Riding the wind of rebirth

Chapter 722 Explanation
"Uh... Zhou Sheng, although this stock is relatively stable, its market value is too small. Affected by the European currency crisis, it has led to the same downturn in the U.S. stock market today. Microsoft's current daily trading volume is less than one million. Around 200 million."

"If you buy Microsoft with such a large amount of funds, it will sharply increase Microsoft's stock price in the short term, and it is likely to trigger investigations by relevant departments in the United States."

"My... are they all so miserable now?" Zhou Zhi never imagined that today in 2000, his mere [-] million US dollars would cause the stock price of Microsoft, the future tycoon, to fluctuate violently. .

"Then look for opportunities and absorb them slowly." Zhou Zhi said, "If IBM stabilizes next year, we will start building positions. Now it seems that there is no need to rush, and there is plenty of time to play with these two checks."

"Zhou Sheng, I would like to ask you why you are so optimistic about the information industry?"

"The reason is very simple. Nowadays, everyone is talking about the arrival of the information age, but it has not been fully reflected in the stock market. This is unreasonable in itself."

"But Zhou Sheng, technology companies are burning too much money. If you don't pay attention, you will face bankruptcy due to the interruption of the capital chain. The risk is also very high."

"You're right, so we need to choose companies with strong influence and outstanding management capabilities to participate. For example, Old Bi, although he always likes to postpone the release, but things can be produced after all, and Old Joe, he is not here. Let's not buy apples."

"As for IBM, it was because of a mistake in decision-making, underestimating the capabilities of the INTEL386 chip, and the development did not keep up with it in time, but it does not mean that it does not have this strength."

"Okay Zhou Sheng, I have turned on the phone recording, and our next conversation will be preserved as evidence."

"According to Zhou Sheng's intention, apart from leaving 500 million U.S. dollars of assets entrusted to our company for flexible disposal, the remaining 74 U.S. dollars will gradually build positions in U.S. information industry stocks, of which Mostly Microsoft and IBM stocks."

"We will gradually build positions for Microsoft from now on, on the premise that it does not affect market fluctuations, while IBM's way of building positions depends on the trend. If the monthly line stabilizes sideways, we will start to gradually buy."

"As for Apple, we will list it as a key observation object. Is this okay?"

"OK."

"Okay, we will formulate a detailed investment plan for you based on your investment interests, and complete the investment according to your instructions."

"I will re-fax the letter of intent to entrust the power of attorney to you in a while, and please fax it back after you sign it."

"Okay, is there anything else?"

"There is something else, wait until I turn off the recording..." Jack Lee was a little flustered over there: "Do you know what An Xin likes to eat?"

Zhou Zhi: "..."

After finally hanging up the phone, the ringtone rang crazily again.

Picking up the phone, I heard Xu Anxin yelling frantically: "What are you doing, elbow?! Why is the phone busy for so long?!"

Zhou Zhi understood what was going on in a blink of an eye. Jack Lee must have called her first, and then called himself. As a result, Xu Anxin hung up the phone and called him. The line was busy until just now. .

So he smiled and said, "You don't know who is busy? Jack Lee."

"What the hell are you guys doing?!" Xu Anxin was panting heavily, and it could be seen that she was very nervous because she couldn't get through the phone for so long just now: "Jack Lee told me just now that our Jin'an's assets have risen to Thirty-five hundred! Ten thousand! Beautiful knives!"

"Yes, that's about the same amount." Zhou Zhi was still very calm: "In fact, there is still a part of my personal investment, which Jack Lee probably didn't tell you."

"You, what are you doing? Is this world crazy?!"

"So to speak, have you paid attention to the news these days? The European currency crisis."

"I paid attention, but... I don't understand..."

"Let me tell you briefly. A few days ago, the central banks of ten countries successively provided real money to rescue the market. Do you know?"

"know."

"How much did they pay in total?"

"I don't know."

"Let me tell you, the UK alone took out its foreign exchange reserves in one day and repurchased more than 200 billion pounds, until all the foreign exchange reserves in its own treasury were exhausted."

"This... so scary?"

"Of course, it doesn't mean that all the money used to save the market has been swept away by the international predators. What the predators earn is actually only the interest rate difference."

"The crisis actually started because the ten-nation central bank's exchange mechanism was so rigid that the pound and several other currencies were overvalued and the Deutsche mark was undervalued."

"This exchange ratio was originally false, but after experiencing the European currency turmoil, the current exchange price is real."

"The operation of predators is actually very simple. For example, when one pound can be exchanged for three marks, I will borrow one billion pounds and exchange it for three billion marks. When one pound is exchanged for two marks, I will sell 30 million pounds. Convert the 20 million marks to one billion pounds and return it, and the remaining one billion marks is the net profit."

"Who loses? Naturally, all holders of sterling. Of course, the most affected are the countries that issue sterling, as well as the British banks and ordinary people who hold a large number of them."

"But..." Xu Anxin barely understood this kind of money-making model: "But, according to what you said, it takes a principal of 30 billion marks to earn a profit of one billion marks, and our funds have doubled. Six or seven times!"

"That's because financial products are developed in the international market now." Zhou Zhi patiently explained: "As long as you have one dollar, the bank will dare to lend you five dollars."

"Of course there is a huge risk here, so when the bank lends you money, it usually agrees on a term. It's okay if you make money and everyone is happy, but if you lose money, even if you lose only [-] cents, the bank will give you a chance. I will give you the remaining five yuan and five cents, so that it can still earn you fifty cents, and your one dollar will be completely cleared."

"We were lucky this time. When we found the opportunity, we were on par with the predators, even they were still early, so we were pushed away by them without any effort."

"Secondly, the operation was divided into three waves. With the use of five times leverage, the risk was still effectively controlled. For this, I really thank Jack Lee for his trading."

"If I have to say it, it is this round of the European monetary and financial crisis. Our funds have achieved three exponential growths. First, we attacked the Finnish mark, and our assets changed from one to two, and then we attacked the Italian lira, from two to four. Pound sterling, and from four to eight."

"Of course, this is just a metaphor. Let you simply understand our operation this time. For a more detailed replay, you can ask Jack Li to explain it to you slowly."

(End of this chapter)