Hello book friends, welcome to continue to be a guest in the reading circle of little scholars, today we will continue to talk about this book, the law of entropy increase. Yesterday we talked about the law of compound interest on long slopes and thick snow, in life, we are engaged in an endless stream of work, including both simple interest work and compound interest work. The so-called simple work is to earn one day's income every day, and if you don't work hard the next day, you will lose your income**. These jobs lack the potential to accumulate, and if they stop, they lose money** and have no future. In the past, many people would compare brick movers with white-collar workers, thinking that although moving bricks is hard, the income is more lucrative than that of white-collar workers, but the actual problem is that brick moving work is a simple nature of work, and there is no room for growth. The same is true for food delivery, as food delivery doesn't keep rolling like a snowball, but there are other jobs that have a huge potential for growth. For example, Mr. Jin Yong, he created a total of 15 works, but his influence has gone through the years and become a classic. And even more enviable, is the British writer J.K. Rowling, whose Harry Potter series has not only created a world of bestsellers, but also has a huge copyright income, and its cumulative wealth has reached 7.5 billion US dollars, which is the real compound interest.
As an experienced sales consultant, the author has a deep understanding of the difference between compound interest and simple interest. When it comes to retail sales, the results are obvious – if you sell a product, you make a profit, and no matter how good the performance is this month, it will be zero next month. However, for sales to large customers, it is an excellent platform to reflect the benefits of compound interest. As long as you can keep a customer, he will most likely choose to repurchase next year. Slowly, customer resources accumulate more and more, which is the so-called "long slope" effect. And those industries that can be maintained for a long time, spanning 50 years or even more than 100 years, reflect the power of the long slope effect. Of course, those industries that are as ephemeral as meteors may disappear in just three years. If you're going to sell it in the next 20 years, you'll probably choose an asset like LUNA that is called Coin Moutai, because only such an investment can truly reflect the value of the investment. However, this kind of speculation in pursuit of short-term gains often comes at a terrible cost. As the saying goes, "There is nothing that is not reported, but the time has not yet come". As some senior managers have said, the real investment is when the exchange is closed, and you are still willing to buy those assets. This is the real investment, and it is an important way to balance the risks and opportunities. There is an economic phenomenon called the heavy snow effect, which advocates a "one input, many outputs" model, just like thick snow, the more it accumulates, the thicker it gets, and the stronger it becomes. The Internet platform provides countless opportunities for you to record courses, shoot **, write books, write *** and even **live broadcasts and accept rewards, which are all good performances with a thick snow effect.
Although the income may be negligible at first, as long as you stick with it, you are sure to have a steady stream of returns. Just like the business model that the author loves, so does our reading circle and fan base. Recording a lesson, whether it is 10,000 or 100,000 people, is the same amount of work for us. The same is true, whether it is an investment of 100 million or 100000000000000000000000000000000000000000000
This business model, which can be said to be cost-front, may feel difficult to start at first, but once the bottleneck is broken through and the returns start to be generated, the returns will increase exponentially, and the speed is amazing. Therefore, we must continue to accumulate like a snow-capped mountain that has accumulated steadily, so that we can be invincible in economic life. The compound interest effect, the clever use of these four cheats, is tantamount to opening the door to riches. First, as a symbol of intangible assets, the brand is like a mysterious magic, once it is praised by the public, it will continue to bring benefits. The stronger the brand, the higher the profitability, and just this golden sign can reap the benefits day after day. Second, cost advantage, good at tapping the potential in the retail industry, through scale and management, to minimize costs. In this way, you can enter a positive cycle, the larger the scale, the lower the cost, the lower the cost, the larger the scale, and the compound interest effect will also roll over. Third, the network effect, like our WeChat, is quite difficult to promote at first, but once it wins its first users, it quickly spreads. The community economy has always been the most promising business, and even if you are asleep, there are still people to help attract customers. As you use more users, your customers will become more sticky, and you don't have to worry about others stealing your market, because it's impossible. Fourth, the cost of migration, once everyone is Xi to use, it will be difficult to give up. As we all know, as an important link in the global economy, the value of the ** chain cannot be underestimated. However, some people have a one-sided view that China's ** chain may be snatched away by Vietnam. This view is obviously a manifestation of a lack of in-depth understanding of the ** chain. After all, investment in fixed assets alone requires tens of trillions of dollars, and these investments depend on the collaboration of thousands of companies. Not only that, the various links in the chain are interdependent, and once there is a problem, the entire industrial chain will be affected. Therefore, even if we take the initiative to relocate, it will be difficult to complete this important task.
