Schwartzman's deep-seated aversion to losing money has deeply influenced the company's culture. - David Carey John Morris, "The King of Capital (Classic Edition)".[Zhang Huyue]: This kind of company culture with extreme aversion to risk is a necessary characteristic for the long-term development of an enterprise. Many people always think that the rich tend to take risks, but in fact, the risks for ordinary people are controllable in the eyes of the rich, and they are not real risks at all. Just as half a meter of water can drown a squirrel, such a river is a dangerous place for a squirrel, but for the old cow, the river only reaches the thigh, and this kind of river does not have any risk at all, so the statement that the rich tend to take risks is really a misunderstanding, it is just that the rich are good at managing risks.
Simon claims that the windfall was a stroke of complete luck. - David Carey John Morris, "The King of Capital (Classic Edition)".[Zhang Huyue]: Luck is the humble word of the successful, but also the excuse of the loser. Behind luck is the long-term accumulation of knowledge, continuous attention to detail, accurate vision and a lot of tedious work, how can there be casual success. Those who ask me why I still can't live a good life in this life, I want to ask you: The highest level of swordsmanship is to win without moves, so if I tell you this sentence, you can become a master like Ling Hu Chong?Deliberate practice is to read 10,000 books to learn theories, to walk 10,000 miles to find the way to the masters, and 10,000 hours in the 10,000-hour rule is not really 10,000 hours, this is an approximation, many world-class violinists, they practice more than 20,000 hours. In other words, only encyclopedic theoretical preparation, a lot of practice and continuous understanding can achieve certain results, and it also happens that you have talent.
Goldman Sachs partners are well aware that the real competition they face comes from outside the firm, while Lehman partners seem to think that the main competitors are from within. - David Carey John Morris, "The King of Capital (Classic Edition)".[Zhang Huyue]: up and down together, its profit is gold, on the contrary, if it is in a state of internal friction, then it will inevitably decay, the fortress is the easiest to break through from the inside, the decision of victory or defeat is often the internal cause, the internal cause is the decisive role, no matter how big the role of the external cause, must be through the internal cause to work.
All the executives were scared about the acquisition because $2 million of it was their own money, and they kept repeating, 'Oh my gosh, we have to make sure it's right.'" - David Carey John Morris, "The King of Capital (Classic Edition)".[Zhang Huyue]: If failure is the mother of success, success is the father of success. With the first success, the next success will have the confidence and can be replicated mode, and the subsequent success only needs to be copied for the first time, and the rest is continuous improvement, continuous improvement of efficiency, that is, to improve the speed and scale of expansion.
The numbers game has come to naught, and investors have seen through these group models, discovering that the group's earnings as a whole are unlikely to grow faster than the earnings of its individual segments, and that the surge in earnings per share is a complete illusion. And, even if the management is very good, managing large, unrelated assets can be a huge challenge, and it is natural that there will be some poorly managed subsidiaries. Investors also began to focus on the company's core business and operational efficiency, and under this pressure, the notorious business behemoth gradually disintegrated in the seventies and eighties of the 20th century. - David Carey John Morris, "The King of Capital (Classic Edition)".[Zhang Huyue] :* rises, and the stock gods are all over the ground, and there are as many masters as dogs. **As soon as you fall, turn off the lights and eat noodles, and mourn all over the field. It's only when the tide goes out that you know who's swimming naked. It is still necessary to return to the essence of investment and focus on the core business of creating value, and only enterprises that focus on improving operational efficiency and polishing products are worthy of attention.
This cautious approach to investment has become the hallmark of Blackstone, and it explains why Blackstone has always been able to safely avoid the speculative traps that have led to the discouragement of many of Blackstone's competitors. - David Carey John Morris, "The King of Capital (Classic Edition)".[Zhang Huyue]: Be careful to sail the ship of ten thousand years. Others rely on leverage to get a leap forward, leaving you far behind, at this time it is not easy to maintain a cautious attitude, envy, unwillingness and luck will greatly damage the mentality. The road leads to the world and the outside of the form, thinking into the wind and clouds. All things are self-satisfied, and the man is a hero.
