America’s Road To Wealth

  Chapter 169 Crazy Gambling Agreement

   Backstabs are too common for Wall Street.

  In parallel time and space, the fall of Lehman Brothers.

  In addition to its death, there is a backstab at a critical moment by Goldman Sachs and Merrill Lynch.

  At that time, Goldman Sachs said it would help, under the guarantee of Goldman Sachs and other Wall Street giants.

  Lehman Brothers took out their best assets, about 30 billion U.S. dollars in assets.

  Goldman Sachs acted as assessor.

  After the evaluation, only a price of 40% was offered.

  With the joint efforts of other Wall Street giants, Lehman Brothers urgently needs funds to continue their lives.

  You can only sell your most valuable assets.

   This is a backstab for Goldman Sachs.

  Merrill Lynch sold itself one step ahead of time, cutting off the last retreat for Bank of America to acquire Lehman Brothers.

   It can be said that on Wall Street, backstabs among peers are happening every day.

  Abel backstabs the Wall Street firm that shorted this time.

   In this regard, Buffett did not feel that there was anything wrong.

  Abel did this, and Buffett felt that this was a normal Wall Streeter.

  The only thing Buffett feels puzzled about.

   It is Abel, how can he know in advance what happened in Scotland on the other side of the ocean.

   To say that this matter was led by Abel, there is a slight possibility.

  What can Wall Street do for profit?

   Just blow up the Queen's car

  For the sake of profit, Shenjing Binggunmen brainstormed a set meal, why not arrange it for the owner of the white house?

   But Abel's rise time is too short, and he has never been abroad at all.

  Also had almost no contact with Europe.

   In this case, in such a short period of time.

  If it can affect Scotland.

   Then he is too scary.

   Another possibility is that Abel did not do it.

  Abel only knew this information in advance through certain channels.

   The possibility of this aspect, Buffett thinks it is higher.

   But even if it is the latter possibility, Buffett thinks Abel is very scary.

  The reason is that this will affect the intelligence information of the financial market.

  The gang on Wall Street did not receive the news, nor did they receive the wind.

  Abel was notified in advance, and set up a countermeasure three days in advance.

   Doesn't this mean that Abel has the ability to obtain intelligence.

  Better than Wall Street, at least better than these investment banks?

  The more Buffett thought about it, the more incredible he felt.

   This made him shake the idea that he just wanted to come and have a look this evening.

  Buffett wants to invest a little bit now.

   But what makes Buffett want to invest is not Smith Capital, or Smith Capital's private equity.

   It was Abel who gave Buffett the idea of ​​investing.

  Buffett believes in prudent investment and advocates value investment.

   I don't like high-risk private equity or investment.

  But he now feels that Abel is very valuable.

  Then investing in Abel can also be regarded as in line with his investment philosophy and style.

  The only bad thing is that in Buffett's view, Abel's investment style is too risky.

   Buffett is still considering.

  From Abel's point of view, in fact, he only revealed information based on his "talent".

   Talent allowed him to observe this in advance.

  He knew something was going to happen in England.

  It will affect the pound and the euro, after the pound and the euro are affected.

  It will in turn affect the dollar, which will turn the dollar from falling to rising.

   But he didn't know exactly what would happen in the UK.

  He did that on purpose just now, just to let these guys know in advance.

  Knows his own ability in finance, and knows that he has many oligarchs on Wall Street jointly shorting the situation.

   Also the ability to mow their leeks.

   This is mainly to make these people question his offer less.

  But he didn't expect that something happened in England.

   But something went wrong in this regard.

  The bombing of the Queen's car is definitely a major event in the UK.

   Later David Mellon came to tell him the news, and after the queen was not hurt.

  He just knew about it.

"Forehead"

  He felt as if he had gone too far this time.

   It would be a pain in the **** to make these investment bank giants doubt anything.

   Leak it out by the way, let the British side know

  But when he thought about it carefully, he was really not that scared.

   Most importantly, the present in 2000.

  Daying is no longer what it used to be.

  If this was changed to fifty years ago, Abel would have been afraid of "James Bond" coming to make trouble.

   Switched to thirty years, "James Bond" also has a little bit of deterrence.

   Now in 2000.

  The shit-stirring stick that was successfully deindustrialized and privatized by Thatcher.

  Now there are only words and financial power left.

   In a few years, even the carrier of Muhai's power can only rely on the United States.

  A country that puts all its power into the hands of the Americans to launch wooden bombs, what else can it do to the United States other than talking about it?

  Daying has almost started to mess up and stretch in all aspects.

   Such a **** stirrer.

   Does it really dare to send "James Bond" against a Wall Street capitalist?

