Chapter 35 Invest globally in a bargain-hunting manner

In 2009, a fellow from Wenzhou approached me and asked me to help raise a fund. He wanted to invest in nickel metal. Speaking of this investment, my fellow countryman said to me: "The price of metal nickel has definitely reached the bottom in foreign countries. As long as I have enough funds, now is the best time to go abroad to buy nickel and nickel ore." My fellow countryman also gave me an example. One of his distant relatives bought dozens of ships of nickel-clay mines from Indonesia, and invested in a refinery in Indonesia. Seeing the global raw material prices and ocean freight plummeting, the distant relatives are gone. Satisfied with the local Jianzan smelter, they simply purchased the ore soil and invested directly in the country to build a factory.

I have heard about this from my friends at customs.The Wenzhou businessman who invested in Indonesia had already imported more than US$100 million worth of nickel metal and nickel ore, and his planned volume in 2009 will reach two to three times this amount. What does it mean to invest in a nickel mine? The party responded: "It is more valuable than investing in gold." Zhang Junhui, chairman of Wenzhou Bairun Investment Co., Ltd., the largest nickel trader in Wenzhou, said that in March 2009, the international price of nickel was US$9,412 per ton, and in August, it was less than half a year. , the price has risen to 21,360 US dollars per ton, and the price has increased by 125%. It is indeed "more valuable than investing in gold."

The greater the price difference, the greater the profit, which is well-known economic common sense.But people who can really use this trick to the extreme are probably only people from Wenzhou. Investing in nickel is a good example. So, is there anything unique about the way Wenzhou people invest in nickel? Have!That is bargain hunting. For Wenzhou people, bargain hunting is not only an investment method, but also an investment thinking. The basic meaning of the so-called "buying the bottom" is: use some valuation index to measure the stock price has fallen to the lowest point, especially the operation strategy of buying when the stock price has fallen sharply in a short period of time, and expecting the stock price to rebound soon.

Note that there is a key word here-stock price, that is to say, this word comes from the stock market, which is a proprietary vocabulary of the securities market. Although Wenzhou people are not interested in the stock market, it does not mean that they do not pay attention to this field at all. The way of investing in nickel is based on an accurate grasp of the concept of "buying the bottom", thus forming a unique investment thinking of "buying the bottom". Taking Wenzhou people's investment in Burj Khalifa as an example, let's experience Wenzhou-style "buying the bottom".

As we all know, on November 25, 2009, the Ministry of Finance of Dubai, the second largest emirate of the United Arab Emirates, announced to the world that all real estate companies under Dubai will postpone the debt of one billion US dollars for six months because of the debt crisis.By May 27, 2010, Dubai was still unable to repay the due debts, so it had to declare again that certain debts would be postponed for three months before repayment.This incident has been dubbed the "Dubai Crisis".Although Dubai is a small country, as part of the global economic chain, it has deeply affected the global stock market, debt market, and even the recovery of the global economy. It has a far-reaching impact on some parts of the world, such as the UAE and the United States. .

Due to debt problems, from some perspectives, Dubai's economy has been in the doldrums.In this form, no one in the world dares to take risks and reinvest in Dubai's real estate market, and no one dares to easily set foot in other fields. But Wenzhou people don't think so. The investment projects that others are afraid of are often the investment projects that Wenzhou people are diligently pursuing. In January 2010, when the so-called world's tallest building, the Dubai Tower, was just completed, I planned to take a Wenzhou delegation to look for opportunities.As soon as I revealed this meaning, more than 20 Wenzhou businessmen signed up immediately, expressing their interest in the tallest building in the world.

From the perspective of Wenzhou people, although Dubai's economy has not yet recovered, we are still very optimistic about Dubai's economic prospects. The most direct reason is that the UAE government has learned a lesson through this incident and formulated some policies that are conducive to the economic recovery of the region. The main purpose of these policies is to attract investors.Obviously, these policies have already played a role. After the Dubai crisis and after the Dubai Tower was completed, the number of passengers flying to Dubai has increased significantly compared to before the debt crisis.

In addition to this reason, for us Wenzhou people, there is another deeper reason - bargain hunting. Although Dubai had just experienced a debt crisis at that time, and some debt problems had not yet been resolved, due to the government's new policies, this area, known as the "Pearl of the Gulf" in the middle of the Arabian Peninsula, has a series of modern supporting infrastructure The Bay Center, with its facilities and luxurious large-scale construction, will sooner or later become popular again due to its geographical location and superior hardware facilities, and it will prosper again.Based on this beautiful tomorrow, today's investment is also worthwhile.

In short, I think that although Dubai's economy is sluggish today, its future is bound to be brilliant. Wenzhou people would rather invest in Dubai when it is at its worst, in exchange for multiple profits in the future. Of course, this requires taking a lot of risks. Wenzhou people who have never been afraid of risks have long cultivated the ability to prevent risks.Therefore, in addition to investing in Dubai buildings, many Wenzhou bosses also try to invest in other areas of Dubai, such as real estate, TV stations, massagers, and other industries and fields, to avoid "putting eggs in one basket".