Schwartzman was overly cautious and rejected promising projects, but it also allowed Blackstone to avoid making irreparable mistakes. You know, in the 90s of the 20th century, many powerful and promising competitors went to ruin because of this. No matter what you say about him, timid or cautious, Schwartzman's instincts and nature were important factors in Blackstone's success. - David Carey John Morris, "The King of Capital (Classic Edition)".[Zhang Huyue]: I'd rather miss it than make a mistake. If you miss it, you can wait for the next opportunity, and if you make a mistake, then there is no possibility of a comeback. There is a big pit, hundreds of meters deep, you jump down, is there any way to get out?I don't need anything else, just a needle, a hole in my head, a hole in my head, and a hole in my head that fills the hole, and I can swim up. How can there be so much water in the head?There is not so much water in the head, why jump into such a deep pit?On the road of investment, sometimes I know that it is a pit, but driven by greed, I still can't help but jump down, and many of the ** of the price-earnings ratio in the thirties or even forties are still bought.
"I don't like people lobbying at my desk or whispering to me in the hallway," Schwarzman said. Every investment should be fully discussed at the all-partner meeting, not by me alone. It is the responsibility of every partner to identify all potential risks, and no one should be angry at the heated discussion because it is not a personal attack on the individual. They should realize that it is not "their" business that is being criticized, but the "company's" business. Everything we do is done to protect the interests of the company. If it hadn't happened to Edgar Combor, the partner would still be in a long line at my door. While the new regime does not make Blackstone immune to investment failure, Schwartzman is convinced that it will greatly reduce the probability of Blackstone's investment failure. Even if the future investment fails, the final decision is made through collective discussion, which can go some way to saving the project leader from Schwartzman's angry attacks. - David Carey John Morris, "The King of Capital (Classic Edition)".[Zhang Huyue]: A good system is better than a powerful person. It is necessary to have a sound fault-tolerant and error-correcting mechanism, someone can point out mistakes, you can make fewer mistakes, and you must be collectively responsible for mistakes to avoid putting too much pressure on individuals, so that you will have a good working environment.
Peterson's attention often turns involuntarily to public affairs. Even at meetings of the Investment Committee and the Management Committee, he spises on yellow sticky notes in preparation for his next speech or book. His brain can process two completely mismatched thoughts at the same time. - David Carey John Morris, "The King of Capital (Classic Edition)".[Zhang Huyue]: Like other organs in the body, the brain is also used in and out, and Peterson has evolved the brain into a dual-core processor, which can carry out two tasks at the same time, in fact, I can also watch movies while eating without affecting each other. Doing anything needs to be focused, this statement is true, but when the brain is practiced to a certain level, it is possible to focus on two tasks at the same time, that is, it is no longer contradictory to be single-minded and dual-minded, Zhou Botong may not be a plot only in **, many chess masters can play chess blindfolded and more than a dozen people at the same time.
Peterson rarely condescends to gossip with junior and mid-level employees. An employee who talks to Schwartzman every day says: Actually, Peterson is on top, and they never sit down to talk. - David Carey John Morris, "The King of Capital (Classic Edition)".[Zhang Huyue]: Excellent people are very individual, and personality is actually a set of fixed principles of life and work, because they know where to put their energy and what ways and means to do it more efficiently. They look more like sophisticated robots that have been programmed and executed consistently.
Blackstone took 4$400 million to buy a stake in waste clean-up, landfill and disposal giant United Waste Industries, which was Blackstone's largest investment to a single company by then. - David Carey John Morris, "The King of Capital (Classic Edition)".[Zhang Huyue]: The funeral industry and the environmental protection industry, I remember that they were both popular industries in China's capital market, and they both gave a very high price-earnings ratio. After staying in the industry for a long time, I found that the industry is a floating cloud, and the characteristics of the industry cannot constitute the core competitiveness of an enterprise at all. But people always have the illusion that a certain industry is having a very good time. Therefore, we must always remember: good is rewarded with good, evil is rewarded with evil, it is not that there is no retribution, the time has not yet come, and when the time comes, it will be clear immediately.
