Chapter 221 Meeting the Future Richest Man in America

Chapter 221 Meeting the Future Richest Man in America

Chapter 221 Meeting the Future Richest Man in America

Hong Kong, Kai Tak Airport:
Yang Wendong, Bai Yushan and their bodyguards, assistants and others came to the apron inside the airport, where they would board the plane directly.

In this era, there are basically no private jets, but the super-rich already have them. Therefore, many large airlines will cooperate with some wealthy people and rent them directly on a per-time or per-time basis.

This time, Yang Wendong directly contracted a Boeing 737 aircraft from Pan American World Airways. This was more convenient. Otherwise, it would be too tiring to squeeze on a plane with a group of people, and it might also waste more time.

Outside the plane, two beautiful twin sisters were chatting on the side of the plane. Yang Wendong walked over and said with a smile, "The plane is leaving soon. Yujie, if you can't bear to leave your sister, you can go to the United States with us. All the trips are free."

"I want to too, but I still have to participate in the competition." Bai Yujie said a little unhappily.

Bai Yushan explained: "Yujie is going to participate in the sprint competition. Several universities in Southeast Asia will also come to Hong Kong to participate."

"Not bad." Yang Wendong praised sincerely.

In this world, success is not only achieved in politics and business, but also in sports, art, philosophy, etc.
Of course, there is a higher level than politics and business, and that is the field of science.

Bai Yujie asked again: "Didn't you rent the plane? Didn't we decide when to fly?"

"I rented the plane, but the airport is not mine. Do you think I can do whatever I want?" Yang Wendong was speechless. It seemed that this girl was good at sports, but her brain was a little
"Oh." Bai Yujie nodded.

Bai Yushan said, "Let's go, the plane can't be late."

"Yeah." Bai Yujie nodded.

The two sisters chatted for a few words and then separated. After getting on the plane, everyone chose their own seats.

The other directors had disappeared, leaving only Yang Wendong and Bai Yushan in the middle of the plane.

"This is still a bit too many seats." Yang Wendong took a glass of juice and said, "You said that with such a large area, it can be enclosed and turned into a room."

Bai Yushan took the juice and said with a smile: "Why build a room on the plane? Just for taking a nap during the flight?"

"Yeah, isn't that good?" Yang Wendong shrugged and said, "It takes more than 20 hours to get from Hong Kong to the United States and Europe. For those who often need to travel on business, isn't it better to have a room?"

"You are right." Bai Yushan nodded and said, "But airlines lease planes, and sometimes they do normal business when there is no such business.

It’s easy to change it back now, but if the house is built, it will be difficult to change it back. From an economic point of view, it’s not cost-effective.”

"Yes." Yang Wendong smiled and said, "The prerequisite for doing this is, of course, to have your own plane."

"Your own plane? Are you planning to buy a plane?" Bai Yushan was very surprised.

Yang Wendong shook his head and said, "Not for now, maybe in a few years."

His assets are not enough now, and he is still in the early stages of his business. It is not cost-effective to spend money to buy a plane. Moreover, his business is mainly in Hong Kong and its vicinity, so the demand for business trips is relatively low.

However, after a few years, if nothing unexpected happens, the scale of my assets will increase at an exponential rate. My international business will also progress significantly, and the demand for international business travel will also increase. Then I may need to purchase a private jet.

In addition, the United States is also his main market in the future, and he will invest there, so there will be returns. If he makes money here and buys domestic industrial products, he can also get tax cuts.

Bai Yushan thought for a moment and said, "I know that there are several large companies in Japan that have purchased Boeing aircraft for their own commercial use. If you buy one, you will probably be the first person in Hong Kong. Even the bosses of Jardine Matheson don't have this treatment."

"Haha, Jardine Matheson is only the king in Hong Kong. If it really jumps out of Hong Kong, it will be nothing." Yang Wendong said with a smile.

In Hong Kong, he was also very jealous of the many high-quality assets under Jardine Matheson, but these were also the wealth accumulated by Jardine Matheson's ancestors over hundreds of years, as well as the wealth obtained through collusion with power.

However, when going overseas, one needs to rely on one's own abilities to operate. Even with the Hong Kong market as a cash cow, Jardine Matheson's overseas investments were still useless. In the 80s, they became a burden to the entire group.

Bai Yushan thought for a moment and said, "It seems to be true. The British financial groups in Hong Kong succeeded by relying on monopoly and the achievements of their ancestors, unlike the Chinese, who rely on themselves."

"Yes." Yang Wendong nodded and said, "If the British Hong Kong government was really fair, Chinese capital would have surpassed British capital long ago."