   There is still no evidence at all, only a little suspicion.

   What's more, this capitalist himself was born in Texas.

   Also has a close relationship with the family of the incoming Grand Commander.

  Beside me, there is an elite infantry platoon with me at all times for self-defense.

   Without definite evidence, does the **** stirrer really dare to do it?

   If he really dared to do it, then Abel felt that he might be happy instead.

  Because after this, he has an excuse to crack down financially on exploitative shit-stirring sticks.

  At that time, even the White House would be embarrassed to stop him.

   You must know that London is still the financial center of the world. At this time, the British people are richer than neon!

   Not to mention the fact that Abel is with Ireland.

  The only connection is his capital company registered in Ireland.

   Others, he really has nothing to do with it.

  Daying really has this ability or determination.

   Soros attacked the pound in 1991, causing the pound to plummet.

  Let the United Kingdom lose nearly 5% of its GDP that year.

  Britain, with such determination, has already attacked Soros.

and then?

  Soros is alive and well now, and NGO funds in Europe and the UK are being established one after another.

   In another ten years or so, Lao Suo will soon become the Supreme Emperor of Europe.

   It collapsed in 1991, can it still rise in 2000?

   Instead of worrying about suspicion and retaliation from the British side.

   It's better to worry about Mao Xiong, it's hard to say whether it can be done, at least he definitely has no shortage of determination.

  After this incident, the dollar started to rise.

  The giants who shorted the dollar tonight, they are not in the mood to stay in the reception at this time.

  As soon as they left, the reception would be without these investment bank giants.

  Abel and Buffett got together.

   "Warren."

   While chatting, Abel suddenly pointed in a certain direction and said softly to Buffett, "Let's go over there and have a chat."

  Buffett was taken aback, looking at the direction Abel pointed in the past.

  The stock **** nodded, and the two walked to another circle at the reception.

  In that circle, the three leading people are old men such as John Chris Morgan, David Rockefeller, and Davis Brown.

  As soon as the investment bank giants left, this circle immediately became the highest-ranking guest circle in the reception.

   Well, there's Morgan and Rockefeller.

   This circle has always been the most eye-catching circle except for Abel.

   "Hi~"

  Abel walked over with Buffett.

   Among the three old men, the youngest, John Chris Morgan, greeted the two with a smile.

   "Warren and Abel. The gods of stocks and Wall Street investment. You two stand together, and I feel that I have seen the present and future of Wall Street."

   "Ha~" David Rockefeller also said with a smile: "John is right. The present and future of Wall Street, this metaphor is too appropriate!"

  Abel and Buffett smiled together, picked up the red wine on the plate of the passing waiter, and came over to lightly touch the guests in this circle.

  After finishing a glass of wine, David Rockefeller suddenly gave Abel a thumbs up and said with a smile, "Well done, young man."

   Abel, who was whispering with Davis Brown, didn't know what David Rockefeller meant.

  He looked at the other person, who whispered a word.

"Dollar."

  Abel immediately understood what he was boasting about.

  Abel smiled and said: "I worked very hard. In order to hide it from them, I doubled the commissions to Citigroup and Wells Fargo."

   After the events in Scotland.

   Those Wall Street giants who are short, just do a little research.

   It will soon be possible to find out who is leading the rise of the dollar this time.

  One reason is that Abel didn't want to hide at all, he was showing off his muscles by doing so.

  Secondly, these giants unite and search for it.

   It was easy to find.

  After leaving the reception, they knew that Abel had stabbed them in the back.

  Qi is of course angry, but those who talk about being angry are at odds with Abel.

  That's not too bad, because the situation is not so bad that it can't be saved.

   What's more, backstabbing is too common on Wall Street.

  Laughing in person and calling Yan Yan a brother, stabbing a knife in the back is common.

  At this time, Davis Brown, who was chatting softly with Abel just now, said with a smile:

   “This is just normal investment behavior.”

   "David, this kind of thing happens every day on Wall Street, in the United States, and in the financial circles all over the world."

   "That's right." John Chris Morgan smiled: "Indeed."

   Both Morgan and Rockefeller set the tone on this matter.

  The tycoons who lost money by shorting the U.S. dollar after the event didn’t have a good reason even if they wanted to find fault.

   It means that Abel needs to pay special attention when investing in the future.

   But having said that, even without this backstab incident.

  Abel needs special attention every time he invests.

   While investing in Abel.

  As long as they see that it is profitable, even if they really invest in Smith Capital later.

  Or bought a private equity fund from Smith Capital.

  Even part of Abel's investment is their own money.

  As long as it is profitable, these people will never hesitate to start.

   Fortunately, it is only limited to the financial and capital fields.

  Honestly speaking.