In hindsight, there seems to be a pattern to these investment failures. They are cyclical companies whose performance fluctuates with the ups and downs of the economy, and none of them are industry leaders, and they are not even very competitive, making it difficult to attract bigger and stronger competitors to acquire them. No one within Blackstone has a deep understanding of these industries. Crucially, Blackstone bought them at the wrong time in the economic cycle, resulting in high transaction prices, high corporate debt, and eventual crushing. "These are medium-sized companies, and the products are very cyclical, and we invest in two or three years before and after the peak of the economic cycle, which is too expensive," Schwartzman said. Although we have developed a very ambitious rectification plan, it is difficult to implement it. The lesson of these failures is this: first of all, don't buy cyclical companies;Secondly, do not have the ambition to radically rectify medium-sized enterprises, which cannot be reinvented;Finally, if a corrective action plan is needed, it must not be done behind closed doors, and senior executives and consultants in the industry should be fully consulted to ensure that the plan is feasible. - David Carey John Morris, "The King of Capital (Classic Edition)".[Zhang Huyue]: In short, don't buy a company without core competitiveness, a bad business is likely to be bad, Buffett is not hopeful about the old tree sprouting and the vine blooming, he said: If the investor is willing to pay double the price to fund the princess to kiss the frog, it is best to pray that a miracle will happen, many princesses still believe that their kiss has the magic to make the frog become a prince, even if her backyard has long been full of frogs. After many painful lessons, we have come to the conclusion that the so-called companies with turnarounds rarely have successful cases in the end, so instead of spending time and energy on buying cheap bad companies, it is better to invest in some enterprises with good systems with reasonable standards. With a few exceptions, when a well-known operator is confronted with a declining sunset industry, it is often the latter that prevails. 』
With some refineries closing for the same reason, Stockman believes that when oil prices rise in a few years, the severe lack of refining capacity will increase the value of Firmcoe. But after the rise in oil prices in 1999, Fimko was still on the verge of bankruptcy. - David Carey John Morris, "The King of Capital (Classic Edition)".[Zhang Huyue]: Warren Buffett: Time is the friend of excellent enterprises and the enemy of mediocre enterprises. At that time, the market demand was large, but there would be no fewer competitors, and there would be more meat than wolves, so you have to eat meat from the mouths of other wolves, which also requires strength. When a good company arrives in a bad year, it will not only survive, but also take the opportunity to swallow the market set aside by its weak and small enterprises and make it popular.
Stockman led the acquisition of a number of small component manufacturing plants by Collin-Aikmann. In 2003, the company struggled due to rising raw material prices and lower profit margins at General Motors, Ford, and Chrysler. Stockman is the chief executive, but the company has been crushed by foreign debt from leveraged buyouts and mergers and acquisitions. In 2005, Colin Aikman filed for bankruptcy at Hartland & Co. 3The $600 million investment was lost. - David Carey John Morris, "The King of Capital (Classic Edition)".[Zhang Huyue]: The attractive industry prospect is a trap, investors should really pay attention to the enterprise itself, the corporate culture can not be seen or touched, but this is the real high-quality assets. Yuan Shao looks powerful, but investing in him is a failed deal, what can be seen is often not important, what strategists are like clouds, fierce generals are like forests, subordinates are fighting openly and secretly, Cao Cao: I know that Shao is a person, ambitious and wise, strong and timid, jealous and less powerful, many soldiers and unclear divisions, and arrogant and inconsistent government orders. Guo Jia: Yuan Gong wanted to follow the example of Corporal Zhou, but he didn't know how to use people. There are many ends and few demands, and there is no decision to plan. And Cao Cao looks weak on the surface, but investing in him is undoubtedly a good business, because he knows how to make good use of people. Intangible assets are better than physical assets, and the so-called intangible assets are corporate culture. When heaven and earth come together, the heroes are not free. Why?It is not the external cause but the internal cause, the real fortune is the accumulation of thick and thin, the people's hearts are moving together, it is the upper and lower working together to break the gold, of course, a good corporate culture also includes that they can elect excellent leaders.
