Hello Friends,
From 2000 to 2018, Bill Gates has been the Worlds Richest Man For 13 years out of 19 years.
and even in remaining 6 years Bill gates has been under top 3 richest man
You Can Say Bill Gates as one of the Richest man of 21st century
Bill gates One of the Favourite book is Business Adventure
Business Adventure book was Gifted to him By Warren Buffet
In Business Adventure book Author shares some very interesting and useful Business Case Studies
as per me every individual who is interested in business should learn it
George Santayana Says THOSE WHO DON'T REMEMBER THE PAST ARE CONDEMNED TO REPEAT IT.
Means people who don't understand history are the ones who repeat the same mistake again and again
without learning from others,
however bill gates never wanted to become such person and
he knew the importance of history at least in business field,
therefore business adventure is his one of the favourite book
hence it is important for us to understand history and just like Bill Gates
we should learn from past century business lessons and should become successful
today in this video i will share 5 case studies out of 12 case studies
so let's begin..
No.1) Falling Sky
from the start of 28th may 1964 to three consecutive days stock market has experienced bizarre flash crash
where market has faced $ 20 billion loss, such huge stock market history started with a very small thing
actual reason for such a huge loss was that Trading office was updating stock price manually
but because of manual update there was a delay of 45 minutes
the moment big investors realised that there was no update on stock price
hence they assumed that price must be falling therefore they are not updating
coz of such assumption they started selling their shares
the moment big investors started selling their shares, price of shares actually started falling
looking at it almost everyone started selling their shares
because of which chain reaction started and in just 3 consecutive days market has seen $20 billion loss
on the other side people had a common knowledge that Index and dow can never be less than 500
the moment index reach near to 500 point then people crazily started buying stocks again
as a result Buying Panic started and the loss which market has seen in 3 days
all was Recovered in just one day
now this entire incident shows that we humans many a times because of our stupid fear takes wrong decisions
most of the time people just assume that things are worst without knowing the actual fact
well this fear was good earlier for survivor but it is not that important in this era
hence the first lesson is never be afraid without knowing the proper facts
In How to stop worrying and start living summary i have shared that 97 percent times things about
which we get worried are mostly don't exist in reality and if it exist then not at the level we assume
No.2) Ford Edsel
In 1950 Ford wanted to make Edsel a Flagship product on which they had lot of hope
because they did lot of research they invested lot of time and almost $ 350 million
but when that car get launched in Reality, people named that car as one of the ugliest car of all time
and that car got failed, this was its time biggest failure
and this failure happened for three reasons
first reason: in 1955 America's economy was increasing,
people had extra money which they can use for their comfort
hence at that time people were interested in Medium range cars
by seeing it ford Decided to Launch Edsel
but from 1958 onwards in just three years everything was changed
market wasn't performing that good and people were more interested in cheaper range cars
compare to medium range cars
no.2 reason:  there was high expectations related to Edsel,
Expectation was so high that it almost became UnRealistic
because of which when final result was launched people didn't like it at all
third reason: it wasn't that good quality wise. It had a problem in its Break and Acceleration
means they invested a lot in research but fail to invest in quality
three things which we should learn from these reasons and story
first:Never think that things will be the way we wanted, it won't remain same always
hence Unpredictability will always be a big thing in a market
same thing is taught to us by The Lean Startup Book
second: We should always keep our Expectations in Check
shouldn't have unrealistic expectations, should be Realistic
third: should give more efforts to quality compare to research which is taught to us by many business books
Third case: Piggly Wiggly
Piggly-wiggly was US Supermarket Company which was first to Introduce Self-service concept in market
and also patent it, in fact it was the first supermarket which introduced shopping carts
and imposed price tags in every items and also kept checkout stands
till 1920 piggly-wiggly was growing very fast in the entire US
But there were some franchise which were getting failed in New York
now seeing such failure WALL STREET few Investors tried to take advantage from that situation
by Creating a Bare Raid, Bare Raid is something where investors invest in the falling stock price
to earn money, they try that anyhow that companies stock price fall further
and to make it fall further few investors claimed that Piggly-wiggly is falling because
its New York Franchise isn't working, which wasn't true
now by looking at it The Founder of Piggly-wiggly Clarence Saunders got very angry
He decided to teach them a lesson, therefore he bought his companies 98 percent shares
because of which his stock price value increased from 39 dollars to 124 dollars
through which those Bare Raider's faced losses and they were bankrupt
This is what Clarence assumed, But in reality what happend
Those Bare Raiders Convinced NYSE to give them some Extensions for their payment
on the other side for so much investment Saunders by himself faced a huge debt, he faced a huge loss
after which he declared Bankruptcy
His Company Piggly-wiggly today is an Unknown Franchise, known by very few
if he would have controlled his emotions or if he would have high influence on Stock market exchange
then it is assume that today Piggly-wiggly would be as same as Walmart
hence lesson 3rd: "FIGHT"especially to take Revenge can destroy you
hence it is best to AVOID, Or else become so influencing and powerful that people don't even think of
fighting with you
fourth case: Xerox RollerCoaster
we can see xerox story in three stages
first when it was developed and launched
earlier there was a time when people used to use Mimeograph machine to remove photocopy
which was neither easy or cheap
for it people used to use big paper and sensitive heat paper to remove photocopy
not even this wet paper used to come out from that machine
But In 1938 in the process of Xerography Chester Carlson and his Assistant
removed photocopy in standard office paper
then he developed that technology more properly with the help of one university and invested
75 million dollars and almost 13 years
and when in 1958 he join hands with xerox company to launched his product, even then he wasn't sure
whether it will work or not, in fact xerox founders told their families and friends not to invest in xerox shares
but result shocked everyone, xerox company in just 6 years increased their revenue to $500 million
every year in America Billions of people were removing Photocopies using Xerox machine
because of which Xerox became America's one of the biggest  and successful company
Now the second stage was when Xerox maintained its SUCCESS and did many Donations
example: The University which helped Xerox to develop the technology
for it Xerox became the second largest donator
and to support UN, Xerox Run $4 million campaign
now third stage was when Xerox Success Started falling
after 1965 many competitors started doing same thing like xerox that too cheaper than xerox
and xerox failed to do something new and different, fail to hold customers
now important lessons which you can learn from these stages are :
remember that your life and business journey will be a roller coaster
where many ups and downs will come, but if you develop something useful by putting efforts and time
then for sure you'll be successful and people will remember you
example: even today in many places people  say Xerox to a Photocopy
no.5) Tax system
Warren Buffet is world's one of the richest man
but he says that His Tax Rate is less than his Secretary
means his secretary who earns very less than warren buffet pays more tax compare to him
well this is the harsh truth of Tax system
let's understand it with America's example:
In America Government start taking income tax from 1913
because they were in need of money, while starting it, their main aim was to take money from their
country's rich people that too less amount
but today things have changed, tax rates are increasing because of money greediness
earlier  Rich people were target of Tax, but today middle class people have become the main target
because rich people have become smart, they found out many loop holes in tax system to save their money
whereas middle class people just do hard work to give big amount as a tax to government
this has become a cruel system where mostly middle class people are suffering
now there can be two solution for this problem
first: to change tax system by developing or adopting better tax system
which is truly very difficult thing to do
and the second solution is to start thinking like a rich people
should take advantage of system loop holes
and how you can do it, that you can learn from Robert Kiyosaki book Rich dad poor dad
if you want Rich dad poor dad or Business adventure book free audio book
then you can take it from seeken.org./audible.com
audible is an Amazon company which gives ones month free trial only then they charge
that's all for today
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