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Chapter 350 Risk Allocation

The reason why Yang Jing dared to play this trick is because he knew the specific situation when the stock market crash broke out.

Starting from now on, you can make a lot of profits in the first ten months, but on the day of the stock market crash, all the previous profits will disappear and even lose a little, but Yang Jing doesn't care.

For example, the current purchase price of General Electric's stock is US$3.6 per share, but on the day of the stock market crash, General Electric's stock price will fall to US$3.2 per share. Not only will Yang Jing's previous profits disappear, but he will also spend a lot of money on other stocks. The same is true for other stocks.

But how much can I pay for it? 5% of the cost price? Or 10%? Even if it reaches 10%, it doesn’t matter. Isn’t it just a loss of 500 million US dollars, and I can afford it.

But similarly, if you lose $500 million, you can get more outstanding shares in the stock market. If these companies agree to Yang Jing’s repurchase of shares, then Yang Jing can control more shares.

For example, Microsoft's stock price this year is $48 per share. At this price, Gates's net worth is only more than $500 million. But once a stock market crash occurs, even if Gates buys back the stock, how much money can he use?

In the case of stock market crash, Yang Jing, who controls 5% of Microsoft shares, only has the possibility of refusing shares with a large amount of cash, Microsoft has almost no chance of refusing it. In this way, Yang Jing has a great possibility of repurchasing more than 5% or even 10% of the outstanding shares in the circulation market, making Yang Jing suddenly become the third largest shareholder of Microsoft after Gates and Allen. In the future, as long as Yang Jing does not reduce his holdings of Microsoft's shares, he can even surpass Paul. Allen becomes the second largest shareholder of Microsoft.

The most important thing is that Yang Jing has not spent much money to become Microsoft's third largest shareholder, and 150 million US dollars is enough! It can't even be used!

This is true for Microsoft, and so is the case for other companies.

In other words, Yang Jing can spend ten months plus a loss of $500 million, and eventually get a large amount of stocks from companies such as Microsoft, Oracle, IBM, Intel, Walmart, General Electric, General Dynamics, etc.!

And did Yang Jing really lose? Obviously not. In the US stock market, there is another method called "helding".

That’s right, I lost money on stocks, but I will make a lot of money on stock index futures!

Don’t forget that Yang Jing only authorized David Anderson to acquire stocks of major companies for 5 billion US dollars, and KY Fund’s account was still lying on its total of 7 billion US dollars!

What is this money used for? It’s very simple. It was specially used to short stock indexes on the day of “Black Monday” on October 29, 1987!

Seven billion US dollars is also the largest investment amount given by the Holy Ring, and the Holy Ring also clearly tells Yang Jing that the profit of this investment cannot exceed 700%!

Compared with the speculation of the US dollar and the Japanese yen last year, the Holy Ring only gave a 300% profit limit, and the current 700% is already magnanimous enough.

A seven billion dollar investment can make 700% profit, that is, you can make 49 billion US dollars. Compared with this profit, the little money lost in stocks is a drop in the bucket!

The most important thing is that it is not so easy to short the US stock market crash to make a fortune.

The US securities market has been developing for nearly two hundred years and has already developed an extremely perfect system, especially the monitoring system is quite strict. If you want to make money through stock market crashes, it would be fine if you can't find it out. Once it is found out by the China Securities Regulatory Commission, it will be a waste of time to sit in prison and there is absolutely no other way to go. It's useless to be the richest man in the United States!

Americans are absolutely merciless in this kind of thing. If you make money by using stock market crashes, it is equivalent to cutting losses from all American stock investors. It is strange if others can spare you!

In fact, in the stock market crash in 1987, there were many people who took the opportunity to make money from the national crisis. As a result, all of these people were arrested without exception. Six wealthy people with a net worth of over one billion US dollars were arrested!

Those guys are also stupid. If you short the US stock market, just short it. At least you can hide it. Do you really think that those people from the US Securities Regulatory Commission are just having fun? You are just shorting the US stock market so openly. It would be strange if the world doesn’t settle the score with you later!

However, it is precisely because of the lessons of these arrested rich men that Yang Jing became vigilant.

It is actually not difficult to make money from Americans in the national crisis while stock market crashes. The difficulty is to find a open and upright reason to make money from the national crisis.

Yang Jing has already made sufficient preparations. For example, he will start to acquire a certain proportion of stocks from major companies now, and then use his identity as a major shareholder to repurchase stocks when the stock market crash comes. No one can say this.

Similarly, the stock market crash in the United States was not a sudden one. As early as the week before the stock market crash, the market had actually performed. Therefore, when Yang Jing shorted the US stock market on the day of the stock market crash, hedging methods could be used to explain himself shorting the US stock market.

Yes, I am all major shareholders of so many companies. When the stock market crash came, I did not sell my stocks and vigorously repurchase stocks. This proves my determination to maintain the US stock market. I short the US stock market, which is just a normal hedging method! Besides, I short the US stock market not to make a fortune, it is just a means of preserving value. Although I short the US stock market, the profits I earned in short the US stock market are used to repurchase stocks. I did not make a penny myself. Not only is I not guilty, I should also make contributions!