Two or three of Blackstone's investments in 2000, when the market was at its peak, failed. Investing in risky companies in a bubble market is extremely risky, and this loss is a real lesson that will be repeated in 2007 when credit markets collapse and the economy begins to spiral. - David Carey John Morris, "The King of Capital (Classic Edition)".[Zhang Huyue]: Standing on the tuyere, pigs can fly to the sky. Conversely, only when the tide goes out will you know who has been swimming naked. So, it's best not to invest in a business when the economy is booming, for two reasons:
One, you don't have a good price to buy, first.
Second, at this time, no one knows whether an enterprise is good or not.
But debt has become so cheap and on such loose terms that private equity firms can borrow money to buy a company's ** from shareholders and buy it for a price that significantly exceeds what the company is worth on **. In the final analysis, the wave of leveraged buyouts is a huge swap of stocks and debts. David Rubinstein, a partner at The Carlyle Group, told the audience in early 2006: "When people look back at this period, they will have to admit that this was really the era of private equity, because the money was ready." - David Carey John Morris, "The King of Capital (Classic Edition)".[Zhang Huyue]: The value of commodities is determined, but this is the long-term, and the short-term is determined by many factors, the most important is the liquidity in the market, and the flood of banknotes makes money worthless.
By early 2007, James said, "We're telling our investors that everyone else is saying it's a good time, that the economy is just, that's not a problem, and although that's true, we're trying to go back." We're not going to continue investing, we're going to lower it, we're going to change the type of company we're going to buy, because when everybody says yes, and you don't see any problems, based on historical experience, it should have peaked as well. - David Carey John Morris, "The King of Capital (Classic Edition)".[Zhang Huyue]: There is more than enough behind him to withdraw his hand, and there is no way to turn back. A good business is always unpopular at first, and a business that makes people lose money is often the only way to lose money.
The profits of the acquiring company are made by sustaining the company's long-term success, not by selling it off at an overvalued price and then quickly withdrawing the funds. - David Carey John Morris, "The King of Capital (Classic Edition)".[Zhang Huyue]: The essence of investment is value creation, and making money by buying low and selling high is just wishful thinking on the part of gamblers.
The survey found that private-equity-backed companies cut slightly more than average jobs in the first two years of their acquisitions, but in the long run they created more jobs than they eliminated. Contrary to critics, according to a 2008 study by Josh Lerner, a professor at Harvard Business School funded by the nonprofit World Economic Forum in Switzerland, companies owned by private equity firms created new jobs faster than their public peers in the first four years after a merger, but the gap narrowed in the years since. The study also found that manufacturing was the only exception to the industry, with similar job growth to other types of companies. - David Carey John Morris, "The King of Capital (Classic Edition)".[Zhang Huyue]: The essence of capital is to pursue profits, and layoffs are conducive to cutting costs, so the initial rectification often starts with layoffs, but with the improvement of the efficiency of enterprise value creation, the scale of capital has become larger and larger, and the proposal to solve the needs of employees will naturally be put on the agenda. On the whole, layoffs at the beginning will help to solve employment on a larger scale later.
The European Parliament's study of IPOs concluded that only about 1 3 percent of the revenues from successful acquisitions come directly from leverage, with the remainder benefiting from the increase in the company's long-term value. A more detailed study of 32 highly successful European acquisitions, which have an average internal rate of return of 48%, shows that only 22% of profits come from leverage;The other 21% comes from an increase in the company's valuation multiplier, which is how many times investors perceive the company to be worth its earningsMore than half of the remaining revenue came from sales growth and higher profit margins. - David Carey John Morris, "The King of Capital (Classic Edition)".[Zhang Huyue]: The main thing is value creation, plus leverage is equal to accelerating the car, but investment is about safety, there is no point in not having a safe speed, there is a saying in the running circle: going home safely is the end of the marathon. If you die suddenly on the track, even if your average pace is 400, who do you brag to, people only know that you are dead, and they no longer care how good your pace is.
Ma Huateng made Tencent's 66 golden codes.
Everything is the best arrangement" read caprice.
It would be nice to say so at the time" read the review.
Self-Control Classic Set of Three Volumes "After reading the next part
Self-Control Classic Set of Three Volumes "After reading the first part