Don’t put eggs in one basket, but don’t put them in too many baskets?!!!

After listening to Li Zhongxin's words, Masako Mitsui could understand it at the beginning, but she could not put the egg in the same basket at the end, but she felt confused after she heard it.

How to put these eggs in one basket or several baskets?

Masako Mitsui highly recognizes Li Zhongxin's Japanese proficiency, but she really doesn't understand what Li Zhongxin means when she said this?

The first question is what a basket is, what is a basket?

Then, how to put the eggs in several baskets.

Just now, Li Zhongxin talked to her about using the personnel from the Rothschild family or using the personnel from the Mitsui family to introduce them to her. As he was talking, why did he still have something to do with eggs and that basket?

"Taitone! What does basket mean? Also, when we talk about recruiting people, why are we still related to eggs?" Mitsui Masako asked Li Zhongxin with a confused look on her face.

"Aunt Masako, I'm using an analogy, a basket! It's the tools we use to store some things in China, which is the same as the buckets we say, but that kind of thing is surrounded by wood. What I said! It's a classic old saying passed down from China, which is very meaningful.

The meaning of this sentence is very simple, that is, asset allocation is actually to take advantage of the risk differences between different assets to reduce overall risks and reduce the volatility of the investment portfolio.

In plain words, it is our money! We cannot put it in the same place for others to use, and when recruiting people! Don’t just use people from one place. If you do that, some problems we don’t want to arise will arise. I think I will say this, and you should understand it!" Li Zhongxin explained to Masako Mitsui a little embarrassedly.

Li Zhongxin was very sorry that Masako Mitsui did not understand what he said. He unknowingly used the Chinese sayings to Masako Mitsui. It was normal for Masako Mitsui to not understand.

After Mitsui Masako was born, she was a kind of person who was rich and fed. She grew up in a big family like the Mitsui family. Naturally, she would not understand what the Chinese basket meant, even though Mitsui Masako also learned some Chinese at some point.

Asset allocation?!! The risk differences between different assets reduce overall risks and investment portfolios?!! What the hell are these? Does our banks still need to consider such a thing?!!

Masako Mitsui understood the basket that Li Zhongxin explained. It was a tool for loading things, just like a bucket. However, Masako Mitsui was a little confused about the asset allocation behind it.

Zhongxin Mitsui Bank is a banking business, so why did it come up with such a term? It seems that this kind of thing is not something that ordinary people can understand. How can Li Zhongxin understand all these things?

"Then tell me what the last one you said means! I still don't understand, so I will give me a simple example to illustrate it." After blinking beautiful eyes twice, Mitsui Masako said seriously to Li Zhongxin.

"You should understand this by explaining it to you. For example, I will tell you, if you have 100,000 yuan and buy a stock fund of 50,000 yuan and a bond fund of 50,000 yuan.

A year later, stock funds lose 50%, bond funds make 5%. Your 100,000 yuan becomes 77,500 yuan, but if you buy stock funds at the beginning, then 100,000 yuan will only be 50,000 yuan left.

The next year, stock funds made 60% and bond funds made 4%. Your 77,500 yuan turned into 94,600 yuan. If you bought all the stocks that year, then the remaining 50,000 yuan in the previous year will turn into 80,000 yuan this year.

In the third year, stock funds make 10% and bond funds make 5%. If you buy half of each, it will now become 101,33 million, and the entire stock funds will be 88,000 in the third year.

The biggest role of asset allocation is that when the market fluctuates, you can lose less money and make a profit quickly.

There are multiple baskets! It may also be one basket, but in the actual investment process, many people will say: I understand the truth, but I just can't do it, or it can't achieve the expected results. Why?

In fact, a large part of the reason is that the multiple baskets you choose are probably essentially the same basket. You think you are diversifying your investment, but in fact you are accumulating risks!

For example, when we invest in stocks around the world, why are the stocks we invest in those with extremely strong growth? It is because we are optimistic about those stocks and they can take us to make money.

This era is constantly changing, but it is constantly changing. That is, our era is progressing and technology is constantly developing. Therefore, the stocks we invest in are basically the kind of technology companies with very good growth potential.

We don’t start a technology company, but if we invest in those technology companies, we will gain a lot of investment returns.

When we invest, we need to diversify. We not only invest in one place, but also diversify many places. Therefore, we have partners in Australia.

What you mentioned just now is the things that the Australian bank wants to cooperate with our bank! Some of them have a certain relationship with what I said.

The things they proposed are actually similar to what we are doing now, except that they have refined the things and released a lot of funds through such an approach.

For example, we now hold a lot of stocks of Xinong Company in Australia, and there are so many of these stocks in our hands.

However, after some inter-bank cooperation, we can place the stocks of Xinong Company in Australia at a certain price, and cash out the money of our stocks directly, which is only equivalent to 10% or 20% of the funds being placed here, and the benefits are 100% of the benefits.

I don't know if you can understand this. I think I've already said this very thoroughly." Li Zhongxin said to Masako Mitsui seriously.
Chapter completed!