Back to 1980: Please Love Me Again

Chapter 360 A Different Stock God
The Ritz-Carlton, Washington, D.C.

Value investment was proposed by Buffett's teacher Graham at the beginning of the century, and Buffett is a leader in practicing this set of investment principles.

"Mr. Zhao, if my investment is from 100 to 10000, the profit is 100 times; I found that many of Ms. Zhao Wenqiu's investments started from 1. Although the time is still short, the invested company is currently connected 10 didn’t grow to 10000, but after careful investigation, I have every reason to think that these companies will reach [-] in the future.”

"Then Ms. Zhao Wenqiu's investment income is [-] times! Compared with that, my income seems insignificant, isn't it?"

Buffett looked at Zhao Wenmu and asked very seriously.

"Of course not, Mr. Buffett."

"It is true that Xiaoqiu's single investment rate of return is higher than yours, but there is one prerequisite that you seem to have forgotten, and that is the investment success rate. Your investment may have a success rate of more than 70%; while Xiaoqiu's investment, the long-term In terms of time, it may not even be possible to achieve a 5% success rate.”

The fact is that the failure rate of investment in start-ups is bound to be much higher than that of mature companies.

In terms of data, it is to give Buffett and Zhao Wenqiu a principal of 1 yuan respectively.

Buffett can invest in 100 companies, and each company needs to invest 100 yuan.

The final result is that 70 companies succeed and 30 companies fail.

那么他的收益就是70*（10000-100）-10000=683000。

Zhao Wenqiu can invest in 10000 companies, each investing 1 yuan.

Assuming a success rate of 0.5%, that is, 50 companies succeeded, and the remaining 9950 companies all closed down halfway.

那么她的收益就是50*（10000-1）-10000=489950。

The latter is significantly lower than the former.

And in terms of the time required for investment, the latter is much longer than the former.

Of course, if Zhao Wenqiu can increase the success rate of investment, to put it bluntly, she has a very good vision and can always find good companies with potential, then the result will be completely different.

For example, suppose Zhao Wenqiu's success rate is 10%.

That is to say, 1000 enterprises are successful.

那么她的收益应该是1000*（10000-1）-10000=9989000！

It is 14.6 times that of Buffett!
And Buffett is also taking this into consideration.

"Mr. Zhao Wenmu, as long as Ms. Zhao Wenqiu's investment success rate reaches 1%, the income will already exceed mine!"

"In reality, her success rate is higher than 20%, isn't it?"

This also means that Zhao Wenqiu's investment income will be at least 20 times that of Buffett!
Even with some chances, Buffett still firmly believes that he has discovered a treasure, a genius in the investment world!
At this time, the stock god is only 56 years old, and his mentality is still extremely young.

He has always been troubled by his investment style being too single, with little involvement in real start-ups.

After all, start-ups are difficult to evaluate with a value investment model.

Many companies may have no income for several years in a row.

There are also many companies that may have been losing money for many years in a row.

Their financial figures are pretty ugly.

Measured by the value investment model, these companies can be said to be worthless!
But are these startups really worthless?Naturally it is impossible.

For these start-ups, a small amount of investment can get a large amount of equity in the other party, just like the 100:1 difference mentioned above.

Mature companies can't buy 100% of the equity for 10 yuan.

A start-up company may be able to buy 1% of the equity for 20 yuan.

As long as the investment success rate is guaranteed to be stable at a high level, the return on investment is extremely impressive.

Investment in start-ups is called venture capital, as you can tell from the name, this kind of investment is very risky and has a very high failure rate.

But as long as one of the one hundred investments succeeds, the investor can recover the cost of the one hundred investments, and even earn a lot.

Venture capital actually has a great role in promoting social development.

It is these capitals that promote the development and growth of high-quality start-ups, allowing them to obtain the funds needed for development when they are weakest.

It eventually grew into a behemoth supporting the economy.

One thing Zhao Wenmu has always grieved about is that the most high-quality Internet companies in his previous life were almost all in the hands of foreigners.

In the final analysis, what is the reason?

When they are weak, it is difficult to obtain capital support from within.

Helpless can only seek overseas investment!

Of course, part of the reason is that due to the consideration of overseas listing, it deliberately only accepts investment from overseas capital.

But in the final analysis, this is a lack of investment system.

There is a lack of a venture capital mechanism that truly supports the development of start-ups, and there is a lack of channels for these companies to go public for financing, rather than the corruption of capitalists' personal morality.

Business is business.

The support for start-ups is related to the future development of the industry and the future of a country.

Hope this life can really change.

Buffett is also very optimistic about the huge social value of venture capital, so he wants to participate in it.

However, due to my limited style, I am not good at this kind of investment.

The appearance of Zhao Wenqiu made him overjoyed.

Isn't this the best partner? !

From then on, the stock god old man will not only be worshiped in the field of value investment, but also shine in the field of venture capital.

The stock god has invested in 32 start-ups around the world in one breath, which has become a remarkable stroke in the history of investment.

However, no one would have thought that 24 of these companies were selected by Zhao Wenqiu.

In any case, this cooperation has allowed the stock god old man to break through the confinement, break through his own limitations, and achieve a double harvest of face and inside.

Become a different and more comprehensive stock god.

It also allows the Zhao brothers and sisters to invest in the world more safely and efficiently.

The former golden partner Warren Buffett-Charlie Munger has changed to Warren Buffett-Wenqiu Zhao in this life.

Finally, they were no longer two old men.

It also gave Berkshire Hathaway shareholders a sigh of relief.

Otherwise, what if the two old men belch at the same time?

"The cooperation between Warren Buffett and Zhao Wenqiu will bring a different experience to the investment community and make investment a better thing. I firmly believe in this. So, do you accept this invitation? ?”

Buffett believed from beginning to end that investment decisions were made by Zhao Wenqiu, but Zhao Wenqiu was arranged by her brother Zhao Wenmu.

"Of course, it's a pleasure working with you, Mr. Buffett."

The two hands clenched tightly together again.

A few days later, the news that Buffett had set up a new private equity fund dedicated to investing in start-ups and that he and Zhao Wenqiu were jointly serving as fund managers shocked the investment community in the beautiful country.

People have praised Mr. Buffett's courage and innovative spirit.

After all, not everyone has the courage to step out of their comfort zone.

Especially for a big shot like Buffett, if he makes a mistake, he may lose his fortune at the end of the day.

Not to mention cooperating with a young girl like Zhao Wenqiu who made a lot of noise.

In the short term, there will definitely be many voices of doubt.

I wonder if the old gentleman is old and confused, or there is some ulterior secret behind it.

How can Buffett, who is used to seeing big winds and waves, care about these gossips?

He will use practical actions to prove how wise his decision is today!
For this fund, Zhao Wenmu naturally couldn't let go of the opportunity.

(End of this chapter)