Chapter 369 Investing in Li Jiacheng

Chapter 369 Investing in Li Jiacheng

Chapter 369 Investing in Li Jiacheng

The next morning, the early morning sun shone into the presidential suite of the Four Seasons Hotel.

Yang Wendong was also awakened by the glare of the sun. After opening his eyes, he found that Bai Yujie was also awake. He leaned over and hugged her, asking, "What are you thinking about?"

"I miss you~" Bai Yujie said happily and stopped talking.

Yang Wendong said: "Think I can wake me up."

"You slept so well just now, I don't want to disturb your sweet dream." Bai Yujie said while blocking a hand.

Yang Wendong whispered in the beauty's ear: "You can wake me up like this."

"You wish~" Bai Yujie let out a small scream, and then her mouth was blocked.

An hour later, the sun was higher and the sunlight fell from the bed to the edge of the window. Yang Wendong came to the window and looked carefully. He saw the clusters of buildings on the west side of Hong Kong Island and opposite Victoria Harbour.

Bai Yujie also came over, handed over a glass of milk, and asked, "What are you thinking about?"

"I'm thinking about this area in front of me." Yang Wendong's hand swept across the area in front of him and said, "How much of it will belong to me in the future."

Bai Yujie smiled and said, "You want to become the biggest landlord in Hong Kong? Didn't you say before that the core industry is manufacturing?"

"I don't have to choose between two important things." Yang Wendong said: "I want real estate, shipping, manufacturing, and media. In the future, I may enter other industries."

When a consortium develops to a certain size, it will be difficult to shrink as long as it has the ability. No matter whether it is from Europe, the United States, Japan, South Korea, or even the mainland in the future, they are essentially the same. Doing business is actually like running down a slope. If you don't encounter major obstacles, you will only run faster and faster.

Just like Post-it Notes, we started out as just this terminal product, then moved on to core supply chain products like glue and paper. After these two businesses matured, we started making other terminal products of these two products.

Of course, it is also because there is no rich industrial chain in the surrounding area, so in order to control costs, it will gradually reverse penetrate like this. If it is the mainland a few decades later, various supply chains will be mature, and suppliers will reduce costs to the lowest level by relying on large scale, then perhaps we don’t need to be so troublesome. At most, we can make appropriate investments like Formosa Plastics.

Bai Yujie didn't think much about it, but asked: "So your women are just like your assets, they will only increase in number?"

"What? Are you jealous?" Yang Wendong asked with a smile.

The best way to deal with this kind of question is not to answer it, but to change the subject and ask a question in return.

Bai Yujie said: "I don't care, you should consider Sister Yiyi and my sister~"

"Well, when do you want to come into my house?" Yang Wendong asked again.

"I, don't know." Bai Yujie paused and said, "I think we should wait a little longer."

"Okay, I respect your opinion." Yang Wendong nodded.

"Then I'll go down first. I have classes in the afternoon." Bai Yujie smiled again and said, "You didn't go home at night. Do you need a reason to go home?"

"What excuse do you need? I often don't go home at night." Yang Wendong said indifferently: "Several companies under my control belong to my offices, and they all have separate bedrooms. Sometimes I feel tired and don't go home, especially when the roads are not safe at night."

This is true. Hong Kong's infrastructure is not very good in many places. Especially if you stay in the Kowloon Peninsula, it will be very troublesome to cross the harbor at night.

At the same time, some thugs would come out at night. Although regular gangs would not provoke the wealthy, the wealthy were most afraid of brainless young thugs or fearless bandits.

"Oh, I guessed it." Bai Yujie smiled and then said, "Then I'll leave first."

Yang Wendong asked again: "Do you want me to send someone to take you back?"

"No need, I can drive myself," Bai Yujie said, then waved goodbye.

Yang Wendong was the only one left, continuing to bask in the sun and looking at the countless buildings outside under the sunlight, which also represented countless wealth.

In the afternoon, Yang Wendong met with Li Jiacheng, the chairman of Cheung Kong Holdings and the most famous Hong Kong tycoon in his previous life, in another suite.

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

Li Jiacheng was the same: "Mr. Yang, your hotel is really luxurious. It is much more prosperous than the Peninsula Hotel."

