Chapter 169

Chapter 169 Crazy gambling agreement

Backstabbing is all too common on Wall Street.

Parallel in time and space, the collapse of Lehman Brothers.

In addition to his death, there was a crucial time stab in the back from Goldman Sachs and Merrill Lynch.

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

Lehman Brothers withdrew its best asset, about $30 billion. Goldman Sachs acted as valuer.

After evaluation, only 40% price was offered.

With the joint efforts of other Wall Street giants, Lehman Brothers is in dire need of capital to continue to exist.

You can only sell your most valuable assets.

This is a slap on the back for Goldman Sachs. Merrill Lynch was sold with a head start, cutting off Bank of America's final setback to acquire Lehman Brothers.

Arguably, on Wall Street, peer-to-peer backstabbing happens every day.

Abel stabbed the short-selling Wall Street firm in the back this time.

In this regard, Buffett does not think there is anything wrong.

Abel did this and Buffett felt like a normal Wall Streeter. The only thing that confuses Buffett.

As Abel, how could he know in advance what happened in Scotland across the ocean.

Saying that this matter was led by Abel, there is some possibility.

What can Wall Street do to generate profits?

Just blow up the queen's car

For profit, Than Kinh Bang gunmen thought of a set meal, why not arrange it for the owner of the white house? But Abel's promotion period was too short and he never went abroad.

He also had almost no contact with Europe.

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

If it could affect Scotland.

That's why he's so scary. Another possibility is that Abel didn't do it.

Abel only knew this information in advance through certain channels.

Buffett believes that this aspect is more likely to happen.

But even if that's the second possibility, Buffett thinks Abel is scary.

The reason is that it will affect financial market intelligence information. The Wall Street team got no news, no wind either.

Abel was informed in advance and took countermeasures three days in advance.

Doesn't this mean that Abel is capable of gaining intelligence.

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

The more Buffett thinks about it, the more unbelievable it becomes. It took him away from the idea that he just wanted to come see her tonight.

Buffett wants to invest a little now.

But what made Buffett want to invest was not Smith Capital, nor Smith Capital's private equity.

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

Buffett believes in conservative investing and advocates value investing. I don't like private equity or high-risk investments.

But now he believes that Abel is very valuable.

Investing in Abel can then also be considered consistent with his investment philosophy and style.

The only downside is that according to Buffett, Abel's investment style is too risky.

Buffett is still thinking. From Abel's point of view, he actually only revealed information based on his "talent".

His talent allowed him to foresee this.

He knew something was going to happen in England.

This will affect the British Pound and Euro, after the British Pound and Euro are affected.

This will affect the dollar, causing it to turn from falling to rising. But he didn't know exactly what would happen in England.

Just now he did it on purpose, just to let these people know in advance.

Know your own financial capabilities and know that many Wall Street tycoons are collectively short-selling the situation.

There is also the possibility of cutting their leeks.

The main goal is to make these people question your offer less. But he did not expect anything to happen in England.

But there is something wrong with this matter.

The Queen's car bombing was certainly a major event in the UK.

David Mellon then came to give her the news and the queen was later unharmed.

He just knows it. "Forehead"

He felt he had gone too far this time.

It would be painful to make these investment banking giants suspect anything.

By the way, please let the British side know.

But when he thought about it, he really wasn't scared at all.

More important is the year 2000.

Days are no longer the same. If this had been changed 50 years ago, Abel would have feared "James Bond" would come to cause trouble.

Having turned thirty, "James Bond" is also a bit timid.

It's the year 2000.

The rubbish was successfully de-industrialized and privatized by Thatcher.

All that remains is words and financial power. In a few years, even Muhai's power holder will only have to rely on the United States.

A country that puts all power in the hands of Americans to launch wooden bombs, what else can America do other than speak out?

Daying begins to deteriorate and become stressed in almost every way.

What a bloody agitator.

Would he really dare send "James Bond" against a Wall Street capitalist? Still no proof, just some suspicion.

Furthermore, the capitalist himself was born in Texas.

There is also a close relationship with the new Grand Commander's family.

Next to me is an elite infantry platoon that is always with me for defense.

There is no real evidence, how dare that damn agitator really dare to do this? If he really dared to do it, then Abel felt like he could be happy.

Because then he has an excuse to financially suppress exploitation and shit.

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

You should know that London is still the financial center of the world. British people are richer than neon now!

Not to mention the fact that Abel is in Ireland. The only connection is that his holding company is registered in Ireland.

The others, he really had nothing to do with it.

Daying really has this ability or determination.

Soros attacked the British pound in 1991, causing its value to fall.

That the UK lost almost 5% of its GDP that year. Britain, with such determination, attacked Soros.

So what ?

Soros is still alive and well and non-governmental foundations in Europe and the UK are being established one after another.

About ten years from now, Lao Sach will soon become the supreme emperor of Europe.

It collapsed in 1991, could it rise in 2000? Instead of worrying about suspicion and retaliation from the British.

More than worrying about Mao Hung, whether or not it is difficult to say, at least he is definitely not lacking in determination.

After this incident, the dollar began to appreciate.

