Richard Liu Qiangdong is one of the most respected entrepreneurs in the world. He runs JD.com, a leading e-commerce platform serving China and other parts of Asia. At present, Richard Liu’s e-commerce has an estimated worth of $ 57.6 billion.
How did he grow the e-commerce platform from a mere start-up to the established platform it is today? Following is a comprehensive picture of Liu’s business journey derived from his past interview with the World Economic Forum.
Richard Liu started his start-up in 1998 as a small shop selling Magneto-optical products. According to the interview posted on weforum, Liu Qiangdong branded the shop as Jingdong, a combination of his ex-girlfriend’s name, and the last characters of his name “Qiangdong.”By 2003, Richard Liu opened over 12 stores in different strategic locations around Beijing. In 2005, Mr. Liu decided to transform his business from a mortar and brick store to an e-commerce store that would serve the entire Chinese market.
The transformation led to the birth of the present day JD.com, an e-commerce store that sells an array of quality consumer products. It sells foodstuffs, apparel, electronics, home appliances, and furnishings. Besides offering fast moving consumer goods, JD has also come up with a unique service called White Grove, which deals in the sale of luxury products. The service is differently tailored to give consumers a unique experience. To enhance the White Grove services, JD has partnered with Farfetch, a renowned provider of luxury products, especially in fashion. Farfetch uses JD’s platform to market its products.
What trick did he use to outwit his e-commerce competitors? According to the interview posted on the World Economic Platform, JD.com won the hearts of its consumers by selling quality consumer goods at an affordable price. Most of JD.com’s competitors sold counterfeits at an exaggerated price.
Besides selling authentic products, Richard Liu Qiangdong’s e-commerce store employed fast logistics as a scheme to gain and defend the industry’s top position. Its customers would receive their goods for as short as one day after placing their orders. At present, Richard Liu says that customers can receive their products on the same day they place their orders. The e-commerce store is looking to speed-up its logistics using smart technology.
For several months, economist Ted Bauman has been calling for the possibility of a stock market crash. Although many traders on Wall Street would disagree about the stock market crashing, there is a growing consensus among investors that the stock market is extremely overvalued and the bull market may not last much longer. Ted Bauman traveled to South Africa when he was a young adult. He earned his economics and history degrees at the University of Cape Town. His written work has been published in respected journals all over the world. Today, he is an editor for Banyan Hill Publishing and provides his subscribers with three newsletters to help them achieve their financial goals. He lists several macroeconomic factors that could eventually cause the stock market to crash.
Ted Bauman feels that US stocks are more overvalued now than at any other time in history and will eventually return to their fair value. He uses a tool called the CAPE ratio for measuring the overall value of the stock market. According to this ratio, the US stock market is more overvalued now than at any other time in history. Once more investors come to this conclusion, they will begin to sell stocks at a fast pace until the market returns to fair value. The average historical reading for the CAPE ratio is seventeen and the current reading is thirty-two. This means that stock prices would have to decline by almost fifty percent to return to historical averages.
A trade war between China and the US is another catalyst that Ted Bauman feels could cause the bull market in US stocks to end. Many respected economists feel that if the trade war does not end soon, the entire world will be thrust into a recession. Mr. Bauman has pointed out that Chyna has done little so far to retaliate against the Trump Administration, except imposing its own tariffs. China could punish US multinational companies that rely on business in China. Many of these corporations would lose substantial revenues, eventually resulting in lower profits. Many of these corporations are traded on major US stock exchanges and their share prices would eventually fall as a result of lower profits.
Most of the financial organizations have been known as the centers of excellence, especially when it comes to formulating strategies and policies that help the entity to continue getting a significant amount of profits while other organizations in the same industry are recording losses. However, Peter Briger has introduced some strategies and policies that have made Fortress Investment Group to be known as one of the most opportunistic financial organization in the industry.
Speculating is an essential strategy that many organizations have been using with the sole aim of increasing the amount of income that they usually record. However, not all companies have the necessary framework and human capacity to speculate and come up with some strategic plans that would enable them to get profits. However, Peter Briger has been able to come up with some strategic ideas that have allowed Fortress Group to be opportunistic enough and record profits.
One of the main strategic plan that the organization has embarked on is ensuring that the company purchases those assets that are deemed obsolete and low in value. The company, through the assistance of Peter Briger, has been able to buy a large number of such assets, especially from the government and other private investors. Some of the properties that the company has acquired include old railway lines that are no longer in use and old factories that have already closed down their operations.
It is common knowledge that the economic downtime in the country had caused some companies to fail and close down their operations. All the old factories and the rail lines that were not operational were sold at discounted rates to the company. However, the entity would later sell all the assets to other organizations and even the government itself after the economy received huge financial injections.
Peter Briger is also credited by championing the strategy of acquiring some assets from the companies collapsing due to the financial market crash of 2008. Most of the assets acquired at this period were acquired at discounted rates because the companies wanted liquid cash to sustain their operations. However, the company would later sell the assets after the economy stabilized at huge returns. Peter Briger Jr: Fortress Investment Group’s King of Debt
Visit his LinkedIn : https://www.linkedin.com/in/peterbriger
Matt Badiali is a financial advisor with a strong background as a geologist. He spent over twenty years studying and working as a geologist. He traveled to many different countries inspecting the natural resource assets of major companies and worked with many CEOs regarding the business side of natural resources. One of the attributes that set him apart from the typical financial advisor is that he feels that it is best to examine an investment in person before committing funds to it. He recently wrote a newsletter urging his followers that now was a great time to get in on silver. Any investor familiar with the precious metals knows that silver has been a poor investment recently and may question why Matt Badiali is promoting the lackluster metal.
Matt Badiali pointed out that spot silver prices hit $14.15 recently. These lows in the silver price had not been seen since 2015. This price action has discouraged many in the precious metal’s community. Mr. Badiali explains that the commodities, particularly silver, have been performing rather poorly due to the fact that the US dollar has been acting as more of a safe haven. Many emerging market economies have been going through a currency crisis and economic turmoil. Citizens in these countries are selling their currencies and buying US dollars, which is adding strength to the US dollar. A strong US dollar typically means weak commodity prices.
Matt Badiali also believes that cryptocurrencies have stolen some of the thunder from the precious metals. Ever since the 2008 financial crisis, more and more individuals are not trusting governments. Years ago, many of these individuals would have bought gold, silver, or other hard assets but are now choosing cryptocurrencies as a sort of new safe haven.
Matt Badiali still believes that silver is going to be a great long-term investment. He stated that the gold to silver ratio hit eighty-four. Typically, when this extreme is reached, silver tends to make a fantastic rally. There are other analysts who are noting the major extremes in the price of silver and are also expecting higher silver prices. Some analysts are making extremely bold predictions saying the next rally in silver will bring about triple-digit silver prices.
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