America's Road to Wealth

Chapter 167 The Really Fragrant Giant Crocodiles
The double standards of the Anza people are famous all over the world.

But within themselves, they don't feel that way.

At this moment, many giant crocodiles gathered face the aggressive Abel.

Facing Abel's attitude of taking it for granted.

For a moment, they were speechless.

According to Abel's strong words.

He was right.

The annual operating income of the four major investment banks is as high as 400 billion U.S. dollars, which is not much different from their market value.

But the investment profit is not even half of Smith Capital.

This is mainly because investment banks do not make profits every time.

According to his rhetoric, even the famous "Wall Street Bulldog" Richard Fuld.

Couldn't find any good counterarguments either.

Unlike Huaxia people, Huaxia people like to stay a step behind in doing things so that we can meet each other in the future.

The Anza way of doing things is to take advantage of your illness to kill you.

I am strong and I am justified.

Taking advantage of these people, they don't know how to attack themselves verbally.

Abel spoke.

"Just according to this ratio." Abel said with a smile:
"Mr. who is interested, you can come and talk to me later. Mr. who is not interested, we will not force you."

"After this, the private placement of Smith Capital will be open to everyone as always~"

"The food and drinks prepared by Hilton tonight are very good. There is also the dry red wine from Chateau Margaux. I think it tastes great."

"Everyone can give it a try~"

After finishing speaking, Abel didn't give them a chance to refute, and left with a smile.

As soon as he left, Richard Fuld said angrily:

"This price is too much! 5000 billion US dollars? He really dares to think!"

The presidents of the other three major investment banks did not speak, but they were also nodding as if agreeing with Richard Fuld's words.

$5000 billion market cap?
The stock price of General Electric, the company with the largest market capitalization in the United States, is only close to 6000 billion US dollars.

But General Electric has a long history, from the time of Edison to the present for hundreds of years.

There are also countless scientific and technological patents and a large number of subsidiaries, which are like pillars of technology in this country.

Such a behemoth, it is still a listed company.

Its market value is now more than 5000 billion US dollars.

Not saying much tonight, David Komansky, CEO of Merrill Lynch who is showing signs of losing power, said leisurely:

"Mr. Smith may just not want to accept others into Smith Capital. He simply offered such a price that we cannot accept."

David Komansky's statement immediately became the most acceptable possibility for everyone in the reunion.

"It's really too much." Philip Purcell said clearly: "Morgan Stanley announced that it is no longer interested in investing in Smith Capital!"

"So did Goldman Sachs!" Paulson said.

Lehman Brothers and Merrill Lynch did not speak, but the two CEOs also nodded in cooperation.

Look at the capital giants tonight.

Because Abel just made an outrageously exaggerated quote.

The four major investment banks gave a unified answer of rejection.

Many of the giants looked at Buffett, who smiled.

"Mr. Smith's price is outrageous. Coca-Cola's market cap is only $1500 billion."

Buffett said: "I don't think the current Smith Capital is more valuable than Coca-Cola."

Buffett's statement once again won the nods of many people in this small circle.

All of a sudden, the predators began to attack Abel Smith and Smith Capital verbally.

That way, it looks like no one is interested in taking a stake in Smith Capital anymore.

Even George, who just came to join in the fun, quietly said to his family's private investment manager Steve:

"Originally, I was also interested in investing in Smith Capital. But now the price is too expensive."

The stake was too expensive, and George didn't think it was necessary.

But he thinks that Smith Capital's private equity can still be bought.

He is not very good at mathematics, but he still knows how to calculate the 283.9% return.

Steven nodded, and felt that what the boss said made sense.

among the crowd.

The only ones who didn't express much were the two members of the Texas consortium.

There are also two old men from Morgan and Rockefeller.

the other side.

Abel, who had left the crocodile-swarming circle, didn't think his offer just now was too high.

He has this confidence in himself, to be precise, in his "talent".

He feels that he has his own "talent" as an investment manager.

It's worth the price!

As for whether Wall Street agrees or not, that is Wall Street's problem.

After leaving those giants, Abel found David Mellon again.

In the latter's somewhat surprised eyes, Abel proposed:
"David, do you think if we set up a few more fund companies, more people will subscribe?"

The content of this aspect, before the start of today.

He hadn't said that to David.

That's why David was surprised.

But when he said it now, David almost changed his mind without thinking:
"No problem at all~ Boss, you didn't see me coming down just now, and they blocked you. Many people wrote checks on the spot and wanted to join us."

There are such exaggerated return data out there.

There are so many Wall Street giants on the scene who are silent on this.

This proves that Smith Capital is not lying, they are just so powerful.

Created such a miracle.

Almost all the guests attending the reception tonight are high-net-worth individuals.

These people have money, and usually they need financial managers.

Many people's money, in addition to handing over to private independent investment and financial advisors.

Generally, they are invested in investment banks and those securities companies.

Now Smith Capital, I don’t know how many times stronger than these companies.

Then why not invest the money in the strongest Smith Capital?
Two and a half months, 289.3% return on investment.

