Let’s start with a scenario: when you travel in a strange place and get lost, luckily you find a road sign, however, there are many complex directions on it. What will you do next?
I think many people will try different ways in short distance and back to the original place in the end.
Another example I believe most people tried when they are kids: close your eyes even in a wide straight road and try to find how long you can walk.
I think most people will just stick to most 5 minutes before they open their eyes because of fear, maybe they will bump into a tree, or fall into a hole even you know there is not in your head. Fears influence minds!
This is also same with business and investment.
Many successful entrepreneurs put vision in the first place before company strategy, management policy, etc. Because when they know and believe what will happen in next 5 years, 10 years, they will have confidence to accomplish many tasks that other people think impossible, and don’t waiver for short interests.
I will name some Chinese companies as example:
Huawei is a leading globally telecom solution provider now. Its founder Ren Zhengfei believe that information technology will play a more and more important role in the society, and the R&D capability is key. So he invest more than 10 percent of revenue to R&D each year, and never put company money in the stock market and real estate market in the bubble time.
Alibaba is world famous company now. However, when Jack Ma introduce eCommerce in China in 1999, no one believe him, and everyone see him.as a liar. Because Jack Ma visited US and wittness Internet powerfulness, he clearly see the future more that 10 years, and know eCommerce will become essential part to everyone life. So he devote to build Alibaba platform to help SME success in new era, and not put money into profitable online gaming like many other Internet companies. Next successful Taobao, Alipay, Aliyun, Cainiao, etc together create powerful business circle, and Alibaba become one of the most successful companies in China
Let’s go back to Investment. If you want become a real successful investor, you should also have a clear vision for what you plan to invest, Buffet called that circle of competence. Buffet said he is lucky to be born in US, which is most successful country in the last 200 year, and he is also confidence that US economy will also be strong in next 200 years.
If you have no idea about your investment and have no vision about it, you have to speculate. And no one can win market if you just know how to flip a coin. The best suggestion is to buy an index fund.
For me, I always say I am lucky to be born in China. China is the fastest growing country in the last 30 years, and I have witnessed too many miracles happen in this land. I have strong belief that China will become the most successful country in 21st century. There will be too much opportunities in China, so don’t miss it.
Find a great Chinese company, longterm invest in it and grow with it. Most important of all, enjoy life!