The giants who shorted the dollar tonight are in no mood to continue taking money at the moment.

As soon as they leave, the reception will be without these investment banking giants. Abel and Buffett know each other.

"Warren."

While chatting, Abel suddenly pointed in a certain direction and whispered to Buffett: "Let's go over there and talk."

Buffett was surprised to see the direction Abel had pointed in the past.

The stock god nodded and the two walked towards another circle at the reception desk.

In this circle, the top three are all older men such as John Chris Morgan, David Rockefeller and Davis Brown.

As soon as the investment banking giants left, this circle immediately became the most senior circle of guests at the reception. Well, there's Morgan and Rockefeller.

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

"Hi~"

Abel approaches Buffett.

Of the three old men, the youngest, John Chris Morgan, greeted them with a smile.

"Warren and Abel. The god of stocks and investing on Wall Street. You both stood together and I felt like I saw the present and the future of Wall Street."

"Ha ~" David Rockefeller also laughed and said: "John is right. Present and future Wall Street, this metaphor is too appropriate!"

Abel and Buffett smiled together, held a glass of red wine on the plate of a passing waiter, and gently touched 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 was whispering to Davis Brown, not knowing what David Rockefeller meant.

He looked at the other person and whispered a word. "Dollar."

Abel immediately understood what he was bragging about.

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

After the events in Scotland.

These little Wall Street giants, just do a little research.

It will soon be possible to find out who is behind the dollar's rise this time. One of the reasons is that Abel did not want to hide, in doing so he exposed his muscles.

Second, these giants unite and search for him.

It's easy to find.

After leaving the reception, they learn that Abel has stabbed them in the back.

Of course Qi was angry, but those who talked about being angry disagreed with Abel. It's not that bad, because the situation isn't so unsalvageable.

In addition, betrayal is also very common on Wall Street.

Personally laughing at Yan Yan as his brother, stabbing a knife in the back is normal.

At this moment, Davis Brown was talking quietly with Abel, smiling and saying:

"This is just normal investment behavior."

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

"Right." John Chris Morgan smiled: "Indeed."

Morgan and Rockefeller took a stance on this issue.

The tycoons who lost money shorting the US dollar after this event had no good reason, even if they wanted to find fault. This means that Abel must pay special attention when investing for the future.

But that said, even without that backstabbing.

Abel needs special attention every time he invests.

When investing in Abel.

As long as they see that it's profitable, even if they actually invest in Smith Capital later. Or buy a private equity fund from Smith Capital.

Even part of Abel's investment was his own money.

As long as there is profit, these people will never hesitate to start.

Fortunately, this is limited to the finance and capital sector.

Honest. Abel felt.

Attach Peter Lynch, Buffett, Soros, Julian Robertson, Mobius, John Bogle, etc.

He is not afraid.

What Abel is afraid of is only physical tricks.

In the financial market, all Abel wants is enough. Then He is God.

It was almost nine o'clock at night.

The reception lasted nearly two hours and was almost over.

During this reception.

Smith Capital has announced its profits this year. Privately, Abel announced to the outside world his staggering valuation of Smith Capital.

Additionally, he stabbed someone in the back.

Tonight, this goal of receiving investment was successfully achieved.

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

As is customary, host Abel cannot leave until the reception is over and all guests have left. But at nine o'clock he spoke to David Mellon and Merio.

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

With him we find two Texans, Davis Brown and John J. Brown.

Oh, and one from Omaha, Nebraska. Together, they arrived at the executive lobby of the Hilton Hotel.

After sitting at the table, Davis Brown spoke first.

"Abe, do you mind if I call you that? I used to hang out with Alex a lot."

"Of course. My grandfather said so too." Abel smiled. To Abel's left now is Warren Buffett, a native of Nebraska.

To Abel's right is John J. Brown.

That's why he and these three people left early.

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

He brought them together here.

"Abel." Davis Brown calmly said:

"The $500 billion valuation is still too exaggerated."

"However, we estimate that $200 billion is a relatively normal number that can be assumed."

Faced with the bargaining of other villagers, he remained his grandfather's friend.

Abel seems no longer willing to buy or not against the four Wall Street investment banking giants.

Abel said seriously:

"I still insist on a $500 billion valuation. But Davis, we can sign a betting agreement. »

"OH?" Davis Brown raised his thick, white eyebrows.

"What kind of gambling deal?"

"Four-year gambling agreement." Abel said:

"This VAM deal is good for you too, Warren."

After speaking, regardless of whether it was Buffett or the two Brauns, they all looked at him seriously.

"The first year of the VAM agreement."

"I need to make sure that Smith Capital's total profit for the year is more than 10 billion US dollars. Goldman Sachs last year was 4.2 billion US dollars. 10 billion is more than twice as much as Goldman Sachs."

"Goldman Sachs's market value is about $65 billion and Smith Capital's is $100 billion. Is it too much? »

"The betting content of the second year is Smith Capital's profit for the year, which is expected to exceed 20 billion US dollars. Growing exponentially, Smith Capital's market value that year was 200 billion US dollars America."

"The third year is $30 billion, with a valuation of $400 billion."

