Understanding enterprises from the perspective of entrepreneurs
I think the mistake that smart investors are prone to make is overconfidence and overestimation of their own cleverness. The second is that sometimes he underestimates the stupidity of the market Qiu Guolu said.
In the dialogue, Qiu Guolu also asked Zhang Lei, in the process of making investment and enterprise, we must make some investment decisions at the same time, and at the same time, we must make some industrial decisions. Will there be any difference between the two decisions??
Zhang Lei replied that we are investors, but first of all, we are entrepreneurs, who think from the perspective of entrepreneurs. This is a very important starting point, so you have empathy and can really understand the enterprise. Its hard to start a business. Its always on the way. No matter entrepreneurs or investors, I think the essence is the same and interlinked. Its all about the pursuit of excellence, the recognition of value creation, and a very strong belief in building a great organization for a long time. Its very rare.
For example, how to allocate assets, how to allocate large-scale assets and how to allocate time, because the most important asset in asset allocation is your time, which is also your biggest bottleneck. These are the characteristics of investors. At the same time, a good entrepreneur will rethink his ROI, which is not only the return of capital, but also the return of time. These are all good entrepreneurs. They share a lot with investors. Zhang Lei said.
Discover value to create value
When it comes to investment, the ability of Hillhouse capital has always been praised by the market.
During the dialogue, Qiu Guolu asked Zhang Lei, from the secondary market to the primary market, from the Internet to innovative drugs, to AI, you can do many things earlier than the investment community, or even to a certain extent, the industry, and make some forward-looking layout. How does the high position expand the boundary of the capability circle??
In response to this, Zhang Lei said, traditional value investment always has its space and reason, but the world is constantly developing and changing, and the space will be gradually narrowed. For example, the traditional deep value, so-called deep value, becomes a deep hole and a value trap. When this pit is stepped down, I will give you a ladder immediately. My ladder is the technology empowerment to help you climb out. A company like Belle could be a value trap. If you change it through technology, you can create value. So, can you find value and create value. I think the most important thing is to find value and create value, which is a fusion for us.
Qiu Guolu said, Hillhouses ability circle is indeed quite wide, from level one to level two, investing in industry. Few people really invest across the first and second level. We think this way of thinking is very different. You said that angel investment, VC and even to the growth stage, the characteristics of the company are very different from those of the secondary listed companies we go to. The judgment of entrepreneurs or organizational culture is also very different.
This also raises the question, in the process of building such a large competence circle from a high level to a second level, they are complementary to each other. After learning more about the first level, they have deepened their understanding of the second level, or do they need different ways of thinking and judgment frameworks?
Zhang Lei said there were both cases.
The most important thing is to find those people who really love them, about all, passion, Swenson said. For example, if you just want to say that Im doing this to do this, its not easy for you to walk for a long time. Either you make a lot of money and you retire, or you are not happy and cant make a lot of money. Its not interesting. Its not easy for you to walk for a long time. I think it is necessary to return to creating value in the end. Zhang Lei said.
Zhang Lei gave an example of a partner of the company: this partner came very early in the first year of the company. He had done a good job in investment. He had done it at the second level and at the first level, but he was willing to spend a lot of time in the enterprise. He always felt that I made a lot of money by investing, allocating assets, even giving money to great entrepreneurs. But now I would like to help this entrepreneur and his assistant in the enterprise. Through these two or three years, we have helped the enterprise to take off. All these make him a good investor. Driven by him, several of our colleagues have shown sharp points in investment. At a very promising career stage, they said that we should also go to the enterprise. They go to the enterprises we invest in. After working in the industry for several years, they come back and invest again. Of course, there are many people in the enterprise now. By integrating enterprises and investment in various ways, we can really return to the concept of value creation just mentioned, which also helps enterprises solve some practical problems, not just capital problems. Value creation and the pursuit and enthusiasm for value creation are very important driving forces, rather than simply saying that I want to do a good job in the primary market, or I want to do a good job in the secondary market. Zhang Lei said. Source: Chen Hequn, editor in charge of 21st century economic report_ NB12679
By integrating enterprises and investment in various ways, we can really return to the concept of value creation just mentioned, which also helps enterprises solve some practical problems, not just capital problems. Value creation and the pursuit and enthusiasm for value creation are very important driving forces, rather than simply saying that I want to do a good job in the primary market, or I want to do a good job in the secondary market. Zhang Lei said.