Wall Street Legend

  Chapter 114 Safe

  Sr. Buffett's remarks hit the nail on the head.

  In fact, in the mid-1990s, the Nasdaq market had already experienced a bubble. Many start-up companies were desperately burning money and doing publicity, but they ignored the core thing of a company—how to make money.

   Without the support of real performance, no matter how high the market value is, it is nothing but a fantasy. In the past two years, countless Internet companies have gone bankrupt, and the correctness of this argument has been vividly deduced.

The carnival of the past few years ended, leaving chicken feathers all over the floor. Ye Dongqing easily spent several thousand dollars a month to recruit programmers who had a monthly salary of 20,000 to 30,000 dollars. There were too many unemployed people. If you don't get a job, you'd rather go all the way from Silicon Valley on the West Coast to New York to make a living.

  Looking back at the traditional companies at this time, the market value is generally ten to twenty times the annual profit, with little fluctuation up and down, and the price-earnings ratio of high-risk companies is only five to ten, which is stable and safe, and is determined by profits.

This is the focus of Buffett's attention when investing. It is easy to buy the investment secrets of this old man, but not everyone can learn the essence. Whenever hot money pours into the stock market and pushes up the stock price, it often means There are too many bubbles, and the risk of stock market crashes increases. Unfortunately, many investors are too blind to understand this truth.

  Every time chasing high, it is like dancing on the edge of a cliff, and no one knows when it will fall.

Ye Dongqing understands that if he wants to attract Buffett's attention, he must come up with something real, which is much harder to fool than ordinary investors. It's hard to impress him under any circumstances. After all, at this level of value, one's attention has already surpassed money itself. When one is old, what one wants is a sense of satisfaction and accomplishment, not money.

   It is no exaggeration to say that Mr. Buffett already has everything he wants, has gained both fame and fortune, and is at the peak.

  So.

Ye Dongqing said with a smile at this moment: "Now they have paid the price for their greed. There are still a lot of junk companies left in the Nasdaq Internet sector, but after more than two years of decline, gold has also been exposed on the river beach , I need someone to give me money to buy equipment, and then enter the market to pan for gold.

Now there are several great companies in front of me, and I still lack the capital to invest in them. I hope you can cooperate with me. If your vision is wrong, I will return all the principal to you at the highest interest rate of U.S. treasury bonds. You have already been so successful in other fields, don’t you, sir, don’t you want to be called a technology giant someday in the future? Those are great companies, they are changing the world, changing the habits of human society. "

  Beside, Buffett's old secretary just laughed, thinking it was another arrogant young man.

The old man sitting opposite Ye Dongqing was laughing, and he told him: "The view that the Nasdaq index has bottomed out, we have more consistent views, the question is why should I believe your vision? If you can come up with A lot of bonds, or Coca-Cola or something like that, I'd be happy to give you money to invest in, but it looks like you don't have that much money, or you wouldn't try to get investment from me, would you?"

  Nodding in agreement with this statement, Ye Dongqing asked the old Buffett: "How much money do you think I had three months ago?"

The other party did not answer, which made him a little embarrassed, and took the initiative to say: "After the money was stolen, I only had a little over a hundred dollars, and now I have tens of millions of dollars. The reason why I said this in front of you is to Let me tell you that I am a capable and visionary person, when you first started out, your growth rate was definitely not as fast as mine."

   “That’s right, it took me years to make my first $10 million.”

"I want you to believe me once, invest me 50 million US dollars at the beginning, and you can add more after the company makes a profit. If the return rate within five years is less than 200%, then I will not pay a penny." Take, after that number we each have half."

  Ye Dongqing is still trying.

   If he can’t get the money right now, he can only miss many opportunities for nothing, but if he gets it, at least half of the profit will be left, and this money will be considered as extra profit, extra money earned.

  Even if he didn’t persuade the old man to invest in himself, anyway, except for the gas money back and forth, it was just a waste of time and there was no loss.

  Buffett listens very carefully. Usually, many people come to him to try to obtain investment, start-up capital, etc., but there are not many young people with such a big appetite. They can only open their mouths for 50 million US dollars. Excessive self-confidence is like conceit.

   Feeling interesting, he hesitated for a moment and then changed the topic: "Last night you said that you are investing in crude oil futures recently. What is the starting price and expected interest rate?"

"The average starting price is 25 US dollars and 89 cents. I hope to get about 15% of the profit within three months. After reaching this expectation, the delivery will be made immediately. If it is more than 10%, you can start to consider it. Judging the situation and then Make a decision."

   "How much leverage?"

   "4% of the deposit, and another 10 million US dollars as a supplementary deposit, otherwise no middleman would dare to take this job."

Ye Dongqing said it easily, old Buffett suddenly looked at him with a strange look, and said: "It seems that you are more courageous than I imagined, I have never used such a high leverage in my life, you This kind of gambler personality has advantages and disadvantages, and it is easy to lose too much principal at once. Although I am also bullish on crude oil futures recently, I have no plans to invest.

In fact, I am very interested in your suggestion, but I want to wait until you have made some gains in the crude oil futures market. I must first know whether your vision is really what you said it is good. "

   "But by then, I guess I won't be short of money. If I wasn't more optimistic about the long-term interests of the warrants, my company could afford the 50 million dollars. There's no need to come here to bother you."

To tell the truth, Ye Dongqing felt that he would probably fail. The reason was that Mr. Buffett's character was more stable than he imagined. mean.

   is indeed a stable character, which makes Berkshire Hathaway miss many great opportunities to make money while being safe.

Don't look at the giants on Wall Street who talk about how much money they lost during the collapse of the Internet bubble all the time, but they are calculated based on the value of the stock market at its peak. Some brokerages bought it when Microsoft went public in the 1980s. Buying a few percent of the shares for a few million dollars has already made a lot of money during the period. The real losses are the group of retail investors and investment institutions who entered the market later, and all those who were able to withdraw before then withdrew.

  During this process, the old Buffett didn’t get the cake. It may be because of his age. He tried his best to pursue security and lacked the energy of young people

  (end of this chapter)