In a recent internal speech, Jingwei Zhang shared his insights on the current investment climate and future trends. He remains optimistic about the presence of numerous promising companies worth investing in, emphasizing the importance of identifying and investing in these gems.
Understanding the Investment Landscape
Zhang believes that despite intense competition, there are still plenty of good companies to invest in. The key lies in the ability to discover and back these firms. Regarding policy changes, he has noted the frequent policy releases since September 24, indicating a trend of macro and fiscal stimulus. Zhang asserts that the economy is not a dead end, as post-crisis recovery is often fueled by policy stimulus and industrial innovation.
The Virtue of Long-Termism
Highlighting the significance of patience, Zhang references successful IPOs to demonstrate that sticking with quality companies over the long haul ultimately pays off.
Four Judgments on the Future
1. The global supply chain will lengthen, but not completely decouple. Zhang argues that rather than breaking apart, the global supply chain will extend further, prompting Chinese companies to realign their global strategies.
2. The underlying logic for Chinese companies going abroad is “1+4+1.” He stresses that companies need to achieve a leading position in the domestic market before expanding, equipped with brand, strategic focus, end-to-end capabilities, and cultural adaptability.
3. “To become a world-class enterprise, the path is surprisingly simple.” Citing Ning Gaoning, Zhang points out that there are clear standards for first-rate enterprises, including scale, growth, innovation, return on investment, wealth creation, internationalization, and sustainability.
4. Respect for time and business operations. Zhang underscores the importance of long-termism and a sense of mission, advising companies not to rush for quick success.
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In his speech, Zhang expressed a positive outlook on the investment environment, asserting the abundance of good companies. He analyzed the trend of policy changes, predicting an economic turnaround. Through the lens of successful public companies, he underscored the value of long-termism. Zhang forecasted a lengthening, not a decoupling, of the global supply chain, and presented a strategy for Chinese companies going global. In conclusion, he emphasized that respecting time and business operations is key to corporate success.
