America's Road To Wealth Chapter 167

  Chapter 167 Really Fragrant Giant Crocodiles

  The double standards of the Ansa people are famous all over the world.

   But within themselves, they don't feel that way.

  At this moment, many giant crocodiles gathered face the aggressive Abel.

  Facing Abel's attitude of taking it for granted.

   For a while, they were speechless.

  According to Abel's strong words.

  He was right.

  The four major investment banks have an annual operating income of 30 to 40 billion U.S. dollars, which is not much different from their market value.

   But the investment profit is not even half of Smith Capital.

   This is mainly because investment banks do not make profits every time.

  According to his rhetoric, even the famous "Wall Street Bulldog" Richard Fuld.

   Can't find any good reasons to refute.

  Different from the Huaxia people, the Huaxia people like to stay a step behind when doing things, so that we can meet each other in the future.

  Ansa style is to take advantage of your illness to kill you.

  I insist that I am justified.

  Take advantage of these people not knowing how to verbally fight back against themselves.

   Abel spoke.

   "Just follow this ratio." Abel said with a smile:

   "Mr. who is interested, you can come and talk to me later. Mr. who is not interested, we will not force you."

   "After this, the private placement of Smith Capital will be open to everyone as always~"

   "The food and drinks prepared by Hilton tonight are very good. There is also the dry red wine from Chateau Margaux. I think it tastes great."

   "Everyone can give it a try~"

   After finishing speaking, Abel did not give them a chance to refute, and left with a smile.

  As soon as he left, Richard Fuld said angrily:

   "This price is too much! 500 billion U.S. dollars? He really dares to think!"

  The presidents of the other three major investment banks did not speak, but they were also nodding as if agreeing with Richard Fuld's words.

  500 billion US dollars market value?

  The stock price of General Electric, the largest company in the United States by market capitalization, is only close to 600 billion U.S. dollars.

   But General Electric has a long history, from the time of Edison to the present for hundreds of years.

   There are countless scientific and technological patents and a large number of subsidiaries, which are like pillars of technology in this country.

   Such a behemoth, it is still a listed company.

  Its market value is now more than 500 billion US dollars.

  I haven't spoken much tonight, David Komansky, the CEO of Merrill Lynch who is showing signs of losing his power, said leisurely:

  “Mr. Smith may just not want to accept others into Smith Capital. He simply offered such a price that we cannot accept.”

  David Komansky's statement immediately became the most acceptable possibility for everyone in the rematch.

   "It's really too much." Philip Purcell said clearly: "Morgan Stanley announced that it is no longer interested in investing in Smith Capital!"

   “So did Goldman Sachs!” Paulson said.

  Lehman Brothers and Merrill Lynch did not speak, but the two CEOs also nodded in cooperation.

  Look among the capital giants tonight.

  Because of Abel's exaggerated quote just now.

  The four major investment banks gave a unified answer of rejection.

   Many of the giants looked at Buffett, who smiled.

   "Mr. Smith's price is outrageous. CocCola's market cap is only $150 billion."

  Buffett said: "I don't think the current Smith Capital is more valuable than CocCola."

   Buffett's statement once again won the nod of many people in this small circle.

  For a while, the predators began to verbally attack Abel Smith and Smith Capital.

  Like that, no one seems to be interested in investing in Smith Capital anymore.

  Even George, who just came to join in the fun, quietly said to his family's private investment manager Steve:

   "Originally I was also interested in investing in Smith Capital. But now the price is too expensive."

  Investing in shares is too expensive, and George thinks it is unnecessary.

  But he thinks that Smith Capital's private equity can still be bought.

  He is not very good at mathematics, but he still knows how to calculate the 283.9% return.

  Steven nodded, and felt that what the boss said made sense.

   Among the crowd present.

   The only ones who didn't express much were the two members of the Texas consortium.

   There are also two old men from Morgan and Rockefeller.

the other side.

   Abel, who left the circle of crocodiles, did not think that his offer just now was too high.

