Zhang Zhenxin's big bet on Bitcoin, lessons for investors
1. Pioneer Group’s investment operation in blockchain
Yesterday we mentioned to you the incident of the death of the chairman of the Vanguard Group. Today we will carefully analyze with you what experiences and lessons we investors should learn from the case of Vanguard Group.
The entire Pioneer Group has hundreds of companies, holds multiple financial licenses in the fields of banking, securities, insurance, and payment, and directly manages assets of more than 300 billion. It is no exaggeration to call it an aircraft carrier in the financial field.
Such a giant company actively invests in the emerging industry of blockchain and recognizes the prospects and potential of the blockchain industry, which can be described as very forward-looking in the financial world.
Pioneer Group's business in the blockchain field is mainly attributed to Sino-Singapore Holdings, a subsidiary of Pioneer Group. The revenue source of the blockchain business mainly comes from BTC mining.
In 2017, when the BTC market skyrocketed, Pioneer Group acquired mining projects all over the world and invested in Shenzhen Bifeili, a mining machine production company mainly producing Snow Leopard mining machines. In the ensuing 2018 bear market, the price of BTC plummeted, and Pioneer Group had to sell mining machines at low prices.
According to the financial report of Sino-Singapore Holdings in the first quarter of 2018, the blockchain business revenue was 290 million yuan, accounting for 48.1% of the total revenue; and in the second quarter, the blockchain revenue was only 141 million yuan, compared with the third quarter. In the first quarter, it fell by 50%. In the announcement released on March 31, 2019, the blockchain business income was directly marked as "none".
BTC mining used to be the mainstay of Sino-Singapore Holdings’ blockchain revenue, but with the sharp drop in BTC prices, mining revenue was not enough to support mining operations, so the company had to sell mining machines at a low price, resulting in this piece of revenue eventually returning to zero .
According to insiders of the company, its losses in the blockchain field amounted to at least several billion yuan.
2. Lessons for investors
The case of Vanguard Group once again proves the two points we have repeatedly emphasized:
1）Investors should make bold moves in a bear market and make regular investments; and then sell them gradually in batches when the bull market comes.
However, many investors tend to operate in the opposite direction: cut their meat and leave the market in a bear market, and buy wildly in a bull market. The reason for this is mainly due to the fear in the hearts of investors.
In a bear market, the lower the price of the chips in hand, the more fearful you are in your heart, so the more you want to leave the market as soon as possible; while in the bull market, the higher the price of the chips in your hand, the more confident you are in your heart, so the more bold you buy.
In fact, not only ordinary investors have such problems, but also large institutions and companies also have such problems. Pioneer Group bought mining machines and mines in large quantities during the climax of the bull market, and sold mining machines at low prices regardless of cost in the bear market. This is a typical example.
In addition, for a company as large as Vanguard, there is another pressure: cash flow. The daily operation of the company requires stable and continuous positive cash flow.
Therefore, when the price of BTC plummeted in 2018, when the mining revenue could not equal the mining cost, the company could not obtain positive cash flow, so it had to cut off this part of the business, so it had to sell the mining machines at a low price.
therefore,
therefore,No matter for ordinary investors or large institutions and companies, the timing of layout is in a bear market, while the timing of profitable selling is in a bull market.
2）In the investment market, only by surviving is the final winner and the last laugh.
Investment is a long-distance race, and those who can survive this long-distance race are destined to be very few. As long as they can survive, even the last one is the king among all living beings. And the most important thing to survive is not "don't miss the opportunity and never come again", but to keep enough dry food, preserve your physical strength, and patiently grasp your own opportunities.
For ordinary investors, we are all working class. Therefore, to be able to stand in this market for a long time, the most important thing is not to be disturbed by the trivial matters of life. Therefore, we can only invest with spare money that does not affect our lives, and we must not borrow money , Stud.
In the investment market, the opportunity that belongs to our ordinary investors and is the easiest to obtain is the big bear market. Only in a big bear market can we collect cheap chips little by little, and then patiently wait for the bull market to sell at a high level.
In the case of Vanguard Group, its aggressive operation at any cost during the market madness has laid a fatal hidden danger for future crises. This kind of operation is no different from ordinary investors' leverage, Stud.
No matter how brilliant and dazzling the Vanguard Group was once, it seems that it is only a flash in the pan in this market now. This is a lesson worth remembering for all of us investors.
