Easy Tycoon

Chapter 348 The Unknown Purpose



Chapter 348 The Unknown Purpose

"Boss, are you really sure to buy Berkshire shares at such a high price? The company's shares have risen from less than seven dollars a share 23 years ago to nearly three thousand dollars a share now, an increase of more than It has increased four hundred times! I think the stock price of this company has reached its peak. If we buy this stock, the risk will be very high!" David Anderson obviously did not agree with Yang Jing's proposal.

But he doesn't agree with it. Yang Jing is the boss. The most important thing is that David Anderson doesn't know about the miracle of Berkshire Hathaway, but Yang Jing knows it all!
Although Bill Gates and Warren Buffett have been competing for the title of the world's richest man in later generations, and Warren Buffett only won Bill Gates once, this does not mean that Warren Buffett can't do it. On the contrary, in some On the one hand, Buffett, who is known as the "God of Stocks", has done even better than Gates.For example, Berkshire Hathaway under the control of Buffett.

Compared with Microsoft, Buffett's Berkshire Hathaway is not weak at all. Yang Jing will not let go of this behemoth whose market value will be larger than Microsoft's in the future.

This diversified investment group with a total share capital of only 164.55 million shares and currently only 85.6 shares in circulation is definitely a miracle.

The predecessor of Berkshire was a textile factory on the verge of bankruptcy. In 1964, it was picked up by Buffett, who was discerning at the time. The textile factory began to come back to life, and the stock price soared from less than 7 US dollars per share at that time to a maximum of more than 32 US dollars per share in later generations. On January 2018, 1, it created a magical valuation of 29 US dollars per share. A stock with the highest unit price in the world!The market value has also soared from less than 326350 million U.S. dollars in 1964 to nearly 300 billion U.S. dollars in 2018, making it one of the top ten giant companies in the Fortune 5000!

That's right, compared to 1964, Berkshire's valuation has indeed soared four hundred times, but compared to 2018, the price of less than three thousand dollars per share is still far behind.Even if you buy Berkshire stock from now, after 30 years, this stock will still have a [-]-fold increase!
How could Yang Jing let go of this stock?

"Well, you are the boss. Since you gave the order, I must obey it." David Anderson seemed a little reluctant.

Yang Jing said: "David, I'm not trying to force you. I'm just very bullish on this stock. Just like you are bullish on Microsoft and Oracle, I'm also very bullish on Berkshire. According to my analysis, if you don't If anything goes wrong, within three years, the price of this stock will increase by about two times, almost reaching a price of nine thousand dollars a share, and within five years, the price of this stock will certainly exceed ten thousand dollars. 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 what Yang Jing said was so firm, David Anderson couldn't help being a little shaken. "Boss, can the share price of this stock really soar so high?"

Yang Jing nodded affirmatively and said, "My analysis is based on Warren Buffett. Only under the control of this talented investor can Berkshire develop rapidly. So, when you acquire Berkshire When it comes to Berkshire shares, it is best to contact Buffett. Of course, when acquiring the shares of Berkshire’s minority shareholders, you can buy them at a premium. I can authorize you to buy this stock at a premium of 30%! But my The requirements are the same as before, before October this year, they must control 5% of Berkshire’s stock.”

When Yang Jing mentioned the price, even David Anderson couldn't help but gasped.A 30% premium is not a small figure. It seems that the boss is really determined to buy Berkshire's stock.

"Okay, boss, I will complete this task within the time specified by you." Although Berkshire Hathaway's valuation is now as high as nearly three thousand dollars a share, the overall market value of this company is also It is less than US$50 billion, and the boss asked to acquire 5% of its shares. Even if it is purchased at a premium of 30%, it is nothing to KY funds.

"Boss, is the Qualcomm and Cisco you just mentioned also a priority?"

Yang Jing nodded and said, "That's right, the investment priorities of Cisco and Qualcomm are the same as those of Microsoft, Oracle, and Intel. We must obtain enough shares before they go public."

