Chapter 393 393 Huge stocks horrible interest (seeking monthly ticket)

  The following day, on January 11, Wang Guanxi’s Ma Tsai Stephen Steinor has already contacted Buffett’s secretary.

  There will be news soon.

  Wang Guanxi is waiting quietly.

  At this moment, Berkshire Hathaway headquarters.

  Buffett leaned on the boss chair, frowning.

  Now Berkshire Hathaway’s stock price has plummeted to $84,000.

  This is Berkshire Hathaway’s eighth consecutive day of decline since the release of its third quarterly report, which has shrunk 77% in profits, setting a new record for the company’s largest decline in at least 23 years.

  At present, Berkshire Hathaway’s stock price has fallen to its lowest point in three years, and has fallen 41% this year, which is almost the same as the 45% drop of the S&P 500 Index over the same period.

  In the past 20 years, Berkshire Hathaway has achieved stock price increases for 17 years.

  This year, he spent more than 28 billion U.S. dollars on various acquisitions and securities investments, but now it seems that the time to "buy dips" is still too early.

  On September 23, he purchased USD 5 billion of permanent preferred stock of Goldman Sachs. The convertible price of its common stock was USD 115. At that time, the stock price of Goldman Sachs was still above USD 125.

   But the situation has changed suddenly. Goldman Sachs' stock price has fallen to 55.18 US dollars, which has plummeted by nearly 55% from the time when he took the stock.

  On October 1, he announced that he would inject US$3 billion into the troubled General Electric and promised to purchase the latter’s common stock at a price of US$22.25 per share. At that time, General Electric still closed at US$24.50.

  However, the miracle still did not happen. General Electric's stock price fell all the way thereafter, and it fell to $14.45 this week. The "stock god" was once again caught in a deep trap.

  At the same time, some of Buffett's original heavy stocks also suffered Waterloo.

  American Express, one of the top ten largest stocks, has fallen 67% since September 30, and the second largest investor, Wells Fargo, has also fallen miserably this year.

  Not only is he deeply trapped, he is also facing a crisis of trust.

  He is not only a temporary break in the stock, but also the huge loss risk that Berkshire Hathaway faces in the stock index betting!

  Investors are worried about gambling about the company’s $37 billion stock index futures.

  Now Buffett has sold $4.85 billion in contracts to protect buyers against the future decline of the four major global stock indexes such as the S&P 500.

  Before September 30, Berkshire had written down $6.73 billion in the value of the contracts sold because the S&P 500 index had fallen for four consecutive quarters.

  At the same time, the price of Berkshire’s credit default swaps (CDS) has more than tripled in the past two months.

The higher the price of CDS, the higher the default risk of the bond.

   "Oh, this half year is really bad!"

   "I don't know when this financial crisis will be overcome!"

  Buffett pressed his temple.

  At this time, Buffett’s secretary came and spoke briefly.

  Buffett, who was frustrated, was taken aback, and asked: "Any financial institution wants to ask us to borrow shares of Wells Fargo?"

  "Yes, sir" the secretary replied: "It is the boss behind Stephen Steinor, chairman of Huntington Bank in Ohio!"

  Buffett asked again: "How much do they want to borrow?"

  Secretary: "100 million shares"

  "100 million shares?" Buffett opened Wells Fargo's stock price chart and took a look, and a slight contempt appeared at the corner of his mouth. After thinking about it, he said, "Just borrow 50 million, and the monthly interest is 1.5%."

  "Okay, sir" the secretary hurried to do it.

  Then Berkshire Hathaway loaned 50 million shares of Wells Fargo Bank to Fund 3.

  Wang Guanxi is very satisfied.

   "Now there are 100 million shares, but they are worth 2.2 billion U.S. dollars. There are 5.8 billion U.S. dollars in the No. 3 fund account, and I still need to borrow more!"

  Huang Shaokai said: "BOSS, when we shorted Wells Fargo Bank for the first time, we were blocked by Baroda Bank of India. They own 100 million shares of Wells Fargo Bank. We just ask Baroda Bank of India to borrow."

  Wang Guanxi was very excited when he heard it.

  "How did I forget the enemy of Baroda Bank of India"

   "This bearded Anand Mahindra of Baroda Bank in India recently heard that he has made a lot of money elsewhere!"

   Then Wang Guanxi called Anand Mahindra of Baroda Bank of India.

  The call was quickly connected, and Wang Guanxi said straightforwardly: "Anand Mahindra, I would like to borrow your 100 million Wells Fargo stocks from Baroda Bank of India."

  Anand Mahindra touched his beard, smiled coldly, and said, "You want to short Wells Fargo for the second time?"

   "Yes," Wang Guanxi replied: "I asked Sundpur Batra of the Indian Industrial Trust and Investment Bank to borrow 50 million shares, but he doesn't borrow it. Now I want to borrow it from you!"

   Anand Mahindra: "Haha, well, this time we will fight again. If you can suppress it, only 100 million shares are nothing. I will help you ask the Indian Industrial Trust Bank to borrow another 50 million shares!"

"dare?"

   "I'll ask you dare you?"

  Recently, Anand Mahindra shorted the US stock index futures and made billions of dollars. Now he is very confident.

  Wang Guanxi responded: "If there is anything you dare not, 150 million is 150 million shares, you borrow it!"

   "Okay!" Anand Mahindra directly called Sundeep Batra of the Indian Industrial Trust and Investment Bank. After some remarks, Sundeep Batra was also moved.

Anand Mahindra vowed: "Wells Fargo’s stock price has bottomed out, Sandep Batra, I have made a lot of money this time and have no place to invest, so I plan to continue to increase my holdings in Wells Fargo. This Wang Guanxi Just hit my gunpoint"

  Sundep Batra nodded: "Okay, I'll borrow it!"

  So, Baroda Bank of India lent 100 million shares to Fund 3, and Indian Industrial Trust and Investment Bank lent 50 million shares to Fund 3!

  In this way, Wang Guanxi’s No. 3 Fund has borrowed 250 million shares of Wells Fargo Bank!

   These 250 million shares are worth 5.5 billion U.S. dollars, and the monthly interest is as high as 82.5 million U.S. dollars, which is a monthly interest of 639 million Hong Kong dollars.

  This game is really too big.

  Huang Shaokai said nervously: "BOSS, we have done too much this time. The revenue of the Black Shirt Insurance Company and the Black Shirt Investment Bank are not enough to pay interest."

  Zhang Dexi also said: "Yeah, this time we really played too much. If we are blown up, we will be finished."

  Wang Guanxi said confidently: “What are you worried about? This Baroda Bank of India is a fart. That bearded Anand Mahindra made billions of dollars in the US futures market, and he also gave us food.”

   Wu Zhankun: "BOSS, kill him this time!"

  Bai Weiqiang also said: "Kill him"

  Wang Juehao also echoed; "Crush this Indian Asan!"

  Wang Guanxi nodded: "Very well, waiting for the US stock market to open tomorrow night!"

  (End of this chapter)