A titan in the world of investing, Zhang Lei, the founder of Hillhouse Capital, is renowned for his profound investment philosophy and long-term perspective. His teachings, primarily encapsulated in his book "Value," offer a wealth of knowledge for investors, entrepreneurs, and individuals seeking personal growth.

On Long-Termism and Value Investing

  1. "We shouldn't just look at revenues or profits - the key is what problem the business is solving: does it increase the efficiency of society and create value for customers? The companies that create value like crazy will be rewarded with huge revenue and profit by society."
  2. "Long-termism is not only a methodology but also a way of life."
  3. "The greatest moat is a business that continuously creates value for society."
    • Source: A central theme in his book "Value," often quoted in summaries.
    • Note: A direct link to a specific page is unavailable, but this is a widely recognized principle from his book.
  4. "Choose to be a friend of time. Time is the friend of great businesses and the enemy of mediocre ones."
  5. "We are entrepreneurs who happen to be investors."
  6. "The first principle of our investment is 'We don't have to do anything.'"[1]
  7. "In this industry, the most dangerous thing is to be driven by money and don't know what to do."[1]
  8. "What is scarce is not capital, but good entrepreneurs and good ideas."
  9. "Focus on the long-term, be a friend of time, and the value you create will eventually be recognized."
    • Source: A recurring theme in his public statements and writings, as summarized by various financial news outlets.
    • Note: This is a synthesis of his core philosophy rather than a direct quote from a single source.
  10. "The three most important things in investment are: people, people, and people."

On Entrepreneurs and People

  1. On the qualities he looks for in entrepreneurs: "First, empathy... Second, a commitment to lifetime learning... Finally, the ability to build an effective organizational culture."[2]
  2. "The best entrepreneurs see their competitors as a positive force and think about how they can nurture the market together."[2]
  3. "We invest in dreams and the people who dare to chase them."
  4. "I felt much more connected with people who have lots of passion in what they do, and that just so happened to be entrepreneurship."[2]
  5. "Do meaningful things with brilliant people."
  6. "It is very important to choose what kind of people to do things with."[1]
  7. "I like to work with people I know based on long-term trust."[1]
  8. "Empathy enables him to better understand young people, people who are different from him, and management." (Speaking about Warren Buffett)
  9. "I always say within the company, always start a business."[1]
  10. "The one [culture] he likes most is the sports team culture – you want to win, but by playing by the rules and as a team."[2]

On Learning and Thinking

  1. "The best investment is the investment in yourself."
  2. "Not just because you want to make more money, but because you are intellectually curious and you want to become a better person everyday." (On lifetime learning)[2]
  3. "Keep asking and thinking about basic questions and see the innate needs of the business in order to improve."
  4. "Young people should always have critical thinking and ask basic questions."
  5. "Do not be confined to the success or knowledge itself that is right in front of you."
  6. "Education is an investment you never quit."
  7. "The best investment is one where you don't need to think about an exit." (On education)[2]
  8. "I think my thinking is quite thorough and comprehensive, and I like to ponder and ponder a lot of things over and over again."[1]
  9. "I'm not satisfied with the status quo and do my best."[1]
  10. "You have to give someone else part of the value chain; people will only start to care when you have breathed margin into the whole system so that other players can make some money."

On Strategy and Philosophy

  1. "Although peach and plum trees do not speak, people still beat a path to find them." (A Chinese saying he often quotes)[2]
  2. "Focus on doing the right thing, building their reputation, standing up for the values they believe in and people will find them and want to work with them."[2]
  3. "If you have three thousand weak water, you can take a ladle." (On the importance of focus)[3]
  4. "Your daily effort is to make your ladle bigger, stronger and deeper, instead of drinking and eating everything in the pot and on the table all day."[1]
  5. "Do a career, not satisfied with the status quo, always maintain the entrepreneurial heart."[1]
  6. "I like to plan in advance."[1]
  7. "You can lose any particular game, but you will be better in the next one." (On the sports team culture)
  8. "We have to remind ourselves not to lose the instinct of asking the most basic questions."
  9. "Business model depends on business nature after all, but not purely on a novel idea."
  10. "Simplicity is the key." (Advice to analysts)

On Life and Personal Growth

  1. "The only thing we ‘rabble’ have in common is our boundless curiosity and confidence and yearning for China's future." (On the early days of Hillhouse)
  2. "I find that my biggest characteristic is that I like to toss about, not satisfied with the status quo, and like to challenge myself."[3]
  3. "In the difficult process of looking for a job, I rediscovered myself."[1]
  4. "I hope young people can remain to have some humanistic feelings – critical spirit and independent thinking allows them to better understand human nature and society."
  5. "What kind of people you spend time with determines what kind of person you will become."
  6. "I always hope to understand the lives and situations of others with empathy, understand different life experiences, and understand this rich and changing world."
  7. "Value investing is not mathematics or reasoning, and cannot be just a story. It must be like a field investigation in sociology to understand real production and life scenarios in order to truly grasp what it is."
  8. "In a world where many are drunk on instant gratification, those who understand the value of delayed gratification will already have a massive competitive advantage."
  9. "The water flow does not compete to be the first, instead it competes for flowing continuously, endlessly." (Citing a proverb to illustrate his long-term view)
  10. "When you are stuck in the present, you have to think of poetry and fields far away in heart."

Sources

  1. moomoo.com
  2. offpisteinvesting.com
  3. moomoo.com