"Haha, you're flattered." Yang Wendong said with a smile, "If Mr. Li is interested today, he can stay here for free for one night, or try out the various services of my Four Seasons Hotel. When overseas customers come in the future, you can also ask them to come to my place."

Although the business of large hotels is mainly for external customers, in today's era without the Internet, external customers generally do not know the types of hotels in the place they are going to, etc. Therefore, the commercial customers that hotels value most are essentially determined by local reputation.

As for tourist customers, they are generally hotels and travel agencies, which are actually a small part of the business. This is because the global economy has not developed in this era, especially in the areas surrounding Hong Kong, and not many people come to Hong Kong for tourism.

Li Jiacheng nodded and agreed: "Okay, then I'll borrow your phone to notify my wife later."

"No problem, whatever you want." Yang Wendong smiled.

Next, Four Seasons Hotel also needs to cooperate with large traders or factories in Hong Kong to retain their customers.

Li Jiacheng then asked, "Mr. Yang, I don't know what kind of cooperation you talked about yesterday."

Yang Wendong said, "Mr. Li, I want to invest in your business. What do you think?"

Of the four major families in the future, Sun Hung Kai has been invested by him, while Henderson Land Development has not yet been established. However, he is acquainted with Li Ka-shing. If history is the same, he will wait until Henderson Land is established.

As for the other two companies, although it is difficult to invest, it is not impossible, so we should still give it a try. "Invest in my company? But my current plastic flower business is not doing well?" Li Jiacheng was not very surprised. In fact, it was not the first time that someone wanted to invest in his company.

Yang Wendong smiled and said, "Plastic flowers are just a commodity, and there is no patent. If I wanted to invest in it, I would have done it a long time ago. What I want to invest in is actually you, Mr. Li."

"Invest in me?" Li Jiacheng asked again, puzzled: "Mr. Yang, I want to know, what are the benefits of this cooperation for both of us?"

Smart people should never look at only their own side when looking at cooperation. Only cooperation that is beneficial to both parties can be long-lasting and mutually beneficial.

Yang Wendong said: "For me, I value your ability. Even if the plastic flower market is not doing well today, I believe that you will find new products, Mr. Li.

As for you, it depends on your requirements. I can provide you with some resources. For example, if your factory is not doing well now, you can do some OEM business for Changxing Industrial. I don’t know how much you can earn, but at least you can stabilize the scale of the enterprise. In this way, you will have enough time to slowly think about the next step. "

Many of Changxing Industrial's products are produced externally, especially those related to plastics, such as spin mops, sticky hooks, etc. There are too many varieties and they are too complicated. If they were all produced by themselves, the entire company's energy would be spent on the production end with low profits. Moreover, there are too many employees and it is difficult to manage them. Not to mention Hong Kong, even large companies in Europe and the United States will have a lot of big company problems over time.

Therefore, letting suppliers produce and then investing in them is the best model. Moreover, they are the customers, control the supply of plastic particles in Hong Kong, and are also shareholders of Formosa Plastics. All in all, they basically account for most of the profits of the entire industry chain.

Since there are so many suppliers, it would be the same to let Cheung Kong Industries be your supplier, and you can also invest in shares of it at the same time.

It is because the plastic flower market has collapsed now that it is, otherwise, it would not be so easy to buy shares in Cheung Kong Holdings, which previously made an average profit of several million Hong Kong dollars a year.

"Mr. Yang's suggestion is indeed good." Li Jiacheng was also tempted. Nowadays, the plastic flower market is highly competitive, causing his factory to be forced to lay off employees.

Once layoffs occur, the signal sent to the outside world will be very bad. He does not want to do this unless it is absolutely necessary. If he can become a supplier of Changxing Industrial, although the profit will not be high, at least he can maintain the scale of the company.

Yang Wendong then said, "Does Mr. Li agree?"

"For matters like this, I have to listen to Mr. Yang's request before making a decision, right?" Li Jiacheng asked with a smile.

"That's right." Yang Wendong nodded and said, "I don't know the specific situation of your Changjiang Industrial, and the cooperation with Changxing Industrial is more complicated, but I can guarantee that you can receive enough orders to maintain production.

As for me, I want to acquire 20% of Cheung Kong's shares. In terms of funding, I will invest according to the data from the subsequent property audit."

