A few years ago, I frequently dealt with investors. Every time I encountered a road show, guess what was the most difficult for me to answer? It's not about product positioning, business model, user analysis, operation strategy, etc., but - after getting this financing, how will you spend it? Maybe you will say, isn't it just spending money, I can do it with my eyes closed. Don't blow the cowhide too early! If someone gives you money just to spend it, why are they looking for you? Everyone can spend money, but few people can spend their money to the maximum value.
Investing is such a logic. Warren Buffett, once the richest man in the world and the famous American stock god, wrote in a letter to his friend Fax List when he started a business at the age of 26: "What worries me is not how to make money, but how to spend it, and I can't even find 'a logical way to deal with that money'..." Coincidentally, his partner, the great investor Charlie Munger, has expressed the same view in many public speeches: "Investing is not easy. Anyone who thinks investing is easy is a fool!" The implication is that "spending money" is a very difficult thing.
At the same time, he also summed up the three main reasons why spending money is not easy: The market is uncertain and unpredictable; People are irrational, and seek advantages and avoid disadvantages; Correct valuation is not easy, in other words, the return on investment depends on cyclicality. To sum up, spending money is a science. Therefore, those who spend money are called "investment", and those who spend money indiscriminately are called "waste".