Chapter 714: Hugely Profitable Stock Investment

"Well, this one really can't go wrong." Yang Wendong nodded, looking at a coin dispenser testing device in the corner of the laboratory;

The coin over there is constantly circulating through a track opening where there is a contact point. When the coin passes through, it will trigger the sensor behind it. If the coin is too small or too large, it will also be recognized by the track in front.

Wang Zhiqun looked in the direction his boss was looking at and said with a smile, "That's the automatic testing equipment that Dongsheng made specifically for us. It can test hundreds of thousands of times a day, which is much better than manual work."

"Well, Dongsheng has indeed achieved great results in recent years." Yang Wendong said with a smile.

An equipment manufacturing giant that did not exist in history has now become very famous in Hong Kong under the influence of Yang Wendong. Many non-standard equipment within Changxing Group were made by Dongsheng. Yang Wendong also invested in this company, and it was also listed.

Wang Zhiqun added: "Dongsheng's market value exceeded 100 million yuan when the stock market was at its peak, but it has fallen sharply due to the stock market crash. However, their Lin Sheng is taking the opportunity to borrow heavily and hoard land. I guess he is thinking of entering the real estate market in the future."

"It's normal. Dongsheng has reached its current level. Lin Huailun is also a smart man. He can naturally see that the real estate market is the future. Even we are involved." Yang Wendong said with a smile.

Half of the credit for Dongsheng's rise is due to Changxing Industry. Yang Wendong relied on it in the early days, but later Dongsheng was able to rely on Changxing Group and became its first supplier of various equipment. Whether in terms of technology or doing things, Dongsheng is not bad;
In addition, in the past few years, the profits of the Hong Kong real estate market have completely surpassed the entire manufacturing industry. Only the Changxing Group is special. Many manufacturing giants naturally want to enter the real estate market. Besides, it is not a choice between the two. They will continue to do their own manufacturing.

Wang Zhiqun said: "Yes, if it weren't for this economic crisis, I think many colleagues in the electronics industry would have gone into stock speculation and real estate speculation."

Not to mention others, if the boss Yang Wendong hadn't strictly restricted each subsidiary to do business in its own field, they would probably have gone there too, because the previous real estate returns were so tempting.

Yang Wendong smiled and said, "Let them do whatever they want. However, the real estate market and the stock market are not something that everyone can control. In the short term, these people are unlikely to give up their areas of expertise. At most, they can add more businesses as long as they don't affect us."

In fact, older people are habitually dependent. For example, many elderly people in the mainland in the past were sometimes criticized by young people for being too stubborn.
But they don’t know that, in many cases, their habits have already been formed, and it is too difficult to ask them to change them. Besides, the elderly themselves are not very good at learning.

No matter how much money the real estate and stock market industries make, they can only attract young people to participate. Older people are generally not very brave, at least they dare not go all in, and they will not leave their original comfort zone. The manufacturing industry may not be able to compare with the real estate and stock markets, but at least it can still make a lot of money in the next ten years.

As for more than ten years later, the mainland will have already been reformed, and he will also cultivate relevant suppliers in the country as soon as possible. They can be Hong Kong-funded factories or local state-owned enterprises. This will also be a perfect connection with his group's manufacturing industry.

Soon it was early 1974. With the support of China Resources, Hong Kong's fuel supply basically returned to normal, but the price was still in line with international standards.
For many people, the sharp rise in oil prices has certainly brought high costs, but at least there is oil now, and the operation of the entire society has resumed. Factories that are able to start work do not have to worry about transportation problems;
Some other factories affected by the oil crisis received partial support from Hang Seng Bank or Changxing Group, which enabled them to at least maintain themselves for the time being.

But if the oil crisis doesn't end, it will continue. No one knows when this crisis sweeping the world will stop. Even if it stops, the economy will not immediately rebound. I don't know how many people are anxious.

Yang Wendong, who knew everything, was naturally not in a hurry. It would be over in more than two months, and the subsequent impact was inevitable. Moreover, in the crisis, there would also be huge opportunities. For prophets, many times, the benefits during the economic crisis period were greater than those during the period of rapid economic growth.
In Hong Kong, Changxing Real Estate and Changxing Financial Group are also looking for opportunities to acquire high-quality properties and stocks. However, given the scale of Changxing Group, its targets are all large ones, and small ones are generally not taken seriously. In the long run, the most suitable targets are still those British giant companies. Acquiring one company can obtain its century-old achievements, and I don’t know how much energy can be saved. You know, many resources cannot be bought with money, and they are all controlled by these British giants.