   Abel felt.

  Tie Peter Lynch, Buffett, Soros, Julian Robertson, Mobius, John Bogle and so on.

  He is not afraid.

   What Abel is afraid of is only physical tricks.

  In the financial market, as long as Abel is willing.

   Then He is God.

  By this time, it was almost nine o'clock in the evening.

  The reception started for almost two hours, and it was almost time to end.

  In this reception.

  Smith Capital announced its profit for this year.

   In private, Abel announced his astonishing valuation of Smith Capital to the outside world.

   Also stabbed someone in the back by the way.

  Tonight, the purpose of this investment reception has been successfully completed.

   When it’s time to end, it’s time to end.

  According to the usual practice, the host Abel could not leave until the reception was completely over and all the guests were gone.

  But at nine o'clock, he talked to David Mellon and Merio.

   Then he exited early, before John Chris Morgan and David Rockefeller left.

   With him, there are two Texans, Davis Brown and John J. Brown.

   Oh, and one from Omaha, Nebraska.

   Together they came to an executive corridor of the Hilton Hotel.

  After sitting down at the table, Davis Brown spoke first.

   "Abe, don't you mind if I call you that? I used to play with Alex a lot."

   "Of course. My grandpa said that too." Abel smiled.

  To Abel's left at this moment is Nebraska native Warren Buffett.

  To Abel's right is John J. Brown.

  The reason why he left early with these three people.

  Because Davis Brown and Buffett both expressed interest in investing in Smith Capital.

  Talk to him.

  He brought them here together.

   "Abel." Davis Brown said calmly:

  "The valuation of 500 billion US dollars is still too exaggerated."

  “But we feel that 200 billion U.S. dollars is a relatively normal figure that can be recognized.”

   Faced with bargaining from fellow villagers, he is still a friend of his grandfather.

  Abel no longer looks like he likes to buy or not when facing the four major investment bank giants on Wall Street.

  Abel said seriously:

   "I still insist on a valuation of 500 billion US dollars. But Davis, we can sign a betting agreement."

   "Oh?" Davis Brown raised his thick and heavy white eyebrows.

   "What kind of gambling agreement?"

   "Four-year gambling agreement." Abel said:

   "This VAM agreement is also valid for you, Warren."

  After he said this, no matter whether it was Buffett or the two Brauns, they all stared at him seriously.

   "The first year of the VAM agreement."

   "I must ensure that the total profit of Smith Capital for the year is more than 10 billion U.S. dollars. Goldman Sachs was 4.2 billion U.S. dollars last year. 10 billion is more than twice as high as Goldman Sachs."

   "The market value of Goldman Sachs is about 65 billion U.S. dollars, and the market value of Smith Capital is 100 billion U.S. dollars. Isn't that too much?"

   "The content of the second year's betting is Smith Capital's profit for the year, which must exceed 20 billion U.S. dollars. Exponential growth, the market value of Smith Capital that year was 200 billion U.S. dollars."

   "The third year is 30 billion U.S. dollars, with a valuation of 400 billion U.S. dollars."

   "In the last year, I must ensure that Smith Capital's profit is more than 60 billion U.S. dollars."

   “That’s over $600 billion, I guess that’s not too much?”

  Abel doesn’t think the market value in his VAM agreement is too much.

   Among other things, let’s talk about General Motors Group, which has the largest market value this year, and Wal-Mart Group, the retail hegemony.

  When the market capitalization of General Motors was at its highest this year, it was once close to US$500 billion.

   Now there are only more than 430 billion U.S. dollars left.

  Its net profit attributable to its parent in the first three quarters was US$9.95 billion, and it is expected to be around US$13 billion for the whole year.

  When Wal-Mart had the highest market value this year, it was about 266.6 billion US dollars.

  The net profit attributable to the parent company in the first three quarters was higher than that of GM, which was US$10.1 billion.

  The whole year is probably around 13 billion US dollars.

   Net profit of more than 13 billion.

  One has a market value of 360 billion, and the other has a market value of 260 billion.

  If Smith Capital can achieve a net profit of 60 billion US dollars.

  According to the price-earnings ratio of about 33 times that of General Motors Group.

  The market value of Smith Capital can be 600X33 times, 1980 billion US dollars.

  If you think this price-earnings ratio is too high.

   Calculated by Wal-Mart's price-earnings ratio, it is also 20.5 times.

   In conversion, the market value will be as high as 1.2 trillion US dollars.

  60 billion US dollars, 600 billion market value, only ten times the price-earnings ratio.

   No matter which industry it is in, it is a low price-earnings ratio.

   Judging from the price-earnings ratio, shareholders can be said to have made a fortune.