  He has this confidence in himself, to be precise, in his "talent".

  He feels that he has his own "talent" as an investment manager.

   Worth the price!

   As for whether Wall Street agrees or not, that is Wall Street's problem.

   After leaving those giants, Abel found David Mellon again.

  In the surprised eyes of the latter, Abel proposed:

   "David, do you think if we set up a few more fund companies, there will be more subscribers?"

  The content of this aspect, before starting today.

  He didn't say that to David.

   This is exactly why David was surprised.

  But when he said it now, David almost changed his lane without thinking:

   "No problem at all ~ BOSS, you didn't see me coming down just now, and they blocked you. Many people wrote checks on the spot and wanted to join us."

  There are so exaggerated return data out there.

   There are so many Wall Street crocodiles on the scene who remain silent on this.

  This proves that Smith Capital is not lying, they are just so powerful.

   created such a miracle.

  The guests attending the reception tonight are almost all high-net-worth individuals.

   These people have money, and usually they need a financial manager.

  Many people's money, in addition to handing over to private independent investment and financial consultants.

  Generally, they invest in investment banks and securities companies.

  Now Smith Capital, I don't know how many times stronger than these companies.

  Then why not invest the money in the strongest Smith Capital?

   Two and a half months, 289.3% return on investment.

  Where can I find this kind of rate of return?

  Actually, Abel also knew that money touches people's hearts.

  Such a high return on investment, such an exaggerated profit margin.

  It is impossible that no one is tempted at the scene, the words just now are just an opening remark.

  After hearing David's affirmative answer, he smiled and said, "Then let's open a few more fund companies!"

  In the United States, the type of private equity fund that Chinese people are more familiar with.

  In the relevant laws of the United States, it is called 3C1fund. Because it comes under 3(c) 1 of the Investment Company Act.

  A private equity fund in the United States is essentially a private company.

   What the investors subscribed for is actually the shares issued by it.

  Like a Smith Fund, it's just a popular saying.

   Legally, it's actually going to be called "Smith Capital One."

  The total share capital is 3 billion US dollars, which is subscribed by investors.

  The investment consultant and management team are Smith Capital.

   It has fewer regulatory and disclosure requirements than public companies.

  But for fundraising, there are stricter requirements.

  For example, the number of investors cannot exceed 100, and it must be targeted at specific groups of people.

  IPO is not possible, each investor must be a qualified investor, and there are requirements for investors.

   That is, the assets under management are not less than 1 million US dollars, or the investor's net assets are not less than 2.1 million.

  China basically followed the example of the United States.

  Because it is necessary to raise funds for specific groups of people, it is called a "private equity" fund in China.

   Corresponds to the concept of "public offering" funds.

  China's public funds are more like the concept of "mutual funds" in the United States.

  It means that Huaxia calls it a public offering fund, and it means a mutual fund in the United States.

  According to the regulations of the United States, it is necessary to purchase the LP of a private equity fund.

  One of the two requirements must be met, that is, the above one must have an investment of more than one million US dollars, or a personal net worth of more than 2.1 million US dollars.

  There is no such requirement for mutual funds, and the public can buy small shares of 10 or 20 yuan.

  Different from private equity.

  In the United States, the investment strategy of mutual funds is relatively passive.

  Generally, only one index is tracked, or some weight preferences are made on the index, so-called index enhancement.

   There are very few active public offerings like Peter Lynch who was in charge at Fidelity.

   Now in the twenty-first century.

  Because of the advantages of good liquidity and low fees, ETFs are rapidly emerging.

  The business of mutual funds is not as good as it used to be.

  The supervision and requirements of mutual funds in the United States are stricter than those in China.

   More importantly, those mutual funds in the United States are strictly speaking the real ballast of the country's economy.

  In the United States, there are more than fifteen mutual funds with a scale exceeding one trillion dollars!

   There are thirty or forty mutual funds with a scale of hundreds of billions of dollars.

  More than 40% of households in the United States hold various investment funds.

