Chapter 220: Defrauding funds
Fang Bai came to Chou Country for one more reason, and that was to make some quick money in Chou Country's stock market.
In the past few days, he had read a lot of financial newspapers and gained some understanding, mainly of familiar technology stocks.
Microsoft was listed on the Nasdaq on March 13, 1986. The issue price was US$21 per share. The current share price has risen to US$750. This is what Fang Bai can know from relevant newspapers. He also knows that there will be more in the future. By 2000, the stock price reached its peak in the next twenty years, reaching US$16,000 (comparative calculation after restoration of rights), and then fell all the way until it continued to rise after 2013.
Thirty years later, around 2021, the stock price will be about three to four hundred dollars.
Note that this is the stock price after the stock split!
In fact, based on comparison calculations after the restoration of rights, one share currently costs US$750 and if you hold the shares until thirty years later, it is actually equivalent to US$100,000, an increase of 133 times.
According to historical trajectory, in March 1994, the stock price was still US$750;
In March 1995, it rose to about $1,100;
In March 1996, it rose to about $1,800;
In March 1997, it rose to about $3,500;
After that, it continued to rise until 2000. In other words, if Fang Bai invests in Microsoft now, he will not make any money in the next year.
The problem is that he doesn't know the news. He only knows that if he holds it until about 2000, it can rise about twenty times.
In addition, Fang Bai knew that Intel Corporation was another stock that could be invested.
He doesn't know how the company's stock price will develop in the future, but he knows that computers will develop very well in the next few years.
Currently, Intel's stock price is very high, reaching US$4,000 per share (calculated after restoration of rights), and will continue to rise in the next few years, reaching its peak in 2000, at approximately US$90,000 (calculation after restoration of rights), an increase of approximately 25 times.
Regardless of whether Microsoft or Intel has increased more than 20 times in seven years, you can invest in them.
Suddenly, Fang Bai remembered a company that was also quite impressive, that was Cisco CSCO. Its main products include routers, switches, security products, wireless network products, video conferencing equipment, etc.
Cisco's revenue rose from $1.5 million in 1987 to $28 million, and it was listed on NASDAQ on February 16, 1990.
Later, at its peak in March 2000, Cisco's market capitalization reached $555 billion, and it briefly became the world's most valuable company.
Then the Internet bubble burst in 2001, and Cisco's market value fell to $90 billion in September 2001.
He checked the stock price. The current stock price is around US$350, with a market value of less than one billion US dollars. By the year 2000, it will probably have increased by 28 times.
You can invest, you can also invest heavily, but it will grow steadily, unlike Microsoft, which did not rise very much in the next two years, and only started to rise sharply in 1996.
However, Fang Bai didn't know the specific growth trend. His goal was to invest in all three companies. Anyway, he would hold the position until 2000 before exiting the position.
Fang Bai does not have so many US dollar savings, and his company currently lacks funds for development. It is impossible to use domestic money to invest in the stock market. On the other hand, it is very difficult to engage in foreign exchange.
Therefore, he focused on stars such as Jordan.
These stars make money easily and spend money very generously. They have money but don’t know how to manage it.
If you were a businessman, no matter how much assets you have, you won't be able to withdraw much cash.
The next day, February 22nd.
Fang Bai was reported by some famous media in Yancheng and Chou.
"Hua Guofang, Is Actually a Billionaire" reports on Fang Bai's entrepreneurial journey. It roughly explains that he built a large company from scratch in more than two years without any identity background, and his net worth is close to one billion U.S. dollars. What is surprising is that , he is currently a sophomore in college, just in his early twenties, and is a very famous business genius in Hua Country.
Fang Bai is currently not very popular in Chou Country, and many Chou Country people are also curious about who he is.
The media who were interested went to investigate Fang Bai's personal information and found it. After learning about it, they were shocked and found that it was a good subject for reporting.
After all, in more than two years, his net worth went from zero to more than one billion U.S. dollars, which is very legendary.
In Ugly Country, no entrepreneur’s wealth has grown so fast.
Therefore, after the report came out, many readers read it with curiosity. When Jordan heard his agent called him to tell him, he was still very surprised. He didn't expect Fang Bai to be so good.
At five o'clock in the afternoon, Fang Bai and David left the hotel and rushed to the high-end club 1977CLUB agreed by Jordan, which was actually a nightclub.
Fang Bai has been in and out of such clubs. He is not afraid of drinking, but he is afraid of women.
In the evenings these days, Qin Shuyu would call him to check on him.
Fang Bai took David to the front of the club. Jordan was already waiting at the door. When he saw Fang Bai, he opened his arms and hugged him.
"Fang, I didn't expect you to make so much money. I'll ask you for some business experience later, but I can't keep it."
"No problem, let's communicate with each other." Fang Bai said, leaving his embrace.
