Chapter 581 New Cooperation with the Stock God

Buffett smiled and said, "I don't understand the textile industry, nor do I want to understand it, but I find that Hong Kong is a good place. Investing here may bring great returns."

"Haha, Warren, you have a good eye." Yang Wendong smiled and asked, "Then what do you think is good about Hong Kong?"

It is normal that his activities as a time traveler will cause changes in Hong Kong's future economic development. Unless you just lie down and relax, the butterfly effect will not exist.

Historically, Buffett would not have paid attention to Hong Kong during this period, but because he invested in Berkshire and wanted to transfer Berkshire's textile industry to Hong Kong, it was normal for Buffett to study Hong Kong as well. It is not surprising that Hong Kong's characteristics were noticed.

As long as it does not have a bad impact on Hong Kong, Yang Wendong does not care. No matter how powerful he is, it is impossible for him to completely monopolize the interests of Hong Kong and prevent others from sharing.

It can also attract more capital to Hong Kong, which may stimulate Hong Kong's economic development and ultimately profit for itself.

Buffett said: "I haven't decided on the field yet. I am optimistic about Hong Kong because it is the only window for the mainland to the outside world. The people here are proficient in understanding the West and the East. It can be said to be a very good bridge.

Last year, relations between the United States and the mainland began to improve. As for the reason, Eric, you are from here, so you should know it better than me. "

"Yes, of course I know that." Yang Wendong nodded.

In fact, just like companies and conglomerates, there are no eternal friends or eternal enemies between countries. The two can be switched constantly. The purpose of everything is security and profit.

What happened between the rabbit and the polar bear in 69 laid the foundation for the mainland to become friends with the United States. In addition, the mainland had been closed off for 20 years and had improved a lot of internal strengths, so it was naturally ready to make friends with Western countries.

Although diplomatic relations would not be established until 72, some rumors might have been known to well-informed people. As a rookie on Wall Street, it is not surprising that Buffett knew some of it.

On the other hand, not many people in Hong Kong know about it. Yang Wendong was able to discover some clues because he knew about it in advance.

Buffett added: "If this is accomplished, Hong Kong will be absolutely very important in the future and will be a place that global funds are optimistic about, so I want to come and take a look."

"What if this doesn't work out?" Yang Wendong asked back.

Buffett smiled and said, "If it doesn't work out, Hong Kong is also the Pearl of the Orient that Britain is trying to build, so I don't think it will be that bad.

Moreover, Hong Kong has elites like you, Eric. The amount of money you have invested in Hong Kong is more than ten times my total assets. If you are so optimistic about it, I think it will definitely be good."

"It is indeed a good idea to invest with others." Yang Wendong nodded and said, "If you want to invest in Hong Kong, you can invest in real estate and finance.

Apart from industry, these are my main investments in Hong Kong.”

Buffett said: "Real estate and finance are indeed evergreen investments, but I don't know much about the situation in Hong Kong, and I don't have the time to spend a lot of energy to study it.

So I would rather invest in you, Eric, or your company. What do you think?"

"Invest in my company?" Yang Wendong was not surprised. Over the years, many European and American investors have proposed to invest in his company. "Warren, my company is not listed and does not need additional funds at present, so I will not accept financing for the time being."

If he invests overseas and involves local business, he will naturally consider cooperating with overseas capital based on the principle of mutual benefit, but it is generally limited to overseas business.

As for the business in Hong Kong, he is a top tycoon in Hong Kong and knows the future. How could he agree to let outsiders invest?

Such projects are only possible for those with an uncertain future or that require cooperation from other resources to achieve higher benefits.

Buffett was not surprised and said with a smile: "Eric, I have checked your company and there are indeed no other shareholders. To be honest, I am surprised by such a business model.

But now that it has developed to this point, it must go beyond Hong Kong, so it is normal to accept foreign investment, right?"

"If my company goes overseas, then the overseas independent company can accept foreign investment." Yang Wendong added: "But it's not certain. Maybe one day my company in Hong Kong will also accept other capital, but at least not now."

Warren nodded and said, “This is very similar to the structure of a Japanese conglomerate, but yours is more private, and Japanese conglomerates generally have multiple Japanese shareholders.

So, how about we set up a joint venture company in Hong Kong, specializing in financial investment? "

"Warren, if I specialize in investing in Hong Kong, can't I do it myself?" Yang Wendong asked in return.

Buffett smiled and said, "Of course not. The joint venture I'm talking about doesn't actually require much capital, but it means setting up a fund company like the one in the United States.

You and I are responsible for raising funds in different places. For example, you raise funds in Hong Kong and I raise funds in the United States. In this way, we each contribute one dollar and may be able to get one hundred dollars in funds.

Assuming that a hundred yuan can make a profit of 20 yuan a year, and we take away 5 yuan of it, wouldn't each person earn 2.5 times as much, right?
This is just a theoretical situation, and there are more practical operations." "I also know the model of Wall Street funds in the United States." Yang Wendong said: "This model does not have any risks, and the profit margin is also good, but if you really want to play it this way, I am enough.

Although I may not be able to get US funding, Hong Kong is not very big, so I don’t need too much money.”

Financial companies generally do not play with equity, unless they are listed companies like Goldman Sachs. Many Wall Street hedge funds are in investor mode.