As we all know, the most beautiful investment project is monopolized by one person and monopolized the market.Even if a complete monopoly cannot be achieved, it is necessary to ensure the least number of competitors and the largest market share. However, under normal circumstances, this kind of situation is generally not easy to happen, and it is difficult for investors to have such an opportunity of "one person dominating", especially when the legal system is sound and the market is mature, the chance of monopolizing the market is very small.Whenever a certain industry or field is found to have huge profits, investors will quickly flock to grab a piece of the pie, and it is difficult for individuals to monopolize the profits.

But under special circumstances, when there is a gap in the market or some kind of loophole in the economy, it is easy to seize the opportunity of "one man dominating". For example, because of the nuclear crisis triggered by the 9.0-magnitude earthquake in Japan in 2011, people listened to rumors and snapped up salt in order to prevent radiation.If the state does not take strong measures to control this matter, then the salt market becomes a gap.If someone came forward and said, I have tons of salt for sale here.So even if he sells it for 20 yuan a bag, I believe that some citizens will come out to buy it, and the salt seller will "dominate" and control the salt market. And this salt seller must not have bought a few tons of salt when the salt was out of stock, but before this crisis, when salt was least valued by everyone, compared with the current price of salt, it is "Bottom" time.His behavior, to put it more noblely, is a kind of "buying the bottom" behavior. One side is the "lowest" price, and the other side is monopolizing the market. The profit is obviously the most profitable investment among all market competitions.This kind of investment method of swallowing most of the profits has always been pursued by Wenzhou people. However, investment behaviors such as the Dubai crisis seem to Wenzhou people to be a kind of opportunity that cannot be met, so once you see such an opportunity, even if you are taking huge risks, you have to give it a try.However, buying bottoms is an opportunity that can’t be met but cannot be sought. How do Wenzhou people who have always regarded the maximum profit as their life use the thinking of buying bottoms? Look around the world!Try to make yourself the first finder in the market! At the beginning of the reform and opening up, many people went to the south to look for opportunities, but Wenzhou people "did the opposite" and flocked to the north and northwest. So today's Beijing has the famous "Wenzhou Village", and the northwest has Wenzhou's "fried oil ball". In the 1980s, when people were slowly trying to become self-employed and invest in small businesses, Wenzhou people boldly went to Weiwei, so the United States, Brazil, Japan, France, Italy, Spain, the Netherlands and other countries began to have Wenzhou people. The people of Wenzhou began to be known as "Chinese Jews". The investment thinking of Wenzhou people, which is different from that of Chinese people, is actually the ingenious use of "buying the bottom" thinking. For the north, especially Northwest China, at the beginning of the reform and opening up, because the strategic location was not so important, it was not valued by most people. Guangdong, Shenzhen and other places became the markets that investors robbed.Wenzhou didn't care about the poverty and backwardness of the Northwest. Instead, it tried to invest in small businesses in Ningxia, and was engaged in the most inconspicuous small businesses, such as buttons, electrical appliances, trademarks, and small toys.Not only Ningxia, people from Wenzhou have invested in Yunnan, Guizhou, Sichuan, Guangxi, Qinghai, Xinjiang, Tibet, Ningxia, Inner Mongolia and other small cities and border areas with less important strategic locations.Although these investments were inconspicuous, in 2000, the country issued an order to "develop the western regions" of the whole country, and the western market was very popular for a while.Wenzhou bosses who have already "hunted the bottom" here, as the first batch of discoverers of the market, naturally made more profits than others. The same is true for investing in overseas markets.Wenzhou people, as the first Chinese to introduce Chinese culture and Chinese specialties to foreign countries, naturally understand the market better than the Chinese who later invested in foreign markets and understand the needs of foreign markets, so they are naturally more likely to be valued by foreigners.Therefore, there is a street called "Wenzhou Street" in Paris today, and other cities in China do not have this "honor" for the time being. This kind of Wenzhou-style investment, which first goes out and looks at the world first, is not as obvious as "buying the bottom" like investing in Dubai buildings, but compared with latecomers, it is naturally more profitable because it discovered the market first, so it can also be It's called a copycat. In the stock market, it is difficult to make a clear standard for what kind of price is the "cheapest" and "lowest".But for Wenzhou people, bottom-hunting thinking is indeed something that can be controlled.Wenzhou-style bottom-hunting, I sum it up like this: Investments that everyone disapproves of and investments that have not been discovered for the time being are all "cheapest" and "lowest". In this case, we can well explain why Wenzhou people dare to take risks and dare to run around the world. Their fundamental purpose is to strive to be the first person and try their best to achieve "one person dominates".