Rebirth of the Financial Crisis Sweeping the World

  Chapter 150 150 [I don’t even bother to think about a small amount of 90 million yuan, you just think about it in 2 minutes! 】

  July 4th, Friday.

  Wang Guanxi got up very late and finished washing.

  I am a little hungry.

  So I made a lunch at home, egg noodles.

   plus a Sydney.

  Listening to music and watching the news.

  [Berkshire Hathaway's share price of Buffett’s shares rose sharply, breaking through US$135,000 per share]

  $135,000 per share refers to Berkshire Hathaway’s Class A shares. Class A shares here are of course not A shares.

  The stock price is as high as $135,000 per share, which ordinary retail investors cannot afford.

  Berkshire Hathaway owns A and B shares.

  Because the company's stock price is getting higher and higher.

  In the US stock market, in order to ensure the normal liquidity of a stock, when the stock price exceeds a certain price, the brokerage usually persuades the company to split the stock.

  This can ensure that its stocks stay in the range of $10~$500, which is convenient for retail investors to buy.

  For example: Baidu is very good at splitting ten, Google’s splitting two, and Apple’s splitting seven.

  After the stock split, the total number of shares issued by the company will increase, and the price of each share will decrease accordingly, which has no effect on the market value of the entire company, but it is more convenient for retail investors to enter.

  The reason why Buffett did not dismantle is that he has always adhered to the value investment. If you want to invest, you should consider 10 years or more. Speculators do not want to make quick money on Berkshire Hathaway.

  Of course, there is another aspect that Buffett himself has a special personality, and he will not give up his principles because of the foolishness of brokers and other small shareholders. Buffett personally guarantees: IwouldneversplitBRKstock

  So Berkshire Hathaway’s stock price is getting higher and higher. Two things later caused Buffett and the company's board of directors to change their minds:

  1. Some shareholders want to use gifts to present Berkshire Hathaway stock to their relatives and friends to legally avoid taxes. But the gift tax exemption limit is 10,000 US dollars, and the single share of Berkshire Hathaway has exceeded this limit.

  2. Some mutual funds have developed a set of methods to buy and trade a small portion of Berkshire Hathaway stock. In other words, they can bypass Berkshire Hathaway's unit price to allow more small retail investors to speculate.

  Based on the above two points and the old bus’s previous commitment not to split the shares, the company gave the solution: rename the original shares to Class A shares and issue new Class B shares.

When   B shares were issued in 1996, the price was 1/30 of A.

  1 Berkshire A share can be converted into 30 B shares, but Class B shares cannot be converted into Class A shares.

  Speaking of Berkshire Hathaway, Wang Guanxi thought of the insurance industry, which is a very profitable industry. Buffett started as an insurance business and then became a diversified investment group.

  If you have a large insurance company, you can provide a steady stream of cash flow.

  Wang Guanxi plans to acquire several insurance companies in the future to facilitate future layout.

  At this time, his phone rang suddenly, and Zhang Dexi, the chairman of Cathay Insurance Company, called.

   is connected.

   "Old Zhang, what's the matter?" Wang Guanxi knew that Zhang Dexi had lost a lot of money and was already short of money after Zhang Dexi went out of business twice. He mentioned before that he had set up a joint venture with Zhang Dexi to establish a life insurance company, but was rejected.

   Zhang Dexi tentatively asked: "Guanxi, are you interested in buying some American corporate bonds? How about I give you a 20% discount?"

  "American corporate bonds?" Wang Guanxi smiled. Now he won't ask for two discounts. Many bond portfolios are toxic.

  Zhang Dexi smiled and said, "Yes, are you interested?"

  Wang Guanxi bluntly said: "I am not interested in American corporate bonds, Lao Zhang, are you short of money?"

   "Oh, yes, I have lost a lot of money personally recently" Zhang Dexi sighed, "I still owe the debt to HSBC Securities."

   "Are you interested in taking a stake in my Cathay Insurance Company?"

  Wang Guanxi thought for a while: "I am not interested in buying shares, but I want to buy your Catalan auto insurance directly."

