Why choose real estate?

Foreign capital actively participates, and the lead underwriter of Vanke B shares is the venture capital company of Standard Chartered Bank in Hong Kong. I remember, at the beginning, I proudly said to Mr. N, who was in charge of Vanke project: "Enterprises investing in China Special Economic Zone don't need to invest in so many industries, just invest in Vanke, because Vanke involves many industries and is very profitable." I introduced the diversified business structure as a successful business model. Mr. n's answer surprised me. He said: "The investment portfolio should be made by investment banks, and investment banks will not invest in Vanke. Why? If we invest in real estate, we will invest in Shenfang (Shenfang was the largest real estate company in Shenzhen at that time), but I will not invest in Vanke. Although Vanke also engages in real estate and makes money, your scale and profitability in the real estate industry are not comparable to those in Shenfang. Shenfang made hundreds of millions at that time, and our whole company made a profit of 20 million to 30 million. All industries add up to 20 million to 30 million, and people themselves are hundreds of millions in this industry. In the watch industry, I will vote for Ada, not Vanke; Choose the export industry, I vote for you, not Vanke. Second, people say that clothing will not vote for you ... In short, I will vote for the top three industries, or I will vote for industries with great growth potential. Venture capital is a combination of investments in different industries to reduce risks. Vanke invests in everything. Now the market is good, hello, when the market is bad, you can't do anything. " Now it seems that Teacher N is talking about the basic operating principles of MBA courses. I studied engineering technology and didn't receive MBA training. How to run a business is just groping and summing up. After the collision of this concept, I suddenly realized: China has just implemented reform and opening up, so long as it dares to do it, it can make money, but in the long run, when the competition is fierce, this situation will not last long. It was through the B-share issuance of 1993 that Vanke realized how it should adjust and choose what it should do. I chose real estate at that time.