I haven't been a boss for many years

Chapter 225 The Great Storm

On Hong Kong Island, the Hang Seng Index plummeted 420.81 points, a drop of 11.2%!

In the following two days, other major financial markets around the world, such as France, the Netherlands, Belgium, and Singapore, saw their stock markets fall by 9.7%, 11%, 8%, and 10.5% ​​respectively!

Throughout October 1987, the stock market crash caused huge losses in the world's major stock markets.

The lighthouse country lost 8000 billion US dollars, the Sang country lost 6000 billion US dollars, Britain lost 1400 billion US dollars, Treasure Island lost 320 billion US dollars, and Hong Kong Island lost 300 billion US dollars!
When the world's stock markets all fell into a big crash, there was only one place that survived.

That is Sangguo!
In real history, on October 1987, 10, Soros, the most famous short seller in history, once published an article in the British "Financial Times", predicting that the stock market in Zangguo was about to collapse.

Five days later, the global stock market crash came, and the US stock market collapsed.

However, after a short period of adjustment, the stock market quickly stabilized. Not only did it not collapse, but it attracted investors from all over the world and continued to rise.

When global stock markets were plummeting, the country's stock market ushered in a single-day rise of 9.3%, setting a record since 1949.

It's really a quirk among quirks!
The deeper Sheng Tianbu understands the financial market, the more he understands it. He can't help but sigh in his heart: The bubble economy is so terrifying!
So, in this sudden global stock market crash, what happened to those famous investors?
Except for a very small number of ghosts, most of them suffered unprecedented crit!
Take the financial giant Soros and the stock god Buffett as examples.

Let’s talk about Soros first.

At the moment, the economy of the country of Sangka is on fire. With Jin, he predicts that the stock market of the country of Sangka is about to collapse. In fact, for a financial giant like him, this is nothing at all.

Because everyone can see how unreliable the current prosperity of Sang country is.

The real difficulty is when this bubble will burst.

Even Soros can't tell the exact time. He predicted this year that the stock market and real estate in Sanggu didn't collapse until February 1991, which is still early.

Likewise, he failed to predict the global stock market crash!
Just after the global stock market crash, Soros broke his arm to survive and liquidated all 5000 S&P 500 futures contracts held by the Quantum Fund, worth a total of $10 billion.

One week after the big crash, Quantum Fund’s net assets plummeted 26.2%!

At this time, how much did the U.S. stock market fall?
17%!

In other words, Soros's broken arm to survive, the loss is greater than the decline in US stocks!
This is also the first time that Soros has exceeded the 20% stop loss limit he set.

There is no doubt that Soros has become the biggest loser in this disaster.

However, shorting a huge amount is shorting a huge amount.

Shortly after the stock market crash, Soros seized an opportunity to short the U.S. dollar and eventually turned a loss into a profit. In 1997, the Quantum Fund's profit still reached a double-digit 14%.

Let’s talk about Buffett. On Black Monday, Salomon, a company that stock investor Buffett had recently invested heavily in, lost a total of US$7500 million.

Buffett's personal wealth has evaporated by 3.42 billion US dollars!
Within a week, the stock price of his Berkshire Hathaway company plummeted 25%, and the asset losses increased!
As we all know, Buffett is different from the speculative financial giant like Soros. The investment philosophy he believes in is value investing.

After the stock market crash, he was extremely calm, neither inquiring about news nor selling stocks.

He acted lightly, as if the loss of up to 4 million US dollars had nothing to do with him, and just continued to do his own thing calmly.

Maybe many people are still in the grief of the huge loss, but he has started to do research.

Research which companies have long-term and sustainable competitive advantages, and then after the stock market crash, buy the stocks of those highly competitive listed companies in an orderly manner.

Just this year, Buffett set his sights on a company - Coca-Cola!
The total share capital of Coca-Cola is 42.97 billion. In 1987, that is, the closing price of this year is only 3.21 US dollars 420, and the total market value is only 150 billion US dollars.

But Buffett finally calculated the actual intrinsic value of the company at $381.63 billion after months of detailed investigation through various statements.

The Coca-Cola Company is developing well and its performance is growing every year.

In other words, the actual value of Coca-Cola is far underestimated by the market!

When the actual intrinsic value of a company is much lower than the market value, it is an excellent time to enter the market. If you are still very optimistic about this company, you can hold it for a long time!

That's what Buffett does!
As recently as 1988, Buffett bought $5.93 billion in Coca-Cola shares and nearly doubled his holdings in 1989, bringing his total investment to $10.24 billion!
By 1991, Coca-Cola's stock price soared, and his investment became 37.43 billion, an increase of 2 times in 2.66 years!
Such an exaggerated increase shocked even Buffett himself.

