America's Road to Wealth

Backstabbing is all too common for Wall Street.

In parallel time and space, Lehman Brothers fell.

In addition to its attempt to commit suicide, there was also a critical moment of backstabbing from Goldman Sachs and Merrill Lynch.

At that time, Goldman Sachs promised to help, with the guarantee of Goldman Sachs and other Wall Street giants.

Lehman Brothers took out its best assets, about US$30 billion.

Goldman Sachs acted as the evaluator.

After the evaluation, they only offered a price of 40%.

With the combined efforts of other Wall Street giants, Lehman Brothers was in urgent need of funds to survive.

You can only sell your most valuable assets.

This is a stab in the back for Goldman Sachs.

Merrill Lynch sold itself one step ahead of schedule, cutting off Bank of America's last escape route from acquiring Lehman Brothers.

It can be said that on Wall Street, backstabbing among peers occurs every day.

Abel backstabbed the Wall Street firm that was shorting this time.

Buffett didn't think there was anything wrong with this.

When Abel did this, Buffett felt that this was a normal Wall Street person.

The only thing Buffett was confused about.

That's how Abel was able to know in advance what was happening in Scotland on the other side of the ocean.

It is possible to say that this matter was led by Abel.

What can't Wall Street do for profit?

Just blow up the queen's car

For the sake of profit, the Shenjing Ice Gunner came up with a imaginative package. Shouldn't he arrange it for the owner of the white house?

But Abel's rise was too short, and he had never left the country at all.

I also have almost no contact with Europe.

In this case, in such a short time.

If it can be done, it will affect Scotland.

Then he is too scary.

Another possibility is that it was not Abel who did it.

Abel only knew this information in advance through certain channels.

Buffett thinks the possibility of this is higher.

But even with the latter possibility, Buffett still thinks Abel is very scary.

The reason is that this will affect the intelligence information of the financial market.

The people on Wall Street didn't receive the news or the wind.

However, Abel learned about it in advance and deployed his back-up plan three days in advance.

Doesn't this mean that Abel is capable of obtaining information?

Better than Wall Street, at least better than Wall Street investment banks?

The more Buffett thought about it, the more incredible it became.

This made his original idea of ​​just coming over tonight shaken.

Buffett now wants to invest.

But it wasn’t Smith Capital or Smith Capital’s private equity that made Buffett want to invest.

It was Abel who gave Buffett the idea of ​​investing.

Buffett believes in prudent investment and advocates value investment.

I don’t like high-risk private equity or investment.

But now he felt that Abel was very valuable.

Then investing in Abel can be considered to be in line with his investment philosophy and style.

The only bad thing is that in Buffett's opinion, Abel's investment style is too risky.

Buffett is still considering it.

From Abel's perspective, he was actually only revealing information based on his "talent".

His talent allowed him to observe this in advance.

He knew something was going to happen over there in England.

It will affect the pound and the euro, and the pound and the euro will be affected later.

This will in turn affect the U.S. dollar, causing the U.S. dollar to turn from falling to rising.

But he didn't know what exactly would happen in the UK.

He did that deliberately just now, just to let these guys know in advance.

Knowing his own financial capabilities, knowing that he has what he has when many oligarchs on Wall Street join forces to short-sell.

Also able to cut their leeks.

The main purpose of this is to make these people have less doubts about his offer.

But he didn't expect that something happened over there in the UK.

But something happened in this regard.

The bombing of the Queen's car is definitely a big deal in the UK.

Later, David Mellon came over to tell him the news, and the Queen was not harmed.

He just found out about it.

"Forehead"

He felt like he was overdoing it this time.

It would be a pain in the ass if these investment bank giants had any doubts.

By the way, if you leak it and let the British know about it,

But when he thought about it carefully, he really wasn't that scared.

The most important thing is that it is now in 2000.

Daying is no longer the same person he used to be.

If this had been fifty years ago, Abel would have been afraid of "James Bond" coming to trouble him.

Thirty years later, "James Bond" would still have some intimidating power.

Now in 2000.

Thatcher was the one who succeeded in deindustrializing and privatizing.

Now only words and financial power remain.

In a few years, Lian Muhai will have to rely on the United States as the carrier of its power.

A country that puts all its efforts in launching Muha bombs into the hands of the Americans. What else can it do to the United States besides paying lip service?

Daying has almost begun to mess up and pull him apart in all aspects.

Such a shit stirrer.

