I’m in Hollywood Chapter 948: The bottom card
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In a small meeting room of Firefly Headquarters, Warren Buffett's eyebrows were tight and he quickly read the investment materials of Clover Fund in front of him.
Buffett originally thought that it would be rejected by Eric if he wanted to see the stock portfolio of Clover Fund. After all, it should be regarded as a company's commercial secret. Even if he is also a shareholder of Firefly Group, if Eric insists, he still cannot see it.
However, to Buffett's surprise, Eric agreed very readily and did not even ask him to sign any confidentiality agreement.
Now, looking at the pages in his hand, Buffett also realizes why Eric is completely undefended against him.
The clover fund's stock portfolio is mainly concentrated in three areas.
The first category is Internet technology stocks. The main investment targets include Microsoft, Intel, Cisco, AOL, SUN, Oracle, etc. This type of stock accounts for more than half of the total investment scale.
The second category is the stocks of telecommunication companies, that is, AT-T, Sprint, Verizon, etc., this part of the investment ratio is about 30%.
In the end, less than 20% of the investment was basically weighed on several large cable operators, that is, companies such as Comcast, telecommunications, basic cable and even Time Warner.
In short, the three types of company stocks are basically very popular technology stocks.
In recent years, both large investment funds and small retail investors have basically been chasing these types of stocks. Therefore, even if the investment portfolio of the Clover Fund is made public, there is nothing special in the eyes of outsiders.
In the eyes of Buffett, the Eric's portfolio is completely chaotic, with no rules at all.
Generally speaking, the more complex a fund ’s stock portfolio, the stronger its ability to resist risks. But again, the fund is less likely to achieve high returns. Because of the diversified stock investment, the return on investment of this foundation will be consistent with the overall market.
Excellent investors have always been able to outperform the market. The reason why Buffett is called the stock **** is that the annual growth rate of Berkshire Hathaway can basically be far from the Jones index by more than ten percentage points during decades.
The return on investment of a fund is consistent with the broader market. In Buffett's view, this simply doesn't make any sense. Because the stock market's broad market growth actually means the overall growth of the national economy, if the price rise and currency inflation are removed, the actual value and purchasing power of assets will not change much.
Of course, Buffett also understands that Eric is betting on the arrival of a new wave of bull market in the Nasdaq market, and then taking the opportunity to carry out stock arbitrage, which is actually equivalent to outperforming the ‘big market’. Buffett is not against stock arbitrage, and he often does so himself. It's just that for arbitrage stocks, Buffett will never hold it for a long time, and will not buy it from Eric for a long time without a purpose.
However, seeing the total value of the final clover fund stock assets, although the Buffett brows did not stretch, they could not help but stunned.
In two years, the investment of 5billion USD around this time has already reached 9100 million USD.
If the shares of the Clover Fund can be sold off, the tax will be removed, and the Firefly Group's own surplus, the company's annual net profit will exceed 7billion USD.
Most of the company ’s financial reports in 1997 have not yet been disclosed, but Buffett clearly remembers that in 1996, the General Motors company with the highest profit in North America year, the annual net profit was only 68.800 million USD.
As a top investor, Buffett has not let go of the materials in his hand, and he has begun to think involuntarily. If he owns the 7billion USD, how to invest.
Probably, you should first buy the national insurance company you have long been in favor of, and you can also increase the stock of Coca Cola. Compared with these high-risk stocks with a general price-earnings ratio of 50 to 60 times, insurance companies, Coca Cola and the like are the best investment targets that can bring long-term stable returns.
When Eric walked into the conference room, he just saw old man thinking or dazed in such an old god.
When I felt a figure sit down opposite myself, Buffett reacted, put down the file in my hand, took off the reading glasses and said, "Eric, I want to know, what are you planning?"
"Next year Firefly will continue to invest 2billion USD to buy technology stocks. I plan to accumulate a capital for the next big expansion of Firefly Group, so that the company can minimize the proportion of equity transactions."
Buffett shook his head slightly and said, "Eric, you haven't experienced a stock market crash, I don't know how terrible this is, but I have seen that some billionaires face a stock market crash, sometimes it only takes a day. It will go bankrupt. These stocks invested by the clover fund, in my opinion, once the stock disaster occurs, most of them may fall far below your purchase price in the short term. "
"Warren, I am not a greedy person, so, I think I can still take a good grasp of when to stand," Eric smiled and said confidently.
The reason why Eric did not hesitate to show the Clover Fund ’s stock portfolio to Buffett is because Eric is confident that these materials will not bring any useful information to Buffett. The most important card for him is to know that When to sell these stocks and how to sell them.
Once starting to sell, the most bubbled stocks such as AOL and Cisco, Eric must be the first to be cleared, and stocks such as Microsoft and Intel can still be held for a long time even if they miss the opportunity to sell.
......
......
In a small meeting room of Firefly Headquarters, Warren Buffett frowned, reading the clover fund investment materials in front of him quickly.
Buffett originally thought that he would like to look at the clover fund's stock portfolio will be rejected by Eric, which should be regarded as a company's business secret after all, even if he is also a shareholder of Firefly Group, if Eric insists, he still can't see it.
However, to Buffett's surprise, Eric agreed very readily and did not even ask him to sign any confidentiality agreement.
Now, looking at the pages of information in his hand, Buffett also realizes why Eric is completely undefended against him.
The clover fund's stock portfolio is mainly concentrated in three areas.