"Last year, I had to ensure Smith Capital's profits exceeded 60 billion US dollars."

"That's over $600 billion, I guess that's not too much, right?

Abel doesn't think the market value of his VAM deal is too high.

Let's talk about General Motors Corporation, the corporation with the largest market value this year, and Wal-Mart Corporation, the dominant corporation in the retail sector.

When General Motors' market capitalization peaked this year, it was nearly $500 billion.

Only 430 billion USD left. Net profit attributable to the parent company in the first three quarters of the year was $9.95 billion and is expected to reach about $13 billion for the full year.

When Wal-Mart had its highest market value this year, it was about $266.6 billion.

The parent company's net income in the first three quarters of the year was higher than GM's, amounting to $10.1 billion.

The whole year is probably about 13 billion USD.

Net profit of more than 13 billion VND. One has a market value of 360 billion and the other has a market value of 260 billion.

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

The price-to-earnings ratio is approximately 33 times that of the General Motors group.

Smith Capital's market value could be 600 x 33 times, equivalent to 1.98 trillion US dollars.

If you think this price-to-earnings ratio is too high. Calculated by Wal-Mart's price-to-earnings ratio, it is also 20.5 times.

When converted, the market value will reach 1.2 trillion US dollars.

60 billion US dollars, 600 billion market value, only 10 times the price-to-earnings ratio.

Regardless of the sector, the price-to-earnings ratio is low.

Judging by the price/earnings ratio, we can say that shareholders have made a lot of money. Heard Abel's exaggerated gambling deal.

Whether it was the two Berrons or Buffett, they were silent.

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

Good enough that they suspected there was an abyss ahead of them.

If net profits are that high, it would be normal to have a price-to-earnings ratio many times higher. This is still compared to normal businesses.

If we compare it with the price-to-earnings ratio of the Internet industry.

Net profit is 60 billion US dollars, market value can reach several billion US dollars.

Like Yahoo this year, in January its market value reached $128 billion.

What was its net profit last year? -

3.435 billion US dollars.

less than!

This was the normal state for Internet companies before the Nasdaq crash.

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

Always take Goldman Sachs as an example. Goldman Sachs currently has a market capitalization of $65 billion.

Last year's net profit was $4.2 billion.

P/E ratio is about 15.47 times.

15 times out of 600.

There were $60 billion in profits, less than 10 times the price-to-earnings ratio, which is extremely low. The three people present all knew that.

They feel that this exaggerated VAM deal is a good thing for shareholders like them who want to invest.

This made people suspect that there was a sinkhole.

"Of course."

Abel smiled and added:

"Such a clause must also be added to the gambling agreement."

"Under my sponsorship, when the company signs an annual gaming agreement, I must be personally rewarded."

"This reward rate is 20% of profits."

"For example, if I can make $10 billion in the first year, I need to reward myself with at least $2 billion."

"If it's 60 billion USD, my bonus should be 12 billion USD."

"After all, it was I who made everyone so much money and gave you such a successful business."

"I don't think the 100 million point reward is really anything compared to what you get."

After all, if the VAM deal ends.

Abel could receive an additional $24 billion in dividends by the end of the year. Please note, this is an additional fee.

This is in addition to his regular compensation and dividends.

Based on this calculation, Abel can get a lot.

Then, this gaming agreement in turn increased the confidence of the three people.

After a moment of silence, Davis Brown quietly said:

"Abel, are you so confident?" You should know that there is a fail clause for games of chance. »

"Of course." Abel smiled: "The contents of VAM are as above. The other contents are completely consistent with practice. Whatever Wall Street's VAM agreement is, it must be the same."

"You're so confident." Warren Buffett couldn't help but say that.

John J. Brown did not speak because he was the lowest among those present. Abel smiled and spread his hands:

"Useless betting is itself a game of chance. Because it is a game of chance, there must be bets. I don't like games where the bet amount is too small, whether it's me or the opponent."

Abel reiterated: "This VAM deal is not only for you but also for other interested investors."

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

Consider Abel's investing style. It is no different from professional gamblers in Las Vegas.

High leverage, high risk, I especially like to choose types with large short-term fluctuations to invest.

Even if he wins every time, it's still exciting every time.

People with such an investment style would come up with such crazy gambling deals.

That makes sense. Looking at the three people falling into silence again, Abel smiled and stood up, raising his hand to check the watch on his wrist.

"It's half past nine." He smiled:

"I still have an appointment tonight, you three should go back and think about it."

"Oh, that's right. I'm going to Los Angeles tomorrow. New York is so cold this year. I won't be back until next month."

"If you want to find me, you might have to go to the West Coast next time."

After speaking, he smiled and turned around to leave without waiting for the three people to react.

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 a small country? »

"Ha~" Buffett laughed. He stood up and extended his hand to Davis Brown: "Hello, by the way. Mr. Brown, my name is Warren Buffett."

Davis Brown smiled back: "Hello Mr. Buffett. My name is Davis Brown."

The deal with Abel has not yet been negotiated. Instead, the Nebraskans and the Texans became friends.

(end of this chapter)