In the 1991 Berkshire Company annual report, Buffett said happily and proudly: "Three years ago we bought a large amount of Coca-Cola stock, and Berkshire's net assets were approximately US$34 billion, but now we hold only The market value of Coca-Cola’s stock has already greatly exceeded this figure!”

So, in 1994, Buffett continued to increase his holdings of Coca-Cola stock, with a total investment of $13 billion.

The holdings have remained unchanged since then.

By 1997, the market value of Buffett's Coca-Cola stock had risen to $133 billion, a 10-fold jump from his investment.

That one stock alone made $120 billion!
In the real history without Sheng Tianbu, what was the situation of Hong Kong's richest people in 1997?
The richest man in Hong Kong and Olympics this year is named Lee Shau Kee!

And his total assets are only 140 billion U.S. dollars. He is far behind No. 2, with family assets of only 108 billion U.S. dollars!
The investment in Coca-Cola alone can almost push Buffett to the position of the richest man in Hong Kong Island!

This is the charm of value investing!

Investing in Coca-Cola is one of Buffett's most legendary and valuable investments. Similarly, after entering the 21st century, he invested heavily in Apple!
Why not invest in Apple now?
Not investing is of course because Apple's performance is pulling its hips, and there is no hope and no future in sight.

By 1997, Apple's stock price had fallen to only $1, and it was so close to bankruptcy.

In such a predicament, Apple's board of directors was helpless and had no choice but to be cheeky and invited Jobs back.

In fact, even if they asked Jobs back, they didn't hold out much hope, and they simply used a dead horse as a living horse doctor.

Then Jobs, the giant of the times, staged a return of the king drama, leading Apple to a desperate situation and eventually becoming the world's first Big Mac company with a market value exceeding US$2 trillion.

Because its market value exceeds the gross national product of most countries in the world, it is a truly rich country.

Let’s talk about Soros and Buffett.

These two people represent two investment philosophies respectively. One is speculative type. What they want is that now, Soros is like a crazy gambler who often plays stud and gambles on his fortune.

The other is the value type, which focuses on the future and does not care about temporary gains and losses.

There is no difference between the two, but the investment philosophy is different.

Of course, if the only success theory is measured by wealth, then there is no doubt that the winner is Buffett.

After all, relying solely on investment and without any industrial manufacturing, he once pulled Bill Gates down and became the richest man in the world, a position that Soros will never reach.

We often talk about the huge amount of Wall Street, capital and so on, which is essentially Buffett!
It's Soros!
And now, Sheng Tianbu has decided to cash out the huge amount of money he seized from the Sangguo economic bubble era and use it to build his own financial empire during this year's global stock market crash!

Although he is not on Wall Street, he wants to do the work of Wall Street capital and enter the international market.

And the biggest market for international capital is the lighthouse country!
Just in the past few days, when everyone in Hong Kong was still immersed in the unimaginable shock caused by the three-party financial fight between him, Ye Xiaoli, and Huo Jingliang, his work focus had changed.Fuying Fund is carrying out investment reorganization in an orderly manner, and has simply and decisively withdrawn from the foreign exchange market in San Diego.

The real estate funds have not been moved, and the time has not yet come. Now the investors in Sangguo are still in a frenzy, and it will not avalanche until February 1991.

As long as you get out at the end of 1990.

As Sheng Tianbu continues to increase his investment chips, Imamura Real Estate's funds are like a snowball, getting bigger and bigger.

At the same time, in order to avoid risks, Sheng Tianbu also introduced local consortiums from Sang.

It will be much more convenient to work with them.

Eating alone is often not a good end. It is the kingly way to let important people who have the right to speak in the country to participate, share resources, and make money together.

There is another important reason why Sheng Tianbu wants to withdraw from the Sanggu foreign exchange market, and that is the Sang government!
Although in the era of the bubble economy, the Sang State government also needs to be responsible, and there are countless stupid people in it, all blinded by the prosperity of the economy, but there are also some people with lofty ideals.

They realize that the economy of the country is like a runaway horse that has gone off the track, and they are trying their best to bring the runaway economy back to the right track.

One of the most important points is deleveraging!
This is obviously not good for Sheng Tianbu.

The Financial Services Department has begun to clean up capital and find all kinds of troubles, including Sheng Tianbu's Fuying Fund.

The benefits are already in place, and if you fight again, it will be difficult to quit in the future.

All these matters are the responsibility of Jinniu Securities.

With the crazy rise of Sheng Tianbu, Jinniu Securities has also experienced explosive development.

