Transcript of selected Q&A:
Question from Dundas Deng (CEO of Midas International Group, MidasInvestments (China) and Founding Partner of Qianhai Midas Investment Fund):
Thank you, Mr. Zhang, my name is Dundas, actually I'm personally a big fan of you, and you've always been my role model the value investing industry. I'm also very curious all the time like for someone as successful and influential as you in the investment world, how do you deal with your personal emotions when you face very hard personal or business decisions in life? Or in other words how do you prevent yourself from negative emotions on a daily basis.
ZhangLei: Thank you, that's a great question. Well, I'm not sure I'm great in that? I’m always, the best way to say that is always on the road. So well I'll say couple of advices, one I'd say practice makes perfect. So you have to practice.
In my situation, I face a lot of challenges, disappointments, disillusions, and I recognize how stupid I am, you know, almost all the time, so that happens and you have to have the capacity to laugh at yourself, if you think too much of yourself, and you'll just set yourself up for failure.
The ability, capacity to laugh at oneself is very important. You know, make a joke with yourself and relax it. The second is to recognize the world is a journey, that's about the success itself among all that journey. Not about where you go but why you're doing this.
So that's what I always mean, but I'm so lucky always set more team of, Hillhouse, you know, really kind of our, Hillhouse cognation, people that I really find a lot of fun to interact with, work together and really work very long hours and also have fun all the time as well. So I think have that capacity and enjoy that journey is so important. Once you're able to do that, it's a little bit I'll say easier to deal with failures and deal with disappointments.
Obviously we're very competitive people, we want to win. So we still have to deal with those interests, but you take it in a kind of long-term lens instead of taking it as too short term success or failure issues. And family I'll say, you know in a peace of mind, and you could have a great home or great family so blessed with a family that love the greatness and have sweet kids and make me laugh and make me younger. So I learned to do wind surfing with my older son, and right now finally pick up my ping pong with my younger son. So it's a lot of fun. I think you have to balance career, life and family you know, from time to time you'll get a reminder of that.
Question by one of the audience from a PE firm:
I'm a firm believer of value investing just like you, so my question is very simple and very straight-forward, how would you recommend that we as investor incorporate the philosophy of value investing in investing into the internet finance. And, the second question is: As young professionals, how would you suggest ourselves to invest and be ourselves to prepare for larger area of the internet finance.
ZhangLei: I think both are great questions. It’s really, I mean they're interconnected. At the end, it's about creating value. Value investing is not just about discovering value. It’s not just about this pie is big, and upon you know, I have a view other people may see this much and I can see this much.
That's only one way or traditional, conventional sense of value investing. I think real value investing is not only about discovering value but creating value together. So, I think that's what we believe that discovering value is important, but building up the capacity to be value creator in that process (is also important). So, that's relevant to students today, that's relevant to your career choice.
I think instead of saying I'm just hand on the what's going on, say ok, can I do something to help accelerate this process? What was the key that I can contribute by creating value in the process?
Come back to my earlier talk about back to basics and back to fundamentals. No. 1 for students is to be able to do deep fundamental research and ask very basic questions. And having that capacity is so important in this sort of new innovation area. On top of that I would advise that you work with people that you truly believe and truly trust.
I mean it's not actually necessary about size of the company or how glamourous the industry is. It's about daily who are you interacting with, who are you spending time with, at Hillhouse we call it "spend quality time with quality people", that's it. It's very simple. You know, we don't think joining a firm you know...
We started from that nobody knew what Hillhouse is, and today we got thousands of applications. That is really about who you are spending time with, that's gonna shape who you are. It's not about I'm in this bank or in this firm because it's famous. It's about who are you interacting on a daily basis.