Chapter 167

Chapter 167: The giant crocodile is so fragrant

The double standards of the Ansa people are famous around the world.

But they themselves don't feel that way.

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

Faced with the attitude of Abel, who always took him for granted.

For a moment, they were speechless. From Abel's strong words.

He was right.

The big four investment banks have annual operating profits of between $30 and $40 billion, not much different from their market value.

But the investment return is not even half that of Smith Capital.

This is mainly because investment banks do not always make a profit. According to his rhetoric, even the famous "Wall Street Bulldog" Richard Fuld did too.

I can't find any legitimate reason to reject it.

Unlike Hoa Ha people, Hoa Ha people like to take a step back so they can meet each other later.

The Ansa style is to take advantage of your illness to commit suicide.

I emphasized that I was right. Taking advantage of the fact that these people do not know how to defend themselves verbally.

Abel said.

"Just follow this ratio." Abel smiled and said:

"If you're interested, you can come talk to me later. If you're not interested, we won't force you."

"From now on, Smith Capital's private placement will always be open to everyone~"

"The food and drinks prepared by Hilton tonight were delicious. There was also dry red wine from Château Margaux. I think it's delicious."

"Everyone can try~"

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

As soon as he left, Richard Fuld angrily said:

"This price is too high! 500 billion US dollars? He really dares to think!"

The presidents of the remaining three major investment banks did not speak but nodded as if agreeing with Richard Fuld's words.

Market value is 500 billion US dollars?

The stock price of General Electric, the largest company in the United States by market capitalization, is just under $600 billion. But General Electric has a long history, from Edison's time until now, spanning hundreds of years.

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

Such a monster, still a listed company.

Its market value currently stands at more than $500 billion.

I haven't said much tonight. David Komansky, CEO of Merrill Lynch, who is showing signs of losing power, quietly said:

"Mr. Smith may simply not want to accept others into Smith Capital. He simply gave us a price we couldn't accept.

David Komansky's statement immediately became the most accepted possibility in the rematch.

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

"Goldman Sachs too!" » Paulson said.

Lehman Brothers and Merrill Lynch did not speak up, but the two CEOs also nodded to cooperate.

Take a look at the capital's giants tonight.

Because of Abel's exaggerated quote before. The four main investment banks gave a unanimous rejection response.

Many tycoons looked at Buffett and smiled.

"Mr. Smith's price is outrageous. Coca-Cola's market capitalization is only $150 billion."

"I don't think Smith Capital is worth more than Coca-Cola right now," Buffett said.

Buffett's statement once again received the agreement of many people in this small circle.

Over a period of time, the predators began verbally attacking Abel Smith and Smith Capital. So it seems no one is interested in investing in Smith Capital anymore.

Even George, who was new to the party, quietly said to Steve, his family's private investment manager:

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

Investing in stocks is too expensive and George believes it is unnecessary.

But he thinks Smith Capital's private equity business could still be acquired.

He's not very good at math but he was still able to calculate a rate of 283.9%. Steven nodded and thought that what the boss said made sense.

Among the crowd present.

The only people who didn't talk much were two members of the Texas group.

There are also two old men from Morgan and Rockefeller.

on the other hand. Abel, who had left the crocodile enclosure, did not think his offer was too high.

He has faith in himself, more precisely, in his "talent".

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

Valuable!

As for whether Wall Street agrees or not, that's a matter for Wall Street.

After leaving these giants, Abel reunited with David Mellon. Before the latter's surprised eyes, Abel proposed:

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

The content of this aspect, before starting today.

He didn't tell David that.

This is exactly why David was surprised.

But now when he spoke, David almost changed his tone without thinking:

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

There is such exaggerated response data. There are plenty of alligators on Wall Street who are keeping quiet about this.

This proves that Smith Capital is not lying, they are just very strong.

created such miracles.

The guests at tonight's reception are mostly wealthy people.

These people have money and often need a financial manager. The money of many people, plus putting it in the hands of independent private investment and financial advisors.

Usually, they invest in investment banks and securities companies.

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

So why not invest this money in Smith Capital, the strongest?

Two and a half months, return on investment was 289.3%. Where can I find this type of profit margin?

In fact, Abel also knows that money touches people's hearts.

The return on investment is so high, the profit margin is so high.

