America's Road to Wealth

Chapter 169 Crazy Gambling Agreement

Backstabbing this kind of thing is too common for Wall Street.

In parallel time and space, the fall of Lehman Brothers.

In addition to its death, there is a backstab at a critical moment by Goldman Sachs and Merrill Lynch.

At that time, Goldman Sachs said it would help, under the guarantee of Goldman Sachs and other Wall Street giants.

Lehman Brothers took out its best assets, about 300 billion US dollars in assets.

Goldman Sachs acted as assessor.

After the evaluation, only a 40% price was offered.

With the joint efforts of other Wall Street giants, Lehman Brothers, which urgently needs funds to continue its life.

You can only sell your most valuable assets.

This is a backstab for Goldman Sachs.

Merrill Lynch sold itself one step earlier, cutting off the last retreat for Bank of America to acquire Lehman Brothers.

It can be said that on Wall Street, backstabs among peers are happening every day.

Abel backstabs the Wall Street firm he shorted this time.

In this regard, Buffett did not feel that there was anything wrong.

Abel did this, and Buffett felt that this was a normal Wall Streeter.

The only thing Buffett feels puzzled about.

It was Abel, how could he know what happened in Scotland on the other side of the ocean in advance.

It is possible to say that this matter was led by Abel.

What can Wall Street do for profit?

Just blow up the queen's car
For the sake of profit, Shenjing Binggunmen brainstormed a set meal, why not arrange it for the owner of the white house?
But Abel's rise time is too short, and he has never been abroad at all.

There is also almost no contact with Europe.

In this case, in such a short period of time.

If it can affect Scotland.

Then he is too scary.

Another possibility is that Abel did not do it.

Abel only knew this information in advance through certain channels.

Buffett thinks the possibility of this is higher.

But even if it is the latter possibility, Buffett thinks Abel is very scary.

The reason is that this will affect the intelligence information of the financial market.

The gang on Wall Street did not receive the news, nor did they receive the wind.

But Abel learned in advance, and set up a backup three days in advance.

Doesn't this mean that Abel has the ability to obtain information.

Better than Wall Street, at least better than investment banks like Wall Street?
The more Buffett thought about it, the more incredible he felt.

This made him shake the idea that he just wanted to come and have a look this evening.

Buffett kind of wants to invest now.

But what makes Buffett want to invest is not Smith Capital, or Smith Capital's private equity.

It was Abel who gave Buffett the idea of ​​investing.

Buffett believes in prudent investment and advocates value investing.

I don't like high-risk private equity or investment.

But he now felt that Abel was very valuable.

Then investing in Abel can also be regarded as in line with his investment philosophy and style.

The only bad thing is that in Buffett's view, Abel's investment style is too risky.

Buffett is still thinking about it.

From Abel's point of view, in fact, he only revealed information based on his "talent".

Talent allowed him to observe this in advance.

He knew something was going to happen in England.

It will affect the pound and the euro, and the pound and the euro will be affected later.

It will in turn affect the dollar, which will turn the dollar from falling to rising.

But he didn't know exactly what would happen in the UK.

He did that on purpose just now, just to let these guys know in advance.

Knowing his own financial ability, knowing that he has many oligarchs on Wall Street jointly shorting the situation.

Also the ability to cut their leeks.

This is mainly to make these people question his offer less.

But he didn't expect that something happened in the UK.

But something went wrong in this regard.

The bombing of the Queen's car is definitely a major event in the UK.

Later David Mellon came to tell him the news, and after the Queen was unharmed.

He just knew about it.

"Forehead"

He felt as though he had gone too far this time.

It would be a pain in the ass to make these giants of investment banks doubt anything.

Leak it out by the way, let the British side know
But thinking about it carefully, he was really not that scared.

Most importantly, the present in 2000.

Daying is no longer what it used to be.

If this was changed to 50 years ago, Abel would be afraid of "James Bond" coming to make trouble.

In 30 years, "James Bond" also has a little bit of deterrence.

Now in 2000.

The shit-stirring stick that was successfully deindustrialized and privatized by Thatcher.

Now only the power of talk and finance is left.

In a few years, even the carrier of Muhai's power can only rely on the United States.

A country that puts all its power into the hands of the Americans to launch wooden bombs, what else can it do to the United States other than talking about it?
Daying has almost started to play badly and stretch in all aspects.

Such a shit stick.

Does it really dare to send "James Bond" against a Wall Street capitalist?

