This is the 14th article of my reading experience of Duan Yongping Investment Questions and Answers. The background of writing this series is:
“This year, in the process of analyzing a company, there is one factor that I think is very important, which is the “corporate culture.”
There are very few investors who take corporate culture into consideration. I remembered my previous understanding of OPPO culture (A Duan is the co-founder), and also remembered that Duan Yongping’s past quotations from Xueqiu often appeared in the words of corporate culture.
So, I found the publication “Duan Yongping Investment Questions and Answers” published by Snowball. At the beginning of reading, I could only find 3 words to describe my feelings:
Oh my God……
When I was reading the first volume, I would occasionally see my scalp tingling and goosebumps all over my body, and I seemed to hear the “Ren Du’s Second Vessel” invested in my body crackling!
I have downloaded these two publications, the electronic version is in the background of my XX number (villike’s financial freedom notes), enter the Q&A, and there is a download address.
Mr. Duan Yongping’s content is very short, often a few words, one or two sentences to answer a question, so I suggest you read my reading experience first, I will try my best to give me the impact and touch, as well as the input of our investment write clearly. “
The bolded words below are excerpts from the original text, and the unbolded words are my reading experience.
Netizen: What is the core competitiveness of BBK?
A Duan: It is our corporate culture! I answered this more than 10 years ago, and maybe some people are starting to understand it now.
I only understood this sentence recently. The interesting thing is that I started to understand it “from myself” first, and then I had some thoughts from the perspective of the enterprise.
In terms of conditions, I am an ordinary person, with an average undergraduate degree, an average family background, and an average intelligence.
But since I went to college in 2005, and now it has been nearly 20 years, I feel that I still have a lot of gains beyond the “due grades”.
After reading A Duan’s statement, I realized that I just insisted on doing something right – the kind that I take for granted, so I didn’t notice it.
But I’ve come to understand that not everyone (in fact most people) will be like me.
For example, I don’t smoke, I don’t drink heavily, I seldom borrow for consumption (the only one so far is to buy a house), I don’t lie down, and I don’t “invest in stocks”.
The above are the wrong things, I don’t do them, and they can already separate me from most people and keep me at least not at risk of big trouble.
From a “doing the right thing” perspective, there are very few things I insist on doing, but there are a few that I feel are critical:
The first thing, I like to read, the kind that regards reading as a way of life. Before, I would worry that I would look out of place with a book in the crowd.
Now I don’t care anymore. Most of the time I have a book by my side, and I pick it up and read it when I have nothing to do, just like everyone takes out their mobile phone to read it when they have nothing to do.
The second thing, I like to make money, the kind that I make “easy” by investing.
So, I will be very interested in learning about investing, improving my understanding of companies, and finding ways to trade without being affected by the market.
The third thing is that I want to live longer, and I also want to have strong dopamine, so I will exercise, not the kind of “persistent exercise”, but the kind of “like exercise”.
When I was in school, I liked to play table tennis. After graduation, I like to run alone. I like to swim when I go to the hotel, and I like to run on the streets of a strange city. After I have money and spare time, I also want to learn golf.
The effect that exercise has brought me is remarkable. The most intuitive thing is that I dropped my weight from 86 kg to over 70 kg the year before, and now I still maintain it at 70-73 kg, and my body fat rate is basically controlled at around 15%. Better shape.
I want to break my head, and it seems that there is no other place that I do well, but the above right things and wrong things, because of long-term persistence, I have really become a better me.
Moreover, I also feel more and more that the longer the time, the greater the gap between the accumulation of these things.
If you think of me as a company, it is a company with a general business model (for the time being) but a good corporate culture.
Even so, in the context of doing the right thing for many years, I can still have my own “competitive advantage” and a good “return on equity”.
Netizen: As investors, how do we observe whether the company’s culture on paper is real?
A Duan: Look at his history, what he said and what he did.
This is true.
For example, if a company says that it pays attention to social responsibility, then see if the company has done something that is useful to society but may have little short-term economic value.
For another example, if a company says that it wants to make business easier to do in the world, then see if the company makes business more difficult or better, and so on.
In fact, as long as you pay attention, it is not difficult to identify.
Netizen: Ali’s vision is to “become the largest e-commerce service provider”.
A Duan: I personally think that the pursuit of the greatest is indeed a problem, because it is a result rather than a direction, and it may conflict with the core values (for example, it may not meet the user orientation, etc.).
All corporate cultures that are ultimately irrelevant to consumers are missing the point, such as “the biggest XX”.
Because, no consumer will say, “I’m going to buy the product of the largest company in the industry.”
Since it’s missing the point, and goals affect behavior, if the goal is wrong, you might be doing something “wrong.”
For example, in order to pursue “big”, they push a bunch of products, euphemistically called “product matrix”, and finally find that consumers do not buy it, and it is impossible for the company to be strong and sustainable.
This kind of mistake is made by many companies. It is recommended that you go to see the companies you are interested in, and how many have similar visions to the excerpts. Be careful.
Netizen: Mr. Duan, is this a correct understanding of corporate culture: the highest level of management is no management… There are unified values and goals, employees can self-discipline, and whether the system is sound is not of great importance?