  There is still a set of ethical insurance business. In the future, Cathay Auto Insurance will also be successfully listed. In 15 years, Cathay Auto Insurance had the highest market value, reaching 4 billion Hong Kong dollars.

  This shows that Zhang Youde is very capable in the insurance business.

"Acquisition?" Zhang Dexi took a breath. I didn't expect Wang Guanxi to have such a big appetite, but he is short of money now, and Cathay Insurance's performance this year is also pretty bad, because he holds a lot of stocks, assets are shrinking, and he can't make much. Net profit.

  Wang Guanxi: "Yes, it's an acquisition"

  "Lao Zhang, are you interested in selling the company? Anyway, the insurance business is not good this year. You just sell it. For the price, I will arrange for the legal specialist to review the assets and give you a suitable price."

  "I want to think" Zhang Dexi thought for a long time on the phone and didn't want to sell it. This insurance company is his golden egg. He really doesn't want to sell it, but now HSBC Securities is collecting debts and he has to sell it.

  "You arrange for someone to come and check the balance sheet tomorrow, and we will talk when that happens"

  "Let’s Today"

   "I'm still in Macau, I won't go back tomorrow"

   "Good!" After finishing the call, Wang Guanxi called his lawyers.

  The next day, July 5th, Saturday.

  Wang Guanxi took Xue Feng and Hamada Matsumoto to Queen's Road, New Era Plaza, Hong Kong.

   Zhang Dexi took a few executives here to wait for Wang Guanxi.

  Mu Honglie, Chen Xuezhen, Wei Weicheng, and Huang Shaokai all serve as senior executives in the company. They are the veterans who worked with Zhang Youde to develop Cathay and Thai auto insurance, and they receive a certain amount of dividends every year.

   "Guanxi, you are here" Zhang Dexi greeted warmly.

  Other minority shareholders are also very polite.

   "Lao Zhang, let's go and see the financial situation" Wang Guanxi smiled: "If it fits, buy it today."

   "Okay, please!"

  Everyone talked as they walked. The four veterans of Wang Guanxi only took dividends and had no equity, which means that Zhang Youde held 100% of the shares.

  The Catalan Auto Insurance is mainly engaged in the underwriting business of auto insurance.

  Includes third-party auto insurance and comprehensive insurance. The main customers are taxi and public light bus owners in Hong Kong.

  Currently, the company has three business departments to operate business: taxi department, public light bus department and other automobile department.

  In 2007, the company's net profit was 12 million Hong Kong dollars. This year it is hard to say.

  Currently, the company’s liabilities are 500 million yuan. Of course, this liability does not simply refer to bank loans in terms of assets and liabilities.

  For example, bank deposits are bank debts. For example, if bank deposits are 100 billion, then its debt to deposit customers is 100 billion.

  Insurance company’s liabilities are also aimed at insurance customers. If the customer who bought the insurance suddenly hangs up, the insurance company will have to pay for it.

  The total assets of Cathay Pacific Auto Insurance are now 550 million Hong Kong dollars.

  Net assets are 50 million Hong Kong dollars.

  Catalan Auto Insurance holds many stocks of listed companies and some corporate bonds. Now they are losing money. The total assets of the original 700 million Hong Kong dollars have been reduced to the current 550 million Hong Kong dollars.

  Usually, the market value of a listed company is higher than its net assets. Usually, the market value of a listed company is twice the net assets, and of course there are more.

   is usually related to the company’s future prospects, dividends...In short, many factors are related.

  For example, in 2020, Tesla Motors' net assets will be 21.678 billion U.S. dollars, but its market value is 643.7 billion U.S. dollars, which is 30 times the net assets!

  Of course, this Catalan auto insurance cannot be compared with Tesla.

  Wang Guanxi said: "Old Zhang, your company is not listed, and many of the stocks you hold are losing money, and your assets are shrinking. I can only give you a valuation of 80 million Hong Kong dollars."

Once the acquisition is successful, Wang Guanxi will immediately sell these assets and exchange them for cash. As for the liabilities of 500 million, that is the total amount of insurance policies purchased by insurance customers. As long as the customers do not die accidentally, and there is not a large area of ​​car accidents, there is no need to worry. of.