The first category is Internet technology stocks. The main investment targets include Microsoft, Intel, Cisco, AOL, SUN, Oracle, etc. This category of stocks accounts for more than half of the total investment scale.
The second category is the stocks of telecommunication companies, that is, AT-T, Sprint, Verizon, etc., this part of the investment ratio is about 30%.
In the end, less than 20% of the investment basically weighed on several large cable operators, namely Comcast, telecommunications, basic cable and even Time Warner.
In short, the three types of company stocks are basically very popular technology stocks.
In recent years, both large investment funds and small retail investors have basically been chasing these types of stocks. Therefore, even if the investment portfolio of the Clover Fund is made public, there is nothing special in the eyes of outsiders.
In the eyes of Buffett, this portfolio of Eric is completely chaotic, without any rules.
Generally speaking, the more complex a fund ’s stock portfolio, the stronger its ability to resist risks. But again, the fund is less likely to achieve high returns. Because of the diversified stock investment, the return on investment of this foundation will be consistent with the overall market.
Excellent investors have always been able to outperform the market. The reason why Buffett itself is called the stock **** is that the annual growth rate of Berkshire Hathaway can basically be far from the Jones index by more than ten percentage points for decades.
The return on investment of a fund is consistent with the broader market. In Buffett's view, this simply doesn't make any sense. Because the stock market's broad market growth actually means the overall growth of the national economy, if the price rise and currency inflation are removed, the actual value and purchasing power of assets will not change much.
Of course, Buffett also understands that Eric is betting on the arrival of a new wave of bull market in the Nasdaq market, and then taking advantage of the opportunity to carry out stock arbitrage, which is actually equivalent to outperforming the 'big market'. Buffett is not against stock arbitrage, and he often does so himself. However, for stocks with arbitrage, Buffett will never hold it for a long time, nor will it buy a large amount of money from Eric for a long time without purpose.
However, seeing the total value of the final clover fund stock assets, although the Buffett brows did not stretch, they could not help but stunned.
In two years, the investment of 5billion USD before and after this has already reached 9100 million USD.
If the shares of the Clover Fund can be sold off, tax is removed, and Firefly Group's own surplus, the company's annual net profit will exceed 7billion USD.
Most of the company ’s financial reports in 1997 have not been disclosed, but Buffett clearly remembers that in 1996, the General Motors company with the highest profit in North America had a net profit of 68.800 million USD.
As a top investor, Buffett has not let go of the information in his hand, and he has begun to think involuntarily. If he owns this 7billion USD, how to invest.
Probably, you should first buy the national insurance company you have long been interested in, and you can also increase the stock of Coca Cola. Compared with these high-risk stocks, which generally have a price-earnings ratio of 50 to 60 times, insurance companies, Coca Cola and the like are the best investment targets that can bring long-term stable returns.
When Eric walked into the conference room, he just saw old man thinking and dazed in such an old god.
I felt a figure sitting down opposite myself, and Buffett reacted, put down the file in my hand, took off the reading glasses and said, "Eric, I want to know, what exactly are you planning?"
"Next year, Firefly will continue to invest 2billion USD to buy technology stocks. I plan to accumulate a capital for the next major expansion of Firefly Group, so that the company can minimize the proportion of equity transactions."
Buffett shook his head slightly and said, "Eric, you haven't experienced a stock market crash, I don't know how terrible this is, but I have seen that some billionaires face a stock market crash, and sometimes it only takes a day. It will go bankrupt. These stocks invested by the clover fund, in my opinion, once the stock disaster occurs, most of them may fall far below your purchase price in the short term. "
"Warren, I am not a greedy person, so, I think I can still take a good grasp of when to stand," Eric smiled and said confidently.
The reason why Eric did not hesitate to present the Clover Fund ’s stock portfolio in front of Buffett is because Eric is confident that these materials will not bring any useful information to Buffett. The most important bargaining chip for him is to know that When to sell these stocks and how to sell them.
Once starting to sell, the most bubbled stocks such as AOL and Cisco, Eric must be the first to sell, and Microsoft, Intel and other stocks, even if they missed the clearance time, there is no problem with long-term holding.
When Eric walked into the meeting room, he just saw old man thinking or dazed in such an old god.
I felt a figure sitting down opposite myself, and Buffett only reacted, put down the file in my hand, took off the reading glasses and said, "Eric, I want to know, how did you plan?"
"Next year, Firefly will continue to invest in 2billion USD to buy technology stocks. I plan to accumulate a capital for the next major expansion of Firefly Group, so that the company can minimize the proportion of equity transactions."
Buffett shook his head slightly and said, "Eric, you haven't experienced a stock market crash, I don't know how terrible this is, but I have seen that some billionaires are facing stock market crashes, sometimes it only takes a day. It will go bankrupt. These stocks invested by the clover fund, in my opinion, once the stock disaster occurs, most of them may fall far below your purchase price in the short term. "
"Warren, I am not a greedy person, so, I think I can still take a good grasp of when to stand," Eric smiled and said confidently.
The reason why Eric did not hesitate to present the Clover Fund ’s stock portfolio to Buffett is because Eric is confident that these materials will not bring any useful information to Buffett. The most important bargaining chip is to know When to sell these stocks and how to sell them.
Once they start selling, the most bubbled stocks such as AOL and Cisco, Eric must be the first to sell, and Microsoft, Intel and other stocks, even if they miss the timing of clearance, there is no problem with long-term holding. (To be continued.)