No matter how rich you are, you will not invest in stocks. Instead, you will use other people's money, distribute dividends after making money, and walk away after losing money without losing money.

Even professional directors in Hollywood are like this. These directors, who are worth hundreds of millions, will not invest themselves, but will seek out Hollywood giants or other capital to share dividends after the movie makes money.

However, if you want to play this way, you must have the ability to make investors money, and then people will trust you. Therefore, many Wall Street masters have short careers. Once they lose a big loss, they will have no chance. People like Soros are very rare.

"Haha, I know that." Buffett laughed and said, "So in return, you can also invest in my fund in the United States, how about it?
You understand Hong Kong and Asia, and I understand the United States. Wouldn't it be better if we cooperate and make money together?"

"That's fine." Yang Wendong thought about it and agreed.

Changxing Group has many export industries, and the main core market is the United States. Therefore, over the years, a large amount of funds have been gathered in the United States. Although these funds are also used in the United States, such as investing in KFC, Best Buy, and some scientific and technological research and development, etc., these investments are still not enough compared with the profits over the years, and the actual investment can also borrow bank loans, etc.;

Although theoretically this money can be transferred back to Hong Kong and only certain taxes need to be paid, it is not a good idea to make a lot of profits in a country and then withdraw immediately. It may be okay for small companies, but large companies need to consider a lot. In addition, the US market itself is very large, so the funds have always remained in the United States. Even if Hong Kong needs money, it can cash out Hong Kong dollars from US banks through financial mortgages.

With so much money in the United States, it is naturally impossible to keep it in the bank, because the interest is not much, and sometimes it is even negative. Therefore, investing in the stock market is also an option, but Yang Wendong is not very familiar with the US stock market in the 60s, so he can only invest in those US companies with good future development;
This approach has lower risks, but it is hard to say about the profits. It is definitely not as good as that of someone like Buffett, who relied on his own strength to become a financial genius who once surpassed Bill Gates, who almost monopolized the global operating system.

Buffett smiled and said, "For me, I also need enough funds. The stock market crash in the United States is almost over. With enough funds, I can also invest in many companies that I am optimistic about."

"Since you have confidence in the American market, why do you still want to invest in Hong Kong?" Yang Wendong asked again.

Buffett said: "I had never thought about it before, but you gave me the opportunity to learn about Hong Kong and let me find that the potential of this place may be greater than many industries in the United States;
And from the perspective of diversification, I can't just put all my hopes in the United States. Any large company, once it's large enough, generally wants to try investing overseas, right?
In addition, Berkshire invested in Hong Kong. The speed of industrial development here also surprised me. If Hong Kong was not just a city, it would be very likely to become the second Japan. If it were 20 years ago, I would also be very likely to invest in Japan. "

"Okay, how about we try it out on a small scale first?" Yang Wendong suggested, "If the cooperation model is successful, we can invest on a larger scale."

This was also an attempt on his part. The core was not that he did not believe in Buffett's ability or his own ability to invest in Hong Kong, but the trust between people.

The fame of any celebrity in his previous life is only a reflection of his ability, and does not represent his quality and professional ethics. We should still be wary of him.

"No problem, how about $500 million each?" Buffett gave a number.

Yang Wendong nodded and said, "Okay, I will ask the United States to give you 500 million US dollars. I will also set up an investment company in Hong Kong to receive your funds. After a year, we will look at the rate of return and then decide on the next step of cooperation."

In fact, even in Hong Kong, there are many embarrassing projects for him, the returns are not very high, or the scale is not very large. If he participates in it himself, he can make money, but it is not as good as those core businesses;
Therefore, these projects are invested when they are thought of, and abandoned when they are not thought of;

However, if you set up such an investment company, use other people's money to invest, and then get a commission when there is a return;
And there is another advantage, that is, as the number of industries increases, I need to invest in many industrial chain enterprises. These factories are a link in the industrial chain, but the profit is not very high, but I have to invest;
It is much more convenient to participate in funds at this time. The rate of return, which you may not consider high, is considered very high for normal funds.

Moreover, it can also allow Buffett's vision and ability to invest his funds in the U.S. financial market, so that both parties can get high returns.

Buffett smiled and said, "Okay, I will convince some investors to invest part of their funds in Hong Kong. I hope that our cooperation will be successful in the first year. In the future, our cooperation will definitely be longer and larger in scale."

"I hope so too." Yang Wendong nodded.

As the mainland begins to make peace with Western countries, Hong Kong will become increasingly important in the future, and European and American capital will gradually come to Hong Kong to invest;

This is actually one of the reasons why Hong Kong's real estate took off in the 1970s and 1980s.

As the future stock god, Buffett has a keen vision and was the first to discover this opportunity, which is not surprising. Moreover, his funds are not his own, but those of investors, so the risk for him will be much lower.

Another factor is myself. Over the past decade or so, my investments have hardly failed. Buffett has seen this and naturally understands that cooperating with me and letting him invest on my behalf in Hong Kong is also making full use of other people's abilities.

But I am the same, taking advantage of his investment capabilities in the United States, and we are both on good terms.

Buffett added: "Well, let's have a toast. I hope everyone can get what they need."

"OK." Yang Wendong also raised his glass and said.

PS: Please give me a monthly ticket
(End of this chapter)

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