Is Party A more important or Party B more important for the quality of a project?

The world is changing too fast. Looking back a few years ago, many people were afraid to start their own businesses. Most people with knowledge and ability have chosen the traditional way to become professors or politicians, but now they are not. There is a joke, 20 15 Zhongguancun Venture Street, a cup of coffee spilled on two people, one is the CEO and the other is the founder. This shows how fierce this entrepreneurial craze is now.

But in fact, many entrepreneurs have not thought clearly about the fundamental business logic. Although the market and technology are changing rapidly, the essence of any business will not change. In the end, the wool is still on the sheep. Next, I would like to share with you how I view an enterprise or how I choose a project. To judge the quality of a project, I mainly start from these thinking points.

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The first idea: the "texture" that determines a company (describing the overall impression of a company) mainly refers to the ceiling of the company.

Ceiling means that the products (or services) of enterprises or industries tend to be saturated, reaching or approaching the state of oversupply. Before investing, we must make clear which of the following situations the enterprise belongs to, and give corresponding investment strategies according to different situations. When judging, we should not only pay attention to the industry prospects, but also pay attention to the quality of enterprises.

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Investment opportunities come from the low-cost merger of enterprises with monopoly operation ability with inferior enterprises, which can expand market share and reduce the marginal cost of product production and sales, thus further building market barriers and gaining the pricing power of products. If M&A can't reduce the marginal cost, it can't be regarded as a good investment target. For example, the merger and expansion of state-owned enterprises promoted by administration is not carried out in accordance with the principle of market pricing, so political significance is greater than economic significance, and such state-owned enterprises do not have investment value.

Those enterprises with good cash flow and strong competitiveness at the end of the industry recession have great potential investment value when a large number of similar enterprises are in trouble. Judging the inflection point of industry or demand is the key, focusing on M&A opportunities of large enterprises, such as the four major domestic steel enterprises.

Industrial upgrading creates new demand, the old ceiling is deconstructed, and the new ceiling has not been or is being formed.