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Chapter 349: An Unknown Purpose


"Boss, are you really sure you're buying Berkshire stock at such a high price?

The company's stock has risen from less than $7 a share 23 years ago to nearly $3,000 a share now, an increase of more than 400 times!

I think the price of this company's stock has reached its peak, and if we buy this stock, it will be very risky!

David Anderson obviously didn't agree with Yang Jing's proposal.

But he doesn't agree with it, Yang Jing is the boss, and the most important thing is that David Anderson doesn't know the miracle of Berkshire Hathaway, but Yang Jing knows it clearly!

Although Bill Gates and Warren Buffett have been competing for the throne of the world's richest man in later generations, and Warren Buffett has only won Bill Gates once, this does not mean that Warren Buffett is not good, on the contrary, in some aspects, Buffett, who is known as the "stock god", has done better than Gates.

For example, Berkshire Hathaway under Warren Buffett's control.

Compared with Microsoft, Warren Buffett's Berkshire Hathaway is also not weak at all, and Yang Jing will not let go of this behemoth with a market value greater than Microsoft in later generations.

This diversified investment group with a total share capital of only 164.55 million shares and only 8.56 million shares currently in circulation is absolutely a miracle.

Berkshire's predecessor was a textile factory on the verge of bankruptcy, in 1964, it was hit by Warren Buffett, who was discerning at the time, so under the careful operation of Buffett, who was known as the "god of stocks" by later generations, this textile factory on the verge of bankruptcy began to come back to life, and the stock price soared from less than $7 at the time to a maximum of more than $320,000 in later generations, and on January 29, 2018, it created a magical valuation of $326,350 shares, which is the highest unit price in the world!

The market capitalization has also soared from less than $23 million in 1964 to nearly $500 billion in 2018, making it one of the top 10 giant companies in the Fortune 500!

Yes, Berkshire's valuation has indeed soared 400 times compared to 1964, but compared to 2018, the price of less than $3,000 a share is still far behind.

Even if you buy Berkshire stock now, it will be a hundredfold increase in 30 years!

How could Yang Jing let go of this stock?

"Well, you're the boss, and now that you've given orders, I have to comply."

David Anderson looked a little reluctant.

Yang Jing said: "David, I'm not trying to force you, I'm just very optimistic about this stock, just like you're optimistic about Microsoft and Oracle, and I'm also very optimistic about Berkshire."

According to my analysis, if nothing else, within three years, the price of this stock will rise by about two times, almost reaching the price of $9,000 a share, and within five years, the price of this stock will inevitably exceed $15,000, and as for the more distant future, the price of this stock will most likely exceed $100,000!

David, trust my judgment. ” Hearing Yang Jing say so firmly, David Anderson couldn't help but be a little shaken.

"Boss, can the stock price of this stock really soar to such a high level?"

Yang Jing nodded affirmatively and said: "These analyses of mine are based on the person of Warren Buffett, and Berkshire can only develop rapidly under the control of this genius investor."

So, when you buy Berkshire stock, it's best to get in touch with Warren Buffett, and of course, when you buy the shares in the hands of Berkshire's minority shareholders, you can buy it at a premium, and I can authorize you to buy this stock at a premium of 30!

But my demand, as I did just now, must control Berkshire 5 stock by October of this year. ” As soon as the price given by Yang Jing came out, even David Anderson couldn't help but gasp.

The premium of 30 is not a small number, and it seems that the boss is really determined to buy Berkshire shares.

"Okay, boss, I'll complete this task within the time you set the deadline."

Although Berkshire Hathaway's valuation is now as high as nearly $3,000 a share, the overall market value of this company is less than $5 billion, and the boss asked to buy 5 of its shares, even if it is a 30% premium acquisition, which is nothing for KY funds.

"Boss, is the Qualcomm company you just mentioned and the Cisco company also a priority?"

Yang Jing nodded and said: "That's right, Cisco and Qualcomm's investment priorities are the same as Microsoft, Oracle and Intel, and we must get enough shares before they go public." ” Looking at the joke, when will Qualcomm invest if you don't invest at this time?

Qualcomm, which has just been established for less than two years, will be the absolute hegemon of the mobile communications industry in the future.

If Intel is the hardware hegemon in the computer industry, then Qualcomm is the hardware hegemon in the mobile communications industry.

In the future of the mobile communications industry, the UK's AR controls the software licensing, while Qualcomm controls the core chips of the hardware.