Still no evidence at all, just a little suspicion.

What's more, the capitalist himself was born in Texas.

He is also close to the family of the incoming Grand Commander.

By my side, there is an elite infantry platoon with me at all times for self-defense.

Without definite evidence, does the shit stirrer really dare to do it?

If he really dared to do it, then Abel felt that he might be happier.

Because after that, he will have an excuse to crack down on financial exploitation and crap.

At that time, even the White House would be embarrassed to stop him.

You must know that London is still the financial center of the world. At this time, the British people are richer than neon!
Not to mention the fact that Abel is with Ireland.

The only connection is his capital company registered in Ireland.

The rest, he really has nothing to do with it.

Daying must really have this ability or determination.

Soros sniped the pound in 1991, causing the pound to plummet.

When the UK lost nearly 5% of its GDP that year.

Britain, with such determination, has already attacked Soros.

and then?
Soros is alive and well now, and NGO funds in Europe and the UK are being established one after another.

In another ten years or so, Lao Suo will soon become the Supreme Emperor of Europe.

It collapsed in 1991, can it still rise in 2000?

Instead of worrying about suspicion and retaliation from the British side.

It's better to worry about Mao Xiong, it's hard to say whether it can be done, at least he has absolutely no shortage of determination.

After this incident, the dollar started to rise.

The giants who are shorting the dollar tonight are not in the mood to stay in the reception at this time.

As soon as they left, the reception would be without these investment bank giants.

Abel and Buffett got together.

"Warren."

While chatting, Abel suddenly pointed in a certain direction and said softly to Buffett, "Let's go over there and have a chat."

Buffett was taken aback, looking at the direction Abel pointed in the past.

The stock god nodded, and the two walked to another circle at the reception.

In that circle, the three leaders were old men such as John Chris Morgan, David Rockefeller, and Davis Brown.

As soon as the investment bank tycoons left, this circle immediately became the highest-ranking guest circle in the reception.

Well, there's Morgan and Rockefeller.

This circle has always been the most eye-catching circle in the audience except for Abel.

"Hi~"

Abel walked over with Buffett.

Among the three old men, the youngest, John Chris Morgan, greeted the two with a smile.

"Warren and Abel. The stock gods and the investment gods of Wall Street. You two stand together, and I feel that I have seen the present and future of Wall Street."

"Ha~" David Rockefeller also said with a smile: "John said well. The present and future of Wall Street, this metaphor is too appropriate!"

Abel and Buffett smiled together, picked up the red wine on the plate of the passing waiter, and came over to lightly touch the guests in this circle.

After finishing a glass of wine, David Rockefeller suddenly gave Abel a thumbs up and said with a smile, "Well done, young man."

Abel, who was whispering to Davis Brown, didn't know what David Rockefeller meant.

He looked at the other person, who whispered a word.

"Dollar."

Abel knew immediately what he was boasting about.

Abel smiled and said, "I worked very hard. In order to hide it from them, I doubled the commissions to Citigroup and Wells Fargo."

After the events in Scotland.

Those Wall Street giants who are short, just do a little research.

It will soon be possible to find out who is leading the rise of the dollar this time.

One reason is that Abel didn't want to hide at all, he was showing off his muscles by doing so.

Second, these giants unite and search for it.

It was easy to find.

By the time they left the reception, they knew Abel had stabbed them in the back.

Of course you are angry, but those who say you are angry will be at odds with Abel.

That's not too bad, because the situation is not so bad that it can't be saved.

What's more, backstabs are too common on Wall Street.

Smiling to Yanyan's face and calling her brothers, stabbing a knife in the back is common.

At this time, Davis Brown, who was chatting quietly with Abel just now, said with a smile:
"It's just normal investment behavior."

"David, this kind of thing happens every day on Wall Street, in the United States, and in the financial circles all over the world."

"That's right." John Chris Morgan smiled: "It is true."

Both Morgan and Rockefeller set the tone on the matter.

Afterwards, the giants who lost money by shorting the dollar this time, even if they wanted to find fault, there was no good reason.

It is just that Abel needs to pay special attention when investing in the future.

But having said that, even without this backstab incident.

Every time Abel invests, he also needs special attention.

When investing in Abel.

As long as you show them that it is profitable, even if they really invest in Smith Capital later.

Or buy a private equity fund from Smith Capital.

Even part of Abel's investment is their own money.

As long as it is profitable, these people will never hesitate to start.

