Chapter 110: Winnie's Talent, New Investment Strategy
[Chapter 110: Winnie's Talent, New Investment Strategy]
After the meeting, Winnie asked Linton to stay behind so she could report her next investment plan. Her plan included five companies:
1. Oracle Corporation, a leading database software company, with its ORACLE database product dominating globally and widely applied in various fields. It went public on NASDAQ in 1986.
In 1990, due to strategic mistakes, its stock plunged 80%. However, in April this year, the flagship product Oracle7 was launched, putting the business back on track. Its stock has stabilized and risen, currently with a market cap of $2.49 billion. She recommended this as first priority.
2. Intel Corporation, the semiconductor chip design and manufacturing leader. Its technology and products are absolutely leading worldwide. With the growth of computers, demand will explode. The company has an incredibly bright future with a current market cap of $15.6 billion, recommended as first priority.
3. AMD, also a semiconductor chip company focused on personal computer processors, is a follower of Intel. Although AMD's technology and product quality are far behind Intel, it performs well in the lower-end market. The fast computer market means huge potential in low-end segments. With high barriers to entry, Intel faces few competitors.
Considering antitrust laws, Intel is unlikely to suppress AMD heavily. The company outlook is optimistic, currently valued at $1.3 billion, recommended as second priority.
4. Motorola, a leading telecommunications manufacturer, holds absolute dominance in mobile communications, with its mobiles reigning over North America and expanding globally. Its market cap is $22.3 billion, recommended as first priority.
5. Nokia, a European mobile communications device maker based in Finland, recently launched a next-gen digital mobile system outperforming Motorola. Their devices are more compact and lightweight and are widely popular in Europe, challenging Motorola strongly. Its market cap is roughly $2.6 billion, recommended as second priority.
...
Linton was amazed by Winnie's investment plan, as she chose companies he was very familiar with and gave an excellent analysis. These five companies would all grow to global giants in the future.
Producing such a high-quality investment proposal in such a short time showed Winnie's hard work and sharp insight, confirming her as a top-notch investment talent.
"Very good plan. These five companies all have high investment value, but I would adjust the priority a bit," said Linton. He affirmed Winnie's plan and made some adjustments based on future insights, moving AMD and Nokia to first priority and Motorola to second.
Upon hearing Linton's praise, Winnie beamed. However, she looked puzzled at the adjustments.
Linton explained, "AMD is first because of the antitrust laws you mentioned. Despite its current technological lag, we don't worry about Intel suppressing it. Computer development potential is huge; every PC needs a processor chip. The industry is still young, and as you said, few semiconductor companies exist and barriers to entry are high. We expect AMD to surprise us in the future.
Motorola's drop is for two reasons: its technology is falling behind and compared to Nokia's lead, there's no sign of aggressive innovation. Look at the bulky mobile phones we use now; everyone wants something smaller and lighter. Despite dominating North America and expanding globally, my investments focus on long-term value and future potential. Also, Motorola is currently very large, so growth space is less than others.
Nokia is the opposite, so I raised its priority. But is Nokia listed in the US?"
"No, only in Finland. But through Morgan Stanley and Goldman Sachs brokers, it's easy to trade. I recently contacted a European friend who switched to a compact Nokia phone. Since we both are bullish on communications, I gathered comprehensive info and saw its investment value."
"Great, your vision is broad, and your market insight impressive."
"Thanks for the compliment. What about allocation? Do you have specific requirements?" Winnie happily accepted Linton's views and asked.
"You can decide the proportions. The investment amount is over $35 million, and after Step Up settles in October, there will be more funds coming in. Buying in public markets might take long, so try to find institutional block transfers in these top-priority stocks first."
"Got it. I'll work both angles: quietly buying from brokers and contacting large shareholders to see if opportunities arise."
Hearing about Linton's plans to add capital, Winnie's eyes brightened.
...
Seeing Winnie so capable and motivated, Linton not only praised her verbally but also treated her to a grand dinner at the Hilton's top-floor restaurant as recognition and encouragement.
Though Linton didn't intend anything beyond work, chatting, discussing business, and dining with such a top-class beauty with shared interests was genuinely delightful.
At dinner's end, Linton promised that if the investments go well, her year-end bonus would be no less than $200,000.
The praise from the tall, handsome boss, a luxury hotel dinner, the year-end cash bonus, and pep talk fueled Winnie's enthusiasm and strengthened her fondness for Linton. Unconsciously, she started seeing stars in his eyes.
*****
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