Chapter 635: Reasons for Success and Failure

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“… Tang Wanxin's Delong, who made his fortune in finance and the stock market, is also very familiar with this. Next, he used a series of means, including guaranteeing the minimum investment return of customers in the marketing of financial enterprises, using a number of enterprises to actually control financial enterprises, exceeding the scope of operation, mutual lending between financial enterprises, using 'shell companies' as the main body of investment and transfer, and concealing related party transactions, etc., so that although a large amount of funds were obtained, Delong's way of increasing the value of the enterprise and the stock price by sitting on the bank, rather than relying on honest management, was a serious mistake in itself. It is also a mistake to use a series of illegal means to obtain funds later. Solving mistakes in the wrong way naturally has no chance of success!"

These are the six reasons why we have summarized the collapse of Delong Group. Of course, this is just a family story. Delong is involved in dozens of industries, complex internal relationships, coupled with a relatively short period of time, and perhaps many crises that we have not seen. ”

Secretary Xie put down his pen and said with a smile: "Mr. Guo's summary is detailed enough, and the rhetoric is to the point. I believe that Delong will develop again under the leadership of Mr. Guo. ”

"I'll do my best!"

"Mr. Guo, as far as I know, your own development process is similar to that of Delong. In the beginning, the method of mutual promotion of finance and industry was adopted, and both adopted a strategy of substantial expansion. Why did you succeed and Delong failed? In addition to personal talent, what factors contributed to such a different result?" asked Mayor Zhou after closing his notebook.

"Mayor Zhou is really eye-catching, and he can see the similarities between me and Delong. After a pause, Guo Shouyun organized his language, "There are several reasons why I am successful. First of all, the first pot of gold I got was writing, and the characteristic of writing is that I don't have to pay any cost except for the mind. And writing can generate a lot of cash flow, and it can generate consistent returns. At the same time, you can also obtain a wide range of peripheral benefits. ”

“… On this basis, I established Matrix Pictures, which can be regarded as a downstream enterprise of my work, with a high degree of relevance. If the film is popular, in addition to the box office and merchandise revenue, it can also boost the sales of my work. The two are mutually reinforcing, allowing me to generate a huge amount of cash flow to support my investments in the internet, retail, livestock and financial markets. ”

“… Although I, like Delong, make profits through financial investments, Delong does so through bankers and illegal transactions. And I entered the high-risk futures market, and even if I lost all the money I invested in finance, as long as my work is still there, as long as the movie adapted from my work is still popular, I can continue to get a steady stream of positive cash flow. In addition, Guo's main businesses, retail and animal husbandry, are both industries with low profits but stable returns, and there is no possibility of significant losses. Although the Internet is in trouble because of the Nasdaq crisis, it has found a way to make profits. ”

“… I was prepared for the worst-case scenario of financial failure, so I was able to look at every opportunity with a calm attitude. And finally with the help of the Argentine financial crisis, a huge profit of more than 4 billion US dollars was obtained!"

As soon as this number came out, Secretary Xie and Mayor Zhou couldn't help but be moved. 4 billion US dollars is 32 billion Chinese coins, so much money can completely create another Delong.

However, Guo Shouyun used his knowledge to make well over $4 billion in the gold market through the Argentine financial crisis. But considering that it was too shocking, and he also had a good face period, he cut off two-thirds.

"Such a huge amount of money, which goes into any of my companies, far exceeds their size and demand. If it is acquired externally, it will be the result of a snake swallowing an elephant, and there are too many variables. And there was no too suitable opportunity at that time. At the same time, the energy crisis in California was in full swing, and the shares of Pacific Power & Gas and Southern California, two of California's largest utilities, plummeted, and the former was even on the verge of bankruptcy. ”

"Utilities have stable returns, and Pacific Power & Gas, as well as Southern California Power, are quality assets. Although it is in trouble because of the energy crisis in California. But the predicament is only temporary, and once the crisis has passed, it will soon be restored. In addition, I had enough funds at that time, so I decisively initiated the acquisition. Then there was the Pan Pacific Energy Group. ”

"Later, when I bought Southern and even took over the bankrupt Enron, I saw the stable returns of the utilities and energy industries and the ability to generate enough cash flow to solve the crisis. ”

"Of course, the rapid expansion inevitably strained my capital chain. And it distracted me from controlling the future of the business. To solve this situation, I sold Thorn Bird Publishing and quit the publishing industry. sold Juji Electronics and withdrew from the chip industry. Sold Enron Water and exited the water industry. There are many similar examples. ”

