Rebirth 79: I opened a bank in the United States

Chapter 948 I've Never Been So Rich

"However, I have a new suggestion and idea, which may help you a little bit in terms of book performance!"

"I knew you came here this time, and you probably didn't have any good intentions. Tell me, what do you want to do!"

"Lend me the stocks held by the Magellan Fund!"

Sitting in his seat, Carter patted his palm on Peter Lynch's lap with a smile
This romantic scene instantly made Peter Lynch's goosebumps pop!

"All?! Are you crazy?!"

Well, maybe the source of those goosebumps wasn't Carter's palm.
Jumping off the desk, Peter Lynch looked shocked.He guessed that Carter might have a short-selling idea, but he never thought that Carter would play such a big game!
"Do you know how much security deposit this requires?!"

"Six to eight hundred million!"

Also stood up and clapped the palm of Peter Lynch's shoulder:

"Money, I've prepared it! How about it? Think about it, lend me the stock, at least you can guarantee a stable income. Interest rate, look at it!"

"I know that ROG brings you a lot of cash flow now, but are you really sure you want to play such a big game?! The risks here, don't I need to say more?! This is not the first time you have come into contact with these! I Think it's too risky, man!"

"I know, of course I know. Before I came to Boston, I met Julian. Similarly, I borrowed about one-third of Tiger's stock. After all, Tiger is playing long and short. long-short strategy), Julian has a lot of short positions now, I can’t take away all his hedging targets, can I? So, I think of you and your Magellan Fund next!”

"Don't you hedge yourself? It stands to reason that Julian would not be stingy to teach you this."

Arms folded, when Carter's words came to this point, Peter Lynch had already confirmed that Carter meant it for real!

Objectively speaking, lending the shares of the Magellan Fund to Carter is beneficial to the Magellan Fund but not harmful at all!

First, Carter will pay a margin, and will continue to increase as the value of the stock increases.The stocks themselves are still in the hands of the Magellan Fund. If Carter cannot pay enough margin to lock in the trading rights of those stocks, then the Magellan Fund has the final say on how to deal with these stocks!

In addition, if Carter's short selling is successful, he will double the repayment of these stocks in the later stage.The extra stocks can also be regarded as the income of the Magellan Fund. When the US stock bubble bursts this time, the performance of the Magellan Fund may be relatively better.
It's just that such a generous short-selling of U.S. stocks still makes Peter Lynch feel terrified.With a margin of 17% to [-]%, this is a leverage of nearly [-] times.It’s okay to have a high leverage ratio, and the amount of funds is still large!

For a stock worth 100 billion, assuming that there are 10 billion shares in total, and each share falls by an average of 10 yuan, the theoretical profit can reach 10 billion US dollars without calculating the cost of securities lending, but the same is true.As long as each share rises by one dollar, the floating loss is 6000 billion. In fact, an additional [-] million US dollars in margin is required!

An increase of one piece means an additional 6000 million!If there is no downward trend for a long time, the margin call alone can drag people to death!

Moreover, this is only a calculation of the stocks held by the Magellan Fund!Listening to what Carter said inside and outside the words, he doesn't seem to be satisfied with this part
You know, Tiger Fund, after seven years of development, is not low today!
I can use 10 years to expand the Magellan Fund with an initial capital of 2000 million US dollars into a large fund with a total asset scale of over 1300 billion today; Robert Julian, who is not much worse than myself, can also use 70 years to expand the initial capital of [-] US dollars. Wan's Tiger Fund has developed into a large fund company with total assets exceeding US$[-] billion!

One-third, that's more than 20 billion!Just in these two places, Carter intends to swallow 120 billion US dollars of stocks, and there are more than two Wall Street, American financial institutions, securities companies, and fund companies? !

"Sorry, your news shocked me a little short-circuited. With such a large short position, it is too difficult to find a hedge target!"

When thinking of this, Peter Lynch clapped his hands suddenly.The operation of this volume has basically lost the possibility of hedging!Even top investment banks such as Goldman Sachs may not be able to come up with the funds that can short tens of billions of dollars worth of stocks and satisfy the simultaneous long related target funds in a short period of time!

"That's right. Besides, I have to reserve a security deposit in case of additional calls. To tell you the truth, I can last for half a year at most! For this operation, I even mortgaged ROG to those banks in Japan."

"It seems that you have made up your mind?!"

The ROG computer company with its exaggerated profit margin is undoubtedly a favorite of the capital market.It's just that at the beginning, even when I came to invest, I was rejected
Even this kind of company, which is now regarded as a treasure by Carter, has put it up as a mortgage.If Peter Lynch knew Chinese, four words would definitely pop up in his mind: "Break the boat!"

This is almost a life gamble!

It worked!Earning a lot of money and getting rich overnight are all understatements!
but if it fails
That would pretty much leave Carter with nothing.
"I need to report this matter to the board of directors. Such an important matter is beyond the scope of my authority!"

"Naturally, I will stay in Boston for two more days. Well, no, there is only one day left. Tomorrow night, I have an appointment with Mr. Bogle. The day after tomorrow I will meet with Goldman Sachs and JP Morgan, and then yes"

"This decision, I'll forget it right away, I'll report it now!"

Peter Lynch picked up the phone on the table while talking.Lynch, who understood that Carter was in a hurry, didn't say anything.
After reporting the matter, when Fidelity executives were preparing to hold an emergency board meeting to agree on interest rates, margins, etc., Peter Lynch put down the phone and looked at Carter:
"Can you tell me the truth, how big are you going to play this time? I'm just curious!"

"I have prepared about 60 billion funds! How big do you think I want to play?"

It is now the first ten days of July. Thinking about the possible fluctuations in the next six months, Carter said slowly:

"This does not count as a margin call. For the follow-up margin, the two cash cows, PTU and ROG, will come to the top. If not, I can still withdraw deposits in black flag banks in a short period of time. Recently, Georgia, including Florida Over there, there are a lot of small banks that are thunderstorms."

"As for my Black Flag, I had a pretty good reputation in the South Georgia area in the past few years. There is not much difficulty in collecting and saving the newly acquired territory. As long as the time is not long, the Black Flag Savings Bank can squeeze out about [-] million yuan. Funds are used for margin calls.”

"To be honest, I've never been so rich in my life!"

(End of this chapter)