In fact, Yang Jing really didn't want to make much money in the US stock market crash. Although the US stock market crash was the worst hit in that stock market crash, Yang Jing didn't want to make much money in it.

One hundred and fifteen billion US dollars, this is Yang Jing’s bottom line.

With the total amount of KY Fund funds, in such a serious stock market crash, as long as you dare to short and use a high proportion of margin leverage within one day, you will definitely make a profit of more than 100 billion US dollars. But Yang Jing doesn't want to die so quickly. He knows very well that if he dares to do this, the US authorities will not be able to catch him in the future, but the Dragon Fund will definitely be completely destroyed.

So Yang Jing set a bottom line for himself of $15 billion.

Moreover, Yang Jing would not keep the $15 billion he earned from the stock market crash, but would use it all to repurchase stocks.

For example, at this time, Citibank had a market value of as high as US$120 billion before the stock market crash, but after the stock market crash, Citibank's market value plummeted to only US$70 billion. Yang Jing could use US$7 billion to acquire one percent of its stocks, thus becoming a large number of individual shareholders of Citibank.

Owning a 1% stake in Citibank is quite a remarkable thing, and it can occupy a seat even on the board of directors of Citibank Group.

The most important thing is that becoming a major shareholder of Citibank will have a great promoting effect on the future development of KY Fund.

KY Fund is positioned as an investment fund, and behind it is a giant like Citibank, everyone should respect it when they say it. This is the importance of having the identity of a shareholder of a large bank group.

There is also General Dynamics, which is the same. Although General Dynamics is not a banking consortium, it is the top two arms contractors in the United States and plays an important role in the United States.

Before the stock market crash, General Dynamics' stock price was only US$1.26 per share, and after the stock market crash, it plummeted to less than US$0.6 per share. If you take this opportunity to spend US$3 billion to acquire 1% of its shares, it would be quite awesome. After all, around 2000, General Dynamics' stock price could soar to US$75 per share, and the stock price soared 125 times within thirteen years, becoming a behemoth with a market value of US$30 billion, and one percent of it is also worth US$30 billion!

As for Intel, Microsoft, and Oracle, these companies are still "gategories". After the stock market crash, even the most promising Microsoft had only more than one billion US dollars left. Yang Jing couldn't even use one billion US dollars, so he could own more than 15% of the shares of these three companies!

Moreover, as long as Yang Jing uses all the funds earned from the stock market crash to repurchase stocks in the stock market, even the US Securities and Exchange Commission will not say anything else, but will be grateful to KY Fund.

In this way, Yang Jing can not only obtain a large amount of blue-chip stocks at a very small cost, but also obtain a large amount of equity in companies such as Microsoft and Oracle, and it can also receive attention from the US Securities and Exchange Commission. It can be said that he can win three goals in one fell swoop.

Of course, Yang Jing would not only earn such a little money. After all, the stock market crash in 1987 is rare in thirty years. If he doesn't make good use of this stock market crash to make a lot of profits, Yang Jing feels sorry for himself.

In addition to KY Investment Fund, there are six other offshore companies under the name of Evil Dragon Fund. At that time, Yang Jing can use these six offshore companies to make a fortune on the US stock market. Even if each company only earns one billion US dollars in net profit, it will be as high as six billion US dollars in net profit.

In addition to the US stock market, the stock markets of other countries in the world have also suffered severely in this stock market crash.

On the day of the stock market crash on "Black Monday", the Nikkei 225 index fell 620 points, a drop of 14.9%; the Hang Seng Index in Hong Kong Island fell 421 points, a drop of 11.3%, also setting a record for one day's decline; the Singapore Straits Times index fell 169 points, a drop of 12.4%; the Argentina FTSE30 index fell 183.7 points, a drop of 10.1%; the UK FTSE 100 index fell 249.6 points, a drop of 2053.3 points, and investors lost 50 billion pounds. In addition, the stock markets such as Paris, Frankfurt, Stockholm, Milan, and Amsterdam all fell to varying degrees by 6% to 11%.

This is the main battlefield where Yang Jing swept huge profits!

The amount of $7 billion is used in the US stock market at most $3 billion, and the remaining $4 billion is Yang Jing intends to invest all of the stock markets of major developed countries in the world.

Without further ado, stock markets like Tokyo, Singapore, Hong Kong Island, London, Paris, Frankfurt, Milan, and Buenos Aires only need to make billions of dollars in each stock market. In addition, the profits earned on the US stock market, it is very easy to make a profit of US$49 billion.

It is safe to do this, and it is difficult for the CSRC of those countries to grasp its own tail!

Shorting the US stock futures can make the most profits, but the danger is also extremely high. Although it is a little troublesome to spread funds in major stock markets around the world, it is safe. Being able to spread huge risks and turn them into less risky investments is the quality that an excellent investor should have!
Chapter completed!
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