However, even if he wanted to take action against British capital, he had to choose the right time. After Wharf Holdings was acquired, all British companies began to conduct reverse investigations on their own stocks. However, Yang Wendong had never taken action against them before, so naturally he could not find anything. In fact, not all British capital was worth Yang Wendong's attention.

In the short term, there won’t be any significant progress in Hong Kong, but overseas, it’s different. Some of the overseas layouts in the past few years have also led to a significant increase in revenue in the United States;

On the 6th, Yang Wendong took his own private plane to New York City;

There were also more than 30 "Speed Race" arcade machines on the plane, which were also to be airlifted to the United States for internal testing, and they were also boarded on the boss's private plane;

After arriving in the United States, Yang Wendong immediately called Lin Youqing and asked, "How much has the share price of the oil field company we purchased increased?"

In an era without futures, Yang Wendong had no way to maximize his profits during the oil crisis through futures, so he could only make arrangements in two aspects. On the one hand, he stockpiled plastics, a storable derivative of oil, in Hong Kong, and on the other hand, he bought oil field stocks in the United States. After the oil crisis broke out, global oil prices skyrocketed, and the profits of any oil field grew exponentially, and their stocks would naturally do the same.

The plastics in Hong Kong not only made tens of millions of dollars during this period, but also provided sufficient supply for its entire industry, avoiding shutdowns due to lack of raw materials. If this were true, the losses would be even greater.

Lin Youqi smiled and said, "Mr. Yang, I have previously dispersed my funds and purchased stocks of 12 oil field companies. Together with the leverage from Citibank, I have invested a total of 5600 million US dollars.
I just calculated these shares two days ago, and the current value is about 1.4 million US dollars, and our net profit is about 8000 million US dollars. "

"The oil price has increased more than three times, but the stock price hasn't doubled?" Yang Wendong asked in return.

Today's oil prices have risen from $3 to nearly $12.

Lin Youqi explained: “Oil prices have indeed risen so much, and the prices of American oil fields have also risen. However, although the core business of these listed companies is oil fields, they are not the only ones in the oil field business;

Therefore, a sharp increase in profit of one business cannot drive the entire stock to rise in full proportion.”

"That's quite a pity." Yang Wendong said with some emotion.

Lin Youqing added: "In fact, when the Middle East was exporting oil normally before, many oil fields around the world only made money from nearby businesses. Otherwise, it would not be cost-effective. Therefore, it is impossible for a normal listed company to only deal in oil fields."

Yang Wendong nodded and said, "Yes, in terms of oil costs, the Middle East is definitely the lowest."

The oil from the Middle East is not only low in extraction cost, but also the world's top light oil. It is also the most convenient and has the lowest refining cost to refine gasoline and diesel, so it is very popular among oil processing and refining companies.
Venezuela, also a country with large oil storage capacity, has a very high underground oil content, but most of it is hard oil, which is very popular when the oil price is very high, but no one wants it otherwise. This is why Venezuela made a lot of money in 08 when the oil price was more than $100, but after the subsequent drop in oil prices, the entire country was on the verge of bankruptcy.

Even in the past, when the United States was mining shale oil, it was dragged into a price war by the Middle East, relying on low costs to crush everything. Even the future upheaval of polar bears has a lot to do with oil prices;
Therefore, the Middle East is the core lifeline of the world and its eternal focus.

Lin Youqi asked: "Mr. Yang, do we need to hold these stocks for a long time or sell them?"

"Sell it, don't keep it." Yang Wendong shook his head and said, "I'm not sure what the future will be like. I've made 150% now, so I can't be greedy for the subsequent profits."

This is also true. He does know that the oil crisis will end soon. Although oil prices will remain high, it is unclear what the curve will be.
As for the U.S. stock market and the stocks of these unknown companies, he was even more uncertain;
For industries that you are not sure of, the best option is to quit while you are ahead, just like normal investment. If you are too greedy, you may get yourself into trouble.

Lin Youcheng agreed: "Okay, then I will start cashing out. Our stocks are quite dispersed, and I estimate that we can sell them all in a week."

"Okay, these funds will remain in the United States and then be appropriately allocated to Best Buy and KFC, allowing these two companies to continue to expand their stores in the United States." Yang Wendong added.

Currently, there are only these two companies that have physical businesses in the United States, especially Best Buy. This will be the most important link for them to share the profits of the US electronics industry in the future, and there is almost no risk.

"Understood." Lin Youqi replied.

Yang Wendong added: "I have already made an appointment with Buffett to meet tomorrow. You can come with me. I think you will have some cooperation in the United States in the future."

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

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