Chapter 689: Cashing out in Advance is Not Bad

Chapter 689: Cashing out in Advance is Not Bad

The old professor surnamed Wang, who comes from the School of Engineering at the University of Hong Kong, was indeed entrusted by someone.

He told Fan Wumian:

"In early April, I went to Shanghai for an exchange meeting and met several experts from the Eastern Survey and Design Institute. They even invited me to dinner. In recent years, they have been planning and studying how to build the world's second largest super hydropower station in the lower reaches of the Jinsha River."

"That project is incredible. Our port city doesn't have any big rivers, so we'll never have the chance to build that kind of large project. At most, we can just fill the sea to build buildings, dig tunnels, and run sports cars. That project is great, but the problem is that there's a bit of a shortage of funds. It's said that there's no hope of starting construction in the short term. The person in charge of this design institute heard that Mr. Fan was interested in investing in a hydropower station, so he contacted me early this morning. I hope I can find time to meet you."

"I have to come here to bother you, please forgive me."

Listen carefully.

Fan Wumian didn't expect that someone would act so quickly and find ways to find him.

It can be seen from this that the mainland's hydropower sector is currently particularly short of funds, and it is not the "money printing machine" that everyone is scrambling for in his impression. This is obviously a good thing, indicating that there is an opportunity to seize the initiative and gain more benefits through negotiations.

Unfortunately, investment in the clean energy sector is a long-term plan, and it will not really begin until you have more money than you can spend and need to reallocate your assets.

Fan Wumian has no interest in making a move for the time being. He can still find other investment channels with higher returns for the funds he has, but investing in a large project like a hydropower station may take several years just for research, site selection, design and other work. It doesn't hurt to learn about it in advance to avoid wasting extra time.

Thinking back to the Three Gorges Dam, which hydropower station is qualified to be the second? Fan Wumian was suddenly stunned and asked in surprise:
"Could the project run by that design institute be the Bailutan Hydropower Station?"

An old professor of the Engineering Department of the University of Hong Kong named Wang said with a smile:
"That's it. Mr. Fan is really well-informed. I thought only people doing engineering research would pay attention to these things. The conditions of the Baihetan Hydropower Station are too good. Theoretically, the electricity generated each year is enough for two port cities. I calculated on the way here. If calculated based on the estimated cost of 1500 billion yuan, the price of one kilowatt-hour is more than 3 yuan, and 600 billion kilowatt-hours of electricity are generated each year, there is a chance to recover the investment cost in less than 9 years."

The grid-connected electricity price of more than 3 yuan is about 600 billion yuan, calculated based on an annual power generation of 180 billion kWh. It is also very beneficial for shipping, alleviating natural disasters such as floods and droughts, and reducing air pollution.

Fan Wumian did not want to invest directly in a hydropower station.

Home renovation is very troublesome, not to mention a super hydropower station project like Bailutan, which will definitely add countless troubles to myself, so I smiled bitterly and replied:
"You really overestimate me. A project that costs 1500 billion RMB? How can I afford it?"

Having said that, he is considering waiting for two or three years and cooperating with the mainland's leading hydropower company, the Yangtze River Hydropower Group, to acquire a large number of shares through targeted financing and additional issuance, thereby indirectly holding equity in the Three Gorges, Gezhouba, Bailutan and other hydropower stations.

Calculating the time, it is estimated that there will be a financial tsunami in the second half of next year. Even if the loan interest, taxes, etc. are deducted, it is impossible to make money purely from hydropower in the early stage. It is also a good idea to buy the stocks of Three Gorges Hydropower Group at a low price. The advantage is that it is relatively safe and you can get dividends every year.

Professor Wang heard the evasion in Fan Wumian's words and continued calmly:
"I am only responsible for conveying the message that 1500 billion is just a preliminary estimate. It may not be necessary to really need that much. The labor and material costs in the mainland are much cheaper than in Hong Kong. The Jinsha River has such abundant hydropower resources. I feel that if Mr. Fan invests in it, he will be rich for at least three generations. Even if he only owns %, he can get more than billion in dividends every year."

After saying that, Professor Wang stood up and said goodbye, going to school to teach his students.

Fan Wumian only sent the other party to the door of his house, and then returned to the living room to carefully settle the bill.

At present, his investment method is still very aggressive. Out of consideration for the principle of "a cunning rabbit has three burrows", he will have to start considering how to seek stability in the future and allocate some low-risk core assets around the family trust fund to earn income as fixed deposits.

Real estate in the mainland will appreciate in value, but the share price of China Yangtze Power Group will still have the opportunity to rise sharply. From the perspective of return on investment, the annual rate of return brought by hydropower generation is actually much higher than the rent of real estate in the mainland.