  Hearing Abel's exaggerated gambling agreement.

  Whether it is the two Berrons or Buffett are silent.

   It's not that this exaggerated gambling agreement is bad, but that this exaggerated gambling agreement is too good for them.

  Good enough that they suspect there is a pit ahead.

  If there is such a high net profit, it is normal to have a price-earnings ratio several times higher.

  This is still compared with normal companies.

  If it is compared with the price-earnings ratio of the Internet industry.

  The net profit of 60 billion U.S. dollars, the market value can fly to several trillion U.S. dollars.

  Like Yahoo this year, in January, its market value once reached 128 billion US dollars.

   What was its net profit last year? -

  $3.435 billion.

minus!

   This was the normal state of Internet companies before the Nasdaq broke.

   How does that compare to a normal investment bank? Strictly speaking, Smith Capital is also an investment bank.

   Still use Goldman Sachs as an example.

  Goldman Sachs currently has a market cap of $65 billion.

  Net profit last year was 4.2 billion US dollars.

  P/E ratio is about 15.47 times.

  15 times of 600.

   There are 60 billion U.S. dollars in profits, which is less than ten times the price-earnings ratio, which is absolutely ridiculously low.

  The three people present all knew this.

  They felt that this exaggerated VAM agreement was all good for shareholders like them who wanted to invest.

   This makes everyone have to suspect that there is a pit.

"Of course."

  Abel added with a smile:

   "In the gambling agreement, such a clause must also be added."

   "Under my auspices, when the company reaches an annual gambling agreement, I must be personally rewarded."

   "The ratio of this reward is 20% of the profit."

   "For example, if I can earn 10 billion U.S. dollars in the first year, I need to give me at least 2 billion U.S. dollars in bonuses."

   "If it's $60 billion, then my bonus must be $12 billion."

   “After all, I am the one who has made so much money for everyone and brought you such a successful company.”

   "I don't think the rewards of 100 million points are really nothing compared to what you get."

   After all, if the VAM agreement is completed.

  Abel can get an extra 24 billion US dollars just in terms of year-end dividends.

  Note, it is extra extra.

   That is an extra reward after his normal remuneration and dividends.

  Based on this calculation, Abel can get a lot.

  Then this gambling agreement, on the contrary, increased the trust of the three of them.

  After a long silence, Davis Brown said softly:

   "Abel, are you so confident? You need to know that there is a failure clause for gambling."

   "Of course." Abel smiled: "The content of the VAM is as above. Other content is completely in accordance with the usual practice. Whatever the Wall Street VAM agreement is, then it should be."

   "You are so confident." Warren Buffett couldn't help but said.

  John J. Brown didn't speak, because he was the lowest among the people present.

  Abel smiled and spread his hands:

  "Vaint betting itself is gambling. Since it is gambling, there should be bets. I don't like games where the bets are too small, whether it's me or the other party."

  Abel said again: "This VAM agreement is not just for you. It is also for other interested investors."

   His previous words reminded the three of them of his investment style in the market.

  Think about Abel's investment style.

   It's no different from those professional gamblers in Las Vegas.

  High leverage, high risk, especially like to choose those varieties with great short-term fluctuations for investment.

  Although he wins every time, it is very thrilling every time.

  Guys with this kind of investment style offer such crazy gambling agreements.

  That makes sense.

   Watching the three fall into silence again, Abel stood up with a smile, and raised his hand to check the time on the watch on his wrist.

   "It's half past nine." He smiled:

   "I still have an appointment tonight. Three, go back and think about it."

   "Oh, that's right. I'm leaving for LA tomorrow, New York has been so cold this year. I probably won't be back until next month."

   "If you want to find me, you may have to go to the west coast next time."

   After speaking, he turned around with a smile and left without waiting for the three of them to respond.

  As soon as he left, the dozen or so bodyguards scattered in the administrative corridor also left.

  This scene made Buffett couldn't help complaining:

   "With so many security personnel, the annual security cost is not a small sum."

  Two Texans who have no friendship with Buffett, among them Davis Brown responded with a smile:

   "He still has a security company. He has registered as a PMC and is said to be planning to apply for light armed helicopters and artillery for training. Young people are more interested in this."

   "PMC? Armed helicopters and artillery? Is this too exaggerated? What is he trying to do, attack some small country?"

   "Ha~" Buffett laughed. He stood up and stretched out his hand to Davis Brown: "By the way, hello. Mr. Brown, I'm Warren Buffett."

  Davis Brown responded with a smile, "Hi, Mr. Buffett. I'm Davis Brown."

   The business with Abel has not been negotiated yet.

  The Nebraskans and the Texans became friends instead.

  (end of this chapter)