With the golden brand of Sheng Tianbu, coupled with a series of previous god-level operations, the business of Jinniu Securities has increased exponentially.

In just two years, Jinniu Securities has become a giant in the securities industry, with more than 100 billion funds under management!
This 100 billion naturally does not include Fuying Capital and Fuying Fund.

Jinniu Securities is still in charge of Sima Xiang and Luo Minsheng.

The worth of the two of them has also skyrocketed. The former is worth over 10 billion, while the latter's assets were originally not as good as Sima Xiang's. Now his wealth is much less, only about 3 million.

Following Sheng Tianbu, they completed primitive accumulation much earlier than in "Overheard 2".

In "Eavesdropping 2", there is a landlord association. The elders are Sima Xiang, Huang Shitong, Chen Zhan and other six people. Sima Xiang is the oldest and the most qualified, followed by "tongshu" Huang Shitong.

In terms of skill and will, Huang Shitong is the worthy number one.

It was because of Sheng Tianbu's intervention that Sima Xiang broke up with his good brothers, quit Junji Securities, and joined Jinniu Securities. At that time, his brothers were still extremely angry.

But now, they are reconciled again.

Seeing that Sima Xiang suddenly became prosperous and left them far behind, Jinniu Securities left the other four major Chinese securities firms behind and became a veritable leader in the entire industry.

Those guys wanted to make friends with Sheng Tianbu through Sima Xiang.

Sima Xiang is also a soft-hearted man. Thinking that the six brothers were enjoying themselves in the past, and now hearing them say that he no longer conducts any illegal operations, he really dares to mention it to Sheng Tianbu.

Naturally, the result was that Sheng Tianbu scolded them so much that they told those bugs to keep to themselves and would trample them to death if they dared to think too much.

Sima Xiang didn't know that Sheng Tianbu was so disgusted with his brothers. He was almost scared to death and decisively stopped speaking.

After returning home, Sima Xiang earnestly advised those landlords to stop their wishful thinking, let alone try to hook up with Mr. Sheng.

In addition, the equity of Jinniu Securities also changed. After seeing Sheng Tianbu's amazing operations, Sima Xiang and Luo Minsheng took the initiative to find Sheng Tianbu and spontaneously lowered their equity.

Sheng Tianbu didn't show any pretense and agreed decisively.

But it is not simply to reduce the equity of the two, but to reform the equity.

Initially, the shares of Jinniu Securities were only held by Sheng Tianbu, Sima Xiang, and Luo Minsheng, of which Sheng Tianbu accounted for 51% and the remaining 49% was held by two people.

After the equity reform, the shares held by Sheng Tianbu were reduced to 35%, Sima Xiang 12%, Luo Minsheng 8%, and the remaining 45% was held by other Shengtian investment companies and other institutions.

This morning.

World Financial Tower in Central.

The headquarters of Taurus Securities was not originally here, but the development of Taurus Securities in the past two years has been too rapid, and it soon became the leader of Hong Kong Island securities, and then naturally the shotgun changed.

The headquarters also moved here and bought the entire 12th floor directly, costing nearly 5000 million!
Tsim Sha Tsui is also very prosperous, but compared with Central, it is not enough.

Like Sheng Tianbu's Starlight Building, if you buy one floor, it only costs 2500 million, but here, the price of the same floor is double.

This layer is affiliated with Jinniu Securities, but is not contributed by Jinniu Securities.

The real investment is Anhe Real Estate.

Anhe Real Estate obtained shares in Jinniu Securities in this way.

Among all the unlisted properties of Shengtianbu, real estate accounts for a large proportion. The leading property is Anhe Real Estate, followed by New World.

There are also differences between the two.

Anhe Real Estate is mainly responsible for property services, that is, buying office buildings and shops, mainly by collecting rent for profit.

And New World, the full name of "New World Development Co., Ltd.".

This is a standard real estate company.

New World also has property projects, but the main means of profit is not rent. The main process is to acquire land, build office buildings and apartments, and then sell them to expand the layout.

Not only Hong Kong Island, but has begun to enter the Mainland.

It’s just that the mainland’s real estate dividends have not yet arrived, and it will take at least 15 years for it to truly show its power. Now it is only operating in first-tier cities.

In the large conference room of Jinniu Securities, Sima Xiang and Luo Minsheng were reporting to Sheng Tianbu.

When the report was almost finished, Sheng Tianbu waved his hand and signaled other senior executives of Jinniu Securities to leave. Only Sima Xiang and Luo Minsheng stayed.

Shengtian Trail: "Ayao, what is the current situation of our Shengtian assets?"

(End of this chapter)