Are you a “trader” in the meta-world, or “esteem” in the meta-world? Thirteen years ago this book was clear.

On December 9, Zheng Zhigang, vice president and CEO of the Hong Kong region joined New World, announced that it had invested in blockchain sandbox game The Sandbox and purchased the largest virtual land in the game for $ 5 million. The plans are expected to include a “new venue” that showcases the completed activities of start-ups in the Grande Baie region.

As the concept of the meta-world becomes more and more popular, more and more capital is invested in the game. There is even a phenomenon called “metauniverse real estate speculation”. In this regard, the Daily People said: “If it is hot there is a risk that it will be hot to protect it.

For ordinary investors, is “metauniverse real estate speculation” a get-rich-quick opportunity or a capital asset?

In fact, to answer these questions, we need to understand the difference between investing and estimating.

In this regard, evergreen real estate developer John C. Bogle goes over the details in his 2008 book "Enough: The Code of Money, Business, and Life of John Bogle."

John Borg is the founder of the Vanguard Group and founder of Vanguard 500, the world's first revenue-generating company. In Vogue's half-year investment project, this not only helped many investors, but had an impact on the overall investment.

"If a tower had been erected to honor those who have done important work for American investors, it would have been nothing more than John Vogue." Buffett's thoughts on John Vogue.

Today we're going to watch John Vogue's short story “Enough”. In the book, John Borg is divided into three sections, providing information on finance, business, and life. We must be able to recognize his wisdom.

After reading this article, you will know:

1. What is the difference between investing and estimating? How to choose?

2. How do you balance digital relationships and trust in your business endeavors?

3. How can business interests gradually reduce interest in work?

What is the difference between investing and estimating?

Investing is an important part of a long term business member.Businesses must be willing to invest their money because they know a reasonable price (which can be easily understood as the present value of the cash flow that the business can generate for its entire life).

The investment attitude is based on actual business. In order to create real products and provide real services in real businesses, real businesses are spending real money on hiring real people and investing in real products.

Estimates are inconsistent.Speculation is about short-term trading rather than long-term holding.The reason for the estimate is determining that the value of financial assets will temporarily change from their fair value and eventually return. Speculators expect the price of their chosen product to be higher than others.

In other words, the estimate is based on "expectations". And these “expectations” are usually derived from expenses provided by regulators, such as financial information and future expectations.

As an example of a meta-world, many marketers are not sure about the concept of a meta-world. Their thinking comes mostly from big companies “entering” the meta world. These giants explained the most harmonious and wonderful virtual world to everyone, but they didn't tell everyone how much it would cost to complete them all.

When large companies that you know well are backing the metaverse strategy, it's hard to guarantee that you won't be making expectations and running out of “investments”. And this behavior is an important short-sighted prediction.

Like technology companies, financial companies use a variety of strategies to build their business image.

Borg believes that using stock options to reward employees is one of the reasons finances don't fluctuate. He gives a simple example. The CEO owns several joint stock companies, like the NBA Center betting on pre-game teams.

A problem arises when the short-term stock price deviates from the value of the company. This difference is called a bubble. And these bubbles sometimes burst without warning.

New York Dow Jones Industrial Average (19 juillet 1987 - 19 janvier 1988)

Black Monday, October 19, 1987, the trade crisis spread from Hong Kong in the west, across Europe and into the United States without warning. The Dow Jones Industrial Average, representing the US economy, lost 508 points (22.61%) in the same day.

Analysts have tried to control the reasons for their occurrence to make them responsible and predictable, but to date no one can say for sure when the future of the economy is likely to occur.

Vogue says in the book:"We've already done a lot of short-term guessing and lost all of our long-term investment, but our long-term investment is not enough."Thirteen years have passed since he wrote this sentence. Has capital investment improved? These questions are left to the discretion of the merchant.

Do not rely too much on the number

In addition to analyzing business attitudes, John Borg provided many good ideas for comparison. For example, it is believed that investors today prefer to rely on “numbers” like financial information rather than commercial terms.

Here's Vogue's advice: don't get too fooled by the numbers.

The bubble arises from thinking about behaviors that go beyond the beginning and are often information that encourages investors to make short-term decisions.

It goes without saying that numbers are very useful as a tool for communicating financial and operational objectives. However, in investments, the numbers are often confusing.

In response to this, Borg also cites a few examples. According to the 2008 United States Bureau of Labor Statistics, the unemployment rate in the United States is only 5.2%. However, this number does not include employees who are breaking down walls and do not want to find another job, part-time employees who want to find a full-time job, or employees who need it but do not seek frequently. work. People on the basis of health and disability benefits. If these conditions continue, the unemployment rate will reach 9%.

Political parties have been good at using data to "fool people", and businesses have been better at it.

For example, in the early 1980s, the bull market was just beginning and the rate of recovery in pension demand from large companies was 7%. In the early 2000s, the stock market peaked and almost all companies increased their demand recovery by more than 10%. However, the bear market subsequently made this image look like a joke.

Vogue echoed Keynes' idea of ​​“one number”.The bubbles formed by all the emotions that lead to success are doomed to explode. This is the "figure" that traders were not told about.

"Not everything that can be counted is important." Today we rely too much on numbers, but not too much on religion. He said investors can invest in maintaining the spirit of trust and decide to seek a balance of the two, not counting them.

Ua Professional

Not only did Vogue provide information to investors, it also raised expectations among financial professionals. He believes companies should work with integrity while making money.

In the past, there were eight major companies (now only "Big 4") in the United States. Eight large companies have started providing value-added services to consumers in stages, starting with market research. They are involved in governance and are no longer independent, analysts are experts who often follow financial management rules.

In 2001, the Enron financial scandal erupted. Arthur Andersen, who provides diagnostic services to Enron, also provides consulting services to Enron, so many monitoring services are not self-administered. Finally, in 2003, Arthur Andersen reported that the economy was in decline and that the Big 5 had become the Big 4. This is a great example of the great phenomenon of inconsistencies in supply.

In fact, there are examples of business interests that affect professional interests in many industries. For example, in the healthcare industry, the needs of individuals and patients have given way to industry preferences in various disciplines. The main healthcare systems are developed by hospitals, insurance companies, manufacturers and pharmacies. These connections must govern their own preferences, and these benefits come from the same consumer, the patient.

This does not mean that companies should carry the flag of "engagement" high.In fact, even reputable organizations cannot survive if their income does not allow them to pay off their debts. However, as many of us are ready to gradually change the traditional content and become businesses that do not focus on the preferences of our customers, but only seek better competition and profit, the people who depend on the services will become. losers.

Today, the financial industry has posed many problems. For example, there are more sales of financial resources and less of these services.

The author states in the book that before the dot-com bubble of 2000, many Internet businesses were created by the popularity of the Internet. On the other hand, the concept of a meta-world is very popular today, and a lot of meta-world ideas have poured into the market. The same goes for the alcoholic beverage industry last year.

However, in practice, when many people recognize the market, it is usually when market confidence is the best, where to enter the market.

John Vogue has provided us with a lot of investment and life advice, and although they all seem straightforward, few people can ask questions like the author himself.The most important thing for investors looking for a secure long-term return is to avoid disappointment.