In 61, many British financial groups in Hong Kong also went public. Those that have not yet gone public will also be listed in the next few years, with the intention of making a profit from the Hong Kong stock investors.

Including Jardine Matheson, Wharf Holdings, Hong Kong Electric, Whampoa Group and so on. Although Yang Wendong does not have the financial resources to deal with them at present, he can make preparations after waiting another ten years.

"Yes, that's right." Bai Yushan looked at Yang Wendong: "Brother Dong, with your current development speed, you will definitely be able to surpass Yihe within ten years."

"Ten years? Maybe." Yang Wendong smiled and said, "It's difficult just in Hong Kong, but if we develop overseas markets, it will be easy."

"Overseas? Is that the supermarket you are going to see this time?" Bai Yushan also knew the purpose of Yang Wendong's trip to the United States this time.

Yang Wendong nodded and said, "Yes."

The future Jardine Matheson will be completely incomparable to Walmart. Even the major British financial groups in Hong Kong plus the four major families in the future cannot compare to one Walmart.

With annual global sales of hundreds of billions of dollars, these orders can determine the employment of millions or even tens of millions of people, and can also drive employment for millions of people.

"Supermarket?" Bai Yushan was thinking seriously about the ins and outs of this.

"You'll know when you get to America." Yang Wendong smiled and said, "Take a rest. Have a good sleep after it gets dark."

"Well, but can you please move your hand away a little?" Bai Yushan asked back.

"That won't work."

25 hours later, the plane landed in Little Rock, the capital of Arkansas.

Lin Youcheng, the head of Changxing Industrial's business in the United States, also personally met him at the airport: "Mr. Yang, you just got off the plane. You should go to the hotel and rest for a day. Tomorrow, I will personally report to you about Sam Walton's situation."

"Okay." Yang Wendong nodded.

The most important thing for this trip to the United States is to get to know Walton, and it would be best if I could take the opportunity to invest in him. As for other things, even the sales situation of Changxing Industrial in the United States, I only need to have a brief understanding of them.

The next day, after a night's rest, people immediately felt refreshed. Yang Wendong was sitting and talking with Lin Youqiang in a private room of the coffee shop downstairs in the hotel, while Bai Yushan was pouring drinks for them.

Lin Youqi took out a document and said, "Mr. Yang, these are Walton's entrepreneurial materials. I sent them to you before. The ones here now also include the situation in the last two months."

"Well, let's talk about the economic problems Walton encountered?" Yang Wendong just flipped through the information roughly.

These don’t mean much to him. No matter what Walton’s previous situation was, it will not affect his future development. What he needs is an opportunity to invest.

As early as last year, he received information about Walton and had a general understanding of the entrepreneurial history of this once richest family in American history.

As early as 1945, Walton scraped together $2.5 and joined a Franklin retail store in Newport, Arkansas, thus starting his own retail business. However, the franchise model is drained by the brand owners, and the purchase and selling prices are controlled by the brand owners. The terminal franchisees can only make a small profit, or even lose money.

In order to get rid of this situation, Sam Walton always looked for sources of goods on his own. After finding cheaper goods, Sam did not sell the goods at the usual price and earn a higher profit. Instead, he passed the savings on to customers and attracted customers with low prices and discounts.

This "small profits but quick turnover" business philosophy may seem commonplace in the 21st century, but it was extremely rare at the time.

Then, as if he had discovered a new world, he got rid of the franchise stores and started his own supermarket retail business.

After 15 years, by 1960, he had 15 "discount stores" of his own, and in July of this year, the first Walmart supermarket officially opened.

Lin Youqi replied, "Mr. Yang, do you know about the economic crisis that broke out in the United States in October 60?"

"I know." Yang Wendong nodded.

In the past, people who knew modern history basically knew about the three oil crises, the subprime mortgage crisis, the Internet bubble crisis, etc. in the United States, but there were also several crises before the 60s.

The root cause of this crisis is that after World War II, the United States became almost the only world factory, and the production capacity of various industrial products was stretched to the highest level.

But more than a decade later, the industries in Europe, Japan and even some Asian countries had developed to some extent, leading to overcapacity in the United States and eventually triggering an economic crisis.

Lin Youqiang added: "In the past few years, Walton operated with debt. Because business was good, they managed to maintain balance. But when the economy went into recession and bank interest rates increased, their days became difficult."

"Well, how was your contact with him?" Yang Wendong asked back.

Lin Youqi smiled and said, "It's OK. I once visited him in the name of an investor, and he also knew that I represented an Asian capital seeking to invest in the United States."

"Okay, then arrange a time. I want to meet Walton once." Yang Wendong said again.