This is how foreigners greet friends. Do as the Romans do. Fang Bai thinks it’s okay. At the same time, he introduces David next to him: “This is David L. Copeland, the president of Haas Automation. I am a business friend and a loyal fan of yours.” oh."
"Hi, Jordan, I'm your loyal fan." After hearing Fang Bai's introduction, David extended his right hand with a look of admiration.
For Fang Bai's sake, Jordan was equally enthusiastic about David. Besides, he was also the boss of the company, not an ordinary fan.
After the group entered the box, Jordan introduced five friends to Fang Bai, all of whom were big stars. Three of them, including Charles Barkley, Scottie Pippen, and Robert Parish, were teammates in the All-Star Game.
Originally, today was a small party organized by Jordan, and Fang Bai was invited by the way.
Fang Bai shook hands one by one, tested each other, and then gave each other a favorable impression. Everyone instantly became very enthusiastic about him.
Before Fang Bai came, Jordan had already told them some things about Fang Bai.
For more than two years to create a billion-dollar fortune, that is very remarkable, and all the stars are very shocked.
The glory days of a star only last for a few years, and they are also the most profitable years, with relatively stable income.
But for big entrepreneurs, their businesses grow bigger and bigger, and their wealth grows very fast. Even if they are older, they can still make money with their business acumen, which is different.
After Fang Bai sat down, everyone was still chatting about yesterday's game, exchanging skills, and asking Fang Bai for tips on long-range shots.
After all, they are professionals and have practiced hard, but they are amateurs. Maybe they have some shooting skills that they don't know that they can learn from.
Fang Bai replied that practice makes perfect, and there is also a bit of talent.
Of course, this talent is a golden finger, Fang Bai will not mislead professionals.
After talking about basketball, the most talked about thing was business.
These stars spend money lavishly, so I asked Fang Bai if he could recommend any more stable and profitable projects.
“I plan to set up a private equity fund company on Wall Street, and the target investors are mainly institutions and specific investors.
If you are trustworthy, you can also entrust me with financial management. The annual interest rate will not be less than 20%. Unlike most other fund companies, we guarantee the principal.
Of course, I also have a threshold. The minimum investment is one million US dollars, and the principal can be withdrawn after one year.
After one year, you can withdraw interest or reinvest. Our company will report annual income to customers every year. After customers apply for cash withdrawal, they can withdraw cash within five working days. "At this time, Fang Bai revealed his ultimate goal.
He just intends to use other people's money to make money and give customers a certain amount of income.
The annualized income is not less than 20%, which is the same as that of P2P, except that Fangbai’s income is higher.
Generally speaking, private equity funds generally have an annualized rate of seven or eight points a year, and there are many in this category.
However, in this era, the economies of various countries are developing rapidly. If the annual return of a fund institution is less than ten points, it is considered low, and it is better to invest regularly.
If it reaches 20 or 30 points per year, it is considered very good. It is rare and the risk is relatively high.
If a private equity fund institution already has a good reputation and stable performance, the investment threshold is relatively high, customers are rushing to invest, and ordinary investors cannot get in. Setting investment thresholds actually means reducing the number of managers and reducing management costs while ensuring financial stability.
In addition, once the scale of asset management increases, the rate of return will fall, so the scale of private equity funds will also be controlled.
Fang Bai's private equity fund company mainly invests in the stocks of currently listed companies and the equity of unlisted companies. It does not currently engage in bonds, gold, oil and other projects.
As for the share-sharing model, Wall Street generally adopts the 28-20 model, with customers taking the big share.
Of course, the customer will be responsible for the loss!
Private equity firms still charge management fees.
Of course, Fang Bai is not willing to take just the management fee, nor is he willing to pay 28%, or 50% or 50%. He wants to take the big deal.
He now knows the future trends of some stocks. He is seriously short of funds and US dollars, and cannot borrow money in ugly countries. He currently has little reputation and reputation, and is willing to take greater risks.
Therefore, he is willing to bear the principal risk and has a guaranteed annualized profit of 20 points.
If the annualized profit exceeds 20 points, it will be 70% to 30%, and the customer will get 30%.
For example, if a customer invests one million U.S. dollars, if Fang Bai invests in Microsoft, the net income in seven years will be about 21 times and about 21 million U.S. dollars. After management fees are excluded, it is estimated to be 20 million U.S. dollars.
If the annual guaranteed profit is only 20% per year, after deducting the capital, the customer will receive a maximum of 2.58 times the profit, or US$2.58 million in profit;
If you take dividends every year, that's only $1.4 million in income.
If a 30% share of the revenue is given, the client will receive US$5 million in revenue, while the institution will receive US$14 million. Excluding management fees, Fang Bai can get at least US$12 million.
If only a 20% share is given, the customer will only receive US$3 million in income, which is more than half less, and the investment intensity will definitely be much less.
And the institution gets an extra $2 million, which is not much more.
