Losing over 10 billion yuan can still earn 10 billion yuan! unbelievable! ——Zhang Lei solved this problem with "time" The story of Zhang Lei, founder of Hillhouse Group, is truly full of ups and downs, even more thrilling than a roller coaster. Investing in Tencent in the first battle, $20 million can bring hundreds of times the return; I invested in JD.com in the first battle, matched the alliance between Tencent and JD.com, and skyrocketed in market value. But looking back at Longi - the billion dollar investment hit the bottom of the photovoltaic cycle, causing a market uproar and widespread questioning. It can lose billions, but it can also earn billions. For what? The answer is in four words: long termism. Zhang Lei himself said that his investment philosophy is to be a friend of time. This may sound hollow, but upon closer inspection, it reveals three layers of true martial arts: The first layer: Return to essence, research driven. Zhang Lei said that the essence of investment is to 'pay a sum of money today and receive more money in the future'. To achieve this, Hillhouse uses a "research-oriented model": digging through the three dimensions of industry, company, and management, and then holding heavy positions for the long term. His judgment logic is straightforward: buying stocks to see the industry is like buying a house to see the community. The community environment cannot be changed, and the industry track cannot be changed either. Choose the right track and then find the person who can do things to the extreme. Second layer: Do not look at short-term profits, look at long-term value. Zhang Lei has a "connector code": the Great Pattern View. He wrote very clearly in "Value" that the entrepreneurs he seeks must have a long-term philosophy: adhere to the original intention, insight into the industry, focus on execution, and super empathy. If you can find a good company that is worth accompanying for ten, twenty, thirty years, the compound income is very considerable. Short term arbitrage is not his way of playing, accompanying the growth of the enterprise is. The third layer: Believe in change and participate in creation. The traditional value investment is "picking up cigarette butts", buying cheap goods, and other value returns. But Zhang Lei is different. He invests in changes and also participates in creating value. The reason why Tencent and JD.com were matched back then was because they saw that Tencent lacked inventory capacity and JD.com lacked mobile traffic. The two sides hit it off immediately, and the value was "created" like this. So, where is the line drawn between losing billions and earning billions? Draw on the word 'time'. Zhang Lei's three original sentences are worth engraving on the table: Adhere to righteousness and surprise "," govern the country with righteousness and use unconventional weapons. "Only by adhering to righteousness in one's conduct and actions can one resist temptation and have extraordinary opportunities. Three thousand weak waters, only take one ladle There are too many opportunities in China, knowing how much can fit in your bowl is more important than anything else. The peach and plum blossoms speak for themselves, and there is something fishy about them Work low-key, good projects will naturally come to you. Losing over ten billion yuan is a lesson taught to him by the market; Earning back billions is the answer given to him by time. His success ultimately boils down to one sentence: he invested his time in the right people and things.