Extraordinary Genius - Chapter 153 – The Golden Period of the Stock Market
Feng Yu watched the news on the television. The deposit rates and the lending rates had fallen at the same time. He knew that the first golden period of China’s stock market was here!
“Dad, Mum, I need to go back to Bing City.”
“What? You just came back yesterday, and you are leaving? Isn’t it the summer break now?” Zhang Muhua was unhappy. Her daughter had gotten married, and her son was always not around.
“There is something I need to do at the company, and it concerns a big amount of money. Even more than Tai Hua Factory and Tian Peng Pig Farm. I must monitor it personally. Don’t worry. I will be back before the summer break ends.”
Feng Yu returned to Bing City with Wen Dongjun. Wen Dongjun was carrying a big bag and in it was almost his whole family savings.
Wen Dongjun wanted to enter the government service, and Feng Yu was worried that he would not be able to resist the temptation of money in future. Even though this moron was not interested in money now, but it was hard to say if he would change when he got more authority.
Furthermore, it was legal to invest in shares. Feng Yu told Wen Deguang that there’s an opportunity to earn lots of money now and guaranteed to be safe. Wen Deguang hesitated for a while and took out all the family’s savings and passed it to Wen Dongjun. He even instructed Wen Dongjun to follow whatever Feng Yu said.
In Wen Deguang’s eyes, Feng Yu was someone special. Within a short span of 2 years, he was able to change the Feng family from an ordinary farming family to the wealthiest family in the district. Not to mention the Food Processing Factory and the Pig farm, they were even the shareholders of the Machinery Company. This had shocked him greatly.
Furthermore, Wen Dongjun had told him that Feng Yu once said that his Tai Hua Trading was making trades with the Soviet Union and the monthly trades amounted up to a few million Rubles. Feng Yu’s family was freaking rich! The big “Jeep” Feng Yu was driving was worth a few hundred thousand RMB.
The Feng family was even more influential than the Farm Chief Officer, and because of these reasons, Wen Deguang was not worried that Feng Yu would cheat him of this measly small amount of money. He had made some money the last time he invested in Tai Hua Factory, and this time, he continued to believe in Feng Yu. He wanted to make some money for his son to buy a big apartment in the city when he graduates from university, just like the apartments the Feng family bought.
“Xiao Yu, it really can double my family’s money?” Wen Dongjun asked.
“Double? You are belittling me. Within 3 years, I guaranteed your money would be multiplied by at least 5 times!”
“Huh, 5 times? Then the 50,000 RMB would become 250,000 RMB?” Wen Dongjun was surprised. This was different from what Feng Yu said at his house.
“I said at least! Don’t worry. You don’t need to do anything except for buying a few shares and keep them properly. After the New Year, you will see that you had earned money!”
This period was the bull market and the current stock market index was slightly more than 100 points. 2 years later, the stock index would increase to over 1,400 points. This was an increase of 10 times. Other than a few unlucky people, the rest could even earn huge profits with their eyes closed!
Actually, when Wen Deguang took out 50,000 RMB, Feng Yu was also shocked. Wen Deguang was a proper officer and doesn’t seem to be corrupted. This money must be from his life savings.
But Feng Yu does not know that Wen Deguang had sold off his tractor and his property at the village to raise this money. Although Wen Deguang did not use the village resources, he also secretly cultivate wastelands and made some money in the previous few years.
If a farmer sold his tractor, it meant the farmer was giving his all. Of course, Feng Yu would not let the Wen family suffer any losses. He will be entering the market a few days later than the start of the bull market and will withdraw from the market before the market crash. This way, his funds will not be trapped!
Feng Yu had thought of asking Li Na and Liu Kun’s family but gave up. These 2 families were different from Wen family. The Wen family and his family were friends for over 20 years. Anyway, Liu Kun’s dream was to be a scientist, and if really succeeded, Feng Yu could invest in a research facility for him. As for Li Na’s family, it doesn’t matter. Feng Yu would be wealthy anyway!
Back at Bing City, Feng Yu drove straight to Tai Hua Trading. When he reached, all of Tai Hua Trading staffs were there, including the 2 newly hired financial staffs. Even Li Shiqiang was there as Feng Yu said that he had something important to announce.
“Everyone, how do you feel after working for the past one year plus in Tai Hua Trading?”
When Feng Yu finished this question, Wu Zhigang immediately shouted: “To be able to work at Tai Hua Trading was the best decision of our lives! Back at the Motor Factory, we were just waiting for the batch of workers to retire and to replace them. It was hard work, and the salary was only around 100 RMB a month. The salary was not even comparable to our bonus here!”
“That’s right. Manager Feng, rest assured. We will work hard for the company and follow your lead. We will never leave Tai Hua Trading for other companies!”
They thought Feng Yu was talking about the incident where someone tried to poach them with high salaries. A big boss from the Southern Provinces came to them looking for sales staffs that were familiar with Bing City and the surrounding places. The salary he offered was 200 RMB a month. But they were not stupid. If they work for that big boss, they would only be getting a basic salary. The benefits at Tai Hua Trading were excellent. Feng Yu would give out bonuses and rewards every occasionally. Last year, Feng Yu had given them each a pager, and it was worth their few years salaries!
Feng Yu laughed and waved his hands. He was the idol of these people. If Feng Yu were to start a cult, it would be easy to brainwash them.
“Then I will be straight to the point. If you all follow me, I will not let you all suffer any losses. I will take care of you all in all my profit-making ideas. The work for the next half of the year was to buy shares!”
Shares? Wu Zhigang and the rest of the staffs looked at each other. What’s shares?
Only Li Shiqiang was not surprised. Feng Yu had mentioned to him about shares before and had said that this was the most profitable business, much more than treasury bonds trading.
That time, Li Shiqiang asked Feng Yu, since it was so profitable, why were they not doing the business? Feng Yu said that it was the right time. Even if they bought the shares then, they would not make any profits. Hearing what Feng Yu had said, this is the right time?
Feng Yu looked at his men and continued: “Shares are similar to Treasury bonds, but the difference was that shares were not issued by the Government. A listed company will be issuing shares and year-end dividends and profits will be paid based on the percentage of the shares and the earnings of the company for the previous year. With the shares, we can be considered the company’s shareholders! When the number of shares in our hands reaches a certain amount, we would be about to attend the shareholders meeting!”
Wu Zhigang and the rest were in a daze. They do not understand. Dividends and bonuses sound like saving accounts? But this was not issued by the government. These were issued by private companies. Are these shares reliable?
“You all remembered the time when the price of Treasury Bonds suddenly increased? I am telling you all that the price of the shares will also increase and the rise will be huge and even faster than the Treasury Bonds! A share that’s bought for 100 RMB would be worth 200 RMB in a year. You all can do your own calculations how much money can we make from this.”
Everyone in the room, including Li Shiqiang were breathing hard and their eyes were opened wide in surprise. This share was so profitable?
“I had said that I will take care of you all if you all follow me. If I know of any good opportunities to make money, I will share with you all. If you all are willing, you all can come out with your money, and I will teach you all what shares to buy. Whatever earnings from the shares will belong to you and if there are any losses, I will compensate you!”