Chapter 76 SynTao 75 Gambling mentality is bad

The essence of business: In the business sense of Wenshang, making money is not a gamble, and you can't put all your eggs in one basket. Otherwise, even if you win, it may not be a good thing, and if you lose, it will be a mess.There is only long-lasting business in the world, and there is no continuous huge profit. Instead of seeking windfall, it is better to keep flowing and accumulate more. There is often such a person in the gambling game.Seeing the excitement in the game, he couldn't help his heartbeat, and wanted to gamble, but he had no choice but to worry about gains and losses, looking forward and backward, his palms were sweating watching from the sidelines.He thought he had figured out the way, and suddenly a leopard gut grew out, and it was pierced down, not even a lock of hair was exposed.This mentality, the result is mostly bad.

This kind of person also loves to gamble and speculate.This is a state of mind in life. Nowadays, the trend of stock speculation is getting stronger and stronger, and some people are fascinated by "it".The sad thing is that this kind of people don't say where they are in charge of the stock market, even if the stock market wind blows in front of them, they can't tell the direction or measure the wind.As soon as you find a certain stock is profitable, you immediately chase after it with all your strength, using up all your savings, like betting on the same stock, and as a result, most of the only money you have is gone with the wind and disappeared without a trace.To make matters worse, the poor who have suffered setbacks for the first time become more anxious.If the money does not belong to you alone, at this time, the pressure from home and outside also comes, and you feel irritable, and you only want to make money, you have to increase the bet, and you have to seize the rare opportunity, and the result is a loss. It continued to expand, so that it emptied its wallet and became poorer.

Peregrine used to be a star-level securities firm in Hong Kong's financial market, but it was declared liquidated during the Asian financial turmoil. In just ten years, Peregrine has grown from nothing, and then from nothing to nothing.How much inspiration can its success and failure experience bring to people? The founders of Peregrine are To Huilian and Leung Pak Tao, who are one of the few elites in Hong Kong's securities industry. After the stock market crash in 1987, the Hong Kong stock market was in a mess. At this time, Du Huilian and Liang Potao founded Peregrine International.

With the cooperation of the right time, favorable location and harmonious people, Peregrine is like an eagle spreading its wings. With the management style of "fast, ruthless and accurate", it seizes every opportunity that can realize rich profits and returns, and bravely develops.Therefore, in just 10 years, Peregrine has developed from a small brokerage firm of 300 million Hong Kong dollars to a multinational group company with total assets of 24 billion Hong Kong dollars, which is considered a myth in the stock market. Peregrine's investment projects are very extensive and cover a wide range of regions. Its main businesses include stock products, fixed-rate bonds, direct investment, fund management, property investment and development, and investment trading. That is to say, as long as it is high-profit return Peregrine joined with full interest in the business.

Since 1993, with the development of the Asian economy, there is an urgent need for a large amount of funds, and funds from all over the world have continuously flowed into the Asian market.Peregrine seized this great opportunity to fully develop its securities business, and established a fixed-interest instrument department in 1994, mainly for Asian companies to issue bonds in Asian currencies to raise funds.The development of this department has developed at an unimaginable speed. It has successively participated in 3 bond issuance activities in 6 countries, involving a total of 15 billion US dollars of bonds.

On the surface, Peregrine’s development seems to be smooth sailing. In fact, investment risks have always been with it. It’s just that Peregrine’s success is too fast. It has forgotten the key to investment—“diversification of risks”, resulting in an excessively large amount of investment. , and ignored the risks of the Asian market, put all the money into Asia, and did not diversify the funds into other markets, which led to subsequent failures. The mistake that wiped out Peregrine was the Indonesian investment business.Because Peregrine's speculative psychology is too strong, the higher the risk of business, the more investment it will make. Therefore, the investment in Indonesia and South Korea is too large, nearly 600 million US dollars, equivalent to 25% to 30% of the total investment.It ignores the risk of the exchange rate, and does not take into account its own strength to bear the risk.

Soon, due to the sharp depreciation of the Indonesian rupiah and the Korean won, Peregrine’s investment incurred significant losses, especially the fixed-rate bonds (these bonds were valued in the currency of the relevant countries) suffered an astonishing loss, with book losses as high as US$1 billion, or about HK$7.7 billion , plus the losses of other departments, the total loss amounted to more than 10 billion Hong Kong dollars. Under the heavy blow, Peregrine finally couldn't hold on and declared liquidation.Its success lies in the fact that it has chosen many investment opportunities, so it can develop; its failure is that its speculative psychology is too strong, and it is carried out in an all-or-nothing method, either rich or completely defeated.

Just because life is inseparable from money, many people strongly pursue it, and even bet their own tomorrow for money. This kind of irresponsible and gambling-like behavior of getting rich is unacceptable. In Wenshang's business sense, making money is not a gamble, and you can't put all your eggs in one basket. Otherwise, even if you win, it may not be a good thing, and if you lose, it will be a mess.Doing business is not about looking for gold mines. If you find a gold mine, you will naturally get rich, but how many people in the world have found a gold mine?There is only long-lasting business in the world, and there is no continuous huge profit. Instead of seeking windfall, it is better to keep flowing and accumulate more.Do business honestly, make small profits every day, and eventually become a business tycoon for a long time.

That's why the ancients said: "Business is like the saliva of a cow." To do business, you must salivate like a cow, thin and long, and dragging on.As long as the business is uninterrupted, it doesn't matter if the profit is small. Compared with either breaking out or failing completely, I don't know how many times more reliable it is.