One of these two companies has just been established, and the other has not yet been established, so investing in Qualcomm now is definitely a matter of urgency.

As for Cisco, this one is even less so.

What kind of state this company will be in the future, people all over the world know!

This company has since become synonymous with the Internet, and its market value even surpassed that of Microsoft at its peak.

Now whether it is Qualcomm or Cisco, it is only a small lotus that has only shown its sharp corners, and almost no one pays attention to these two companies.

But once Qualcomm emerges in the mobile communications industry and Cisco shows its fierceness in routers, it will not be so easy to invest in these two companies.

Just like Microsoft now, it will not be so easy to acquire shares of Qualcomm and Cisco after they go public in the future.

"Boss, do you have anything else to tell you besides the stocks of these companies?"

David Anderson asked.

Yang Jing shook his head and said, "There is nothing special to pay attention to, the stocks of these companies are all listed as priority."

As for the rest of the stocks, you can do it yourself.

However, I suggest that it is best to give priority to large-cap blue chip stocks, the US stock market has been very good this year, and now you can make a lot of profits by buying some blue chips and hugging them a little. ” This is not Yang Jing said nonsense, the U.S. stock market before October 1987 was a super bull market, at the beginning of the year, you can choose one of the stocks to buy, as long as you hold it for ten months, the profit can be more than 50.

For example, in January 1987, the stock price of General Electric was only $36 shares, but by October, its stock price could soar to $55 shares; IB's stock will soar from $28 in January to as high as $44; The famous Citibank has soared from $15 stocks in January to $48 stocks in October, an increase of more than 300 The U.S. stock market during this period was like the big bull market in the Chinese stock market in 2007, and you can make money by buying a stock with your eyes closed.

The most important thing is that in addition to making money in advance, Yang Jing also has an unknown purpose.

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Now that he has decided to start investing openly, Yang Jing must grasp some stocks of companies that are familiar to future generations and can make a lot of money.

For example, Microsoft, Oracle, Intel, Cisco, and Wal-Mart, which often ranked first in the top 500 in later generations, Yang Jing will certainly not let it go.

In addition, giant companies such as General Electric, General Dynamics, and IB can improve their social status in the United States by holding a certain amount of their shares.

Of course, it is not so easy to acquire shares of these companies on the stock market, but Yang Jing knows that at the end of this year, there will be an excellent opportunity for him to buy shares of these companies on a large scale.

That was the stock market crash that broke out on October 29, 1987.

The stock market crash that broke out on October 29, 1987 can be said to be the most tragic stock market crash in the history of the United States, and the US stock market alone evaporated $500 billion equivalent to France's annual GDP in one day!

500 billion dollars in 1987, that's an astronomical amount.

Even 10 percent of it is enough to have 50 billion dollars!

Of course, in this stock market crash, except for dozens of stocks that did not fall, the stocks of those companies that Yang Jing needed to invest in all plummeted.

Before the stock market crash, GE's stock price touched $55 shares, but on the day of the crash, the stock price fell directly to $32, a day that fell more than the previous ten months; IB's stock simply fell from $44 to $255; Walmart went from a high of $535 to $275.

As for Microsoft, it fell from $48 to $26, while Intel was even worse, falling from $130 to $055 In a stock market crash, taking advantage of the sharp drop in the price of these stocks, it is entirely possible to acquire the outstanding shares of these companies at a very small price.

And on the day of the stock market crash, because of the market's selling panic, the selling order on that day was huge, and as long as you have money, you can buy enough stocks!

Of course, in view of the strict monitoring of the U.S. stock market, Yang Jing needs to find a good reason for himself to buy a large number of shares of major companies on the day of the stock market crash, that is, share repurchase!

On the day of the stock market crash, because of the sharp drop in stock prices, the company and its shareholders can carry out share buybacks to assess the stock price, which is expressly allowed by the SEC regulations.

And if you are not a shareholder, take advantage of the stock market crash to buy the bottom at a low price, if the amount is less, it doesn't matter, but if the amount is too large, it will be investigated by the relevant departments in minutes.

Therefore, if you want to buy back a large number of shares in the event of a stock market crash, you must become a significant shareholder of the company.

It is for this reason that Yang Jing will ask David Anderson to acquire a minimum of 5 shares of these companies by October.

Only if you own 5 or more of the company's shares, you have the right to buy back a large number of shares in the stock market crash!

This is one of Yang Jing's plans.