Chapter 353: Chapter 353 Occidental Petroleum
Regardless of how others viewed it, Hardy greatly benefited from the ongoing Middle Eastern war.
He made a modest profit from selling cargo ships, earning just under fifty million dollars.
He also profited from selling weapons.
Additionally, there was his investment in Johnson. If Johnson succeeded, Hardy's involvement would be a contributing factor, but the larger factor would undoubtedly be the unwavering support of the Jewish community, enabling Johnson to assist Israel. Thus, the Middle Eastern war directly bolstered Hardy's investment in Johnson.
If the investment in Johnson proved successful, the Hardy Group was poised for a period of significant growth and development.
The Hardy Group's think tank had already been established. A few days ago, Hardy convened several think tank members to analyze the potential benefits for the Hardy Group if President Johnson were re-elected. The think tank subsequently produced a detailed report.
After reviewing the report, Hardy couldn't help but admire the think tank's insights. While they might not have the ability to predict the future, they possessed extensive knowledge and experience, making them highly adept at leveraging resources.
Their recommendations aligned with Hardy's own vision for the future, clarifying the strategic path he intended to follow.
The investment banking division of Wells Fargo had been formed and was now operational.
While other economic experts decide which companies to invest in based on experience and intuition, Hardy had the advantage of foresight, he knew which industries would thrive. Even some companies that were currently obscure would become highly successful in the future. If he seized the opportunity to invest in them now, he could reap substantial profits.
The industries with the most significant profit growth after World War II were oil, military, pharmaceuticals, consumer goods, and food. Investments in these areas were bound to be successful.
Hardy began compiling a list of potential investment targets, preparing for his investment company to buy shares in these companies:
Merck Pharmaceutical Company: A member of the California consortium and an old friend of Hardy's, they have a cooperative relationship, having jointly built a penicillin production line in England. In later years, Merck would rank among the top pharmaceutical enterprises in the United States, making it a worthwhile investment.
Hardy decided to approach David Merck, the owner of Merck Pharmaceuticals, to see if he could acquire some shares not to control the company, but purely as an investment.
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Pfizer: This pharmaceutical company needs no introduction.
Johnson & Johnson and Procter & Gamble The two largest healthcare and consumer care products companies in the world.
Coca-Cola: Hardy had already acquired shares in Pepsi but wasn't satisfied and planned to invest in Coca Cola as well.
IBM: In the electronics industry, Hardy planned to invest in IBM. Although IBM would later be overshadowed by companies like Apple and Microsoft, it remained a giant in the computer industry.
Motorola: Originally starting with car radios and producing walkie talkies during World War II, Motorola was a company with significant growth potential.
Military Industry: If the opportunity arose, Hardy planned to acquire shares in military enterprises.
Oil Industry: Hardy saved the oil industry for last because these companies were already giants, making it difficult to acquire shares, though buying stock was still an option. For instance, ExxonMobil and Chevron. With the Middle Eastern war underway, Hardy knew these oil companies wouldn't miss the opportunity to seize the Middle East oil.
For the next 20 to 30 years, up until the oil crisis in the 1970s, oil companies would make huge profits. It was definitely worth investing in. However, Hardy realized he would only be able to earn a limited amount by following along.
Suddenly, Hardy's pen paused, and he wrote down another name: "Occidental Petroleum." Hardy recalled reading a biography about a man named "Armand Hammer," a Russian American who was praised as a "business genius" and a "lucky man."
Currently, Hammer hasn't bought Occidental Petroleum yet. Occidental Petroleum was still struggling financially. Later, Hammer would buy this oil company for $340,000, and not long after, they would strike oil on their original land. The company would then begin to rise rapidly, eventually becoming the world's eighth largest oil company.
However, in 1948, Hammer hadn't acquired Occidental Petroleum yet, he was likely still raising cattle on his farm, leading the country in raising Angus cattle.
As for Occidental Petroleum, it was based in Los Angeles. Los Angeles was situated on a large oil field and was home to many oil companies in the United States.
Hardy immediately got the idea to acquire Occidental Petroleum.
He called Henry.
"Henry, investigate a company called 'Occidental Petroleum,' it should be in Los Angeles."
"And also, investigate a man named 'Armand Hammer'; he should be running a cattle ranch in New Jersey now."
"Got it, boss," Henry replied.
The information Hardy provided was sufficient, making it not too difficult to investigate. Two days later, Henry came over with the information and reported to Hardy.
"Occidental Petroleum was founded in 1920, registered in Los Angeles, and is considered a small scale company. They once drilled a few oil wells, but their owner sold them. Later, they kept acquiring land elsewhere but never had such good luck again.
"The company's current operating situation is not good, and the company is valued at no more than $1 million."
"Armand Hammer is 48 years old this year, a Russian American who helped his father run a pharmaceutical factory and was already worth millions in college. In his 20s, he went to the Soviet Union and received Lenin's support to run a pencil factory, earning several million dollars.
"After Prohibition was lifted, he ran a whiskey distillery in New Jersey. Later, to deal with the waste produced from making alcohol, he started raising cattle. Now, he has a farm of over 2,000 acres in New Jersey and is the chairman of the Angus Breeding Association."
The reason Hardy wanted to find Armand Hammer was that he always felt people have their own fortunes, and so do companies.