How to break through in the stock age

A few days ago, Mr. Run's ongoing "Liu Run Breakthrough" has ended. Trend ". When the trend, cycle, bonus and opportunity come to four winds, the trend-technology drive: never look back and move on. Cycle-economic drive: periodic (century-old enterprise) dividend-structural drive: short-term supply and demand imbalance, but will eventually return to equilibrium, quickly seize the opportunity for short-term accumulation-commercial drive: straight.

So we should learn from Internet companies and cooperate with them.

However, the reality is not optimistic, because we have also moved from the past incremental era to the stock era. Since 1949, China's economy has gone from poverty to the second largest economy in the world, especially China. In the past 40 years, China has opened its doors, increased its exports, introduced foreign capital and opened its coastal cities. China's GDP has increased from 1979 to $6,543.3 billion.

However, the economic growth of China has been slow since 10. With the Sino-US trade war, the macro situation has become a hot spot in the circle of friends. Even a small-scale enterprise like me can feel the pressure brought by this economic downturn.

So what should we do? Eight tips were given at the big class meeting, and suggestions on how to spend the winter cautiously were put forward.

1 cash is king (cash flow, cash flow, cash flow)

The first suggestion is that cash is king, and cash security far outweighs income. Do less projects that are hard to pay and have high profits, or it will look like high profits, but in the end, these are all money you shouldn't make, and you won't make it in the end.

Focus on short-term goals (build your career on a business basis)

Focusing on the short-term, the "long-term doctrine" from Amazon Bezos has recently become popular, making Amazon, a company that has lost money for 20 years, once the first in market value, and making a person who helped his shareholders lose 2 1 year become the richest man in the world. Therefore, we are generally talking about paying attention to the long term.

So why focus on the short term? We should base our business on business. Let yourself live first. Even Vanke said so at last year's annual meeting, so it is necessary to live for a long time.

3 Good quality and low price (to be a MUJI and Uniqlo in China)

Cheap and good quality. After the economic crisis in the 1980s, Japan realized that consumers needed cheap and good quality goods, so it adopted the method of scale effect to improve efficiency, and produced cheaper and higher quality things than those on the market at that time, such as Muji and Uniqlo.

At present, we are also facing the opportunity of economic crisis and consumption upgrading, so we should also produce low-priced and high-quality products to be a muji in China. For example, today's Xiaomi, Netease YEATION.

4 cut off the long tail (cut off products and businesses involving energy and income difference)

Cutting off the long tail means cutting off some products with non-core business, no competitive advantage and poor returns. Only in this way can we concentrate on our core business.

For example, before 1997 Jobs returned to Apple, business was not good, because there were too many product lines, which caused him to lose his focus. So at that time, Jobs made a very famous remark. He said that I only made a table for the next product. Steve Jobs's boldness in those days made Apple today.

5. retain customers (customer value >; Cash flow > revenue > profit)

Retain customers, more specifically, retain core customers. The first point is that cash flow is greater than profit, but cash flow comes from core customers. But on the one hand, there may be more unimaginable competitors around the core customers, trying their best to take away your core customers. On the other hand, with the economic downturn, core customers are also controlling their expenditures, and there are fewer and fewer customers.

Therefore, in this case, it is necessary to make frequent home visits and use their own advantages to retain core customers.

6 dig deep into the barriers (make your own high-profit products, not affected by substitutes)

Dig deep into barriers and protect your high-profit products from the influence of substitutes. Warren Buffett said: If you want to make excess profits, you must dig a moat for your company. There are four kinds of moats:

1) intangible assets; 2) switching costs; 3) Cost advantage; 4) Network effect.

The first point is intangible assets, such as patent application. Huawei owns most of the world's 5G patented technologies, forming technical barriers.

The second point is switching costs, such as enterprise ERP management system or Apple's IOS system. Once selected, usage habits, software purchase and data conversion costs are very high.

The third cost advantage, such as Xiaomi, was that 69 yuan produced a charging treasure, which was 1/2 of the market price, and formed an absolute monopoly on the whole market.

The fourth point is the network effect, such as WeChat. The more people use it, the more inseparable it is, forming a powerful network effect.

7 invest carefully

Invest cautiously. We often hear investment companies say that as long as you invest in one project, ten projects will earn money. For those investments with high returns and low probability in the past, the probability of success is further reduced. When the economic cycle goes down, we must invest carefully.

8 Dare to innovate Only "innovation can cross the cycle"

Musk said: "The moat theory is very old, and innovation is the key to maintaining competitiveness." Therefore, Musk disclosed all Tesla technologies, tunnel technology and even rocket technology, and then constantly innovated.

For example, Meitu Xiu Xiu used the subversive innovation of science and technology to make a girl who didn't want to go to the gym lose weight by taking photos. These are real scientific and technological achievements and innovative forces.

Schumpeter said: Entrepreneurship without innovation is "arbitrage", and only innovation can be called an entrepreneur.

Innovation is an economic process of rearranging and combining the original factors of production into a new mode of production in order to improve efficiency and reduce costs.

For example, an Indian company performs eye surgery in an assembly line. The cost of ophthalmic surgery in other countries is 1‰, which is lower than that in other hospitals. This is a case of reorganizing production factors to improve efficiency and reduce costs.

Only innovation can span the economic cycle. ? From then on, China may have bid farewell to the incremental economic era of soaring GDP in the past, and entered the stock era like the United States, Europe and Japan. At this time, it is more important to look up at the road than to pull the car with your head down. . ? Remember Ray Dalio's three suggestions:

1: Don't let debt grow faster than income.

Don't let the growth rate of income exceed the productivity (because then you won't be competitive. All income should be equal to all output. If the income is higher than the output, it means that the increased income is due to the borrowing and consumption of others. More income will push more expenses and liabilities, and the debt burden and leverage will increase, which will eventually be unsustainable and collapse. "Don't let the income growth unreasonably exceed the productivity for a long time", otherwise it will eventually return to the first rule, "You can't pay your debts, and you are crushed to death by the debt burden"

3. Make every effort to improve productivity.

Great enterprises are children in winter.

The highest score is 99, the top master is 90, and the excellent score is about 80, but most people mistakenly think that 10 is the perfect score.

Sneak into 2020, put your eyes from the sky to the opposite side, stare at consumers, calm down, improve your ability and efficiency, get out of winter and usher in summer.

Amazon printing farmer Lao Yang