Following this line of thought, we will find that in the future when allocating assets, it is best to invest more in clean energy in the mainland, and the annual rate of return may be around 10%.

The annual rental return rate of commercial real estate projects in Hong Kong and Macao is higher than that in the mainland. If you find the right time to buy at a bargain price, purchasing real estate stocks such as Sun Hung Kai Properties and Kowloon City Properties at a suitable price is more cost-effective than investing in commercial real estate projects in the mainland for the long term.

If he invests in some bank stocks at the right time, he can enjoy the appreciation of stock prices and receive a lot of dividends every year. With these assets in hand, Fan Wumian's family trust fund has a "ballast stone", which is enough to ensure that even if there are some serious problems, there will not be any major problems, and the risk resistance is quite strong.

It's a bit too early to think about these things now.

But Fan Wumian feels that as long as nothing unexpected happens, his wealth will grow rapidly like a snowball. After long-term asset allocation adjustments, his foundation has been laid very solid. Even if he encounters the subprime mortgage crisis and the financial crisis, he still has the opportunity to survive the bear market.

After the reorganization and merger with United China Insurance, New China Life Insurance Group, which manages approximately 1400 billion yuan in assets, needs to find more stable, long-term high-yield projects. It cannot invest casually due to regulatory requirements.

I bought a large amount of gold some time ago to hedge against the risk of a stock market crash in the mainland. I will find an opportunity next year to cash out this batch of gold at a high price, which will free up funds for use in other places, such as water and electricity, bank stocks, and real estate companies.

The Shanghai Composite Index has risen slightly recently, hovering between 3400 and 3500 points, and the opportunity to buy at the bottom has not yet been fully released.

After thinking about a bunch of things in a mess, Fan Wumian came to the garage, got into the two-tone Phantom, and went out to the filming location in Central.

I was busy until around 2 o'clock in the afternoon.

While reciting a long passage of lines, Fan Wumian unexpectedly received news that the Boston Consulting Group had proactively asked the Hoshino Tomamu Ski Resort whether it had any intention of selling it, and mentioned that a major client wanted to acquire it.

There are many people who want to acquire assets from Fan Wumian, and this situation often occurs, including Penguin stocks, Tudou.com, Amazon shares held, Monster Ms. project, etc., all of which have been asked for prices and want to negotiate acquisitions with him.

However, how could Fan Wumian easily let go of the high-quality assets he had worked so hard to obtain?

Hoshino Tomamu Ski Resort is different. It was originally a bonus obtained from the Moscow auction and was not among his investment targets.

Therefore, after listening to Pu Jiajing's explanation, Fan Wumian was quite moved and said:
"Are there any potential buyers willing to tell me more? I have invested nearly $4000 million in this ski resort, and the price cannot be lowered."

Pu Jiajing has finished filming ahead of schedule. Her character in the drama was pushed off the stairs, but she never betrayed the male lead Fan Wumian until her death. I believe that after the drama is broadcast, she will be deeply impressed by him.

Originally, she was just a supporting role with not many scenes, but in order to promote her, Fan Wumian specially added many scenes for Pu Jiajing.

She now explains:

"I asked, and he said that after you bought the resort in Hokkaido, the profit increased significantly from the end of last year to the beginning of this year. But the Boston Consulting Group employee on the other end of the phone seemed to be from Japan, and his English accent was too heavy, so I couldn't hear clearly what he said."

Thinking of the English with a strong Japanese and Korean flavor, Fan Wumian suddenly laughed:
"No rush. Let's have someone re-evaluate the price of this resort. It seems like a good idea to sell it before the financial crisis, so that we can make some money to invest in other places. After paying off the bank loan first, and then deducting the transaction taxes and fees, there probably won't be much money left. Then I'll add the profits from my long position in Apple stock and invest in Baidu. The researcher at the family office said that its monetization model is working, and the stock price may rise sharply in the near future."

When Apple's first iPhone was first released, it became a hot seller in the U.S., with almost all stores running out of stock and total pre-orders exceeding 30 units.

Influenced by the good news, Apple's stock price has surged by 9% in recent days. The paper profit of nearly 1.7 million US dollars has made Fan Wumian quite satisfied. He has decided to close his positions and cash out starting tonight.

It’s not that Apple stock has no future, it’s mainly because the APP Store has not yet been developed and the first generation of iPhone has limited appeal to consumers. Even after all the positive factors in the short term are released, it will still be dragged down by the sluggish market and will most likely fall again.

Baidu, which is also listed on NASDAQ, is different. Google, which entered the mainland market, cannot compete with it. Its performance has begun to turn losses into profits. In addition, the mainland economy is still growing rapidly and the market prospects are huge. There is a chance that it will attract a group of funds to run for risk aversion. (End of this chapter)