Chapter 20 Investment Heart Sutra: Don’t be afraid of risks, only afraid of low returns

Wenzhou people's attention to venture capital is completely different from their indifference to the stock market. From this, we can draw a generalized Wenzhou investment philosophy: not afraid of risks, only afraid of low returns. Venture capital and the stock market have one thing in common: high risk. This is the difference between them and general industrial investment.Investing in industries, such as the production of small gifts, as long as a batch of goods are sold, there will be a certain profit. As long as the goods do not decrease for no reason, as long as the investors are willing to continue to operate well, there are no special circumstances, and there is no loss. , because when investors are doing this market, the price difference is calculated, and the profit has basically been set.

Venture capital and the stock market do not have such a relatively fixed and direct profit method, especially the stock market, which can be described as "unpredictable". Therefore, generally speaking, both are high-risk projects compared with traditional investments. But when it comes to specific choices, Wenzhou people prefer the investment model of venture capital, and are not interested in the stock market. People who once had illusions about the stock market withdraw their funds after losing a fortune, which is a complete farewell this field. What makes Wenzhou people choose venture capital is not that they have never failed in the field of venture capital. The first venture capital company belonging to Wenzhou people-Shanghai Shouhua Venture Capital Co., Ltd. of Lin Ashin, didn't it end in failure?Despite this, there are still many Wenzhou businessmen who are very concerned about this area.Because compared with the stock market, venture capital has more attractive investment charm, such as national policy support, the development of the invested company has a bright future, and the possibility of profit several times or even ten times, dozens of times, especially the last factor, There is a possibility of many times the profit, which is what Wenshang is more concerned about.

The pursuit of high profits has always been the primary principle of Wenzhou business investment.It can be said that when an investment project with high risk and high profit is placed in front of Wen Shang at the same time, if his investment cost allows it, he will definitely choose that one. High risk high profit investment. The reason is very simple. There is no absolutely risk-free investment project in this world, and any project has investment risks.That being the case, there is no qualitative difference between taking one risk and taking ten risks in the eyes of Wenzhou people.That being the case, as the saying goes, if you want to gamble, you can gamble big, if you make a profit, you can make a lot of money, and if you lose, you can at least accumulate a valuable experience.

Ordinary people always look forward and backward in the early stage of starting a business, being cautious and afraid of too much risk, what to do if they accidentally accompany their children, and they will not invest capital if they are not fully sure. However, Wenzhou people believe that risks and opportunities coexist, and high risks Only high returns can be achieved. Whether it is starting a business or doing business, there is no one who does not take risks. Dare to take risks is what distinguishes Wenzhou people from other people. The risk of starting a business is very high, but as long as you persist in learning and working hard, there must be risks for you equal return on income.

In fact, deep down, people have different mental states when they run low-risk businesses and high-risk businesses.A small business will not let you lose all your money. If you have no pressure, you will easily have the mentality of "small wealth and peace".On the contrary, when engaged in high-risk business, it is easier for people to cheer up. In terms of management, technology, etc., they will do their best to do better. This kind of spirit of working hard for the cause is the highest level of a businessman. It is also the fundamental meaning of investment. Maybe you want to say that the root of investment lies in profit. This is certainly true, but what is the purpose of profit?Who can take profits to the grave?The fundamental meaning of creating profits, from a small point of view, is nothing more than to prove oneself; to a large point of view, it is to contribute to the country and society—a person who is "a little rich is safe" will not have such a great ambition to return to society aspirational.

The topic is a bit far away, as far as "profit" is concerned, for Wenzhou people, it means wealth, face, and all the glory of a Wenzhou person.Therefore, in the face of high profits and Gou An, he would rather choose high-risk, high-profit investment projects! Some people, with the wind in their blood, are destined to be in a hurry when they are in their careers, and they will give people a thunderous momentum. No matter whether they succeed or fail, they are at least close to huge wealth.Besides, I have explained the concept of "adventure" of Wenzhou people many times. It is a kind of risk based on rational calculation and higher profit, rather than blindly bold and reckless.It is such a wise choice for Wenzhou people to take risks and adopt the investment model of venture capital.