Where can I find this kind of yield?
In fact, Abel also knew that money touches people's hearts.

Such a high return on investment, such an exaggerated profit margin.

It is impossible that no one is tempted at the scene, and the words just now are just an opening remark.

After hearing David's affirmative answer, he smiled and said, "Then let's open a few more fund companies!"

In the United States, it is a type of private equity fund that Chinese people are more familiar with.

In the relevant laws of the United States, it is called 3C1 fund.Because it is based on the Investment Company Act under 3 (c) 1 of this law.

A private equity fund in the United States is essentially a private company.

What investors subscribe for is actually the shares issued by it.

Like a Smith Fund, it's just a popular term.

Legally, it's actually going to be called "Smith Capital One."

The total share capital is 30 billion US dollars, and investors will subscribe for it.

The investment advisor and management team are Smith Capital.

It has fewer regulatory and disclosure requirements than a public company.

But for fundraising, there are stricter requirements.

For example, the number of investors cannot exceed 100, and it must be targeted at specific groups of people.

IPO is not possible, each investor must be a qualified investor, and there are requirements for investors.

That is, the assets under management are no less than 100 million US dollars, or the investor's net assets are no less than 210 million.

On the other side of China, they basically followed the example of the United States.

Because they want to raise funds for specific groups of people, they are called "private equity" funds in China.

Corresponds to the concept of "public offering" funds.

China's public funds are more like the concept of "mutual funds" in the United States.

It means that Huaxia calls it a public offering fund, and it means a mutual fund in the United States.

According to the regulations of the United States, it is necessary to purchase the LP of the private equity fund.

One of two requirements must be met, which is either the investment amount exceeds $100 million or the personal net worth exceeds $210 million.

There is no such requirement for mutual funds, and the public can buy small shares of 10 or 20 yuan.

Unlike private equity funds.

In the United States, the investment strategy of mutual funds is relatively passive.

Generally, only one index is tracked, or some weight preferences are made on the index, so-called index enhancement.

There are very few active public offerings like the one Peter Lynch ran at Fidelity.

Now in the 21st century.

Because of the advantages of good liquidity and low fees, ETFs have risen rapidly.

The mutual fund business is not what it used to be.

The supervision and requirements of mutual funds in the United States are stricter than those in China.

More importantly, those mutual funds in the United States are strictly speaking the real ballast of this country's economy.

In the United States, there are more than fifteen mutual funds with a scale exceeding one trillion dollars!
There are thirty or forty mutual funds with a scale of hundreds of billions of dollars.

More than 40% of households in the United States hold various investment funds.

The richest few, they play private equity.

But most middle-class and decent families invest in mutual funds.

under such a huge number of users.

Plus mutual funds in the US are 70 years old.

After more than 70 years of accumulation, a large number of large-scale mutual funds have been accumulated.

Most of these large-scale mutual funds circulate in U.S. stocks and U.S. bonds.

One-third of U.S. stocks and one-half of U.S. bonds are purchased by these mutual funds.

This is why U.S. stocks or U.S. debt have completely collapsed.

The reason why the United States will basically collapse.

Imagine that the investment and savings of the wealthiest and most stable 40% of households in a country are all in vain.

What is this concept?
Because of this, the United States has stricter requirements for mutual fund management than China.

This is why the four major investment banks, commercial banks and investment banks, seldom involve mutual funds.

The supervision is too strict and the fees are low, so you can't earn a few commissions through hard work.

They have faster and more profitable ETFs or private placements, and they are not in the mood to manage mutual funds.

In the United States, a private equity fund is formed.

The speed can be very fast, because there is no supervision.As long as someone subscribes as a shareholder, one can be formed in a few days.

And to set up a mutual fund, the requirements are even more perverted than those in China.

The review alone will take almost half a year or even one to two years.

But there is also the advantage of being a mutual fund, that is, it is easy to gain favor with the top 40% of families in this country.

Why is Peter Lynch known as a stock angel?
It is because the mutual fund he was in charge of made a lot of profits for a large number of middle-class people in the United States.

In China, the one who makes money for everyone is called the God of Wealth.

In the United States, those who make money for everyone are called angels.
Mutual funds, Abel will do in the future.

And after tonight, he will even announce in the newspaper: Smith Capital will form a mutual fund from scratch.

The reason why he did this was that he wanted to be like Peter Lynch.

Get the support of the top 40% of families in this country.

This is also the meaning of what he said in his speech just now, "I want to share my talents with every American".

But to form a mutual fund and pass various reviews, it will take half a year at the fastest from scratch.

This is when everything goes well.

He wasn't in a hurry at all.

The most urgent ones are ordinary middle-class investors who want to invest in him.

Before that, he could have created several other private equity funds.

While continuing to make money, continue to seduce Wall Street.

This is the meaning of his above sentence "create a few more fund companies".

Simply put, a private equity fund in the United States is equivalent to a company.

David nodded immediately: "No problem. Then when they ask me later, I can give them an explanation!"

The two chatted quickly.In a few minutes, Abel had already decided on the number of new fund companies and the total share capital.