Just kidding, when will you not invest in Qualcomm at this time?Qualcomm, which has just been established for less than two years, will be the absolute overlord of the mobile communication industry in the future.If Intel is the hardware overlord in the computer industry, then Qualcomm is the hardware overlord in the mobile communications industry.

In the future mobile communication industry, ARM in the UK controls the software authorization, 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, let alone this.Everyone in the world knows what the state of this company will be like in the future!This company will be synonymous with the Internet in the future, and even surpassed Microsoft when its market value was the highest.

Now whether it is Qualcomm or Cisco, it is only Xiaohe who is showing his talents, and almost no one pays attention to these two companies.But once Qualcomm makes its mark in the mobile communications industry and Cisco shows itself 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 will not be 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 listed as priority. As for other stocks, you can figure it out for yourself. But I suggest that it is best to give priority to large-cap blue-chip stocks. The current market is very good, and buying some blue-chip stocks now can make a lot of profit with a little hug."

This is not Yang Jing’s nonsense. Before October 1987, the U.S. stock market was a super bull market. At the beginning of the year, you can choose any stock 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 1987, its stock price was only 3.6 US dollars per share, but by October, its stock price could soar to 5.5 US dollars per share; /share soared to the highest US$28/share; and the famous Citibank even soared from US$44/share in January to US$15/share in October, an increase of more than 48%.
The U.S. stock market in this period is like the big bull market in China's stock market in 2007. You can make money by buying stocks with your eyes closed.

The most important thing is that besides making money in advance, Yang Jing also has an unknown purpose.

Now that he has decided to start investing in an aboveboard manner, Yang Jing must master some company stocks that are familiar to future generations and can make a lot of money.For example, Microsoft, Oracle, Intel, Cisco, and as for Wal-Mart, which is often ranked first in the top [-] in later generations, Yang Jing will certainly not let it go.In addition, giant companies such as General Electric, General Dynamics, and IBM can improve their social status in the United States by holding a certain amount of their stocks.

Of course, it is not so easy to buy the stocks of these companies in the stock market, but Yang Jing knows that there will be an excellent opportunity at the end of this year for him to buy the stocks of these companies on a large scale.

That was the stock market crash that broke out on October 1987, 10.

The stock market crash that broke out on October 1987, 10 can be said to be the worst stock market crash in American history. The US stock market alone evaporated 29 billion equivalent to France's annual gross national product in one day. Dollar!
$1987 billion in 5000, that was an astronomical figure.Even if 500% of it is allocated, it is still worth [-] billion US dollars!

Of course, in this stock market crash, except for dozens of stocks that did not fall, the stocks of companies that Yang Jing needed to invest in all plummeted.

Before the stock market crash broke out, the stock price of General Electric hit 5.5 US dollars per share. As a result, on the day of the stock market crash, the stock price fell directly to 3.2 US dollars. Shares fell to $44/share; Wal-Mart directly went from the highest $25.5/share to $5.35/share.As for Microsoft, it fell from $2.75/share to $48/share, while Intel was even worse, with its stock price falling directly from $26/share to $1.30/share.
In the stock market crash, taking advantage of the sharp drop in the prices of these stocks, it is absolutely possible to acquire the outstanding shares of these companies at a small price.And on the day of the stock market crash, because of the selling panic in the market, the selling price was extremely high that day. As long as you have money, you can buy enough stocks!
Of course, in view of the strict monitoring of the US stock market, Yang Jing needs to find a good reason for himself to buy a large number of stocks of major companies on the day of the stock market crash, 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 can repurchase shares to assess the stock price, which is allowed by the US Securities Regulatory Commission.

And if you are not a shareholder, taking advantage of the stock market crash to buy low prices, it doesn’t matter if the amount is small, but if the amount is too large, you will be investigated by the relevant departments in minutes.

Therefore, if you want to buy back 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 at least 5% of the stocks of these companies before October.

Only if you hold 5% or more of the company's shares, you have the right to repurchase a large number of shares openly and aboveboard during the stock market crash!
This is one of Yang Jing's plans.

(End of this chapter)


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