Almost every business sector has faced a crisis. However, few investors know how to take advantage of this opportunity.
One person's failure is another person's opportunity or "when others die, we live" is a common statement of many businessmen.
Changing vision from great lessons
The above statement is not only true for investors in the fields of stocks, gold, real estate but also in many other fields such as small businesses and trading. However, many of us do not know how to take advantage of the opportunity. They explain, "My business, my establishment is small, how can I compete with big companies?" or "If big companies die, what can I do if I am small?" So they accept their fate and let their establishments and businesses be swept away by the whirlwind of crisis.
However, there have been many investors in the world who have found a way to grow and develop from the failures of others. A typical example is John Neff, a famous American stock investor and former head of the Windsor Fund.
With the motto of buying low and selling high, he searched for and bought cheap stocks from companies that were considered bad. After a while, the cheap stocks increased in value again. He gradually sold them to investors to make a profit.
Similarly, Carlos Slim is one of the richest men in the world with a net worth of around $59 billion. At one point, he surpassed Bill Gates as the world's richest man.
He is a typical example of entrepreneurs who survive and thrive while many others close down and suffer.
Carlos often buys failing companies at low prices. He then invests money to develop and expand them.
“When deciding to buy a company, I usually look at its growth potential. These companies are often in trouble so I can buy them at a low price. That is the advantage,” he revealed.
“Of course, I had to forecast the company's growth potential based on the data and plans the company was implementing. That is the principle of success, not a miracle.”
Through the above lesson, we can see that a crisis is not a dead end for your investment and business career.
Crowd mentality ruins opportunities
In the first months of 2008, some stock investors were in trouble when stocks fell. Real estate investors were in trouble because of high bank interest rates while real estate prices fell. Gold investors were also worried when gold prices fluctuated. Many of them had to bear bank debts along with many interest and interest payments. To reduce losses, they had to sell off stocks and real estate in the hope of recovering some of their losses. The more they sold, the more they lost.
Similarly, when a crisis occurs, farmers often follow the majority. For example, when coffee prices fall, many farmers get discouraged and cut down coffee trees to plant other crops. When coffee prices increase, they replant them en masse. For chicken and pig farmers, when there is an epidemic, they disband their flocks and destroy their barns to raise other livestock. When chicken and pork prices increase, they gather together to rebuild from scratch.
This herd mentality can cause a crisis of excess or shortage in all sectors. Investors or businesses in the same sector can “die together” with no way to escape.
According to Master Dinh The Hien, Director of the Institute of Informatics and Applied Economics, crowd psychology is a characteristic of most foreign businessmen and investors. This psychology greatly affects the ups and downs of the investment sector.
Most people are often hesitant to invest differently because of lack of confidence and fear of risk. In addition, not having enough capital to survive the crisis is also the reason why many people let the situation take its course.
If they take the initiative to act in the opposite direction, they can seize the opportunity to recover. Mr. Nguyen Nhon Quy, an employee of Thang Long Securities Company, shared his survival secret: “When stocks go down, I don’t invest in the long term like before. With valuable stocks, I temporarily put them aside and wait for the opportunity to increase in price. At the same time, I find ways to “short-wave” (buy low-priced stocks and as soon as they increase in price, investors sell immediately) to earn income and maintain during the waiting period.”
Investors must know how to wait.
Currently, gold and real estate investors also apply “short-term surfing” to survive. In other business areas, you still have the opportunity to develop when a crisis occurs. For example, in a milk crisis and some foods contaminated with melamine recently, many reputable companies were also affected. Sales dropped seriously.
However, some dairy companies have turned this into an opportunity to affirm their quality with safety certifications for consumer health. At the same time, they have increased their activities. advertisement, promotions to attract consumers.
Also last year, when prices were high, many decided to temporarily close because workers left and customers terminated contracts. To overcome this period, Ms. Nguyen Thi Thu Suong, director of SuongGroup, specializing in advertising and fashion, turned the tide with a policy of retaining employees. "I support employees with extra gas money and lunch allowances. This way, employees feel that they are cared for and shared by their superiors, so they are more attached to the company and help the company overcome the crisis."
“An employee leaving will leave a huge gap and can cause a chain reaction. A company without human resources will certainly be more miserable and in trouble,” Ms. Thu Suong shared.
How to Win After a Crisis
A crisis is like a storm. The safest place is the eye of the storm. If you find the eye of the storm to take shelter and observe the situation to adapt in time, you will survive. During the crisis, you will see many businesses collapse. From their weaknesses, you can learn lessons for yourself to make a difference.
If you invest in the stock market, foreign currency, gold, real estate, you need to consider the value and timing. If you buy stocks at prices that have not “hit bottom”, you are at high risk of losing money. You should only buy when the price is lower than the real value.
Investing in this way, you should not care about the general trend and must consider acting in the opposite direction to other investors. You must be confident and have good judgment and observation.
If the crisis is caused by external factors, such as the melamine milk scandal, you need to increase advertising to build customer confidence. Strengthen customer service to build customer loyalty.
According to family marketing
