America's Road to Wealth

The double standards of the Angsa people are famous all over the world.

But within themselves, they don't feel that way.

At this moment, many giant crocodiles gathered, facing the aggressive Abel.

Faced with Abel's taken-for-granted attitude.

For a moment, they were speechless.

According to Abel's strong words.

What he said was indeed correct.

The annual operating income of the four major investment banks is as high as 30 to 40 billion U.S. dollars, which is not much different from their market capitalization.

But the investment profit is not even half of that of Smith Capital.

This is mainly because the investments made by investment banks are not profitable every time.

According to his rhetoric, even the famous "Wall Street Bulldog" Richard Fuld.

I can't find any good reason to refute it.

Unlike Chinese people, Chinese people like to leave things a step ahead so that they can meet each other in the future.

The Ansa people's way of doing things is to kill you when you are sick.

I am strong and reasonable.

While these people don't know how to verbally retaliate against themselves.

Abel spoke.

"Just follow this ratio." Abel said with a smile:

"If you are interested, you can come and talk to me later. If you are not interested, we won't force you."

“After this, Smith Capital’s private placement will remain open to everyone as always~”

"The food and wine prepared by Hilton tonight are very good. There is also a dry red from Chateau Margaux, which I think tastes great."

"You can give it a try~"

After finishing speaking, Abel didn't give them a chance to refute, and left with a smile.

As soon as he left, Richard Fuld said angrily:

"This price is too much! Five hundred billion US dollars? He really dares to think about it!"

The presidents of the other three major investment banks did not speak, but they nodded as if they agreed with Richard Fuld's words.

$500 billion market capitalization?

General Electric, the largest company in the United States by market capitalization, has a share price of just under $600 billion.

But General Electric has a long history, dating back hundreds of years from the time of Edison to the present.

With countless scientific and technological patents and a large number of subsidiaries, it is a technological pillar in this country.

Such a behemoth is still a listed company.

Its market value is now just over 500 billion US dollars.

David Komansky, the CEO of Merrill Lynch who had not spoken much tonight and showed signs of declining power, spoke leisurely:

"Maybe Mr. Smith just didn't want to accept others into Smith Capital. He simply offered such a price that we couldn't accept."

David Komansky's statement suddenly became the most accepted possibility among everyone in the audience.

"It is indeed very excessive." Philip Purcell said clearly: "Morgan Stanley announced that it is no longer interested in investing in Smith Capital!"

"So does Goldman Sachs!" Paulson said.

Lehman Brothers and Merrill Lynch did not speak, but the two CEOs nodded in agreement.

It seems that among the capital giants tonight.

Because Abel just made an exaggerated and outrageous offer.

The four major investment banks all gave a unanimous rejection.

Many of the giants looked at Buffett, who smiled.

"Mr. Smith's price is outrageous. Coca-Cola's market value is only $150 billion."

Buffett said: "I don't think Smith Capital can be more valuable than Coca-Cola now."

Buffett's statement once again received nods from many people in this small circle.

For a time, the big guys began to attack Abel Smith and Smith Capital verbally.

At that point, it looked like no one was interested in investing in Smith Capital anymore.

Even George, who just came to join in the fun, quietly said to Steve, his family’s private investment manager:

"Originally, I was also interested in investing in Smith Capital. But now the price is too expensive."

It was too expensive to buy shares, and George didn't think it was necessary.

But he feels that Smith Capital’s private equity can still be bought.

He is not very good at math, but he still knows how to calculate the 283.9% return.

Steven nodded and felt that what his boss said made sense.

Among the people present.

Those who didn't express much were the two people from the Texas consortium.

There are also two old men, Morgan and Rockefeller.

the other side.

Abel, who had left the circle of alligators, did not think that the price he had just quoted was too high.

He has this confidence in himself, or rather in his "talent".

He felt that he had his own "talent" as an investment manager.

It’s worth the price!

Whether Wall Street agrees or not is a question for Wall Street.

After leaving those giants, Abel found David Mellon again.

In the latter's somewhat surprised eyes, Abel suggested:

"David, do you think if we set up a few more fund companies, more people will subscribe?"

This aspect, before starting today.

He didn't say that to David.

That's why David was surprised.

But when he said it now, David changed his mind almost without thinking:

"No problem at all ~ BOSS, you didn't see me coming down just now, but they blocked me. Many people wrote checks on the spot and wanted to join us."

There are such exaggerated return data out there.

There are so many Wall Street giants present who remain silent on this.

This confirms that Smith Capital did not lie, they are just that powerful.

Created such a miracle.

Almost all the guests attending the reception tonight were high-net-worth individuals.

These people have money, and they usually need financial managers.

Many people's money is left to private independent investment and financial advisors.

They generally invest in investment banks and securities companies.

Today, Smith Capital is several times stronger than these companies.

Then why not invest your money in Smith Capital, the strongest company?

Two and a half months, 289.3% return on investment.

Where can I find this kind of rate of return?

In fact, Abel also knew that money moved people's hearts.

