It is a very simple idea to use the power of compound interest

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It is a very simple idea to use the power of compound interest  Smart people are easily attracted by complex things, and underestimate the great influence and importance of simple ideas. But Monish Pabrai is a full pragmatist, and he will not fall into this trap. "It is a very simple idea to use the power of compound interest, a very simple idea to imitate, and a very simple idea to be honest." He said. However, when you apply some powerful ideas with great enthusiasm, the cumulative effect is "incomparable".
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The big customer and big order businesses mode

 The big customer and big order businesses mode



It's worth saying more about the big customer and big order businesses. It is very simple to identify whether it is a major customer category. First of all, it depends on the sales expense rate. Generally, those with very low sales expense rates either follow the distribution channels of major dealers or have a high concentration of downstream customers. Secondly, the annual report will disclose the proportion of the company's top five customers in sales, which is also very illustrative. Generally speaking, the sales volume of enterprises with the characteristics of key customers rises more rapidly, because there is no dead corner of coverage for a few limited key customers in its downstream. Once these big customers launch a big procurement plan, the sales volume of enterprises is easy to grow by leaps and bounds, which is the advantage of big customer enterprises. However, the disadvantages are also obvious. As the procurement of major customers often presents phased characteristics, large orders may continue in the past two years, but in the next year, due to some macro factors or the impact of its own construction cycle, the procurement plan may disappear overnight, and the magnitude of its decline is often unexpected. What's more troublesome is that the procurement plan of such large customers is often not so transparent and easy to predict, which makes the performance predictability of large customer and large order enterprises very poor.

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