On the contrary, we should start to improve our overall quality in many aspects. Just like the author's **, our business model is very unique, we not only have strong customer development capabilities, but also have a robust enough mindset to attract investors. In contrast, some peers focus only on high returns, but they don't know that doing so often leads to increased risk. We can take a more robust approach to attract clients who have a rational approach to wealth management. And it is precisely because of our deep insight into the needs of users that we have helped us screen out tens of millions of interested investors. In this way, we have 3 wheels, which are the number of users, the scale of user investment and the best performance.
Within 5 years, these 3 wheels are running at the same time, and if each one is doubled, we will grow 8 times in size. And in the process, our business model can easily win and leave our peers in the dust. Therefore, we are convinced that as long as we continue to improve our own quality and comprehensive ability, we will be able to be invincible in the future competition. Even if they want to emulate our robust investment strategy, they struggle to do so. Therefore, this difference only highlights our unique strengths. Faced with a volatile underlying market, and a financial product that has been growing sustainably, with an annualized rate of return of up to 10% to 15%, most investors will naturally be clear about their choice. This trend of choice has also given birth to the phenomenon of "performance-driven community", which in turn promotes the continuous expansion of the scale, and the growth of the scale in turn brings greater improvement to the performance. As stated in the book "Rich Dad", when passive income exceeds active income, you achieve true financial freedom. However, I usually use passive income to cover my biggest living expenses. Passive income refers to income that can be reliably accessed no matter what**, such as buying government bonds, and earning a return of 4% per annum. If you can get a passive income of 10,000 yuan per month and spend 100,000 yuan a year, then you are equivalent to having 2.5 million yuan and achieving financial freedom. Of course, there are two problems here, one is inflation and the other is the margin of safety. It's only really enough when your passive income doubles to $5 million. If you are good at investing, then you can accumulate less of this total asset.
As the ancients said, "Investment is risky, and you need to be cautious when entering the market." "Investors need to keep a clear head and make informed investment decisions when facing the financial markets. Only in this way can you be invincible in the dangerous market and realize your financial freedom. I was fascinated by what you said, and I was really benefited by your words. I am simply amazed by your custom metrics! You only need to create a cash flow income of 10,000 yuan per month, and you can easily have 2 million yuan in assets to resist inflation. However, the bar you mentioned is much higher than mine, and it takes $5 million in assets to reach the same level. This means that I need to go the extra mile to catch up with you and achieve financial freedom ahead of schedule.
However, for me, having assets of $5 million does not mean being carefree. On the contrary, it requires more caution and conservatism to avoid making mistakes. After all, once the drawdown is large, your equity will fall below $2 million. This will be a disaster for your financial freedom. In contrast, my goals are more rigorous and more focused on a sound investment strategy to ensure the stability and continuous growth of assets.
In addition, I also strongly agree with personal growth. Although we often hear the slogan "a little bit better every day", it is not easy to actually do it. Even if you improve by 1% per month, it will take a lot of effort. And according to the formula, 101 to the 365th power, it turned out to be equal to 3778 times. This makes us think that the journey of personal growth is long and arduous, but with perseverance, I believe that we will all make breakthroughs.
All in all, don't be disappointed by a year's hard work, and don't give up easily. We must believe in ourselves, keep working hard, and believe that every small progress will accumulate into great strength. As the famous saying goes, "A journey of a thousand miles begins with a single step." "As long as we continue to take solid steps, we will be able to move towards a better future.
This is the whole content of this book, the law of entropy increase is a good entry point, most people in this life, are from disorder to continue to work to order, and because of slackness and from order to disorder, it is not that everyone is not working hard enough, but to find the wrong direction of effort, less some hard work. And poking this layer of window paper is likely to be just an accidental factor. For example, when the author left the TV station, he didn't expect the next 10 years of development, but he simply didn't want to earn this kind of piecework remuneration anymore. So this simple idea allowed me to enter the Internet and open up a whole new business model thinking. I have learned more and more about the times and directed my efforts to the right path. On the contrary, if I am still on the TV station, then no matter how hard I try, it is the difference between 20 ** a month and 25 **. Everyone is also very hard and involuted, for example, the female reporter of Zhejiang TV, when the typhoon came, in order to increase the effect of the program, she stood in the wind and appeared on camera, and was almost swept into the river and died. This is all true, so I never say that others don't work hard, everyone is working hard, but sometimes the method is wrong, in the work of simple interest, too much energy is spent, and in the end, there is no energy in the work of compound interest. This is a typical rejection of the original and the end. Therefore, hard work is not the same as stupid work, the key point of life, just that 20%, and investment is a truth, the real time is 20%, and the other 80% is either sideways or **. If you can't catch that 20%, you'll keep losing money. So can you just do that 20%? Everyone wants to do this, but judging by the results, 80% of them may not be able to choose the right time. This also tells us another philosophy of life, if you are on the wrong road, it is better to work hard for half a day, it is better for others to lie flat on the right road. The reality is often so heart-wrenching. Okay, let's start a new Xi next term.