Such a high return on investment, such an exaggerated profit margin.

It was impossible that no one was tempted at the scene, and those words just now were just the opening remarks.

After hearing David's confirmed answer, he smiled and said: "Then let's open a few more fund companies!"

In the United States, the type of private equity funds that Chinese people are more familiar with.

In the relevant laws of the United States, it is called 3C1 fund. Because it is based on Article 3(c)1 of the Investment Company Act.

An American private equity fund is essentially a private company.

What investors subscribe for is actually the shares it issues.

Like a Smith Fund, it’s just a popular term.

Legally, it is actually called "Smith Capital One Company."

The total equity capital is US$3 billion, and investors contribute capital for subscription.

The investment consultant and management team are Smith Capital.

It has fewer regulatory and disclosure requirements than a listed company.

But for fundraising, there are stricter requirements.

For example, the number of investors cannot exceed 100, and it must target specific groups of people.

IPO is not allowed. Each investor must be a qualified investor, and there are requirements for investors.

That is, the assets under management shall not be less than US$1 million, or the investor's net assets shall not be less than US$2.1 million.

The Chinese side basically followed the American approach.

Because they need to raise funds for specific groups of people, they are called "private equity" funds in China.

Corresponds to the concept of "public offering" funds.

The public funds in China are more like the concept of "mutual funds" in the United States.

That’s what they call public funds in China and mutual funds in the United States.

According to U.S. regulations, LPs from private equity funds must be purchased.

One of two requirements must be met, which is that either the investment amount exceeds $1 million, or the personal net worth exceeds $2.1 million.

There is no such requirement for mutual funds, and the public can buy small shares for 10 or 20 yuan.

Unlike private equity funds.

In the United States, the investment strategy of mutual funds is relatively passive.

Generally, we only track one index, or make weight preferences on the index, which is called index enhancement.

There are very few active public offerings like the one Peter Lynch ran at Fidelity.

Now in the twenty-first century.

ETFs are rapidly emerging due to their advantages of good liquidity and low fees.

The mutual fund business is also not what it used to be.

The regulations and requirements on mutual funds in the United States are more stringent than those in China.

More importantly, those mutual funds in the United States are, strictly speaking, the real economic ballast of this country.

In the United States, there are more than fifteen mutual funds with a scale exceeding one trillion dollars!

There are thirty or forty mutual funds worth hundreds of billions of dollars.

More than 40% of households in the United States hold various investment funds.

The richest few are engaged in private equity.

But most of the middle class and decent families invest in mutual funds.

With such a huge number of users.

In addition, mutual funds in the United States have a history of seventy years.

After more than seventy years of accumulation, a large number of large-scale mutual funds have been accumulated.

Most of the funds of these large-scale mutual funds are circulated in U.S. stocks and U.S. bonds.

One-third of U.S. stocks and one-half of U.S. bonds are purchased by these mutual funds.

This is why U.S. stocks or U.S. bonds have completely collapsed.

The reason why the United States will basically collapse.

Imagine that all the investments and savings of the richest and most elite 40% of families in a country were wiped out in one fell swoop.

What is this concept?

Because of this, the United States has stricter requirements for mutual fund management than China.

This is also the reason why the four major investment banks, such as commercial banks and investment banks, rarely involve mutual funds.

The supervision is too strict, the fees are low, and you can’t earn a few commissions through hard work.

They have ETFs or private placements that are faster and more profitable, and they are not in the mood to manage mutual funds.

In the United States, a private equity fund needs to be formed.

It can be very fast because there is no supervision. As long as someone subscribes to become a shareholder, one can be established in a few days.

When it comes to setting up a mutual fund, the requirements are even more perverted than those in China.

The review alone takes almost half a year or even one to two years.

But there are also advantages to being a mutual fund, that is, it is easy to gain favor from the top 40% of families in the country.

Why is Peter Lynch called a stock angel?

It is because the mutual funds he managed back then made a lot of profits for a large number of middle-class people in the United States.

In China, the person who makes money for everyone is called the God of Wealth.

In the United States, those who make money for everyone are called angels.

Mutual funds, Abel will also do it in the future.

And after tonight, he will even announce it in the newspaper: Smith Capital will build a mutual fund from scratch.

The reason why he did this was because he wanted to be like Peter Lynch.

Get the support of the most important 40% of families in this country.

This is also the meaning of what he said in his speech just now, "I want to share my talents with every American."

But setting up a mutual fund and passing various reviews can take up to half a year from scratch.

This is when everything goes well.

He was in no hurry.

What is urgent are the ordinary middle-class investors who want to invest in him.

Before that, he could create several other private equity funds.

While continuing to make money, continue to seduce Wall Street.

This is what he meant when he said "create a few more fund companies" above.

Simply put, a private equity fund in the United States is equivalent to a company.

David nodded immediately: "No problem. Then when they ask me later, I can give them an explanation!"

The two quickly concluded their discussion. Within a few minutes, Abel had already decided on the number of new fund companies and the total share capital.

