Investor That Can See The Future

Chapter 33

Grandma forced the bill into Yuri’s hand.

“Okay! If my grandmother gives it to me, I just say ‘thank you’ and receive it.”

Yuri, who had no choice but to receive the money, bowed her head again.

“Thank you, Grandma.”

“Okay. Then the old man will go away, so let the young people have fun. Doing good on that date or something.”

It’s not a date.

I put her back on her back and greeted her grandmother as she walked by.

“Go carefully.”

Then he asked Yuri.

“Do you know anyone?”

“It’s the grandmother who lived next door to her. She used to run a business where she used to be a gallery department store, and she has been very fond of me since I was little.”

“Is she, did she live here even before her grandmother was reconstructed?”

“Yes. It was a small eight-story apartment back then.”

It is difficult to enter the complex unless you are a resident.

“Are you staying here?”

“of course. Now live next door. If you include her children, there are three houses.”

“Ugh.”

The smallest pyeong is 2.3 billion won. Three is almost 7 billion.

I thought she was a country grandmother, but she turns out to be a complete album. This is why people should not be judged by their appearance alone.

When I showed interest, Yuri told me a few things.

About 40 years ago now. Her grandmother bought her apartment with a loan from her money raised by her business.

It wasn’t really an investment purpose, she says. At that time, she didn’t know that Cheongdam-dong would become her wealthy village.

She bought an apartment, just wishing she had one of her own, and she bought another one, hoping that she would have her children live nearby.

When her neighbors sold her house and moved in, her grandmother stayed there. Decades passed, and the apartments were getting older. Water leaked from the ceiling, and the water pipe was corroded and rust was leaking out.

As soon as talk of reconstruction began to appear, house prices soared from that point on.

A number of procedures and processes must be passed before the reconstruction is actually carried out. Approval of related organizations, consent of union members, selection of contractors, etc.

In the meantime, someone sold about 1 billion or 1.5 billion won.

“Do you know what the previous apartment price was?”

“How much was it?”

“It was 18 million won.”

“·················ogue.”

After that, more than 40 years passed, and reconstruction began.

An old, small eight-story apartment building was demolished, and a new, multi-story apartment building was built in its place. The floor area ratio more than doubled, and two apartments were converted into three occupancy rights.

“Not only my grandmother, but all the people who have lived here for a long time have all sat on a cushion of money through reconstruction. I heard from my father, and the rebuilding order must have been quite fierce.”

It is a large apartment complex located in the wealthiest part of Gangnam. Once the order was received, the success of the sale was guaranteed.

For 2,000 households, wouldn’t the construction cost be 1 trillion won? The construction company in charge of the construction would also have made a huge profit.

I thought carefully.

The media pours out articles about how much premium is added to the apartments for sale. Those who received the sale are also delighted with the news that house prices have risen.

But there are other people who make real money. It is a construction company that implements the project with the people who had land and houses there before the reconstruction.

Reconstruction is not a charity project.

The sale price is set at an amount that sufficiently guarantees the profits of the members and the construction company. Those who receive the sale are, in fact, consumers.

It is 2.3 billion won to buy this apartment now. If it was sold three years ago, it would be 1.8 billion won. If it had been bought before the reconstruction was decided, it would have been 1.5 billion or less.

If I had rented an apartment before the reconstruction, 18 million won would have been enough. In terms of profitability, the person who made the biggest profit was none other than the grandmother I met earlier.

The same goes for companies.

Usually, corporations aim to go public.

If the listing is successful, the founders who founded the company, investors who believed in the founder and invested in the early stage, and the institution that hosted the IPO, receive huge profits and explode.

Investors who trade stocks that have been publicly traded are fussy about rising and falling by a few percentage points.

If you want to invest in a company that will succeed, you should invest in an unlisted company rather than after listing, if at all possible, in the early stage of the startup to get the maximum return.

The vaguely wandering thoughts in my head were organized into one.

All this time, I was completely ignorant. So, when I looked at the stocks of 100 days, nothing came to mind?

This time I definitely got a feel for it.

As I stood blankly, stopping my steps, Yuri looked at me.

“Why is that, senpai?”

I smiled roundly.

“I think I know what to do now.”

Yuri had an expression on her face that she did not understand English.

“What do you mean?”

“I’ll just go.”

“Yes? Don’t you even drink coffee?”

“Let’s drink next time.”

I am in a hurry to have a coffee or drink leisurely.

As I was about to turn, I stopped. Like last time and this time, I feel like I get something one by one when I meet him.

“Thanks,”

Yuri asked, confused.

“What the hell is going on?”

“If it goes well, I’ll buy you expensive rice later.”

* * *

On the way home, I texted Hyunjoo noona.

[I have the necessary data. I will send you the list, so please send it as soon as you confirm it.]

Upon entering the house, Taek-gyu was playing a game in the living room.

“You came early.”

“Now is not the time to play games.”

“Then what time is it?”

“We knew what to do.”

Taek-gyu immediately stopped the game he was playing.

“what? Did you see something with the Oracle Eye?”

“It’s not that, listen to me.”

I told you about the grandmother I met in my Cheongdam-dong apartment.

Two apartments worth 18 million won turned into three apartments worth 2.3 billion won 45 years later. Roughly calculated, it is 150 times. Even taking into account the inflation rate in the past, this is a huge return.

“If you compare a completed apartment to a company listed on an exchange, the sale is an IPO. The old apartment building before the decision to rebuild is probably unlisted stock. Assuming that apartment prices continue to rise, which is the higher return, buying after the sale is over or buying before the rebuild is decided?”