Even if you can't invest, it would be nice to meet Walton. He can be said to be a rare super-rich man in the United States who is truly self-made. People like Buffett and Bill Gates all relied on their families to make their first pot of gold.

"Okay, I'll arrange it right away." Lin Youqiang agreed.

On the third day, Lin Youqiang brought Yang Wendong, Bai Yushan and several others to the Walmart supermarket in Rogers.

"Mr. Yang, this is Sam's Wal-Mart supermarket, which is a very large discount store supermarket." Lin Youqiang introduced.

Yang Wendong looked at the one-story building in front of him. On the front was a white sign with seven letters: Wal-Mart. Next to it were words such as "Discount Store", "Everyday Low Prices", and "Your Satisfaction Guaranteed".

Then he asked, "Is there another Walmart supermarket like this?"

Lin Youqi replied: "No, as far as I know, Sam mortgaged his own property to have the money to open this store."

"It's a last-ditch effort." Yang Wendong nodded. This is how many people do business, putting their entire fortune on the line.

Therefore, for every successful business owner, there are ten or even dozens of losers who have lost everything. This is the same no matter where you are.
In other words, the second generation of rich people can do whatever they want with their industries.

Therefore, there are very few people who succeed from scratch because they cannot withstand one failure.

Lin Youqing pointed in a direction and said, "Mr. Yang, among those foreigners over there is Walton. He is waiting for us at the door."

"Okay, let's go." Yang Wendong said.

Afterwards, several people stepped forward, and with Lin Youqiang's introduction, Yang Wendong also got to know the richest man in the United States in his previous life. In the 90s, this man had 50 billion US dollars. The combined financial strength of his family was enough to surpass all kinds of high-tech or Internet entrepreneurs even in the 21st century.

"Hello, Mr. Walton." Yang Wendong shook hands and said with a smile.

"Just call us Sam." Sam Walton also said with a smile.

"OK, then you can also call me Eric." Yang Wendong also said the same thing.

Among Westerners, calling each other by name makes it easier to build closer relationships. In many families, even uncles and nephews call each other by their names.

Sam smiled and said, "Everyone, please come in. I will introduce to you the business model of Walmart supermarket."

Since you are a potential investor, the first important thing is naturally to understand the business model.

Everyone followed Walton, listened to him introduce the business model of discount stores, and took a tour around the Walmart supermarket.

After the introduction, Yang Wendong asked, "Sam, as far as I know, there are some discount supermarkets like yours in the United States. As an investor, I would like to ask, what are your advantages that can ensure your success?"

The discount supermarket was not actually invented by Walton, just as the membership discount supermarket was not invented by Costco. However, these two companies defeated everyone else and became industry giants.

As an investor, Yang Wendong also needs to go through this inquiry process, but he is also curious about why Walton can succeed.

Sam explained: “There are many discount supermarkets, and I have been to many other discount supermarkets, but they are not really discounting, but using a small number of products as a gimmick to attract customers, but most of the products are still kept high-priced and high-profit.

Walmart is a true full-discount supermarket. I have strict profit margin restrictions on my products. The gross profit margin cannot exceed 40%. If I cannot control the cost due to transportation reasons, I will find a way to change suppliers. "

"40%?" Yang Wendong nodded and asked, "So the profit margin will always be this low?"

A 40% gross profit margin was considered incredible in the supermarket industry in the past, but it is not considered high in this era. Supermarkets have a wide variety of merchandise and are highly dependent on transportation, storage, and information transportation, so the cost will be higher in this era.

Sam said: "Yes, the profit is low, but there are a lot of customers. Basically, the customers who come to my store are attracted by the price, and then they will come regularly, and even introduce friends and relatives to come.

My purchase volume will also increase, so I can negotiate a little bit more on price with suppliers.”

"Well, it's a good business model." Yang Wendong nodded. This concept is very advanced in this era.

Sam added: "It's just that, no matter how good the business of a supermarket is, its purchasing volume is still too low. If there are ten or even dozens of stores, both transportation and purchasing prices can be greatly reduced;
This will further reduce commodity prices and will definitely be a very promising investment.”

"It's really good." Yang Wendong said: "After the scale becomes larger and the cost is reduced, normal people think about high profits, but you think about further reducing the terminal price."

"Profit is of course important, and I need profit too." Sam said, "But as long as I can keep the profit low, I can snatch customers from other retail industries, and then this market will be able to provide me with stable low profits in the future."

"Well said. How much investment do you need?" Yang Wendong nodded and asked formally.

This business model has been proven feasible by many companies in the past. For example, Coca-Cola has monopolized the entire market by relying on low prices.

"Two hundred thousand dollars." Sam said, "I can give you 20% of the shares, how about that?"

PS: Please vote for me.

(End of this chapter)