What is a good business model?
1. Q: Brother Duan said that the biggest inspiration Buffett gave you is the business model? I would like to ask what is business analysis. From what aspects can you analyze the business model according to Brother Duan's concept? Can you give an example, such as Apple's business model?
A: A so-called good business model is a model that can make money continuously. People who understand business should understand it easily, but people who don't understand business will find it difficult to understand no matter how you explain it. August 3, 2012
2. Q: Dadao, you said that Buffett told you to look at the business model first when looking at a company. Can you tell me your definition of "business model" or which aspects of the business model to focus on? Thank you!
A: Why are there so many people asking what "business model" is? Business model is the model of business, which is the model that generates net cash flow. A good business model is a model that can generate a lot of net cash flow in the long term. March 4, 2012
There is nothing wrong with knowing the definition of everything. Buffett didn't tell me what a business model is. I really couldn't find a particularly good word to explain it. After thinking about it, the best definition of a business model is --- business model.
At first it seemed like nothing was said, but after thinking about it... I felt that it was the clearest statement. (I was stuck in a dead end for a while, wondering what the "model" was all about!) March 4, 2012
3. Q: Mr. Duan mentioned at the beginning of 2010 that he would talk about how to miss Tencent. What do you think now? I think its model is better than Apple, but the valuation seems to never go down.
A: Let Tencent try to reach 600 billion US dollars? Tencent is indeed a good company, but it needs a lot of things to become Apple, including changes in the environment.
By the way, what is a business model:
A business model is a model for making money. The more money a model makes in the end, the better it should be. Apple's current annual profit is more than the total profit of all Chinese Internet companies (including Tencent) since their establishment. What do you think is the logic behind Tencent's better model?