Historical Records records the business theories and activities of two famous businessmen in ancient times, Ji Ran and Bai Gui. "People abandon me and take me, and people take me" was put forward by Bai Gui. Bai Gui believes that the primary factor of business success is to be good at observing and using changes, and he advocates making use of regular changes to gain profits. The so-called regular change means not paying attention to the specific reasons that cause the change, but grasping the inevitable change. Bai Gui put forward the management strategy of "people abandon me and take it". It must be such a regular change. The rule here is that because a large number of people abandon it, the price will definitely fall, and the price drop is the reason for the rise. There are reasons for the rise, and the rise is a matter of time! As long as there is a lot to sell, buy it. As for this sell-off, was it caused by the global financial crisis? Or is it caused by huge investment losses? Or indifference caused by rising raw material prices. As long as people dislike it, I will accept it.
Another businessman, Ji Ran, suggested that if the price is extremely high, it will be very cheap; if it is expensive, it will be like dirt; if it is very cheap, it will be very cheap. When the price is extremely low, I will return it to you. When goods are extremely expensive, they should be sold in time and regarded as dirt. When the goods are extremely cheap, buy them in time. As for what caused the price change, these businessmen didn't care. However, our investors have been obsessed with the causes of price changes for a long time and can't see the overall situation clearly, ignoring the law that price decline itself is the cause of increase.
To put it bluntly, what I want to say most is that it is very important to grasp such regular changes. If it falls too much, it will rise, and if it rises too much, it will fall. This is the basic law. When people are afraid to buy, abandoning is the best time to buy. This is also the law. Don't look for specific reasons for rising and buying. Once there are specific reasons for rising and buying, the actual stock has no buying value. Once there is a reason to go up, people don't sell it. There's no chance. Therefore, in the difficult stage when the specific benefits are completely unclear, we must seize the real opportunity. At the same time, we should understand that price changes always change in the opposite direction, and rising will always turn into falling, and vice versa.
If you buy when you can't see the bullish situation at all and everyone throws it out crazily, you will definitely get an excellent price. However, because there is no specific bullish and rising news, it is impossible to form a rapid rise after buying, and it is never possible to buy a good price or even make money. As the saying goes, money is not in a hurry. Buy when everyone is crazy, and buy when everyone is not optimistic. It is not objective to buy for tomorrow's rise. The time difference between tomorrow and today is too short to make a big positive change. Any positive change will last for a long time.
In this regard, Ji Ran and Bai Gui, ancient businessmen, respectively provided greater ideas. Ji Ran pointed out: when the weather is dry, the ship should be prepared to prevent flooding; It is the law of business and management to prepare cars for drought when there is a flood. In the eyes of ancient businessmen, all business activities are to prepare for the next year or many years later, waiting for the passage of time to realize the benefits. Bai Gui proposed that when goods are sold at low prices, they should be purchased; When the goods are not expensive enough, they are sold. When the grain is ripe, they buy grain and sell silk and paint. When you get cocooned, you buy silk and sell grain. Neither businessman is worried about tomorrow. Their business activities are not to prepare for making money tomorrow, but to prepare for the longer-term future. Ji Ran and Bai Gui believe that business must make use of the "time-use" relationship, which means that the time when people need a certain commodity does not mean that the commodity is in sufficient time. When things are long, people often don't need them, and the price is low. People often lack things when they need them. Businessmen just use this time difference to buy when the supply is sufficient, and then with the change of time, things are naturally scarce, and everyone uses them, and the price is high. At this time, the businessman will make a move. Ling Tong believes that the essence of the change of "time use" is to make full use of the different supply and demand relations of commodities at different times or spaces, thus leading to different prices and obtaining benefits. In the eyes of two big businessmen, the price difference is created by time, and the price difference.
In the extreme predicament and extreme selling, people abandon me and take it, and then wait for the passage of time to create new supply and demand relations and prices, which will naturally make money. After buying at a low price, it is impossible to try to make a profit the next day. Don't wait for any specific profit to buy, it's too late. When there is extreme difficulty and pessimism, extreme selling and extreme negativity, it is the best time to buy.
This is the basic law of business and investment, and it is also Tong Ling's experience after reading Biography of Historical Records and Huo Zhi!