America's Road to Wealth

The reason why Abel asked Pacific Commercial Bank to choose American Express.

There is a reason.

American Express's commercial banking business is not the best among banks.

At best, it can be considered mid-range.

Merchant Banking Services of CoExpress Corporation.

Among banks at this level, because they are platforms and systems, they have extremely high global coverage.

This is obviously due to its highly successful premium customer travel service.

In terms of global coverage, American Express, a medium-sized commercial bank, is estimated to be among the top five in the U.S. banking industry.

If Pacific Commercial Bank could merge with American Express Company or annex American Express Company.

At present, there is almost no overseas business in Pacific Commercial Bank, and it can open up the situation at once.

At the same time, the size of American Express Bank is just at the level that Pacific Bank hopes to annex.

If it were any bigger, Pacific Commercial Bank and Abel would not be able to swallow it with their current strength.

More importantly, it started in September last year.

American Express's performance has been very poor.

The bank’s share price,

From the highest point in 1996, one share was as high as around US$160.

It fell to last September, when the highest price was only $27.35 per share.

By the end of January 2001, there were only $13.65 left per share.

Its total share capital is about 1.36 billion shares.

Use the current stock price to calculate.

The market value of American Express is only 1.359 billionX1.365.

That is to say, the current market value of American Express is only about US$18.55 billion.

It is currently the cheapest company among the Dow Jones components.

Such a company has total assets of more than 20 billion U.S. dollars, assets under custody of more than 160 billion U.S. dollars, and a market value of 18.55 billion U.S. dollars.

In the eyes of "stock market snipers" like Liu from Hong Kong Island, this kind of company is definitely a very high-quality company.

But the stock price of American Express Company once exceeded US$160 per share when it was at its highest, and its total market value even exceeded US$200 billion.

It has reached its peak before, now it has fallen, and it looks like it will continue to fall.

But its company has always been very stable internally, because it is almost an institutional stock.

What are institutional stocks?

That is, stock holders, most of whom are institutions, that is, investment companies, banks and financial companies, and financial companies.

As a company with a history of more than 150 years, its brand value is deeply rooted in the hearts of European and American people.

Even service industry companies can be selected into Dow Jones.

More than 80% of its shares are held by various large and small institutions, and more than 900 institutions hold its shares.

At present, its largest shareholder is named Berkshire, which is Buffett's company.

Buffett's company holds 151.61 million shares, accounting for 11.4% of the total share capital of American Express.

Buffett's love for American Express is very famous in later generations.

The second largest shareholder is Vanguard Group, which holds more than 9% of the shares.

The top 20 largest shareholders hold more than 50% of the shares of American Express.

In fact, due to its attribute of being a constituent stock of the Dow Jones, it never lacks investors.

Abel and American Pacific Bank of Commerce, want to swallow American Express.

It can be said that it is very difficult.

But the good thing is that in the last USD/JPY battle.

In addition to cash profits, Smith Capital also gave Abel many benefits.

Among these benefits, there are many American Express stocks.

During that time, Abel successively acquired approximately 6.9% of American Express shares.

Coupled with the US Pacific Commercial Bank, this period of time in the market to buy bargains.

Now Smith Capital, plus Pacific Commercial Bank.

The two companies hold about 8% of American Express's shares.

This ratio can already rank it as the third largest shareholder.

The problem now is that American Express's shares in the secondary market only account for about 18%.

About 3% has been swept away by Abel, and now there is at most about 15% left.

Everything else is in the hands of the agency.

This makes Pacific Commercial Bank want to acquire American Express shares.

Even if all 15% of the shares were swept away, the shareholding ratio would not exceed 25%.

The remaining shares can only be found in the primary market.

That is to say, buy from those institutions.

But once Abel makes a move to sweep away goods, or wants to acquire and annex.

American Express stock is bound to soar.

It is estimated that just scanning 15% of odd stocks may cost tens of billions of dollars.

The key is that it may not be scanned yet.

Because in that process.

That bloody smell of capital is bound to attract the attention of US stock investors around the world.

American Express itself is a high-quality company.

By then, the entire acquisition cost may exceed US$50 billion.

This was unacceptable to Abel.

Fortunately, "Talent" told Abel that American Express will continue to fall this year.

13.65 is not the end of it.

In September of this year, there will be a very good opportunity to buy low prices across the United States.

Not as good as 2008.

But coming in 2008, this will be the best opportunity.

Abel's goal is.

Before that day comes, raise at least over $60 billion and start hunting the dips.

As for the matter of American Express, we can let it go for a while.

2001, February 5.

morning.

Los Angeles.

MGM, the chairman's office on the top floor.

Abel was lying boredly on the sofa in the office rest area, playing Snake on his mobile phone.

He was waiting for a call from Allen, who was currently negotiating with Sony Columbia at the foot of Beverly Hills.

If they can come back before noon, they can have lunch together.