What Fang Bai is missing now is the scale of his capital. As long as the scale increases, he will earn more.
When your capital scale is large and you can't find any good projects, you can then reduce the guaranteed annualized income and share.
For him, the main focus in the early stage is to build the company's reputation and attract customer funds, even one billion US dollars is not too little.
After Fang Bai finished speaking, everyone was very surprised after hearing clearly.
"Fang, can I vote?" David was moved.
"You are my friend, of course." Fang Bai welcomed him very much. In fact, he understood that David wanted to support him in order to avoid being embarrassed if these celebrities did not vote.
"Thank you, I plan to invest some. I have to see how much I invest, but at least the threshold is one million US dollars." Regardless, David made a deal with Fang Bai, and his company made at least one million US dollars.
Fang Bai's capital-guaranteed investment shows that he is very confident.
Ordinary customers don't expect high dividends. They will be very happy if they can stabilize the annualized income at 20%. If the capital is guaranteed, that would be even better, even if it is just a promise.
Among the seven people present, Fang Bai's favorability score is 85, which is a higher level of trust. In addition, Fang Bai's wealth is not low and he makes money very quickly. I believe he has good investment projects.
Several stars saw David, a businessman investing, and they were equally interested.
They spend money quickly. If they have a stable income and are guaranteed to live a glorious life after retirement, it would be even better.
Next, several players asked Fang Bai a lot of questions, such as how to guarantee capital preservation, when he can vote, the maximum amount he can vote, and whether he can invite friends to vote.
Some players even want to borrow from friends, give them ten points of interest, and then pay it to Fang Bai themselves, and they can get at least ten points of profit.
After everyone talked for half an hour, Jordan finally decided: "Fang, I plan to invest 10 million US dollars."
"You are very welcome. We will sign the contract after the private equity fund company has registered for a while. Then I will arrange for a specialist to interface and then transfer the funds to my fund company account." Fang Bai did not expect Jordan to throw so much away, but he Last year's endorsement income reached 20 million US dollars. He is also good at managing money and is very rich.
After investors show interest in investing, Fang Bai plans to register a private equity fund company on Wall Street and recruit professionals.
When Charles Barkley saw Jordan investing, he also decided: "Fang, I don't have as much money as Jordan. I'll invest three million dollars. This is most of my savings."
The three decided to invest, and the other four stars invested more or less, with a minimum of one million US dollars and a maximum of five million US dollars.
Seven people, with a total intended investment of US$25 million, not counting David’s.
David is the owner of the company. The company's capital is tight and he can only afford one or two million US dollars.
Of course, the two to thirty million US dollars cannot satisfy Fang Bai's appetite. In the next period of time, he will have to continue to deceive some stars, big investors and institutions, and he will have to get more than 100 million US dollars in funds.
After two hours, the party ended.
The morning after the party ended, Fang Bai flew to N and notified his translator and lawyer to also go there. David returned to Los Angeles, and his company still had other things to do, so it was enough to spend three days with clients.
Wall Street is a street in Manhattan, famous for its numerous financial institutions, stock exchanges and investment banks. It is also one of the important centers of the global financial industry.
Yancheng is about 3,000 kilometers away from N, and it takes four hours by plane.
A few hours later, we landed at John F. Kennedy International Airport in eastern N.Y.
In 1988, the total GDP of N was 362 billion US dollars higher than that of Shanghai. The economic gap between the two cities was very large.
There is a world of difference between a financial center in a developed country and one just starting out.
It was still an hour or two away from the airport to the financial district of Manhattan. Along the way, Fang Bai admired the urban scenery of this developed country. Both sides were lined with uniform country villas and there were very few high-rise buildings.
They all look similar and completely different from domestic communities. If you don’t remember the street numbers, it’s very easy to get lost.
After passing the Williamsburg Bridge, crossing the East River, walking along the river, arriving at One Manhattan Plaza, and then to the Manhattan Bridge, we entered the real Manhattan Financial District, where there are many high-rise buildings.
Fang Bai stopped at the Modern French Restaurant on South Street for a meal, and then checked in at the Eurostars Wall Street Hotel, a four-star hotel.
In the evening, Fang Bai met his translator and lawyer, and began to arrange work, register the company, and recruit fund managers, lawyers, accountants, appraisers and other personnel. The business was not large and did not require too many people or too many people. Niubi's fund managers only need to be loyal and obedient, and all operations should be conducted in accordance with Fang Bai's requirements.
A few days later, Nyo Xinghai Investment Company was officially established, and several players and David were notified of their company accounts.
Two days later, part of the funds arrived.
As the funds arrived, Fang Bai breathed a sigh of relief and finally had money to spend.
There are only three target stocks: Microsoft, Intel and Cisco!
It is planned to invest half of the investment funds in Cisco and 25% each in the other two stocks, and it is a long-term holding.