Does it really dare to send "James Bond" to deal with a Wall Street capitalist?

There is still no evidence at all, just a little suspicion.

What's more, this capitalist was born in Texas.

He is also close to the family of the incoming general.

I have a self-defense force of an elite infantry platoon with me at all times.

Without definite evidence, do you really dare to take action?

If he really dared to take action, Abel felt that he might be happy.

Because after that, he would have an excuse to crack down on financial exploitation and troublemakers openly.

By that time, even the white house would be too embarrassed to stop him from starting.

You must know that London is still the financial center of the world. At this time, the British are richer than neon!

Not to mention the fact that Abel and Ireland were there.

The only connection is a capital company he registered in Ireland.

He really has nothing to do with anything else.

Daying must really have this ability or determination.

Then Soros attacked the pound in 1991, causing the pound to plummet.

The UK lost nearly 5% of its GDP that year.

Britain, which has such determination, has already taken action against Soros.

Then what?

Soros is now alive and well, and NGO funds in Europe and the UK are being established one after another.

In another ten years, Lao Suo will soon become the King of Europe.

It collapsed in 1991, can it still rise in 2000?

Instead of worrying about suspicion and retaliation from the British side.

It's better to worry about Mao Xiong. It's hard to say whether he can do it. At least he is definitely not lacking in determination.

After this incident, the dollar began to rise.

Tonight, the giants who were shorting the US dollar were no longer in the mood to stay at the reception.

As soon as they left, the cocktail party ended without these investment banking giants.

Abel and Buffett got together.

"Warren."

While chatting, Abel suddenly pointed in a certain direction and whispered to Buffett: "Let's go over there and have a chat."

Buffett was startled and looked in the direction Abel pointed.

The stock god nodded, and the two of them walked to another circle at the reception.

In that circle, the three leaders were John Chris Morgan, David Rockefeller, Davis Brown and other old men.

As soon as the investment banking giants left, this circle suddenly became the highest-level guest circle at the reception.

Well, there's Morgon and Rockefeller.

This circle has always been the most eye-catching circle in the audience, except for Abel.

"Hi~"

Abel walked over with Buffett.

Among the three old men, the youngest John Chris Morgan greeted the two of them with a smile.

"Warren and Abel. The god of stocks and the god of investment on Wall Street. When you two stand together, I feel like I can see the present and future of Wall Street."

"Ha~" David Rockefeller also said with a smile: "John said it well. The present and future of Wall Street, this metaphor is so apt!"

Abel smiled together with Buffett, picked up the red wine from the passing waiter's plate, and came over to lightly touch the guests in this circle.

After finishing a glass of wine, David Rockefeller suddenly gave Abel a thumbs up and said with a smile: "Well done, young man."

Abel, who was talking quietly with Davis Brown, didn't know what David Rockefeller meant.

He looked at the other person, who whispered a word.

"Dollar."

Abel immediately understood what he was boasting about.

Abel smiled and said: "I worked very hard. In order to hide it from them, I doubled the commissions to Citigroup and Wells Fargo."

After the events over in Scotland.

Those Wall Street giants who are short sellers only need to do a little research.

You can quickly find out who is leading the US dollar's rise this time.

Firstly, it's because Abel didn't want to hide at all, he was just showing off his muscles by doing this.

Secondly, these giants unite and search carefully.

It was easy to find.

After leaving the party, they found out that it was Abel who stabbed them in the back.

Of course he is angry, but those who say he is angry must be at odds with Abel.

That's okay, because the situation is not so bad that it can't be saved.

What's more, backstabbing is all too common on Wall Street.

It is common for Yanyan to laugh in front of her and call her brother or sister, and to stab her in the back.

At this time, Davis Brown, who had been chatting quietly with Abel just now, smiled and said:

"This is just normal investment behavior."

"David, this happens every day on Wall Street, in the United States, and in the financial world around the world."

"That's right." John Chris Morgan smiled: "It is true."

Both Morgan and Rockefeller set the tone for this matter.

After that, the giants who suffered losses from shorting the U.S. dollar this time had no good reason even if they wanted to find trouble.

It’s just that Abel needs to pay special attention when investing in the future.

But having said that, even if there was no backstabbing incident this time.

Every time Abel invests, he needs special attention.

When investing in Abel.

As long as they see a profit, even if they actually buy shares in Smith Capital later on.

Or the private equity fund that bought Smith Capital.

Even part of Abel's investment is their own money.

As long as it is profitable, these people will never hesitate to take action.

