The world's funniest economics stories

Chapter 27 The accumulation of wealth is not based on wages but investment (3)
Collective asset management: As the name implies, it is a collection of assets of customers, which are managed by professional investors [brokers].It is an innovative wealth management service product developed by securities companies for high-end customers. It invests in equity securities such as stocks with excellent performance, high growth, and strong liquidity, as well as assets of stock-type securities investment funds.

Project asset management business refers to the special asset management business handled by investment banks for customers with specific purposes.A special asset management contract should be signed to set specific investment goals according to the special requirements of the client and the specific circumstances of the asset, and provide asset management services to the client through a special account.

Fixed assets refer to houses, buildings, machines, machinery, means of transportation, and other equipment, appliances, tools, etc. related to production and operation of an enterprise with a service life of more than one year.Items that do not belong to the main equipment of production and operation, with a unit value of more than 1 yuan and a useful life of more than 2000 years, should also be regarded as fixed assets.Fixed assets are the labor means of enterprises and the main assets on which enterprises rely for production and operation.

7. Responsibilities of a Handsome Guy – Portfolio
This little story is actually a very funny joke.

A policeman who went to a bar at night to handle a case, he parked his car outside the notorious bar, ready to wait at the door to arrest those young gangsters who were driving drunk.

Suddenly, he found a very handsome but drunk man came out. He saw that handsome man walked slowly to the car and started the car slowly.The police's attention was completely attracted by this handsome guy, and they didn't notice the group after group of people coming out of the bar.

But after a long time, until all the cars in the parking lot were gone, the handsome guy still couldn't start the car.The police were furious now, and he felt that this person must have been drunk.He immediately ran to his car, pulled him out and gave him a breathalyzer test, but the results were shocking.

This handsome guy has zero alcohol content.

Confused, the policeman asked the man why he did this.

The handsome guy said, "My responsibility today is to attract the police."

After reading this story, everyone will laugh out loud. It is true. Although this is a joke, it is not a simple joke. The companion successfully got rid of the police.

An investment portfolio is a collection of stocks, bonds, and derivative financial products held by investors or financial institutions.The purpose of a portfolio is to spread risk.

Investors invest funds in different types of securities or multiple varieties of the same type of securities according to a certain proportion. This diversified investment method is the investment portfolio.Risks can be diversified through investment portfolios, that is, "you can't put all your eggs in one basket", which is one of the meanings of the establishment of securities investment funds.

The Fund's portfolio has two tiers:
The first level is the combination of various assets such as stocks, bonds, and cash, that is, how to allocate them proportionally among different assets.

The second level is the combination of bonds and stocks, that is, which types of bonds and which types of stocks to choose in the same asset class and their respective weights.

In order to protect the interests of the majority of investors, fund investment must abide by the principle of portfolio investment, and even a single market fund cannot only buy one or two securities.The terms of some funds clearly stipulate that the investment portfolio must not be less than 20 varieties, and there is a certain percentage limit for buying each type of securities.Investment funds add up and have the power to diversify their investments among dozens or even hundreds of securities.Because of this, the risk of the fund is greatly reduced.

The market continues to fluctuate and risks are highlighted.When choosing funds for financial management and investment, adhering to the concept of "one pile of eggs and multiple baskets", the fund portfolio should invest in multiple funds of various types based on its own life cycle, risk tolerance and investment period, so as to balance risk management and enhance investment potential. Stability, so that fund investment can obtain better returns at all stages, instead of simply adding stock funds together.

There are six aspects for investors to choose funds as their own investment portfolio: they must have their own investment philosophy; too high.

Fund investment is an indirect way of securities investment.Through the issuance of fund shares, the fund management company concentrates the funds of investors, and the fund custodian [that is, a qualified bank] is in custody, and the fund manager manages and uses the funds to invest in financial instruments such as stocks and bonds, and then share the investment risks. , Share the proceeds.

Diversified investment, also known as portfolio investment, refers to investing in different asset types or different securities at the same time.Diversification introduces an important change to the principle of equivalence between risk and return. An important advantage of diversification over single security investment is that diversification can reduce risk without reducing returns.

