Chapter 251 December 11Three simple criteria for judging a good company

People are usually troubled by not being able to see a company clearly, and have no way to start investing... In fact, there are three simple criteria for judging whether a company is a good company.First, a good company should speak clearly in one sentence, so that others can understand at a glance; second, it must be able to see the continuous sales of end products; third, it depends on what the boss or manager of the company does after get off work and who they hang out with . Feng Lun believes that there are three simple criteria for judging whether a company is good or bad: First, a good company should speak clearly in one sentence, so that others can understand it at a glance.For example, what does your company do, whether it is food or clothing, you can finish it in one sentence.Not only did the boss speak clearly, but no matter which level of employees he asked, everyone gave the same answer.In addition, it is not enough to finish one sentence by yourself. You have to see whether what others, especially laymen and ordinary people, say about what you do is consistent with your own.

In fact, it is the same in foreign countries. Coca-Cola, Gillette, and McDonald's are all simple companies that people can understand at a glance. Second, we must see the continuous sales of end products.The core of business is trading, and the instinctive impulse of trading is nothing more than buying cheap and selling dear to earn profits.No matter how big the deal is, no matter how great the business story is, if nothing is sold, it means that it does not have a stable operating cash flow. Cash is the blood of a company, and operating cash flow is the only healthy blood that belongs to you.Others, such as capital cash flow and financing cash flow, can be input into the enterprise to maintain its life, but after all, it is not operating cash flow, does not have a healthy hematopoietic mechanism, and will be broken sooner or later.

Third, it depends on what the boss or manager of the company does after get off work and who they hang out with.If the boss or manager does not go to the government all day long, but goes to domestic and foreign counterparts, and goes to the market (product market and capital market), then it will definitely become an advanced industry. Vanke claims that it will never offer bribes and make profits in the sun, so it is rare to see Wang Shi mingling among officials and officials, and he does not exchange cups with people from the public security, prosecutors and judicial departments. For all things in the world, greatness is only a kind of simplicity, and only truth is not afraid of simplicity.By comparing these three simple criteria, you will know whether you or the company around you is a good company, and you will also know how far this company is from becoming a good company.