awesome, and the matter will be settled immediately.Generally, we leave 10% leeway to deal with the problem of face. If I make money in a transaction, I have to give the other party a good explanation on a certain occasion to make him particularly face.Otherwise, you will become a mean and unkind fellow in business.According to Lu Xun, face is the spiritual program of the Chinese people.Always respect others, put them on the stage, you are at the bottom, "if you are good at the bottom, you will be at the top", so that you can develop yourself better in society.

Money has a lot to do with the law.The accumulation of money all over the world is only related to morality at the beginning, and there is no law yet.Later, it was discovered that after the money ran too fast, it was a stranger's transaction. How can this stranger's transaction be guaranteed?There must be an institutional constraint above both to coordinate transactions.Fei Xiaotong wrote "Homeland China", which said that China is a society of acquaintances, and people within a radius of 30 kilometers can trade, but outside this range, people dare not deal with each other.But in order to make money, more and more strangers are trading, and in order to ensure the safety of transactions, laws have emerged.Therefore, the emergence of modern laws was originally to protect the interests of merchants in transactions, not to protect women and children.The modern judicial system, apart from ancient Greece because of politics, from the "Code of Napoleon" to the current securities trading regulations, the most important commercial law system is related to trade.Without laws, it is impossible to guarantee that the motivation and wisdom of entrepreneurs can be realized in the end, nor can it guarantee the division, reorganization, and flow of assets after a crisis occurs.The legal system of modern society came into being with the civilization of money, and at the same time, it guarantees the perfection of this system.So there is no such thing as making money, and there is no modern law.Conversely, without the perfection of laws, more money cannot be earned.

In essence, businessmen are inclined to the rule of law, especially respect the law, and are willing to establish a business civilization.Therefore, countries that make more money have a more sound legal system; where the legal system is not perfect, there are few people who make money. Money and morality are also very complicated things in China.There is no family in China that has earned money for more than 100 years, because the system construction time is too short.In the past few decades, the rich have become poor, and after a few decades, the poor have become nouveau riche.Everyone worships heroes, but no one believes that making money is a long-term thing, so money is never as powerful as morality in China.It takes only a few decades to earn money, the life span of a person may be seventy or eighty years, and morality and ethics last for thousands of years.In Europe, a rich family is still there after 300 years, and after these 300 years, the first generation did bad things, the second generation changed a little, and the third generation changed a little, and finally became a moral model for the society.China is basically finished before the second generation, and the first generation has some moral problems from scratch.Therefore, in the memory of Chinese people, rich people will always be morally problematic.The initial wealth accumulated by a family will be ruined due to various reasons after decades, and the new generation will start to struggle again after more than ten years. There will always be "original sin", and immoral things are deeply rooted in the cultural memory of China.A long-term positive view of money cannot be accumulated without a system that guarantees the accumulation of wealth to ensure a moral change.Therefore, it is necessary to establish a healthy legal environment, so that the Chinese have 100 or 200 years to make some money, and finally establish a society ruled by law and change the moral judgment on money.

In the Western religious concept, money is not yours, but you keep it for God.You are God's people, manage money for God, and you are God's professional manager.There is also an ultimate fate, that is, it is harder for a rich person to enter heaven than for a camel to go through the eye of a needle, so the rich will donate their property before they die.The concept of religion prompts Westerners to adopt a "market plus church" approach to money. No one is too jealous. After God takes care of it, it will be donated anyway.In China, the rich are fearless, and the poor are even more fearless, without awe.Without reverence, the rich would not be self-disciplined, and those who robbed money would not be self-disciplined, so everyone would have no fear or lofty feeling when it comes to money, thinking that money is their own, not God's.Chinese people enter temples to take money home, pray for safety, and bless prosperity.Westerners go to church to donate money.The differences between Chinese and Western cultures make it difficult for China to establish a positive moral evaluation system for money.

In modern society, it is a very complicated system to manage money well, involving life attitude, religion, law, morality, ethics, culture, face, credit, etc. You have to go through all these tests before you can finally become a rich person accepted by everyone. I have met Soros. He used to have a business philosophy called market heart, which is actually the heart of the people.There is a "heart" in the gathering and dispersal of wealth. The heart is related to people. The smartest people in the world must first study people's hearts and systems, and then control money in turn.