Risk management refers to the management process of how to minimize the risks in an environment that is sure to have risks.

Value funds refer to funds whose basic goal is to pursue stable recurring income, and mainly invest in stable-income securities such as large-cap blue chips, corporate bonds, and government bonds.

Bond funds, also known as bond funds, refer to funds that invest exclusively in bonds. They seek relatively stable returns by concentrating the funds of many investors and investing in bonds.According to the China Securities Regulatory Commission's classification standards for fund categories, more than 80% of fund assets are invested in bonds as bond funds.Bond funds can also invest a small part of their funds in the stock market. In addition, investing in convertible bonds and issuing new shares is also an important channel for bond funds to obtain income.

8. Borrowing "foreign" chickens to lay "earth" eggs - overseas investment
The fast food industry may be the fastest growing in recent years.From KFC, McDonald's to the emergence of Chinese fast food, the Chinese fast food market is booming.Relevant departments have conducted a survey. In China's catering industry, China Yum Investment Co., Ltd., which mainly focuses on foreign fast food such as "KFC", ranks first, with an annual turnover of 44 billion yuan; the second is Shanghai's new Asia Group mainly operates Chinese fast food.

The main body of China's fast food industry is of course Chinese fast food, but Western-style fast food such as KFC, McDonald's and Italian pizza have already been accepted by more and more Chinese consumers, and they should undoubtedly become an integral part of China's fast food industry.Many people believe that the growth and development of Chinese fast food should have half of the credit for foreign fast food.

Because the fast food culture in foreign countries started very early, compared with the meticulous work of Chinese catering, foreign fast food can better meet the needs of the fast-paced society.Therefore, since the foreign fast food industry joined, China's fast food industry has just started.At the same time, foreign fast food companies have gained a lot of business experience, which has a strong reference and learning significance for my country's fast food industry.

From the above example, it can be seen that with the help of the business philosophy, management model and related experience of foreign fast food industry, we can make traditional snacks and dim sum with Chinese characteristics into Chinese fast food and further develop it.In fact, this is what we often say: "Borrowing chickens to lay eggs", that is, borrowing other people's chickens and laying your own eggs.It can be seen that using national savings as new investment is not the only way, and attracting foreign capital is also an extremely important way.

Overseas investment refers to activities in which an investor acquires overseas ownership, management rights, and other related rights and interests by investing assets and interests such as currency, securities, physical objects, intellectual property or technology, equity, and creditor's rights, or providing guarantees.

China's overseas investment has gradually developed since the reform and opening up, from the original single investment subject to the diversification of investment subjects later, especially after the 20s, China's overseas investment has shown a state of rapid development.

There are also many forms of investment from abroad.For example, foreign production entities set up factories and enterprises in China; or allow foreigners to own part of the shares of domestic enterprises; or allow domestic enterprises to go public overseas and allow foreigners to buy their stocks.

Usually, the World Bank or the International Monetary Fund, as international organizations, often raise funds from some developed countries in the world, and then use these funds to provide loans to developing countries, so as to increase the contribution of these countries in various aspects of culture, education, sports and health. Investment intensity.In today's world where peace and development are the theme, overseas investment also plays an objective role in seeking common prosperity for all countries.

The basic content of overseas investment can be understood from the following six aspects:
[1] Investment subject
There are two types of investment entities making overseas investments.One is all kinds of legal persons in China, including various industrial and commercial enterprises, institutions and departments authorized by the state to invest, and public institutions.The other category is overseas enterprises or institutions controlled by domestic investors, and domestic institutions invest overseas through these overseas enterprises or institutions.

[2] Investment area
The investment regions applicable to the approval of overseas investment projects include not only foreign countries, but also the Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan region of the People's Republic of China.Any investment made in any region other than mainland China is considered overseas investment.

[3] Form of investment
The forms of assets invested in overseas investment are very wide, including the investment of monetary funds, the investment of financial assets such as stocks, bonds, and trust certificates, the investment of various physical assets, and the investment of intangible assets such as intellectual property rights and proprietary technologies.It can be seen from this that as long as the export of assets abroad, no matter how it occurs, the corresponding administrative licensing procedures should be performed in accordance with the relevant regulations on the approval of overseas investment projects.