At that time, Abel can also learn about the latest developments.

Some time ago on Hawaii Island, Howard Stringer personally visited him.

Abel gave the conditions.

Howard Stringer went back and reported it to Sony Head Office.

By now, the negotiations on this matter have taken shape.

Allen is the core of the think tank team.

I took a part of the think tank with me to conduct final negotiations with the other party.

Spider-Man Parker's next ownership depends on the outcome of this negotiation.

Snake played one game after another, and in the end Abel felt a little bored.

I don't know why, after experiencing "delicacies from mountains and seas" and experiencing happiness that I couldn't experience in my previous life.

Now, he actually misses the pesticide and chicken games he played before.

Unfortunately, his talent was limited to financial perception.

It has no effect on the development of technology.

And there are many things that cannot be achieved by spending money on research and development.

This means that even if he is very rich.

He cannot play smart games that ordinary people can play in 2022 now.

Thinking of this, Abel became a little bored with the greedy snake in his hand.

He threw his phone on the sofa, stood up and walked a few steps until he reached the edge of the desk.

He saw the corner of the American Sun on the top of his desk.

Abel pulled it out directly and opened the newspaper.

The American Sun was originally a small newspaper in the New York area.

Back then it was called The New York Sun.

After being purchased by Abel, it happened to catch up with Abel's "Smith Storm" at that time.

In addition to many exclusive revelations, there are also very unique newspaper bonuses.

During the most exaggerated period last year, sales exceeded one million in a single day.

Single-day sales ranked among the top five in the United States.

Subsequently, as the Smith storm gradually subsided, its sales gradually decreased.

After this year, it finally stabilized at a daily sales volume of about 500,000 copies.

Note that the "American Sun" has a daily sales of 500,000.

Among the current American daily newspapers, it even ranks fifteenth.

The Wall Street Journal has the highest daily sales volume, with average daily sales last year of about 240 copies.

However, this data is after 2022.

Even the Wall Street Journal, which has the largest daily sales volume, has less than 700,000 copies left.

The second-placed New York Times has only 300,000 copies left.

The 22nd-placed "Daily News" has only over 50,000 copies left.

One can imagine to what extent the sales of these American newspapers have slumped over the past two decades.

Of course, this is related to the rise of the mobile Internet.

Before the rise of the mobile Internet, there was even the impact of the Internet.

Before 2012, these newspapers were still able to maintain good sales.

And when the mobile Internet era comes, as long as we can get on the mobile Internet ship in time.

The influence of these newspapers will not be reduced much.

They just moved daily paper news to mobile phones.

2001 now.

"American Sun" can achieve daily sales of 500,000 copies, and it is already a big newspaper at this time.

It is positioned as mass entertainment, similar to Murdoch's New York Post.

Of course, most of the above content is popular with the public.

At the same time, this newspaper has Abel's authorization.

It likes nothing more than to cover all kinds of news about owner Abe Smith.

There are many Abel materials that other newspapers do not have, and it has the royal charter to report them.

This is one of the reasons why it has been able to maintain sales of half a million.

Even if the "Smith Storm" has already passed.

There are still many gossips who like to read all kinds of news about young and handsome super rich people.

Just like the news about A Chong, even in 2022.

Many people have seen it on their mobile phones and will still take a few more glances.

Abel opened today's copy of the New York Sun.

The above headline is a matter that everyone in the United States is concerned about recently.

That's the Texan who just moved into the white house.

The first policy he implemented after he moved in.

Tax cuts.

Texan, announced he would cut taxes for all Americans by $1.3 trillion during his term.

This policy looks great.

Because in the United States, there are only two things that cannot be avoided.

One is death and the other is taxes.

But it actually just looks beautiful.

You must know that in the United States, poor people and rich people pay different taxes.

If it is a targeted tax cut, such as a tax cut specifically for the poor, then this kind of tax cut would be better.

But what if instead of targeted tax cuts, everyone would be taxed?

In fact, it is the poor who suffer more.

Because the overall tax amount of the poor is relatively low, if the overall tax payment is reduced, there is no way to reduce it much.

I originally had to pay 105 yuan in tax, but now I only have to pay 100 yuan.

That five bucks off is better than nothing.

Rich people pay high taxes. If the overall tax payment is reduced, the tax savings can be huge.

The tax of 1.05 million has been reduced to only 1 million, which is a saving of 50,000 US dollars.

The total amount is only 1.3 trillion, and it is estimated that in the end it will be reduced to only 100 to 200 billion for the poor.

More than one trillion yuan has been reduced to rich people and companies.

And the man in the white house is also a Xiang Party member.

His base cannot be on the side of the poor.

This means that his tax reduction policy cannot be a targeted tax reduction.

That is, everyone has a share, and the poor and the rich are reduced together.

This is actually cashing out the money to make the poor suffer, but the poor cannot see it.

Or maybe even if you see it, there is nothing you can do to stop it.

