Happy Tycoon
Chapter 349: Unknown purpose
"Boss, are you really sure to buy Berkshire stock at such a high price? The company's stock has risen from less than seven dollars a share 23 years ago to nearly three thousand dollars a share now. It has exceeded four hundred times! I think the price of this company's stock has reached its peak. If we buy this stock, it will be very risky!" David Anderson obviously doesn't agree with Yang Jing's proposal.
But he didn’t agree. Yang Jing was the boss. The most important thing was that David Anderson didn’t know the miracle of Berkshire Hathaway, but Yang Jing knew it all!
Although later generations Bill Gates and Warren Buffett have been competing for the throne of the world’s richest man, and Warren Buffett has only beaten Bill Gates once, this does not mean that Warren Buffett can’t. On the contrary, in some On the one hand, Buffett, known as the "stock god", has done even better than Gates' classmates. For example, Berkshire Hathaway under Buffett's control.
Compared to Microsoft, Buffett’s Berkshire Hathaway is not weak at all. Yang Jing will not let go of this behemoth whose market value is larger than that of Microsoft.
This diversified investment group with a total share capital of only 645,500 shares and currently only 56,000 shares in circulation is definitely a miracle.
The predecessor of Berkshire was a textile factory that was on the verge of bankruptcy. In 964, it was picked up by the discerning Buffett at that time. So under the careful operation of Buffett, who was hailed as the "stock god" by later generations, this on the verge of bankruptcy The textile factory began to come back to life. The stock price rose from less than US$7 per share at the time to a maximum of more than US$320,000 per share in future generations. On 29th, 20th, it created a magical valuation of US$326,350 per share. It is the stock with the highest unit price in the world! The market value has also soared from less than 23 million U.S. dollars in 964 to nearly 500 billion U.S. dollars in the next 20 years. It is the top ten giant company in the Fortune 500!
Yes, compared to 964, Berkshire’s valuation has indeed soared four hundred times, but compared to 20 years, the price of a share of less than three thousand US dollars is still far behind. Even if you buy Berkshire stock from now, 30 years later, this stock will still have a 100-fold increase!
How could Yang Jing let go of this stock?
"Well, you are the boss. Now that you have given the order, I have to follow it." David Anderson looked a little reluctant.
Yang Jing said: "David, I am not trying to force you. I am just very optimistic about this stock. Just like you are optimistic about Microsoft and Oracle, I am also very optimistic about Berkshire. According to my analysis, if not If anything goes wrong, in three years, the price of this stock will rise about twice, almost reaching the price of nine thousand US dollars per share. Within five years, the price of this stock will inevitably exceed ten thousand. Five thousand dollars, as for the more distant future, the price of this stock is very likely to exceed one hundred thousand dollars! David, trust my judgment."
Hearing Yang Jing's words so firm, David Anderson couldn't help but waver. "Boss, can the stock price of this stock really soar so high?"
Yang Jing nodded affirmatively and said: "These analyses of mine are based on Warren Buffett. Berkshire can only develop rapidly under the control of this talented investor. Therefore, you are acquiring Bo It’s best to get in touch with Buffett when you’re buying Kehill shares. Of course, you can buy shares at a premium when buying Berkshire’s minority shareholders. I can authorize you to buy this stock at a premium of 30%! But mine The requirements are the same as before. Before October this year, 5% of Berkshire’s stock must be controlled."
When Yang Jing said the price, even David Anderson couldn't help taking a breath. The 30% premium is not a small number. It seems that the boss is really determined to buy Berkshire stock.
"Okay, boss, I will complete this task within the time you specify." Although Berkshire Hathaway’s valuation is now close to three thousand US dollars per share, the overall market value of this company is also For less than 5 billion U.S. dollars, the boss asked to buy 5% of his stock, even if it is a 30% premium purchase, it is not a big deal for KY funds.
"Boss, are the Qualcomm and Cisco companies that you mentioned just now also have priority?"
Yang Jing nodded and said: "Yes, Cisco and Qualcomm have the same investment priorities as Microsoft, Oracle and Intel. We must acquire enough shares before they go public."
It's a joke, when will Qualcomm not invest at this time? Qualcomm, which has just been established less than two years, will be the absolute overlord of the mobile communications industry in the future. If Intel is the hardware hegemon in the computer industry, then Qualcomm is the hardware hegemon in the mobile communications industry.
In the future mobile communications industry, AR in the UK controls software licensing, while Qualcomm controls the core chip of the hardware. One of these two companies has just been established, and the other has not yet been established, so investing in Qualcomm now is definitely a matter of urgency.