[4] Investment method
Including the initial investment and reinvestment of various new projects and renovation and expansion projects, as well as equity investment activities such as acquisitions, mergers, equity participation, capital increase and share expansion, and the provision of guarantees for overseas investments.

[5] Investment purpose
The direct manifestation of overseas investment is the acquisition of ownership of overseas assets or business activities, management rights, and other related rights and interests, such as the right to distribute income, the right to control assets, and the right to explore or develop resources.The purpose of overseas investment may be for overseas production, sales, operation or research and development, or for overseas financing.

[6] Investment field
The industry field of overseas investment may involve various fields of the national economy that are allowed to invest in China's domestic laws.

9. Michelangelo who opened a gem processing shop--Risks and precautions in the economy

A large piece of exquisite marble was unearthed in Florence, Italy in 1500 AD. Its natural appearance looks like a portrait.This piece of marble lay there quietly for a long time without anyone daring to move it, until one day a sculptor came.He only chiseled the back of the stone, but he felt that he was unable to control this precious jade.

Later, the great sculptor Michelangelo used this piece of marble to carve a unparalleled masterpiece - the statue of David.Unfortunately, the sculptor who saw the marble first hit the stone too hard, hurting the body of the figure, and even left a little scar on David's back.

So, facing the scar, someone asked Michelangelo: Is this person too reckless?

Surprisingly, Michelangelo smiled and replied: No.Without the work of the sculptor in front, perhaps there would not be a statue of David handed down.Because it was his adventure that gave me more courage.

Living and making decisions in the world naturally entails taking many risks.It can be seen that we have to face potential risks in everything we do. The key lies in whether we dare to take this risk and avoid detours.When it comes to the economic field, the role and harm of risk are particularly important.

Economic risk refers to the possibility of economic losses suffered by various economic entities when engaging in normal economic activities due to the uncertainty of economic prospects.It is an inevitable phenomenon in the process of market economy development.

When we are in a simple commodity production condition, due to the narrow scope of exchange and the long product replacement cycle, both parties can easily grasp the benefits and the risks are relatively small.However, despite the development of the market economy, the continuous expansion of production scale, the rapid update of products, and the changing social demand, the risks during this period are also increasing.

Risks arise when people engage in economic activities under uncertain conditions.Typically, economists associate uncertainty with risk, but also emphasize the distinction between the two.In general, the likelihood of a risk occurring can be measured in terms of probability.The greater the probability, the more likely it is that a certain outcome will occur.

In life, the probability of many risks can be estimated based on historical data sets or related information.Take the example of Michelangelo.Assume that the king rewards Michelangelo with 10 yuan because of the superb carving art of David.So Michelangelo used the money to open a sculpture store.Here, you can make a profit of 3 yuan a year.And if 10 yuan is invested in risky investment, Michelangelo can make a profit of 10 yuan, but if he misses, he will lose 10 yuan.Therefore, the probability of Michelangelo's profit is 0.7, and the probability of encountering risk is 0.3.

The expected income is the long-term average income when engaging in risky activities, but specific to each time, people can transfer risks through speculative activities.Another way to transfer risk in this activity is to purchase insurance.Insurance mostly reduces the risk borne by an individual by spreading the risk of one person to multiple people.Through the insurance carried out by insurance companies, a certain amount of insurance premiums can be obtained in a certain period of time to make up for their own risk losses.In addition, on the issue of risk management, people mostly use the principle of "don't put all eggs in one basket" to carry out diversified investments.

Economic risks can be divided into the following categories according to their causes:

[1] Natural risk: refers to the risk caused by natural factors, such as floods, fires, earthquakes, and epidemic infectious diseases.

[2] Social risk: refers to the risk caused by the behavior of individuals or groups in society, such as theft, war, political turmoil, etc.;
[3] Operational risk: refers to the risk caused by factors such as poor operation and management or market supply and demand during the production or sales of commodities.

(End of this chapter)