"That sounds good." Li Jiacheng paused and asked, "Mr. Yang, can you ask a question other than investment?"

"Okay." Yang Wendong agreed.

Li Jiacheng asked: "I am more optimistic about the real estate market now, because I think that no matter how much money Hong Kong society makes through industry, except for a few people who will transfer foreign exchange away, most of the money will be invested in real estate, and a few will be invested in the stock market.

So I think that it is better to do real estate than to work hard in a factory. Mr. Yang, you have both real estate and industry, I want to know your opinion. "

"Your point of view is actually quite correct." Yang Wendong nodded and said, "A large part of Hong Kong's wealth will indeed go into real estate. Unless you have outstanding abilities, running a factory will require more energy than the real estate industry, and the returns may not be comparable."

This is actually a conservative statement. If you are not a talented person working in an elite factory, then running a factory in Hong Kong in this era is definitely not as good as real estate. Most of the wealth earned from the industry, trade, shipping and even service industries in the Hong Kong market eventually flows into the real estate industry. There is no way to compare.

In other words, Yang Wendong has the golden finger of prophecy and is confident that he can make money all over the world. But even so, without the electronics industry and the Internet industry, no matter how hard other traditional industries work, it will be difficult to compare with the real estate returns in Hong Kong, or the future returns in mainland China and Taiwan, etc.

Of course, there is no either-or choice in this matter, so the two can develop simultaneously.

Li Jiacheng agreed and said, "Mr. Yang has a good point, but the real estate prices in Hong Kong are too high now. Looking at the history of real estate around the world, there have always been real estate crises, and Hong Kong also had one in the past few years. So I still dare not take action now. I can only use the funds I have to buy a few industrial buildings and collect rent."

"Industrial buildings are indeed the safest investment. Even if the real estate market is not doing well, the industry is still okay." Yang Wendong smiled and said, "As for the real estate crisis, it does exist, but is there any business without risk in this world?

Factories can also go bankrupt, or if there is a shipping crisis and freight rates skyrocket, a lot of factories will die. Relatively speaking, the risk of real estate may be smaller."

Even collecting rent is risky, because normal real estate business involves borrowing money to buy houses and then renting them out. Once a real estate crisis occurs, rents fall and bank mortgages are insufficient, the capital chain can easily collapse, unless the scale has grown to a very large scale and a large number of properties are held without debt. But before that, it will take many years of smooth operation to achieve this step.

"Does Mr. Yang also think that the current real estate prices in Hong Kong are too high?" Li Jiacheng asked, "I see that Changxing Real Estate is not very active in the Hong Kong government's auction now."

Yang Wendong said: "I guess so. From 58 to now, housing prices have increased by an average of 3 to 4 times. This increase has basically reached its limit. I just don't know when it will return to normal."

“We can buy at the bottom when things return to normal,” Li Jiacheng said with a smile.

"Yes." Yang Wendong nodded.

Normal people know this kind of thing, but smart people among normal people will choose the right time, which is the most important thing. Otherwise, if you choose the wrong position to enter the market in a V-shaped decline curve, you will still suffer heavy losses.

In every crisis, many people endure the temptation at the peak, but choose the wrong time to enter the market and buy at the bottom. The leverage is huge, and then they will die.

Li Jiacheng pondered for a moment and said, "Well, Mr. Yang, I need to think about it and discuss it with my wife."

"No problem." Yang Wendong was not in a hurry. He also knew that Li Jiacheng was different from him. Zhuang Yueming was also involved in the management of Cheung Kong Holdings.

That evening, Zhuang Yueming also came to the Four Seasons Hotel and met Li Jiacheng in the suite prepared for them by Yang Wendong.

After listening to Li Jiacheng's description, Zhuang Yueming immediately looked around and whispered, "Is there anything wrong with this room?"

Li Jiacheng smiled and said, "I thought of this, so I didn't ask for a presidential suite, but chose one at random. The Four Seasons Hotel is a big industry, much bigger than our Cheung Kong Group, and they probably won't do this kind of thing."

"Hmm," Zhuang Yueming also thought it made sense, then thought about what he had just heard and said, "This cooperation looks good, but the core point is not to get some plastic product orders."

……

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(End of this chapter)