  Zhang Dexi was dumbfounded, Wang Guanxi’s price was too low, and he said: "It’s too low, you should at least give me 100 million."

  "According to 2.5 times the valuation"

  Wang Guanxi refused: "2.5 times the valuation? How is this possible?"

   "No, it's definitely not worth that much money. When the stock price drops and your assets are shrinking, your assets will become negative when you wait."

  "It is very suitable and reasonable for me to give you 80 million, Lao Zhang, don't you want to speak loudly"

  Zhang Dexi resolutely said: "No, you have to give me 100 million"

  Wang Guanxi immediately opened the stock chart, these BYD Electronics, and the stock chart of BYD Auto.

  “You Catalan Auto Insurance bought the shares of BYD Electronics and BYD Auto. The stocks have been falling recently. I don’t know what the decline will look like. At that time, the assets will continue to shrink, and Catalan Auto Insurance’s net assets may become negative.”

   "I will give you 90 million"

   "I don't even bother to think about the small amount of 90 million yuan. Just think about it for 2 minutes!"

  Zhang Dexi immediately knelt to Wang Guanxi in his heart, his face was extremely embarrassing.

  TM, 90 million is a small money to you, but a big money to me!

  He glanced at the stock chart of BYD Electronics and BYD Auto, and finally said: "Okay, then 90 million!"

  If the share price of BYD Electronics and BYD Auto keeps falling, Cathay Pacific Auto Insurance’s assets will continue to shrink. At that time, Cathay Auto Insurance’s net assets may truly become negative.

  "Okay, deal!" Then Wang Guanxi asked Xue Feng and Hamada Matsumoto to draw up a contract and then sign the agreement.

  Wang Guanxi’s Black Shirt Group bought Cathay Pacific Auto Insurance from Zhang Youde for HK$90 million.

  I finally have an insurance company. Although it is only auto insurance, it will rise in the future.

  "Lao Zhang, happy cooperation"

  "Happy cooperation"

  The two shook hands.

   Then Wang Guanxi reorganized the board of directors, and Zhang Youde's wife and sister all left the board of directors.

  And Mu Honglie, Chen Xuezhen, Wei Weicheng, and Huang Shaokai all joined the board of directors and became executive directors.

  Huang Shaokai, the original business manager, was promoted to the general manager of Cathay Insurance.

  The original chairman and general manager Zhang Youde resigned.

Wang Guanxi thought for a while and said to Zhang Youde: "Old Zhang, I don’t usually have time to manage the company. You should continue to serve as the executive director of Cathay Insurance. I will also give you an extra salary. You can help me manage the company. Just fine."

  Zhang Youde was taken aback, "You still let me be an executive director? This is no problem, okay, anyway, I have nothing to do now, no problem."

   Then Wang Guanxi turned to the board of directors of Catalan Auto Insurance, which has five members and no chairman.

  The next day, July 6, Sunday.

  Wang Guanxi arranged for a financial officer to transfer half of the financial staff of Catalan Auto Insurance to Jiyuan Model Company, and then transferred some financial staff from Jiyuan Model Company, and the senior financial officer served as the chief financial officer of Catalan Auto Insurance.

Then he instructed the general manager Huang Shaokai: “Mr. Huang, when the market opens on Monday, slowly liquidate the stocks of Cathay Insurance. Those corporate bonds are also slowly sold off. The selling price should not be too low. Try to let Cathay Pacific. The net worth of auto insurance is positive, understand?"

  Now that stocks have not plummeted, and corporate bonds have not defaulted on a large scale, they quickly took advantage of the high levels to sell stocks and bonds, and then get cash, and then you can buy bottom again.

  For example, BYD Auto, China Resources Beer, Penguin Group... The stocks of many listed companies will fall to historical lows.

  You can even use Cathay Insurance’s funds to short the stocks of other insurance companies, and then initiate a takeover battle.

  Let the insurance company become stronger and bigger, which will facilitate its own layout in the future.

   "Yes, boss" Huang Shaokai nodded seriously.

  (End of this chapter)