Rebirth 79: I opened a bank in the United States

Chapter 333 TB Plants Trees, HT Enjoys the Shade
"of course!"

"Although we always ridicule each other in private that it is not taco at all, but the brand is all about taco, and it is also a competitor. It is impossible for me not to understand it!"

Carter nodded in the affirmative.Having said that, he still failed to understand what Peter Lynch wanted to express.
"Then you should also know that in 78, Taco Bell was wholly acquired by PepsiCo's Kangtai business unit, and it was privatized and delisted from the Pacific Stock Exchange, right?"

"uh-huh!"

Carter continued to nod
"I still remember last summer, when I chatted with you, I said that after I took over the Magellan Fund in 77, the first step I did was to clean up the fund's assets. Empty the securities assets left by the former manager that I thought were inappropriate, Then buy the stocks I like."

When Peter Lynch said this, the smile on his face grew stronger.Even with that, the dimples at the corners of the mouth also quietly emerged:
"Taco Bell was one of the first stocks I bought!"

hiss~
good guy? !

"So, Taco Bell's the first pot of gold for your Magellan fund? I mean, the new Magellan fund!"

Purchased in 77, privatized and delisted in 78. The time is too short!

And a listed company is delisted, as long as it is not forced to delist due to operational problems, or policy and regulation issues.On the eve of voluntary delisting, the stock price will often usher in a wave of rise on the basis of the original normal stock price.

Because Pepsi acquired Taco Bell with the purpose of expanding its business scope and operating on multiple tracks.For Taco Bell, which is bound to win, PepsiCo's main funds have entered the stock market. On Taco Bell's individual stock market, there will be a situation where buying orders are higher than selling orders immediately.When the demand exceeds the supply, the stock price rise becomes inevitable.

At this time point, as long as Peter Lynch can control the amount a little bit, Magellan Fund can make a lot of money just by virtue of the last wave of short-term rise!
"I can't talk about it, but buying Taco Bell's stock is indeed an investment decision that is still fresh in my memory and very satisfying."

Leaning on the back of the seat with a chuckle, Peter Lynch continued to tell his past:

"At that time, people generally didn't have much interest in such small catering companies. Most retail investors were more willing to focus on industry leaders, or those behemoth-like companies. For example, att and so on."

"But us institutional investors are different. Magellan needs results! That kind of mature and stable company stock is meaningless to me. Even if it fluctuates slightly, I will face a lot of losses instead. Even though I know very well that it is difficult for the stock of this kind of company to lose thousands of miles. But when the amount of funds is large, even if it is a [-]% drop, the actual loss will be quite a lot!"

"But after my observation and research, I found that small catering companies like Taco Bell. Once their brand is established and there is a fairly complete logistics supply system, their expansion is almost zero cost, no, it should be said , In their expansion stage, not only do they not need to spend their own money, but they can also generate income!"

"The marginal cost is pitifully low! Under the franchise model, their expansion speed will definitely exceed everyone's imagination! And as a catering industry that directly faces end consumers, the cash flow is also very sufficient. Usually we don't need to worry about him There will be a problem of broken capital chain, that is, the ability to resist risks is very strong.”

"At that time, Taco Bell's influence was mainly concentrated in California and the West Coast. Its influence in New York and Boston was not large, and there were not many institutions holding their stocks, so I ended up."

"With this lesson learned from the past, another company has come here now! Let me tell you, how can I not be excited? Especially, your HT seems to be not as large as Taco Bell now, but your foundation is much stronger than it was at the beginning. Yes! Now it’s still in the PE period, join now, and the benefits I can get will far exceed Taco Bell!"

"That's right! Not only what Mr. Lynch said just now, but I have one more thing to add."

As soon as Peter Lynch finished speaking, Smith beside him quickly said:

"Taco Bell's lessons learned not only make our institutions more optimistic about its future, but I believe the market is the same! Shareholders who have missed Taco Bell, will now let go of HT, which has more beautiful qualifications and only owes a shareholder wind to take off? "

"Certainly not! So I won't talk about the obvious profit income of market making for HT. The potential increase in influence is what I value most! Fidelity makes it. The more high-quality stocks we represent, the more high-quality stocks in the market. The greater the impact! This potential benefit”

"Just like a writer who writes a book! A well-received work is the foundation, in addition to the direct economic benefits brought by this book. After his fame comes out, the next book, the next book can get more A good return! As long as the quality of the latter is not too bad and the word of mouth is ruined, he is likely to keep getting better and better with one book after another.”

Carter understood what the two expressed and their respective interests.

For Peter Lynch, he is looking at himself, or the economic benefits that the Magellan Fund can obtain from investing in HT.If calculated according to the model, the return rate of 1300% is enough to satisfy all investors of Magellan Fund!

And this 1300% rate of return is still a short-term rate of return.If a few more years pass, then.
As far as Smith is concerned, he is actually more interested in the market effect brought about by the underwriting of HT shares.Trying to complete the transformation from an ordinary market maker who is unknown and can hardly represent any good stocks to a well-known one by underwriting HT stocks!
After this transformation is completed, not only can we get significant returns in terms of sales, such as institutional stock recommendations.In the future work, it will be easier to attract some high-quality companies to hand over their IPO business
The better the performance of the stocks flowing into the market through Fidelity, the stronger their appeal in the secondary market and the stronger their credibility in the hearts of shareholders!And if it is strong here, it can feed back to the primary market, making Fidelity the preferred partner of more companies aspiring to go public.

The opportunity to form a virtuous circle is just around the corner!
"That's right! In terms of business negotiations, we shouldn't have told you so directly. This is tantamount to revealing our Fidelity history to you!"

Smiling and patted Carter's shoulder, Peter Lynch then raised his finger and pointed to the leftovers on the dining table:

"But this is not a formal A-round financing meeting after all, and it's just like what you said just now. You are a major customer of our Fidelity, and you cherish the good cooperative relationship with Fidelity, and so do we!"

"And compared to Goldman Sachs, I know you better. I believe that our cooperation will not be limited to the past, let alone the present, and we have a broader future! So."

"So! How much do you value Fidelity?"

(End of this chapter)