Extraordinary Genius - Chapter 692
Chapter 692 – Buying out at bottom prices
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Feng Yu had nothing to do with the compensation and theJapanese companies no longer demand Tai Hua Supermarket Corporation toapologize to them. All the Japanese companies in China were keeping a lowprofile.
It was going to be New Year’s Day soon, and it was time foranother Tai Hua Supermarket shopping cards frenzy. But Feng Yu did not remainin Beijing. Instead, he flew over to Hong Kong.
“Nephew Feng, after this round of beating, is their shareprices at rock bottom? Will the rebound happen soon?” Fu Rongqi asked.
Feng Yu shook his head. “It’s not time yet. Those companiesonly accepted to pay the compensations and agreed to the fine. I heard there isstill shocking news that was not announced yet. After the news is announced,their share prices will drop further.”
Fu Rongqi frowned. There’s more shocking news? This shouldbe interesting. Feng Yu is close to the top Chinese officials and should beable to get insider information.
“Sony-Columbia Pictures will be releasing a blockbustermovie this Christmas. I had asked my men to spread rumors that this moviesucks. The moviegoers will avoid this movie, and the ticket sales will not behigh. Lesser cinemas will be screening this movie, and their movie-relatedmerchandise sales will drop. Even their VCDs for this movie will not sell.Sony’s share prices in the US will drop further.” Fu Rongqi was smiling like acunning fox. He does not need to spend much to press a company’s share pricesdown. Sometimes, a rumor was sufficient.
“Let’s stick to our plan. I will be mainly acquiring thosechemical companies’ shares, and you will acquire those electronics shares. Ibelieve that in January, those companies will take some measures to save theircompanies’ shares, and the share prices will rise slowly. We will be able tomake high profits then!”
In less than a week, those companies’ share prices fell byalmost 50%. It was still falling now, but the drop was not as drastic as earlierthe week. But after the compensation was announced and those companies soldtheir factories in China, their shares will drop again.
All these large multinational enterprises’ shares willdefinitely rebound after their share prices crashed. The rebound will bestrong. Also, it’s the end of the year, and after the financial reports werereleased, these companies will take the opportunity to announce their futureplans and profits forecast.
The key shareholders will also announce they will beincreasing their stakes in the companies to boost the confidence of theinvestors. Their shares will surely recover from the crash. Now, Feng Yu and FuRongqi only need to predict when will the share prices hit rock bottom!
Buffett was sitting in his office, looking at his computer.This Japanese companies saga was an excellent opportunity for him.
Warren Buffet had lots of investments, and he invested themost in the financial market, especially shares. He had invested in WashingtonPost, Coca Cola, General Dynamics, etc. and made high profits from thesecompanies.
Although Buffett also owns an industrial factory, dealing intextile manufacturing, but the profits from this factory was a small part ofhis income. Most of his money came from his shares.
His formula for investing was very simple. He looks for“cheap” shares to buy and then wait for the share prices to rise. But he didnot explain what he meant by cheap.
The dividends and the returns from the sales of his sharesgave him high profits.
Basically, whenever Buffett acquires large amounts of theshares of a company, that company share prices will shoot up. His strategy forinvesting is long term investment. He was in no hurry to sell even if the shareprices plunged after he bought it. This was because he believes that the shareswill rebound soon and he will have high returns.
Since he started his company, his company’s value hadincreased by almost 400 times! No one could compare to Buffett’s foresight ininvesting.
There was a strange phenomenon. People start to followwhatever Buffett invest, and this creates a short term increase in thatparticular company’s share prices.
Warren Buffett had become an indicator of the stock market!
Now, Warren Buffett had set his sights on those Japanesecompanies. Those companies that were kicked out of China.
Buffett realized that the output of many factories in Chinawas not very high and was not a significant proportion of the companies’ totalproduction. When those companies withdraw their management staffs from thosefactories in China, they will surely think of other ways to increase theircompanies’ profits and the company’s share prices will inevitably rise again.
Although the company’s brand will be affected in theshort-term, in the long run, Buffett felt those companies will be able torecover. These companies have a strong technological background and do not haveany cash flow problems. Also, the Japanese Government will think of ways tohelp those companies. After all, the Japanese Government cannot afford thesecompanies to fail.
Warren Buffett had also researched on these companies. Someof them were doing quite well and had high returns for this year. It was notnormal for their share prices to plunge so suddenly. When these companiesannounced their annual profits, the investors will regain confidence in thesecompanies, and the share prices will bounce back.
Warren Buffett was considering which company’s shares shouldhe acquire. There were too many choices. He wanted to look for a company thatis stable and have good returns.
There was one more important factor. If another big playerwere investing in the same company, the share prices would rise faster.
“The compensation amount was agreed upon. Although it wasstill not announced yet, the rough estimation was a significant amount!” FuRongqi’s assistant exclaimed.
“Most importantly, those companies had withdrawn out fromthe Chinese market, and their factories in China were sold to other Japanesecompanies. The selling prices are undisclosed, but from the looks on theirfaces, the prices should not be high. Japan had played its cards well thistime. They had shown their sincerity and did not suffer any heavy losses.Japanese companies are still making money in China.” He Zhaoji was impressed athow Japan handled this situation. The Japanese Government did not suffer anylosses. The ones that suffered losses were those companies.
“When this news is release, those companies shares will dropagain.”
“That’s right. But it would be best if their share pricesplunged. It’s such a dilemma. On the one hand, I wish for their share prices tobounce back as soon as possible for us to make profits. On the other hand, Ihope those companies will go bankrupt.” Someone said and laughed.
Hahaha…… The rest of the staffs are laughing while staringat their computer monitors. There were monitoring the stock market closely.
Feng Yu and Fu Rongqi were also starting at their computers,and both stood up at the same time suddenly. A few stock brokers also stood up,and everyone said at the same time. “The prices are almost rock bottom. Prepareto buy in!”
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