Fortunately, it is only limited to the financial and capital fields.

Honestly.
Abel thought.

Bind people like Peter Lynch, Buffett, Soros, Julian Robertson, Mobius, John Bogle, and so on.

He is not afraid.

What Abel was afraid of was only external tricks, just physical tricks.

In the financial market, as long as Abel is willing.

Then he is God.

By this time, it was almost nine o'clock in the evening.

The reception started for almost two hours, and it was almost time to end.

In this reception.

Smith Capital announced its own profit for the year.

In private, Abel announced his staggering valuation of Smith Capital to the outside world.

He also stabbed someone else in the back.

Tonight, the purpose of this investment reception has been successfully completed.

When it's time to end, it's time to end.

According to the usual practice, the host, Abel, would not leave until the reception was completely over and all the guests were gone.

But at nine o'clock, he talked to David Mellon and Merio.

He then exited early, before John Chris Morgan and David Rockefeller left.

Two Texans, Davis Brown and John J. Brown, left with him.

Oh, and one from Omaha, Nebraska.

Together they came to an executive corridor of the Hilton Hotel.

After sitting down at the table, Davis Brown spoke first.

"Abe, don't you mind if I call you that? I used to play with Alex a lot."

"Of course. My grandpa said that too." Abel smiled.

Now to Abe's left is Nebraska native Warren Buffett.

To Abel's right is John J. Brown.

The reason why he left early with these three people.

It is because Davis Brown and Buffett both expressed their interest in taking a stake in Smith Capital.

To talk to him.

He brought them here together.

"Abel." Davis Brown said calmly:

"The valuation of 5000 billion US dollars is still too exaggerated."

"But we feel that $2000 billion is a relatively normal figure that can be accepted."

In the face of bargaining from fellow villagers, he is still a friend of his grandfather.

Abel no longer has the look of whether he loves to buy or not when facing the four major investment bank giants on Wall Street.

Abel said seriously:

"I'm still sticking with the $5000 billion valuation. But Davis, we can sign a deal."

"Oh?" Davis Brown raised his thick and heavy white eyebrows.

"What kind of gambling agreement?"

"A four-year gambling agreement." Abel said:

"This gambling agreement is also valid for you, Warren."

After he said that, both Buffett and the two Browns stared at him seriously.

"The first year of the gambling agreement."

"I must ensure that the total profit of Smith Capital for the year is more than 100 billion U.S. dollars. Goldman Sachs made 42 billion U.S. dollars last year. 100 billion is more than twice as high as Goldman Sachs."

"Goldman Sachs' market cap is about $650 billion, and Smith Capital's market cap is $1000 billion. Isn't that too much?"

"The content of the second year's betting is Smith Capital's profit that year, which must exceed 200 billion US dollars. Exponential growth, the market value of Smith Capital that year was 2000 billion US dollars."

"The third year is $300 billion with a valuation of $4000 billion."

"In the last year, I must ensure that Smith Capital's profit is more than 600 billion U.S. dollars."

"That's over $6000 billion, I guess that's not too much?"

Abel didn't feel that the market value in his VAM agreement was too much.

Among other things, let's talk about General Motors Group, which has the largest market value this year, and Wal-Mart Group, the retail hegemony.

When GM's market capitalization peaked this year, it was once close to $5000 billion.

Now there are only more than 300 billion U.S. dollars left.

Its net profit attributable to its parent in the first three quarters was US$99.5 billion, and it is expected to be around US$130 billion for the whole year.

When Wal-Mart’s market value was the highest this year, it was about 2666 billion US dollars.

The net profit attributable to the parent in the first three quarters was higher than that of GM, at US$101 billion.

The whole year is probably around 130 billion US dollars.

The net profit is more than 130 billion.

One has a market value of 600 billion, and the other has a market value of 600 billion.

If Smith Capital can achieve a net profit of 600 billion US dollars.

According to the price-earnings ratio of about 33 times of GM Group.

The market value of Smith Capital can be 600X33 times, 19800 billion US dollars.

If you think this price-earnings ratio is too high.

Calculated by Wal-Mart's price-earnings ratio, it is also 20.5 times.

In conversion, the market value will be as high as 12000 trillion US dollars.

600 billion US dollars, a market value of 6000 billion, and a price-earnings ratio of only ten times.

No matter which industry it is in, it is a low price-earnings ratio.

Judging from the price-to-earnings ratio, it can be said that shareholders have made a lot of money.

