Only after being reborn did I realize how fascinating the world of the rich is.
Chapter 420 Li Xiaofeng's Group Development Philosophy
However, Tang Shanshan believes that the Li Group is already a very powerful large-scale commercial group in China. In the future, the resources of this investment company should not be wasted, but should be used to continuously expand outward and strengthen investment in external companies.
Li Xiaofeng shook his head, indicating his opposition.
"Why?" Tang Shanshan asked, puzzled.
Li Xiaofeng smiled and said in a calm tone, "The Li Group is already quite large. The larger a company is, the lower its management efficiency will be."
If an investment company wants to expand rapidly, it must develop some financial products, raise a large amount of funds from external sources, and then use other people's funds to make money for itself through a "borrowing chickens to lay eggs" approach.
This kind of operation is theoretically very attractive, especially when the national economy is developing rapidly, and it can indeed make a lot of money. But what if a country's economy is in a transitional phase?
This is essentially equivalent to adding bank leverage; the larger the scale, the more you earn when you're profitable, but also the more you lose when you're in debt.
He knew that many of the large investment companies of later generations would collapse when the country began its transformation, especially when the real estate market began to decline.
Even the famous Mr. Xu pales in comparison to them.
The owners and executives of these companies that have collapsed often absconded abroad with the money before the company collapsed, enjoying a life of luxury. Fortunately, they usually don't cheat the poor, since the poor have difficulty supporting themselves and have no money for investment and financial management.
"But isn't that what all the big companies do now?"
"Just because others do it doesn't mean we have to follow suit!" Tang Shanshan's tone was somewhat unconvinced and also a little doubtful. This was the first time she had encountered a boss who was unwilling to expand his business.
Li Xiaofeng smiled and said earnestly, "There aren't actually that many opportunities to make money in this world, and each industry has a limited capacity for capital."
Why does the world experience economic crises? The core reason is that various industries can no longer accommodate so much capital. Capital can no longer rely on the real economy to absorb funds, so it can only backfire.
Now that we've reached this stage, we need to learn to take a longer-term view and stop focusing solely on expanding the group's size. What's the point of a large group if it doesn't make money? It's just a waste of time!
Our Li Group already has enough funds of its own, why would we need to take other people's money to help them make money?
Running a company isn't just about adding things; you also need to learn how to subtract. Selling the Kang Le chain of gyms was essentially subtraction—eliminating non-core businesses with no future prospects and focusing on the company's core operations.
Tang Shanshan still asked, somewhat puzzled, "But why would you rather withdraw funds from Wanzhong Media to invest in Dongge Mall and Dami Mobile Phones?"
"That's because both companies are in promising high-tech industries. One is an internet e-commerce company, and the other is a high-tech hardware manufacturer. Both companies have a bright future."
But as I said before, for companies with such promising prospects, the investment scale is limited, and our group's own funds are sufficient to meet the needs.
If we raise too much money by issuing wealth management products, this money has a cost. If it is left idle for too long, it will drain the investment profits. Blindly investing will even throw away the principal.
If you pay close attention, you'll find that those investment companies are often shell companies, essentially operating without any initial investment, as they've already been separated from each other from the very beginning.
Once the scandal breaks, their behind-the-scenes bosses won't be implicated; at worst, they can simply abscond with the money and flee abroad.
But our Li Group is a large and powerful family. Do we really need to do that? Do we need to take such a risk? I am Chinese, and my descendants should be rooted in China for generations to come. I don't want to be forced to emigrate overseas.
Tang Shanshan said with a helpless expression, "Our country is currently developing rapidly, and the economy is booming. I didn't expect you to be so pessimistic about the future of our country!"
"I am not pessimistic. On the contrary, I am very optimistic about the future development of our country. However, the development of any country has cycles and must conform to the laws of economic development."
There are periods of rapid development followed by periods of economic downturn. Moreover, the world's technological level has now peaked, and there have been no major breakthroughs in basic sciences in the past century.
Think about it, the whole world has fallen into a stage of sluggish development, while China has been developing at a high speed. If this continues, we will definitely fall into vicious competition for global resources.
Therefore, our Li Group must plan ahead, proceed steadily and surely, and not try to compete with others for short-term gains!
At this point, Li Xiaofeng turned to Fang Huiya and said with a smile, "I know that recently, Puyu Group has taken the lead in preparing to establish a large-scale Meiyi Media Group Company, with Meiyi Video Network as its core."
Actually, you don't need to put too much pressure on yourself. It doesn't matter if they are larger than us, or if video websites have more members than us. Just continue to develop step by step according to the current established strategy.
Fang Huiya said with some worry, "But what if they become the leading company in the industry? They might take away all the film and television resources we have!"
Li Xiaofeng smiled and said, "If they're gone, they're gone. What remains is the essence. There's a saying that goes, 'The camp remains, but the soldiers come and go.' After those people leave, we can make a profit from their breach of contract fees."
As far as I know, it's not just Puyu Group; many large domestic conglomerates, including some well-known real estate companies, have started to venture into the film and entertainment industry.
Our goal is to make money. The cultural industry is different from the physical industry; market share isn't that important. Content is king. Blindly expanding in scale is a dead end.
Seeing Li Xiaofeng's carefree demeanor, Fang Huiya teased him with a grin, "It's no big deal if a few ordinary artists leave, but what if key artists like Yang Bing, Zhang Xueqi, and Liu Ying leave? Won't you feel heartbroken? They're all your women!"
Li Xiaofeng smiled, shook his head, and said in a calm tone, "They are not my women yet. Just because they have a relationship with me doesn't mean they are my women. It's a two-way selection process for everyone."
In my heart, only those of you who have stood the test of time are truly my women, Li Xiaofeng's women. My Li family isn't a garbage-collecting family; we don't take just any woman!
The women looked at each other for a while, then laughed.
At this point, their relationship with Li Xiaofeng has become more like that of family and partners, rather than just a simple romantic relationship.
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