As for Cisco, not to mention this. People all over the world know what the state of this company will be in the future! This company will become synonymous with the Internet in the future, even surpassing Microsoft at its highest market value.
Now, whether it is Qualcomm or Cisco, it is only Xiaohe that shows its sharp corners, and almost no one pays attention to these two companies. But once Qualcomm has emerged in the mobile communications industry and Cisco has shown ugliness in routers, it will not be so easy to invest in these two companies.
Just like Microsoft now, after Qualcomm and Cisco go public in the future, it is really not so easy to acquire their shares.
"Boss, besides the stocks of these companies, do you have anything else to order?" David Anderson asked.
Yang Jing shook his head and said, "There is nothing special to pay attention to. The stocks of these companies are all listed as priority. As for other stocks, you can figure it out. However, I suggest that it is best to give priority to blue chip stocks in the market. This year, US stocks The market is very good, now buying some blue-chip stocks, a little hug can make a lot of profits."
This is not what Yang Jingluan said. The U.S. stock market before October 1997 was a super bull market. Pick a stock at the beginning of the year and buy it. As long as you hold it for ten months, you can make a profit of more than 50%. .
For example, General Electric, in January 1997, the stock price was only 3.6 US dollars per share, but by October, its stock price can soar up to 5.5 US dollars per share; IB stock will go from 2 US dollars in January /Share soared to a maximum of 44 US dollars per share; and the famous Citibank, it soared from 5 US dollars per share in January to 4 US dollars per share in October, a rise of more than 300%...
The U.S. stock market in this period is like the big bull market of China Stock Market in 2007. You can make a profit by buying stocks with your eyes closed.
The most important thing is that Yang Jing has an unknown purpose besides making money in advance.
Now that he has decided to start investing in a fair and honest manner, Yang Jing must master some of the company stocks that are familiar to later generations and can make a lot of money. For example, Microsoft, Oracle, Intel, Cisco. As for Wal-Mart, which is regularly ranked first in the top 500, Yang Jing will certainly not let it go. In addition, giant companies like General Electric, General Dynamics, and IB can raise their social status in the United States by holding a certain amount of their stocks.
Of course, it is not so easy to acquire the shares of these companies on the stock market, but Yang Jing knows that at the end of this year, there will be an excellent opportunity for him to acquire the shares of these companies on a large scale.
That was the stock market disaster that broke out on October 29, 1997.
The stock market crash that broke out on October 29, 1997 can be said to be the most tragic stock market crash in American history. The US stock market alone evaporated five thousand of France’s annual gross national product in one day. One hundred million U.S. dollars!
The 500 billion US dollars in 1997 is an astronomical figure. Even if 10% of it is divided into it, it is worth 50 billion U.S. dollars!
Of course, in this stock market crash, except for dozens of stocks that did not fall, the stocks of all the companies that Yang Jing needs to invest in have all plummeted.
Before the stock market crash broke out, General Electric’s stock price hit $5.5 per share. As a result, on the day of the stock market crash, its stock price fell directly to $3.2. UU Read www.uukanshu. Com's decline in one day was even greater than the previous ten months; IB's stock dropped from $44 per share to $25.5 per share; Wal-Mart went from the highest $5.35 per share to $2.75 per share. As for Microsoft, it fell from US$4/share to US$26/share, while Intel was even worse, its stock price fell directly from US$.30/share to US$0.55/share...
During the stock market crash, taking advantage of the sharp drop in the price of these stocks, it is possible to purchase the outstanding shares of these companies at a very small price. Moreover, on the day of the stock market crash, due to the panic of the market, the selling on that day was extremely large. As long as you have money, you can buy enough stocks!
Of course, in view of the strict monitoring of the U.S. stock market, Yang Jing needs to find a good reason for himself to buy stocks of major companies on the day of the stock market crash, and that is stock repurchase!
On the day of the stock market crash, due to the sharp drop in stock prices, the company and its shareholders could repurchase the stock to assess the stock price. This is a matter expressly permitted by the US Securities Regulatory Commission.
And if you are not a shareholder, take advantage of the stock market crash and buy the bottom at a low price.
Therefore, if you want to repurchase a large number of stocks during the stock market crash, you must become an important shareholder of the company.
It is for this reason that Yang Jing asked David Anderson to acquire a minimum of 5% of the shares of these companies before October.
Only if you hold 5% or more of the company's stocks, you have the right to buy back a large number of stocks in a stock market crash!
This is one of Yang Jing's plans.