Rebirth 79: I opened a bank in the United States

Chapter 215 I Will Not Divide This Year
"To be precise, if I can maintain this year's performance next year, then I have completed the transformation of Magellan Fund from negative growth to positive growth. There will also be capital open to the public. Otherwise, a net loss-making fund will be open. Go out, and no investor dares to hand over the money to us, right?"

Peter Lynch chuckled and pointed out the mistakes and omissions in Carter's words.Then, like Carter, Peter Lynch suddenly discovered a blind spot:
"Wait, you don't know about the Magellan Fund, do you?"

"I really don't know about this. However, I believe in your ability, Mr. Lynch!"

Embarrassed, Carter decided to invest in the Magellan Fund last year.Chunte heard it from a friend in the previous life, and he really didn't know the specific situation of this fund, Niu Piklaas.

Compared to last year, Carter feels that this year he has completely changed himself.At that time, I was still in the self-inflated state of "punching Goldman Sachs and kicking Morgan", and I could even do such stupid things as instigating Chen Shuzhen to scold back directly.
Not to mention, I have caught a fund like the Magellan Fund, which I have heard of in my previous life.Then what investigation?Vote for Grandpa and that's it!
"You are so serious. Should I thank you for your full trust, or should I laugh at you? I always thought you had carefully investigated us. After all, your investment of US$[-] million last year can be said to be Magellan Fund. This is the largest single personal investment in the past ten years."

When Peter Lynch shook his head and smiled wryly, Carter suddenly understood why Peter Lynch met once last year, and then Julian called him this year, and he immediately remembered himself.

Feelings are. Feelings are that I unconsciously became the largest investor of the Magellan Fund.
Nima is outrageous!
"The coffee is ready, try it, and I will tell you as you taste it. In 76, the Magellan Fund, which originally had assets of 2000 million, did not perform well, and its assets had shrunk to 600 million. So in the same year, another fund under Fidelity The Essex Fund, which also performed poorly, was merged with a total asset of 1800 million.”

Pushing the cup of brewed coffee in front of Carter, Peter felt a little bit of bitterness, and said:

"This Essex fund used to be more brilliant than Magellan. At its peak, the assets under management exceeded 1 million US dollars. At that time, it also shrank to 1200 million. It can be said that the current Magellan is the merger of two inferior funds. The loss is like this Fund, what use is it if I put it on the market? As long as you are not stupid, who would dare to buy it?"

Carter's got a head start, he suspects Peter Lynch is beating himself up about being an idiot, but he has no proof
"The first year of taking over Magellan was a relatively busy year. We needed to do asset restructuring, clear out the inappropriate stocks that Mr. Sullivan originally chose, and then buy stocks that I approved. After one year, the effect was good. , and the assets are relatively fixed, so I have been very free until now."

"At Mr. Rogers's dinner last year, I was also thinking about your future. Who would have thought that you would turn around and come to me for your investment in the future. To be honest, I was so excited at that time! I even considered By letting the Magellan Fund open in advance, I think some people can still see the value of Magellan. As a result, you said this. Hey, I am very sad, really!"

I am also very sad now.
Carter wanted to cry, but who knew that the Magellan Fund still had such a sad past!

The old Magellan Fund lost 2000 million to 600 million, a loss of 70%; the former Essex Fund was even more ruthless, losing 1200 million to 88 million, a loss of [-]%
It's so bad that it's no wonder it's not open to the public.Following Peter Lynch's words, Carter also roughly restored what happened.

Peter Lynch, who had just adjusted the fund's asset structure, looked at this fund that could not absorb public funds and continue to expand, and there was nothing wrong with it.So the young fund manager started a social life of going from one party to another. While laying out contacts and inquiring about news, he was also looking for potential investors in the future.

And last year, the childish looking self with a huge sum of money in his arms was obviously the best target for fooling in Peter Lynch's eyes.The logic is simple.
Even though the Magellan Fund has already started to generate profits, and even achieved a 17% profit when the S&P Index fell by 20% in the same period, after all, the time is still short.

This 20% profit, even with the general decline in market performance, does not prove anything at all.In other words, this small achievement cannot restore the investor confidence they have lost.

How is the result?For such a foolish target as myself, it is almost useless for Peter Lynch to fool him.I came to the door excitedly, and threw [-] million directly
Who wouldn't be dizzy at that scene?Aside from being elated, it's perfectly normal to wonder if the other party's brain is out of order? !

"Okay, let's not talk about this. It just so happens that you are here, and I will discuss something with you. I plan to reduce dividends this year and use it for development. I don't know what you think?"

Looking at Carter's unlovable face, and the confused look deep in self-doubt.While Peter Lynch felt amused, he didn't forget to maintain the relationship with major customers.

"How much do you plan to divide?"

After regaining his senses, Carter thought about Peter Lynch's question.Although I subscribed a lot of shares in the Magellan Fund, the total amount is only 150 million, that is, all redemptions, 225 million.
This is still without deducting various expenses and taxes, and the 225 million is not a lot compared to my current cash flow.In other words, it's not that urgent.

Then think of the future of the Magellan Fund, in fact, it seems that it doesn't matter whether it is divided now.

"My idea is to share 20%, and the remaining money will continue to expand the scale of investment."

Seeing Carter's face, Peter Lynch became seriously serious.This share ratio can't be said to be high, but it can't be said to be very low. The key is to see whether Carter, a big customer, is satisfied.

In case of dissatisfaction, Carter will redeem the 7 million share, plus profits.With a direct loss of more than two million U.S. dollars, Peter Lynch's capital will be reduced by [-]% in an instant
This is a bit scary. In order to stabilize Carter, Peter Lynch is mentally prepared to increase his share.Even if there are more points, it is better than cutting off almost one-tenth of the total funds all at once!
"0.6% I remember the management fee is [-]%, right? Now, then the handling fee"

Carter recalled the investment agreement signed at the beginning.Due to the poor performance of Magellan Fund in the past, its management fee rate is actually very low, which cannot reach the industry average of 2%.

"Yes, we are 0.6+1.2+20. The management fee is 9000, the handling fee is 1800, plus the commission of 3, which is 15%, which is [-]. After deducting these fees, you can collect before tax A dividend of one hundred and nine thousand two."

After thinking about it for a while, Peter Lynch quickly calculated the benefits for Carter.just this profit
"Forget it, it doesn't make much sense to divide the [-] yuan. I won't divide it this year, and leave it to you to continue to increase its value, and save a lot of tax money by the way."

(End of this chapter)