It's impossible that no one was seduced at the scene. Those words were just the beginning.

Hearing David's affirmative response, he smiled and said: "Then let's open a few more company funds!"

In the United States, this is the type of private equity fund that the Chinese are most familiar with. In relevant US law, it is known as 3C1fund. Because it falls under Section 3(c) 1 of the Investment Company Act.

In the United States, a private equity fund is essentially a private company.

What investors subscribe to is actually the shares they issue.

Like the Smith Foundation, that's just a popular saying. Legally, it will actually be called "Smith Capital One."

Total share capital is up to 3 billion US dollars, registered by investors.

The investment consulting and management team is Smith Capital.

It is subject to fewer regulatory and disclosure requirements than public companies.

But to raise funds, the requirements are more stringent.

For example, the number of investors cannot exceed 100 and must target specific groups of people. An IPO is not possible, every investor must be an accredited investor and there are requirements for investors.

That is, assets under management are not less than 1 million USD or investor net assets are not less than 2.1 million.

China has essentially followed the United States' lead.

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" fund. Chinese public funds more closely resemble the concept of "mutual funds" in the United States.

What this means is that Huaxia calls it a public offering fund and it means a mutual fund in the United States.

According to US regulations, purchasing LPs from private equity funds is necessary.

Must meet one of two conditions, i.e. must have an investment of over US$1 million or a personal net worth of over US$2.1 million.

There is no such requirement for mutual funds, and the public can buy penny stocks for 10 or 20 yuan. Different from private equity.

In the United States, mutual fund investment strategies are relatively passive.

Typically, only one index is tracked or certain weighting options are applied to the index, called index enhancement.

There are few public offerings as active as Fidelity's Peter Lynch.

Now we are in the 21st century. Due to the advantages of good liquidity and low fees, ETFs are emerging rapidly.

The mutual fund industry is not as good as it used to be.

Supervision and requirements for mutual funds are stricter in the United States than in China.

More importantly, these mutual funds in the United States actually constitute a real drag on the country's economy.

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

There are thirty or forty mutual funds worth hundreds of billions of dollars. In the United States, more than 40% of households hold various investment funds.

They are the richest group of people and play in the private equity sector.

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

Under such a large number of users.

Additionally, mutual funds in the United States have a 70-year history. With more than 70 years of accumulation, a large number of large-scale mutual funds have been accumulated.

These large mutual funds, most of their funds are distributed in US stocks and bonds.

One-third of US stocks and half of US bonds are purchased by these mutual funds.

This is the reason why US stocks or US debt completely collapsed.

Why America will collapse Imagine that 40% of the wealthiest and most stable families in a country suddenly lose all their investments and savings.

What is this concept?

For this reason, the United States has stricter requirements than China when it comes to mutual fund management.

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

The supervision is too strict, the fees are low, and hard work cannot earn some commission. They have faster, more profitable ETFs or private investments, and they are not in the mood to manage mutual funds.

In the United States, the establishment of a private investment fund is necessary.

The speed can be very fast because there is no supervision. As long as someone registers as a shareholder, the company can be established within a few days.

The requirements for establishing a mutual fund are even stricter in China. The exam alone will take almost six months, or even one to two years.

But there is also an advantage to being a mutual fund, which is that it can easily please the 40% of the richest families in this country.

Why is Peter Lynch called a stock angel?

That's because the mutual fund he's responsible for is generating huge profits for so many middle-class people in the United States.

In China, the person who makes money for everyone is called the God of Wealth. In the United States, people who make money for people are called angels.

Mutual fund, Abel will do that in the future.

And later tonight, he will even announce in the newspaper that Smith Capital will start a mutual fund from scratch.

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

Receive support from the top 40% of families in this country. This is also the meaning of what he said earlier in his speech: "I want to share my talent with all Americans."

However, to create a mutual fund and pass various audits, it will take up to six months from the start.

This is the case when everything is going well.

He's in no hurry.

Most urgently, ordinary middle-class investors want to invest in him. Before that, he may create several other private equity funds.

While you keep making money, keep seducing Wall Street.

This is the meaning of the above phrase "create a few more fund companies".

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

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

The two quickly ended the conversation. In just a few minutes, Abel decided on the number of new fund companies and the total registered capital.

After the interview, David Mellon took immediate action.