"After the consolidation, Guo's main business is retail, agriculture and animal husbandry, slaughtering, catering and logistics, which can cooperate with each other to promote and increase the net income of total assets. Ruby's main businesses are Internet communities, e-commerce and cloud computing. Google's main business is Internet search and big data. Apple specializes in consumer electronics, software, and chip design. Phoenix is mainly engaged in the financial industry. Pacific Energy Group is engaged in utilities and natural gas. Unocal is engaged in the extraction and processing of petroleum industry. Matrix is mainly engaged in the media industry. Every company has its own main business, even if the expansion is also upstream and downstream related enterprises, never waste money and energy on the industry that they do not understand and irrelevance, all decisions must be made around the strategic development plan of the enterprise. ”

After a pause, "In addition to a clear industrial plan." The mature business environment in the United States is also a big factor. In particular, there are professional managers who can help me manage the day-to-day affairs of the company, so that I can have more time to think about the corporate strategy and avoid making mistakes. ”

"A clear corporate strategy, a professional manager system, a sound business environment, and a broad domestic market are all factors that have enabled me to achieve success. In contrast, Delong does not have a clear corporate strategy; at present, there are not enough and excellent professional managers in China, and the senior executives of enterprises are mainly family members; in the more than 20 years since the reform and opening up, China has made amazing economic development, but the laws, talents, concepts, and other aspects are not perfect; the potential of China's commodity market is stronger than that of the United States, but because the economy has not yet developed to a certain level, this potential has not yet fully exploded. ”

"Secretary Xie, Mayor Zhou, everything takes time. The United States has developed something that only existed in 200 years, and it is impossible for China to go head-on with 20 years of development, which violates the law of natural development. However, I believe that with the continuous progress of China's economy, these shortcomings will be made up one by one. I believe that the future of Huaxia will be very bright! This is also the fundamental reason why I continue to increase my investment in the Huaxia market!"

"There is a saying: listening to your words is better than reading a book for ten years. Starting from the Delong incident, Mr. Guo talked about the overall business environment in China, which was insightful, thought-provoking, and admirable!"

"You've won a prize. I'm talking about some of the big picture. Many Chinese economists have more profound insights than I do. ”

"Mr. Guo's insight into Delong's shortcomings and the business environment in our country is truly admirable. But back to the original question, what does Mr. Guo plan to do with Delong's industrial assets?" said Mayor Zhou.

Compared with Secretary Xie, who also has to take care of party affairs, he is the real leader of the Modu City government. To lead the economic development of the magic city, he is duty-bound!

"About Delong's industrial assets, it can be summed up in eight words!" Guo Shouyun said after thinking for a moment.

"I don't know if it's those eight words?"

To put it simply, it is to grasp one or two main businesses and sell the rest of the sub-businesses that are not related to the main business; in order to save expenses, save energy, and highlight the key points! Take Shen ~ Yang alloy as an example, retain the two main businesses of power tools and garden machinery, sell non-related businesses such as nickel alloy, space shuttle, machine tool factory, and aircraft manufacturing, and use the funds for mergers and acquisitions of similar companies, as well as R&D investment, and strive to become the top three power tools and garden machinery in the world. ”

"In this case, the revenue and scale of alloy shares will probably be reduced by half!" Mayor Zhou said.

"Severe with strong medicine. Moreover, the forced merger of unrelated businesses is not a blessing in disguise for the enterprise. It's better to operate separately and independently, or sell it to strengthen the main business!"

"Lao Zhou, operating the company, both of us are laymen. Professional things should be left to professional people. With Mr. Guo's business talent, I believe that Delong will get a new life in his hands!"

After Guo Shouyun smiled slightly, he didn't speak again.

"Well, it's almost noon. If Mr. Guo is not busy, why don't you stay and have lunch together? Although the canteen of our city government is not as good as that of a five-star hotel, the Shanghai cuisine is still very authentic!"

"Okay! I happen to be a little hungry too!"

"Then let's pack up and go!"

Secretary Xie got up with a smile, put the notebook and pen back in the drawer of the desk, and took Mayor Zhou and Guo Shouyun downstairs.

Guo Shouyun, who ate in the canteen of the Modu City Government for the first time, felt quite fresh. It's just that the countless pairs of curious and scrutinizing gazes around him made him a little unaccustomed.

After eating lunch and briefly chatting with the two leaders of the Demon City for a while, he offered his farewell.

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