This is a bit like Britain's tax cut plan before Ali steps down in 2022.

Ali just announced the plan. It hadn’t even started yet. He just announced it briefly, and immediately caused the debt, foreign exchange and stock prices of the United Kingdom of Great Britain to collapse in the sunset period.

Of course, the United States will not be so miserable. In 2001, the United States had a strong foundation.

Tax cuts at this time will still have a certain promoting effect on society.

It can also enhance the favorability of businesses and wealthy people towards small shrubs.

Draw a piece of cake first. If you want to eat it, just remember to choose me next time.

No wonder he spoke out about it as soon as he came on stage.

After looking at the headline for a while, Abel shook his head.

Under the rendering of the white house and relevant departments.

This topic is now the most important thing for Americans.

This makes even the "American Sun", which usually does not publish much current affairs news.

The entire first page is full of similar reports, as well as expert interpretations.

Abel was not interested in these, so he turned directly to the second page.

Things got much better later on, with Hollywood and other entertainment news starting to appear.

Abel turned to the third page, which had changed to sports news.

Commercial sports in the United States are very developed, and the four major leagues attract huge amounts of money.

Abel saw the news in the newspaper that the Wizards vs. the Warriors lost 99:102.

This reminded him of last year, when he wanted to buy a basketball team on a whim.

Later, because it was too difficult to buy the Lakers and Knicks, the purchase was not completed in the end.

He was bored playing mobile games at the moment.

I think I might be able to play the NBA game.

He took the newspaper, pressed the number one button on the telephone next to him.

Soon, David Jones walked in with Edward.

"I'm looking for David. It's none of your business, Edward."

Edward nodded and exited, while David came to the boss.

"I want to buy a basketball team. I'm serious this time." Abel said directly to David.

David's answer was also concise and to the point: "Which team do you want to buy?"

"Team Rockets." Abel sighed. He actually liked the Knicks.

Not because he liked it, but he liked New York.

But the Knicks are really not that easy to buy.

Then just buy the Rockets.

A Texas team, and Abel is a Texan.

He felt that buying the Rockets was well deserved.

"Okay. Then I will immediately ask the advisory team to contact Leslie Alexander of the Houston Rockets."

Abel nodded.

Two hours later, before Alan Baker and others returned.

York West, another core member of the advisory group.

The former deputy general manager of Gephardt \u0026 Co., a registered senior lobbyist in Washington, came to Abel with David Jones.

At that time, Abel was bored and started playing with his greedy snake.

"BOSS." David Jones said.

"Huh?" Abel put down his phone and looked up.

"Let York West say that they have completed the task you assigned."

"Okay." Abel looked at York West.

York West is an American of desert descent. It is very amazing that a desert descendant can serve as a lobbyist in Washington.

Either York West is capable enough, or York West has a special family background.

"BOSS." York West took a step forward and handed over a document:

"This is the result of the negotiation we had just now on a conference call with Leslie Alexander."

"Oh?" Abel asked David to take it over, opened the file, and said:

"Did Leslie Alexander say yes?"

"The other party is willing to sell the Houston Rockets." York West said calmly:

"The quoted price was US$255 million. After our bargaining, the price was finally determined at US$240 million."

"In 1993, Leslie Alexander bought 80% of the Houston Rockets' shares from the previous owner."

"He only spent $85 million."

"For eight years, Leslie Alexander had almost zero investment in this team."

"And also made more than $20 million in profits on the team."

"Leslie Alexander agreed to the offer when we firmly set the price at $240 million."

"However, Leslie Alexander only holds 80% of the shares of the Houston Rockets. The remaining shares are scattered among some small shareholders."

"If you want to fully acquire it, you will need at least US$60 million, which means the total acquisition amount is about US$300 million."

Abel was quite satisfied with the answer given by York West.

That's right, in 2001.

The Rockets are only worth so much.

At this time, the Rockets are one of the least valuable teams in the NBA.

It becomes truly valuable when you get next year's No. 1 pick.

After getting Dayao, with the support of Chinese fans, the value doubled several times.

In parallel time and space.

Even Leslie Alexander said it herself.

"Dayao brought me a fortune of 1.2 billion."

It was 2012 when he said this, and Dayao had already retired by then.

At that time, the Rockets' market value was about US$1.5 billion.

Dayao has just been with the Rockets for two years.

In those two years, the Rockets' net profit exceeded the total of the previous twenty years.

Otherwise, you think to yourself, before 2002, did you know that there were 50 million NBA rabbits?

Ever heard of Rockets Rabbids, a million people?

Probably none.

But after 2002, these two figures were at least several hundred million.

"Three hundred million dollars? No need for three hundred million dollars. My grandfather Alex and my father Alexander, the two of them own about 8% of the Rockets shares."

Abel said: "But I think the price is more reasonable. Go sign the contract, York West, and change the name of the owner of this NBA team to Abel Smith."