After the negotiation was concluded, David Mellon took action immediately.

David came to the high platform again, holding the microphone and smiling.

The lights at the reception also dimmed in response.

The spotlight shone on David, who smiled and said:

"Let me tell you some good news. Smith Capital will re-establish five fund companies in the future."

"The total equity capital of each fund company is three billion US dollars."

"If anyone wants to be our LP, you can contact me or Smith Capital later~"

"In addition, starting tomorrow, Smith Capital will submit an application to register a mutual fund to the relevant departments."

"As our great Mr. Abe Smith said."

"Smith Capital is willing to share success with any American!"

David's return to the stage and the announcement.

What was triggered was even more enthusiastic applause than when Abel went up to give a speech just now.

This is not because David is more popular than Abel.

It's because Abel's speech, although it was very good (after all, the lines were designed by the think tank), was quite inflammatory.

But that has nothing to do with them. The guests present are all wealthy people.

Only a very small part of them joined the Smith Fund.

What they want more is to be like these people.

Share Smith Capital's success.

Now Smith Capital expresses its willingness to bring everyone to play together.

David, who announced the news, naturally received the biggest applause.

Most of the guests in the audience applauded warmly.

Richard Fuld quickly discussed some matters with the CFO of Lehman Brothers and the CXO who accompanied him to the scene.

"Okay. Since you think so too, let's give it another try!"

Looking at David on the stage, I thought of Smith Capital’s next big move.

The bulldog of Wall Street gritted his teeth.

Richard Fuld found the direction of Abel and walked towards him.

Only halfway there, Richard Fuld bumped into Paulson, the CEO of Goldman Sachs.

"Hey~Sorry~"

"Ah~Sorry, I didn't pay attention~"

After the collision, Richard Fuld and Paulson apologized to each other.

As soon as they apologized, they recognized each other's identities.

Richard Fuld immediately spoke: "Christian, where are you going in such a hurry?"

Paulson was silent for a moment and looked at the direction Richard Fuld had just walked.

Paulson didn't answer and asked: "Richard, where are you going?"

"Uh" Richard Fuld didn't really want to say, he wanted to go over and talk to Abel again.

Who knew that when Abel made an offer just now, he was the one who reacted the most, and he was the one who rejected it the fastest.

Now he is the one who wants to talk to Abel first.

This seems a bit unreasonable.

But Paulson saw right through Richard Fuld's approach.

Because Paulson has seen the other side.

Philip Purcell, who just said categorically that Morgan Stanley is no longer interested in Smith Capital.

The old guy, on the other side of the reception, was also walking towards Abel.

Following Paulson's line of sight, Richard Fuld, who also saw Philip Purcell's movements, was startled.

The CEO of Lehman Brothers knew immediately that Philip Purcell was saying one thing, but actually doing another!

Madfak, it seems that everyone is the same!

He glanced at Paulson, who had thick eyebrows and big eyes next to him, and found that the latter was also looking at him.

This struck Richard Fuld immediately.

Not only Philip Purcell thinks the same as him, but also Paulson, who has thick eyebrows and big eyes.

That's where everyone was shouting that they were no longer interested in Smith Capital.

Can be done in private

Without looking at Richard Fuld himself, he just wanted to go to Abel's side!

Paulson was heading that way, too.

Philip Purcell was almost at Abel's side.

"Ha~ no one is stupid. Everyone has ideas~" Paulson said softly, self-deprecatingly.

Richard Fuld deadpanned.

But at this moment, the Wall Street bulldog also agreed with Paulson.

Abel Smith's offer just now was indeed excessive.

But it’s not like we can’t talk about it.

There is no such proverb in Europe and the United States as to ask for a high price and then pay back the money.

But there are similar arguments as well.

Abel quoted US$500 billion, but we don’t necessarily have to pay according to this price.

What's more, if you really stick to this price, other conditions can also be discussed.

The most important thing is, as long as Abel can really help everyone make money.

In fact, a valuation of US$500 billion is not unacceptable to everyone.

What I said over there just now made me a little angry at first.

There are also people who want to deceive other colleagues and make them believe it is true.

Let them no longer be interested in Smith Capital.

This way, I can take one more bite, and I'll tell you if it's useful or not.

From the current point of view, at least it was the kind of performance just now.

Richard Fuld felt that he had little use for the Big Four investment banks and the savvy investors.

They still had the same thoughts when it came to contacting Abel.

"go together."

The bulldog of Wall Street whispered to Paulson: "Maybe we can talk to him again. Let's see what the conditions are."

Paulson nodded.

If he didn't go there, Philip Purcell, who had spoken decisively just now, would be chatting with Abel!

"Look over there~" Paulson suddenly heard Richard Fuld say.

"Buffett is heading that way too."

Paulson turned his head.

He saw Buffett, who had just said he was not interested, and was really walking that way.

Sure enough, in the face of interests.

Everyone is still honest.

The future in parallel time and space, U.S. Treasury Secretary Paulson thought to himself.