Fortunately, it is limited to the fields of finance and capital.

Honestly.

Abel felt.

Tie together Peter Lynch, Buffett, Soros, Julian Robertson, Mobius, John Bogle and so on.

He's not even afraid.

What Abel was afraid of were only off-board moves, just physical moves.

In financial markets, as long as Abel wants to.

Then he is God.

By this time, it was almost nine o'clock in the evening.

The reception started almost two hours ago, and it was almost time to end.

at this cocktail party.

Smith Capital announced its profits for the year.

In private, Abel announced his astonishing valuation of Smith Capital to the outside world.

He even stabbed someone in the back.

Tonight, the purpose of this investment reception has been successfully completed.

When it's time to leave, leave.

As usual, the host Abel was supposed to stay until the reception was over and all the guests had left before he could leave.

But at nine o'clock, I talked to David Mellon and Melio.

He then left early, ahead of John Chris Morgan and David Rockefeller.

Also leaving the field with him were two Texans, Davis Brown and John J. Brown.

Oh, and a guy from Omaha, Nebraska.

Together they came to an executive corridor of the Hilton Hotel.

After sitting down at the table, Davis Brown spoke first.

"Abel, do you mind if I call you that? I used to play ball with Alex a lot."

"Of course. My grandfather also said this." Abel smiled.

To Abel's left now is Nebraskan Warren Buffett.

On Abel's right was John J. Brown.

The reason why he left the field early with these three people.

It's because Davis Brown and Buffett have both expressed interest in investing in Smith Capital.

Need to talk to him.

He brought them here together.

"Abel." Davis Brown said calmly:

"The valuation of US$500 billion is still too exaggerated."

"But we feel that US$200 billion is a relatively normal and acceptable figure."

Faced with bargaining from fellow villagers, he was still his grandfather's friend.

Abel no longer has the attitude of whether he likes to buy or not when facing the four major investment banking giants on Wall Street.

Abel said seriously:

"I still insist on a valuation of 500 billion US dollars. But Davis, we can sign a gambling agreement."

"Oh?" Davis Brown raised his thick, heavy white eyebrows.

"What kind of gambling agreement?"

"A four-year gambling agreement." Abel said:

"This gambling agreement also holds true for you Warren."

After he said this, both Buffett and the two Browns stared at him seriously.

"The first year of the gambling agreement."

"I must ensure that Smith Capital's total profit for the year is more than US$10 billion. Last year, Goldman Sachs was US$4.2 billion. 10 billion is more than twice as high as Goldman Sachs."

"The market value of Goldman Sachs is about US$65 billion, and the market value of Smith Capital is US$100 billion. Isn't this excessive?"

"The content of the bet in the second year is that Smith Capital's profit for that year must exceed 20 billion US dollars. With exponential growth, Smith Capital's market value that year is 200 billion US dollars."

"In the third year, it will be US$30 billion, with a valuation of US$400 billion."

"In the last year, I must ensure that Smith Capital's profits exceed US$60 billion."

"Then the market value is over US$600 billion. I think this is not too much, right?"

Abel does not feel that the market value in his gambling agreement is excessive.

If nothing else, let’s talk about General Motors Group, which has the largest market value this year, and Walmart Group, the retail overlord.

When GM's market value reached its highest this year, it was close to US$500 billion.

Now only more than 430 billion US dollars have fallen.

Its net profit attributable to the parent company in the first three quarters was US$9.95 billion, and it is expected to be around US$13 billion for the full year.

When Wal-Mart's market value was at its highest this year, it was about US$266.6 billion.

The net profit attributable to the parent company in the first three quarters was higher than that of GM, which was US$10.1 billion.

The total for the whole year is probably around US$13 billion.

Net profit is more than 13 billion.

One has a market value of 360 billion, and the other has a market value of 260 billion.

If Smith Capital can achieve a net profit of US$60 billion.

According to General Motors Group's price-to-earnings ratio of about thirty-three times.

The market value of Smith Capital can be 600X33 times, 1.98 trillion US dollars.

If you think this P/E ratio is too high.

Calculated using Wal-Mart's price-to-earnings ratio, it's also 20.5 times.

After conversion, the market value will be as high as 1.2 trillion US dollars.

60 billion US dollars, a market value of 600 billion US dollars, and a price-to-earnings ratio of only ten times.

This is a low P/E ratio no matter which industry it is in.

Judging from the price-to-earnings ratio, it can be said that shareholders have made huge profits.