  The richest group of people, they play private equity.

  But most middle-class and decent families invest in mutual funds.

  Under such a huge number of users.

   Plus mutual funds in the United States have a history of seventy years.

  With more than 70 years of accumulation, a large number of large-scale mutual funds have been accumulated.

  These large-scale mutual funds, most of their funds are circulated in US stocks and US bonds.

   One-third of U.S. stocks and one-half of U.S. bonds are purchased by these mutual funds.

  This is why U.S. stocks or U.S. debt have completely collapsed.

  The reason why the United States will basically collapse.

  Imagine that the 40% of the wealthiest and most stable families in a country have lost all their investment and savings all at once.

  What is this concept?

  Because of this, the United States has stricter requirements for mutual fund management than China.

  This is also the reason why the four major investment banks, commercial banks and investment banks, rarely involve mutual funds.

  The supervision is too strict, the fees are low, and hard work can't earn a few commissions.

  They have faster and more profitable ETFs or private placements, and they are not in the mood to manage mutual funds.

  In the United States, it is necessary to form a private equity fund.

  The speed can be very fast, because there is no supervision. As long as someone subscribes as a shareholder, one can be formed in a few days.

  The requirements for establishing a mutual fund are even more perverted than those in China.

   It will take almost half a year or even one to two years for the review alone.

   But there is also an advantage to being a mutual fund, that is, it is easy to gain favor with the top 40% of families in this country.

  Why is Peter Lynch called a stock angel?

   It is because the mutual fund he was in charge of made a lot of profits for a large number of middle-class people in the United States.

  In China, the one who makes money for everyone is called the God of Wealth.

  In the United States, those who make money for everyone are called angels.

   Mutual funds, Abel will do in the future.

   And after tonight, he'll even announce in the papers that Smith Capital will build a mutual fund from scratch.

  The reason why he did this is because he wanted to learn from Peter Lynch.

   Get the support of the most important 40% of families in this country.

  This is also the meaning of what he said in his speech just now, "I want to share my talent with every American".

  However, to form a mutual fund and pass various audits, it will take half a year at the fastest from scratch.

   This is the case when everything is going well.

  He was in no hurry.

   The urgent ones are ordinary middle-class investors who want to invest in him.

  Before that, he can create several other private equity funds.

  While continuing to make money, continue to seduce Wall Street.

  This is what he meant by the above sentence "create a few more fund companies".

   Simply put, a private equity fund in the United States is equivalent to a company.

  David nodded immediately: "No problem. Then when they ask me later, I can give them an explanation!"

  The two quickly finished their discussion. In a few minutes, Abel had already decided on the number of new fund companies and the total share capital.

  After the talk, David Mellon acted immediately.

  David came to the high platform again, holding a microphone with a smile on his face.

  The lights at the reception were dimmed accordingly.

  The spotlight hit David, and David smiled and said:

   "Tell everyone a good news. Smith Capital will re-establish five fund companies next."

   “The total share capital of each fund company is three billion U.S. dollars.”

   "If anyone wants to be our LP, then later, you can contact me, or contact Smith Capital~"

   "In addition, starting tomorrow. Smith Capital will submit an application for registration and establishment of a mutual fund to the relevant departments."

   "As our great Mr. Abe Smith said."

   "Smith Capital is willing to share success with any American!"

  David's reappearance, and the news announced.

   What aroused was even more enthusiastic applause than when Abel went up to give a speech just now.

   It's not because David is more popular than Abel.

   It was because of Abel's speech, although it was very good (after all, the lines designed by the think tank), it was quite provocative.

   But that has nothing to do with them, the guests present are all from the wealthy class.

   Only a very small part of them joined the first phase of Smith Fund.

  What they want more is to be like these people.

   Share in Smith Capital's success.

  Now Smith Capital expressed its willingness to bring everyone to play together.

  David, who announced the news, naturally received the biggest applause.

  In the warm applause of most of the guests.