Ah Duan: Without a management company, it would be over soon. The so-called good corporate culture is something that can be controlled by the system, not a mysterious spell.
The system is mandatory, but the culture is incomplete. Therefore, it is very difficult to establish a good corporate culture, and it is very easy to destroy it. For example, it is difficult to establish a reputation, and it is very easy to destroy.
This passage is very nutritious and meaningful, and I have two feelings to share.
First, as the netizen asked, since the corporate culture is so powerful, is it “the highest level of management is that there is no management, and it depends on the corporate culture”?
A Duan’s answer is very clear, and I think it is also correct, “Without managing the company, it will be over soon.” My own feeling is:
On the one hand, the management system is the “materialization” and continuation of the corporate culture.
If the company’s corporate culture is good, then all the following management systems are used to strengthen the corporate culture. This is very important. The primary and secondary are distinguished and cannot be reversed.
On the other hand, after all, the system is dead, people are alive, and the system cannot cover all aspects, there is always some “this way, that way”.
At this time, the corporate culture must play the role of the “lubricant” of the management system, and play a soft constraint and guiding role.
The second point, as I mentioned in the previous article, “a good corporate culture has continuity, and once established, it is more difficult to change.”
Then why in this place, A Duan said, “It is very difficult to establish a good corporate culture, and it is very easy to destroy it”?
The two are actually not contradictory. You can easily understand if you think of a company as a “person”.
A person’s temperament, temperament, and habits are difficult to cultivate, but easy to destroy.
For example, if you used to smoke, but finally quit smoking (that is, develop a good habit of not smoking), you may start smoking again one day when you feel bad.
However, the reason why a company’s culture is said to be “good” is that I think a truly “good” corporate culture is self-disciplining.
In other words, “doing the right thing”, I don’t think it can reach the level of a good corporate culture, “continue to do the right thing”, this is a good corporate culture.
Under the above definition of good corporate culture, we can understand why it is said that “good corporate culture has continuity”, because “excellence is a habit”.
In addition, the difference between enterprises and people is that people’s temperament is more coherent. For example, few people will be treacherous today and honest tomorrow.
And companies will change management. At this time, one of the core characteristics of a good corporate culture is to be able to select managers who share the same scent as the corporate culture. This is also an important means to preserve the corporate culture.
A Duan: Doing things right does have a difference. Everyone has their own learning curve, and it’s impossible for everyone not to make mistakes. It is said that with 10,000 hours in any field, most people can become experts.
In terms of investment, doing the right thing is “buying a stock is buying a company.” Those who can understand and insist on this can be said to be doing the right thing.
However, different people have completely different understandings and experiences of business models, corporate culture, valuation, etc., which is what we call the concept of a circle of competence.
Therefore, on the basis of insisting on doing the right things, trying to do things right, that is, improving your business understanding, understanding of people, and understanding of reasonable prices through various means is what investment should have. meaning.
The good news is that these can be improved through hard work, at best the speed and effect of different people are different.
Netizen: I personally think that the establishment of corporate culture at the beginning of the period does not require much energy, right? How the boss treats colleagues, employees, customers and other partners is the prototype of corporate culture, right? Once the enterprise has grown, it will be organized into something that is easy to understand. First, it will be communicated to the cadres, and the cadres will communicate it to the soldiers. Anyway, it should be a piece of cake.
A Duan: Agree.
Readers may be curious:
Since corporate culture is important, how is a good corporate culture established?
In fact, it is very simple. It is the method I have always said. If you regard the enterprise as a person, it is easy to understand.
For a person, his disposition and habits are good, and he does not need to be “established”. He is just what kind of person he is, and if he is a disguised and beautified image, it will not last.
Enterprises are initially established by people, and the nature of the founders is the corporate culture.
Employees who follow the boss to start a business do not need the boss to have N ways of communication, and are subtly accepting the influence of the corporate culture (the founder’s style concept).
But after the company is big, not everyone can get in touch with the boss. At this time, it is necessary to make the corporate culture explicit and speak out loudly, so that everyone knows who we are, what we want to do, and how we should do it. .
Here, there is another question you may think of:
“I have come into contact with some companies that are rumored to have good corporate culture, but their employees don’t seem to agree with and practice the corporate culture seen on the Internet?”
Here’s what I’m saying:
The dissemination and inheritance of corporate culture is an impossible thing to achieve perfection.
There are bound to be employees who do not agree with or care about the corporate culture “mixing” into the company, and the depth of employees’ understanding of the corporate culture cannot all reach the level of the core management.
Therefore, I also agree with the statement of netizens in the excerpt, “one brick and one tile”:
Adhering to a good corporate culture is the “right thing”. As for the extent to which it can be achieved, it is in the category of “doing things right” and will not have a traumatic impact.
According to my observation, even a company that emphasizes corporate culture like the BBK system will face the problem of “how to make new employees, young employees, and grassroots employees understand and implement corporate culture”.
This is also the reason why I still insist on doing this even if many readers of the official account told me, “There is no need to prepare a lot of stuff at the beginning of each article”.
If I regard this official account as a company, all I need to do is to keep telling readers:
What is this place, and (it can’t) provide, so that the last ones left are most likely like-minded people, and I just want to grow rich and old with these people.
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