Hearing Abel's exaggerated gambling agreement.

Both Brown and Buffett were silent.

It's not that this gambling agreement is too exaggerated and bad, but that this exaggerated gambling agreement is too good for them.

So good that they suspected there was a pit ahead.

If the net profit is really that high, then a higher P/E ratio of several times is normal.

This is compared to normal companies.

If compared with the price-earnings ratio of the Internet industry.

That net profit of 60 billion US dollars can reach several trillion US dollars in market value.

Like this year's Yahoo, its market value reached US$128 billion in January.

What was its net profit last year? -

US$3.435 billion.

minus!

This was the norm for Internet companies before the Nasdaq was broken.

How does it compare to normal investment banks? Strictly speaking, Smith Capital is also an investment bank.

Let’s use Goldman Sachs as an example.

Goldman Sachs currently has a market capitalization of $65 billion.

Net profit last year was US$4.2 billion.

The price-to-earnings ratio is about 15.47 times.

15 times 600.

There are 60 billion US dollars in profits, which is less than ten times the price-earnings ratio. It is definitely ridiculously low.

The three people present knew this.

They felt that this exaggerated gambling agreement was absolutely beneficial to shareholders like them who wanted to invest.

This makes everyone have to suspect that there is a trap.

"Of course."

Abel added with a smile:

"Such a clause must be included in the gambling agreement."

"Under my chairmanship, when the company reaches a gambling agreement every year, I must be personally rewarded."

"The reward ratio is 20% of the profit."

"For example, if I can make 10 billion U.S. dollars in the first year, I need to give me a bonus of at least 2 billion U.S. dollars."

"If it's $60 billion, then my bonus must be $12 billion."

"After all, I am the one who has made so much money for everyone and brought you such a successful company."

"I feel that these hundreds of millions of rewards are nothing compared to what you have received."

After all, if the gambling agreement is completed.

Abel will receive an additional $24 billion in year-end dividends alone.

Note, you get extra.

That is the extra reward after his normal remuneration and dividends.

After this calculation, Abel could get a lot.

This gambling agreement gave the three of them an extra level of trust.

After a long silence, Davis Brown said softly:

"Abel, are you so confident? You have to know that there is a failure clause in betting."

"Of course." Abel smiled: "The content of the bet is as above. The other contents are completely in accordance with the usual practices. Whatever the bet agreement on Wall Street should be, that should be the case."

"You are so confident." Warren Buffett couldn't help but say.

John J. Brown did not speak because he was the lowest among everyone present.

Abel smiled and spread his hands:

"Betting itself is gambling. Since it is gambling, there should be bets. I don't like playing with too small bets, whether it's me or the other party."

Abel added: "This gambling agreement is not just for you. It is also for other interested investors."

His previous words reminded the three of them of his investment style in the market.

If you think about it carefully, Abel’s investment style.

They are no different from those professional gamblers in Las Vegas.

High leverage, high risk, and specializes in investing in varieties with extreme short-term fluctuations.

Although I win every time, it is very thrilling every time.

Guys with this kind of investment style come up with this kind of crazy betting agreement.

That makes sense.

Seeing the three of them fall into silence again, Abel stood up with a smile. He raised his hand and looked at the time on the watch on his wrist.

"It's half past nine." He smiled:

"I have an appointment tonight. You three, please go back and think about it."

"Oh, by the way. I'm going to Los Angeles tomorrow. It's too cold in New York this year. I may not come back until next month."

"If you want to find me, you might have to go to the West Coast next time."

After he finished speaking, he turned around and left with a smile without waiting for the three of them to respond.

As soon as he left, a dozen bodyguards who dispersed in the administrative corridor also left.

This scene made Buffett couldn't help but complain:

"With so many security personnel, the annual security cost is not a small amount."

One of the two Texans, Davis Brown, who had little connection with Buffett, responded with a smile:

"He also has a security company. He has registered a PMC and is said to be planning to apply for light armed helicopters and artillery for training. Young people are more interested in this area."

"PMC? Armed helicopters and artillery? This is too exaggerated? What does he want to do, attack a small country?"

"Ha~" Buffett laughed. He stood up and extended his hand to Davis Brown: "By the way, hello. Mr. Brown, I am Warren Buffett."

Davis Brown smiled and responded, "Hello, Mr. Buffett. I am Davis Brown."

The business deal with Abel has not been concluded yet.

Nebraskans and Texans became friends.