  Richard Fuld quickly negotiated some matters with the CFO of Lehman Brothers and the CXO who accompanied him to the scene.

  “.Okay. Since you all think so, let's try again!”

  Looking at David on the stage, he thought about the next big move of Smith Capital.

  The bulldog of Wall Street gritted his teeth.

  Richard Fuld found the direction where Abel was, and walked towards him.

   Just halfway there, Richard Fuld bumped into Paulson, the CEO of Goldman Sachs.

   "Hey~sorry~"

   "Ah~ Sorry, I didn't notice~"

  After hitting someone, Richard Fuld and Paulson rushed to apologize to each other.

   Just after apologizing, they recognized each other's identities.

  Richard Fuld immediately said: "Christian, in such a hurry, where are you going?"

   Paulson was silent for a while, and looked in the direction Richard Fuld had just walked in.

  Paulson didn't answer but instead asked, "Richard, where are you going?"

   "Uh" Richard Fuld didn't want to say much, he wanted to go and talk to Abel again.

  Whoever called Abel just now made an offer, he was the one who reacted the most, and he was the one who refused the fastest.

   Now he is the one who wants to talk to Abel first

  This seems a bit unreasonable.

   But Paulson saw through Richard Fuld's approach at a glance.

  Because Paulson saw the other side.

   Just said categorically that Morgan Stanley is no longer interested in Philip Purcell of Smith Capital.

  The old guy, on the other side of the reception, also walked towards Abel at this time.

  Following Paulson's line of sight, Richard Fuld, who also saw Philip Purcell's movements, was startled.

  The CEO of Lehman Brothers knew right away that Philip Purcell was saying one thing but actually doing another!

  Madfak, it seems that everyone is the same!

  He glanced at the bushy-eyed Paulson next to him, and found that the latter was also looking at him.

   This made Richard Fuld understand immediately.

   Not only Philip Purcell thought the same as himself, but Paulson with thick eyebrows and big eyes did the same.

  That was over there just now, everyone clamored that they were no longer interested in Smith Capital.

   can be private

   Didn't look at Richard Fuld himself, just wanted to go to Abel's side!

   Paulson is also going there.

  Philip Purcell was almost at Abel's side.

   "Ha~ Everyone is not an idiot. Everyone has an idea~" Paulson said softly, mocking himself.

  Richard Fuld was expressionless.

   But at this moment, the Wall Street bulldog also agrees with Paulson.

   Abe Smith's quote just now was too much, yes.

  But it's not impossible to talk about it.

  The so-called exorbitant asking price to pay back the money, there is no such proverb in Europe and the United States.

   But there are also similar statements.

  Abel reported 500 billion US dollars, and everyone does not have to really pay at this price.

   What's more, if it is really at this price, other conditions can also be discussed.

  The most important thing is, as long as Abel can really help everyone make money.

  Actually, the valuation of 500 billion US dollars is not unacceptable to everyone.

   What I just said over there, except for being a little angry at the beginning.

   There is also a desire to deceive other colleagues and make other colleagues believe it is true.

   Make them no longer interested in Smith Capital.

  In this way, I can eat one more bite, and whether it is useful or not, I will act first and then talk about it.

  Looking at it now, at least the kind of acting just now.

  Richard Fuld feels useless to the four major investment banks and those savvy investors.

  They should contact Abel, and they should have the same idea.

"go together."

  Wall Street's bulldog, whispered to Paulson: "Maybe we can talk to him again. See the terms."

   Paulson also nodded.

   If you don't go any further, Philip Purcell, who was so resolute just now, is going to chat with Abel!

   "Look over there~" Paulson suddenly heard Richard Fuld say.

   "Buffett is going there too."

   Paulson turned his head.

  He saw Buffett who said he was not interested just now, and he was really going there.

   Sure enough, in the face of interests.

   Everyone is still honest.

  In parallel time and space, Secretary of the U.S. Treasury Paulson thought to himself.

  (end of this chapter)

Chapter end