Hearing Abel's exaggerated gambling agreement.

Both the two Berrons and Buffett were silent.

It's not that this exaggerated gambling agreement is bad, but that this exaggerated gambling agreement is too good for them.

So good that they suspected there was a pit ahead.

If there is such a high net profit, it is normal to have a price-earnings ratio several times higher.

This is still compared with normal companies.

If it is compared with the price-earnings ratio of the Internet industry.

With that $600 billion net profit, the market value can fly to trillions of dollars.

Like this year's Yahoo, in January, its market value once reached 1280 billion US dollars.

What was its net profit last year? -
$ 34.35 billion.

minus!

This was the normal state of Internet companies before the Nasdaq broke.

How does that compare to a normal investment bank?Strictly speaking, Smith Capital is also an investment bank.

Still use Goldman Sachs as an example.

Goldman Sachs is currently worth $650 billion.

Net profit last year was $42 billion.

The price-earnings ratio is about 15.47 times.

600 times of 15.
There is a profit of 600 billion U.S. dollars, which is less than ten times the price-earnings ratio, which is absolutely ridiculously low.

All three of them knew this.

It was only then that they felt that this exaggerated VAM agreement was beneficial to shareholders like them who wanted to invest.

This makes everyone have to suspect that there is a pit.

"Of course."

Abel added a smile and said:
"In the gambling agreement, such a clause must also be added."

"Under my auspices, when the company reaches an annual gambling agreement, I must be personally rewarded."

"The ratio of this reward is 20% of the profit."

"For example, if I can earn 100 billion US dollars in the first year, I need to give me at least 20 billion US dollars in bonuses."

"If it's $600 billion, then my bonus has to be $120 billion."

"After all, I am the one who has made so much money for you and brought you such a successful company."

"I don't think this [-]-point reward is really nothing compared to what you get."

After all, if the VAM agreement is completed.

Abel can get an extra $240 billion just in terms of year-end dividends.

Note that it is extra.

That was an extra reward after his normal remuneration and dividends.

In this way, Abel can get a lot.

Then this gambling agreement, on the contrary, increased the trust of the three of them.

After a long silence, Davis Brown said softly:

"Abel, are you that confident? You need to know that there is a failure clause for gambling."

"Of course." Abel smiled: "The content of the VAM is as above. Other content is completely in accordance with the usual practice. Whatever the Wall Street VAM agreement is, then it should be."

"You are so confident." Warren Buffett couldn't help but said.

John J. Brown didn't speak, because he was the lowest among the people present.

Abel smiled and spread his hands:

"The betting itself is gambling. Since it is gambling, there should be a bet. I don't like games where the bet is too small, whether it is me or the other party."

Abel added: "This VAM agreement is not just for you. It is also for other interested investors."

What he said earlier reminded the three of them of his investment style in the market.

Think about Abel's investment style.

It's no different from those professional gamblers in Las Vegas.

High leverage, high risk, especially like to choose those varieties with great short-term fluctuations for investment.

Although he won every time, it was very thrilling every time.

Guys with this kind of investment style offer such crazy betting agreements.

That makes sense.

Watching the three fall into silence again, Abel stood up with a smile, and raised his hand to check the time in the watch on his wrist.

"It's 09:30." He smiled:

"I still have an appointment tonight. You three, go back and think about it."

"Oh, right. I'm leaving for LA tomorrow, and New York has been so cold this year. I probably won't be back until next month."

"If you want to find me, you may have to go to the west coast next time."

After finishing speaking, without waiting for the three to respond, he turned around with a smile and left.

As soon as he left, the dozen or so bodyguards scattered in the administrative corridor also left.

This scene made Buffett couldn't help complaining:

"With so many security personnel, the annual security cost is not a small sum."

Two Texans who have no friendship with Buffett, among them Davis Brown responded with a smile:

"He also has a security company. He has registered as a PMC and is said to be planning to apply for light armed helicopters and artillery for training. Young people are more interested in this."

"PMC? Armed helicopters and artillery? Is this too exaggerated? What does he want to do, attack a small country?"

"Ha~" Buffett laughed. He stood up and stretched out his hand to Davis Brown: "By the way, hello. Mr. Brown, I'm Warren Buffett."

Davis Brown responded with a smile, "Hello, Mr. Buffett. I'm Davis Brown."

The business with Abel has not been negotiated yet.

Nebraskans and Texans, instead, became friends.

(End of this chapter)