This businessman is one of the “Three Great Real Estates of China” – the top 3 successful real estate merchants in the country of billions of people.
Wang Shi, the founder of China’s leading real estate trading and investment company Vanke, is known as the “tycoon” of real estate. Wang Shi together with Feng Lun and Hu Baosen became the “Three Great Real Estates of China”. Although retired, Wang Shi’s reputation and management skills in the business world are still very deep.
Wang Shi used to be in the corn business, although he had no previous experience, but thanks to his acumen and understanding of the market, he made 300,000 yuan in just 3 months. But the turning point in Wang Shi’s life came when he entered the real estate market in 1988. After 3 years, Vanke was listed on the Shenzhen Stock Exchange.
After many years of development, the company’s market value is up to thousands of yuan. Vanke’s business covers most of the large and medium-sized cities across the country. Average annual residential sales are more than 60,000 units, continuing to be at the top of the industry.
What is Wang Shi’s secret to success? Wang Shi himself once said that the key to success lies in learning how to add and subtract, focus on doing 1 thing to the end and 5 habits that think “small but mighty”.
Subtraction by Wang Shi
When he first founded Vanke, Wang Shi was involved in a variety of businesses. He has invested in 28 companies in more than a dozen industries such as home appliances, logistics and retail. The bottom line is that all the industries in which Wang Shi invests make money, so he is called the “golden finger”.
At that time, Vanke and Standard Chartered Bank jointly issued Class B shares. When Wang Shi was boasting about his extensive investment, the Vice President of Standard Chartered poured cold water on him: ” If it weren’t for the small number of listed companies in China, we wouldn’t have chosen Vanke. If we had invested elsewhere, we would have chosen the top three in the industry.”
In fact, not only Standard Chartered Bank but many investors when investing in a company, the core indicator is whether that company can achieve 1st or 2nd place in the industry. Because the market competition is so fierce, there is basically no chance for 3rd place.
At that time, Vanke had not yet been able to enter the top three in the industry, Wang Shi was very embarrassed. After issuing B shares, Wang Shi thought and started to do the subtraction. Boss Vanke has cut all other businesses and focused on residential real estate.
Over the next 20 years, Wang Shi accepted many missed opportunities to develop only residential real estate. Once, Sanjiu Pharmaceutical Corporation had a piece of land in the city center and wanted to cooperate with Vanke to develop villa projects. This group gives Wang Shi very favorable conditions, only after selling the house must pay money.
For other real estate developers, it must be a rare opportunity and they can’t wait for it. But Wang Shi refused with the reason “Vanke is not good at developing this type of villa”.
Thanks to Wang Shi’s strategy, Vanke is able to focus its resources on its strong business, achieving success through accumulation and continuous improvement in the company’s design, product development, process management, and more. company and product quality is superior to many competitors. Vanke gradually became number 1 in the real estate industry.
In fact, there has always been a debate about whether businesses should diversify or specialize. Relatively successful companies have a clear core business of their own, and truly diverse and successful companies are rare.
Many successful, long-lived companies are specialized companies, such as Apple, Amazon, IBM, Microsoft, Pinduoduo, Meituan… These companies have a clear core line of business, just look at them. The company name is to know what the company does.
Perhaps because the market was not so competitive at the time, Vanke’s early diversification did not bring the company into crisis, but more and more companies that did not have such luck.
Many companies tend to be more focused at the beginning, once the company makes money, the founders start to expand, and they will get into many different fields, the company often falls into the abyss of zero bottom on the path of diversification.
“10,000 hours of theory” tells us that in any field, to reach the professional level, it is necessary to maintain 10,000 hours of theoretical training, even if you are a genius, no exception.
Persistence in learning, cultivating practical skills, continuing to raise professional standards, persisting in the long-term accumulation, you will surely reach the level of industry excellence.
5 habits that make a real estate tycoon successful
According to this entrepreneur, the first thing everyone needs to do to increase efficiency at work is to beat procrastination. People always want to do easy things, but it is the person who can overcome the momentary gratification to start working on the difficult tasks immediately.
Wang Shi’s second habit is physical training. In middle age, he had seen too many friends around him die during the peak of their careers, so Wang Shi was even more concerned about his health.
Owner Vanke works hard to exercise, runs daily, even spends time climbing and conquering Mount Everest. He let his body build endurance and be able to adapt to any difficult conditions.
Wang Shi also attaches great importance to reading. A famous Chinese actor once said, “A person may not have a diploma, but he must read books.” It was the habit of reading that gave Wang Shi the freedom to express himself on any subject on any occasion. And when faced with people who excel in different fields, this businessman can still talk to them with confidence.
The real estate mogul believes that all plans for the day are always in the morning, when everyone’s energy is strongest, so Wang Shi has a habit of getting up early. For Wang Shi, getting up late can ruin a day, and getting up late can ruin a whole life.
The final habit of successful Chinese entrepreneurs is writing. Writing is a good way to organize your thoughts, summarize what you observe into knowledge to apply, and strengthen your logic and thinking abilities.