Taek-gyu’s eyes widened in surprise.

“Did you just say you were a junior and follow me home?”

“Does that matter now?”

What the hell did this kid hear?

I continued to explain by giving an example.

“In the era of the Industrial Revolution, new industries replace old ones. Just like the carriages disappeared after the cars appeared.”

It took over 100 years for automobiles to completely replace wagons. But now, the speed is beyond imagination.

“Air BnC, a lodging-sharing company that rents out spare rooms, has surpassed the value of Hilton, a hotel chain group without a single room, and Iber, a ride-sharing service, has the value of GM, a traditional automobile company. has gone beyond It happened in less than 10 years.”

After hearing the explanation, Taek-gyu stuck out his tongue.

“Are B&C and Iver like that?”

I can’t help but not know

“In Korea, Airbnc is only allowed on a limited basis, and Iver is completely illegal.”

Airbnc’s competitors are accommodations, including hotels, and Iver’s competitors are taxi companies. It is natural for existing business owners to protest vigorously as it is a matter of livelihood at stake.

As the government is also conscious of their votes, they can’t loosen regulations carelessly.

Even when automobiles appeared in England, horsemen who pulled wagons were desperately against it. He even made and passed a law prohibiting cars from going faster than wagons.

Despite such efforts, it only slowed the change, not stopped it. It only resulted in Britain falling behind in the automotive industry.

In the United States and Europe, it has become common practice to call an Iver rather than catch a taxi.

I said the conclusion.

“I’m going to invest in start-ups.”

“What is a startup?”

“It refers to a new small and medium-sized company that has an idea and jumps into a new business. Airbnc and Iver also started out as startups and have grown into unicorns with a market capitalization of more than tens of trillions.”

“If it’s a unicorn, that horned horse from fantasy?”

“answer.”

A unicorn is a privately held startup with an enterprise value of more than $1 billion. It was because he thought that over $1 billion before it was listed was only possible in his imagination.

But now, such companies are popping up one after another. This is also one of the phenomena that appeared in the era of the 4th industrial revolution.

“The survival rate of startups is extremely low. Nine out of ten, it will be destroyed within three years. Do you remember the dot-com bubble?”

Taehyung shook his head.

“I don’t remember.”

Well, we’re not of that generation.

“In Korea, it is better known as the KOSDAQ bubble.”

towards the end of the 20th century.

When the internet world opened, people went crazy. For people at the time, the Internet was a new continent with endless possibilities.

Just as the white men who risked their way to the Americas (slaughtering the natives) founded their country, so courageous men took the lead and rushed into the internet world.

It seemed that great wealth would pour out just by placing a flag there. Investors were enthusiastic about the appearance and poured their investments generously.

The dot-com bubble crossed the Pacific and landed in Korea.

At that time, in the process of escaping the IMF crisis, Korea was working hard to build IT infrastructure and foster ventures. This was a new investment opportunity.(Read more @ wuxiax.com)

The KOSDAQ craze hit the country. When it comes to internet-related stocks, investors have started buying all of them.

Everyone, including housewives carrying babies and monks who left the world, appeared in the audience waving money and shouting that they would buy KOSDAQ stocks.

Even though it had nothing to do with the Internet, there were cases where the stock price soared just because it was on the KOSDAQ.

A typical example is Saerom technology. The stocks hit the upper limit every day, and everyone was anxious because they couldn’t buy it.

Thanks to the enthusiastic support of investors, the stock from 2,500 won rose to 300,000 won. A company that can’t make a single penny in profits has vomited the spirit of rising to the 7th place in the business world.

However, the bubble will always burst someday. (If it doesn’t, it won’t even be called a bubble in the first place.)

Contrary to investor expectations, the Internet speed at that time, as well as hardware and software technology, were poor.

Expectations and hopes pushed up stock prices, but companies didn’t deliver the results they promised. Companies that had been living on investments rather than profits began to go bankrupt when they no longer received investment money.

The KOSDAQ, which had reached an all-time high, plunged more than 70 percent in an instant, and a significant number of stocks went to waste.

Since then, the KOSDAQ has made efforts to create various investor protection mechanisms and even changed the index calculation method, but has not recovered even half of its previous high until now.

The dot-com bubble vanished like a soap bubble. But nothing was left behind.

“Most of the companies that received investments at that time were insolvent, but there were only a few healthy ones.”

Those companies survived the dot-com bubble and welcomed the Internet era in earnest. And with the advancement of technology, other startups have emerged.

They planted their flags on lands where their rivals had died and began digging for gold.

“The dot-com bubble is a product of the third industrial revolution. And now is the era of the 4th industrial revolution.”

Startups jumping into new industries are popping up one after another. Most will go bankrupt, but some will survive and grow into conglomerates that will lead the economy in the future.

“Our job is to pick out the companies that will survive.”

“Is that possible?”

“Of course it is not easy.”

Everyone knows that investing in successful startups can make a lot of money, but no one can invest recklessly.

The reason is simple.

It is difficult to find a company that will grow among listed companies through a rigorous screening process.

I thought it was a good company and invested, but it often happens that stocks are scrapped due to delisting.

What about startups that are just starting out now?

Finding a company that will grow without going bankrupt among numerous startups is similar to finding a needle on a white sandy beach.

“But there are things that others don’t have.”

Taehyung said as if muttering.

“Oracle Eye.”

I snapped my fingers.

“That’s right.”