After the negotiation, David Mellon acted immediately.

David came to the high platform again, holding a microphone with a smile on his face.

The lights at the reception were dimmed accordingly.

The spotlight hit David, and David smiled and said:
"Tell everyone a good news. Smith Capital will re-establish five fund companies in the future."

"The total equity of each fund house is $30 billion."

"If anyone wants to be our LP, then later, you can contact me, or contact Smith Capital~"

"In addition, starting tomorrow. Smith Capital will submit an application for registration and establishment of a mutual fund to the relevant authorities."

"As our great Mr. Abe Smith said."

"Smith Capital is willing to share success with any American!"

David's reappearance, and the news announced.

It triggered even more enthusiastic applause than when Abel went up to give a speech just now.

It's not because David is more popular than Abel.

It's because Abel's speech, although it's very good (after all, the lines designed by the think tank), is quite provocative.

But that has nothing to do with them, the guests present are all from the wealthy class.

Only a very small part of them joined the first phase of Smith Fund.

What they want more is to be like these people.

Share in Smith Capital's success.

Now Smith Capital expressed its willingness to take everyone to play together.

David, who announced the news, naturally received the biggest applause.

In the warm applause of most of the guests in the audience.

Richard Fuld quickly negotiated some matters with the CFO of Lehman Brothers and the CXO who accompanied him to the scene.

".Okay. Since you all think so, let's try again!"

Looking at David on the stage, he thought of Smith Capital's next big move.

The bulldog of Wall Street gritted his teeth.

Richard Fuld found Abel's direction and walked towards him.

Just halfway there, Richard Fuld bumped into Paulson, the CEO of Goldman Sachs.

"Hey~Sorry~"

"Ah~ Sorry, I didn't notice~"

After hitting someone, Richard Fuld and Paulson rushed to apologize to each other.

Just after apologizing, they recognized each other's identities.

Richard Fuld immediately said: "Christian, in such a hurry, where are you going?"

Paulson was silent for a while, and looked at the direction Richard Fuld had just walked in.

Paulson asked without answering, "Richard, where are you going?"

"Uh" Richard Fuld didn't want to say much, he wanted to go to talk to Abel again.

When Abel made an offer just now, he was the one who reacted the most, and he was the one who refused the fastest.

He is the one who wants to talk to Abel first now.
This seems a little unreasonable.

But Paulson saw through Richard Fuld's approach at a glance.

Because Paulson saw the other side.

Just said categorically that Morgan Stanley is no longer interested in Philip Purcell of Smith Capital.

The old guy, on the other side of the reception, also walked towards Abel at this time.

Following Paulson's line of sight, Richard Fuld, who also saw Philip Purcell's movements, was startled.

The CEO of Lehman Brothers knew right away that Philip Purcell was saying one thing and doing another!
Madfak, it seems that everyone is the same!

He glanced at Paulson with thick eyebrows and big eyes next to him, and found that the latter was also looking at him.

This made Richard Fuld understand immediately.

Not only Philip Purcell thought the same as himself, but Paulson with thick eyebrows and big eyes did the same.

That was over there just now, and everyone clamored that they were no longer interested in Smith Capital.

in private
Didn't look at Richard Fuld himself, just wanted to go to Abel's side!
Paulson was going that way too.

Philip Purcell was almost at Abel's side.

"Ha~ Everyone is not an idiot. Everyone has an idea~" Paulson said softly, mocking himself.

Richard Fuld was impassive.

But now the Wall Street bulldog agrees with Paulson.

That quote from Abe Smith just now was outrageous, yes.

But it's not impossible to talk about it.

There is no such proverb in Europe and the United States as the so-called exorbitant asking price to pay back the money.

But there are also similar claims.

Abel reported 5000 billion US dollars, and everyone does not have to really pay at this price.

What's more, if it is really at this price, other conditions can also be discussed.

The most important thing is that as long as Abel can really help everyone make money.

In fact, the valuation of 5000 billion US dollars is not unacceptable to everyone.

I just said that over there, except that I was a little angry at the beginning.

There are also those who want to deceive other colleagues and make other colleagues believe it is true.

Make them no longer interested in Smith Capital.

Only in this way can I eat one more bite, and whether it is useful or not, I will act first and then talk about it.

At present, at least the performance just now.

Richard Fuld felt that it was useless to the four major investment banks and those shrewd investors.

What they should contact with Abel, what they should think about is still the same idea.

"go together."

The Wall Street bulldog whispered to Paulson, "Maybe we can talk to him again. We'll see what the terms are."

Paulson nodded too.

If you don't go any further, Philip Purcell, who was so resolute just now, will have a chat with Abel!
"Look over there~" Paulson suddenly heard Richard Fuld say.

"Buffett is going there too."

Paulson turned his head.

He saw Buffett who said he was not interested just now, and he was really going there.

Sure enough, in the face of interests.

Everyone is honest.

In parallel time and space, Paulson, the Secretary of the US Treasury in the future, thought to himself.

(End of this chapter)