David returned to the high podium, holding the microphone with a smile on his face.

Reception lights are adjusted to brightness accordingly. The spotlight shined on David, David smiled and said:

"Let's give everyone the good news. Next Smith Capital will re-establish five fund companies."

"The total registered capital of each fund company is three billion US dollars."

"If anyone wants to become our LP, you can contact me or Smith Capital in the future~"

"In addition, starting tomorrow. Smith Capital will submit applications for registration and establish mutual funds for relevant departments."

"As our great Mr. Abe Smith said."

"Smith Capital is ready to share its success with any American!"

David's reappearance and the news are announced.

This caused even more enthusiastic applause than when Abel came to speak earlier.

It's not because David is more famous than Abel. That's because Abel's speech, while very good (the lines were designed by a think tank, after all) was quite provocative.

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

Only a tiny fraction of them participated in the first phase of the Smith Fund.

What they want most is to be like these people.

Share Smith Capital's success. Now, Smith Capital has expressed its desire to bring people together to play.

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

Before the warm applause of most guests.

Richard Fuld quickly negotiated a number of issues with Lehman Brothers' CFO and CXO, who accompanied him on site.

".Alright. Since you all think so, let's try again! »

Watching David on stage, he considered Smith Capital's next big move.

The Wall Street bulldog gritted his teeth.

Richard Fuld found out Abel's direction and headed towards him.

Halfway there, Richard Fuld ran into Paulson, CEO of Goldman Sachs.

"Hey~sorry~"

"Ah~ Sorry, I didn't pay attention~"

After hitting someone, Richard Fuld and Paulson hastily apologized to each other. Immediately after apologizing, they acknowledged each other.

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

Paulson was silent for a moment and looked in the direction Richard Fuld had just entered.

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

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

The person who spoke just now when Abel made the offer, he was the one who reacted the most and also the one who refused the fastest.

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

This seems a bit absurd. But it only takes a glance for Paulson to understand Richard Fuld's approach.

Because Paulson has seen the other side.

I just said unequivocally that Morgan Stanley is no longer interested in Smith Capital's Philip Purcell.

The old man on the other side of the reception desk was now also facing Abel.

Following Paulson's vision, Richard Fuld, who also saw Philip Purcell's movements, was amazed. The CEO of Lehman Brothers immediately understood that Philip Purcell said one thing but actually did another!

Madfak, it seems like everyone is the same!

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

This immediately made Richard Fuld understand.

Not only did Philip Purcell think like him, but so did Paulson with his bushy eyebrows and big eyes.

Before that, everyone announced that they were no longer interested in Smith Capital.

Perhaps in private

I didn't watch Richard Fuld himself, I just wanted to go with Abel!

Paulson also went there. Philip Purcell was almost at Abel's side.

"Ha~ Not everyone is an idiot. Everyone has ideas~" Paulson said softly and laughed to himself.

Richard Fuld was expressionless.

But now, the Wall Street bulldog agrees with Paulson. The Abe Smith quote from earlier was too much, yes.

But it's not impossible to talk about it.

The so-called asking for exorbitant prices to refund money, there is no such saying in Europe and the United States.

But there are also similar claims.

Abel took in $500 billion and people didn't actually pay that much. In addition, if it is really at this price, other conditions can also be discussed.

The most important thing is that Abel can really help people make money.

In fact, a valuation of 500 billion USD is not acceptable to everyone.

What I just said there, except I was a little angry at first.

There is also a desire to deceive other colleagues into believing that it is true. Make them no longer interested in Smith Capital.

This way, I can eat one more bite. Whether it's helpful or not, I'll act first and then speak.

Looking at it now, he's at least the same type of actor as he is now.

Richard Fuld felt useless in the eyes of these four major investment banks and savvy investors.

They should contact Abel and they will have the same idea. "go together."

The Wall Street bulldog whispered to Paulson: "Maybe we can talk to him again. Let's see the conditions."

Paulson also nodded.

If you don't go further, Philip Purcell, who was just so adamant, will discuss with Abel!

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

"Buffett is going too."

Paulson turned around.

He meets with Buffett, who says he doesn't care at the moment and he's really going to pursue it. Indeed, in front of benefits.

People are always honest.

In parallel time and space, US Treasury Secretary Paulson thought.

(end of this chapter)