America's Road to Wealth

Chapter 181 Abel Changes His Investing Style

December on Wall Street, something big happened.

J． P．Formal merger of Morgan & Co. and Chase-Manhattan.

This incident announced that the two largest financial forces on Wall Street have merged into one.

Chase Manhattan Bank, commonly referred to as Chase Bank.It is also known as the Chase Manhattan Bank.

If it's just the name, outsiders may not know the status of this bank.

Let's just say it was the financial center of the Rockefeller Foundation.

As for the other company that merged with Chase Bank, JP Morgan & Company.

Just like its name, it is the core of the Morgan Consortium.

The two companies issued a joint press statement on September 9 this year, saying that the two banks intend to merge.

After the news was announced, many people thought it was a joke.

Morgan and Rockefeller merger?
Are you kidding me?
Because this incident seemed absurd, it caused heated discussions in the United States for a day or two at that time.

There was no news after that.

Everyone didn't believe it.

As a result, in December, the two companies officially announced their merger.

After that, now in [-].

JP Morgan Chase Bank, with total assets of US$6600 billion, officially appeared on Wall Street.

According to David Mellon,

"The Federal Reserve and FDIC are crazy! They made a Tyrannosaurus rex and a shark fit!!"

There was an uproar on Wall Street, and many people did not expect it.

These two giants have really joined forces.

The birth of JPMorgan Chase caused the entire Wall Street to be in a state of turmoil for a while.

On the contrary, Abel was calmer.

His few memories of the United States are part of the merger of the two banks.

He knew it was only about 15 years after they merged.

It has developed into a company with total assets of 2.5 trillion US dollars and total deposits of 1.5 trillion US dollars, accounting for 25% of the total deposits in the United States. It has more than 6000 branches and is one of the largest financial service institutions in the United States.

But before that, besides the background of the holders behind them is quite amazing.

These two banks are not very good on Wall Street, whether in terms of business or performance.

For all of last year, Chase's annual revenue was just $222 billion.

JP Morgan's annual revenue is even only $88 billion.

The combined revenue of the two giants is only more than 300 billion US dollars.

The profit is not even 50 billion US dollars.

This revenue is not even comparable to the four major investment banks.

Of course, this is related to their main business of commercial banking.

Commercial banks have always been inferior to investment banks in terms of revenue.

In the United States, the banking system is one dominated by commercial banks.

A vast system including the Federal Reserve, thrifts, savings banks, investment banks, and specialty banks.

In it, 9613 large and small banks.

There are more than 6000 commercial banks.

Followed by savings banks, about [-] or so.

Then there are investment banks, about a thousand or so.

The remaining hundreds of families are investment banks, savings institutions and professional banks.

Thrift institutions generally refer to the twelve Federal Reserve Banks.

Specialized banks include targeted banks such as the World Bank.

As for the Fed, it has only one.

In fact, it is the head office of the twelve Federal Reserve Banks.

In other words, the Federal Reserve, the central bank of the world, consists of these twelve institutions.

Unlike other American banks.

The Reserve Banks of the twelve Federal Reserve Districts, whose shares are not traded.

And there are regulations that their shares are only allowed to circulate within shareholders.

When they were established, they did not get their shares, and basically they will never get their shares again.

When it comes to the Fed, it has too many secrets.

Its secrets are not even known to many high-level personnel in this country.

Confederate Rep. Wright Patman of the last century.

This gentleman served as chief of the House Banking and Currency Committee for 40 years.

In 20 of them, he continued to propose, calling for the abolition of the Federal Reserve.

The lawmaker has also been trying to find out who owns the Fed.

In the end, he announced to the public that he could not find out who is the master of the Federal Reserve.

As for whether it was really not discovered, or discovered, I dare not say.

This is only known by the MP himself.

In short, the establishment of JP Morgan Chase announced the birth of a super giant of American commercial banks.

It's no wonder that Wall Street is in turmoil because of its appearance.

In the case that it dominates all financial news.

Abel's American Pacific Bank of Commerce.

On December 12th, the acquisition of seven small commercial banks was successfully completed again.

It seemed calm.

For a month or so, Abel was waving the stick of dollar bills.

After spending about $130 billion in cash flow.

Today's Pacific Bank of Commerce has 112 branches.

It is a medium-sized bank with total assets of 120 billion U.S. dollars and assets under custody of about 1000 billion U.S. dollars.

At the same time, it also consumed more than half of Albert's cash flow.

But both Abel and David Mellon think it's worth it.

From now on, Smith Capital finally has its own capital turnover center and settlement bank.

The Pacific Commercial Bank has also officially become the settlement bank and financial core of the Abel family of companies.

Many companies under Abel Holdings.

For example, MGM, CAA, AMC TV, Isa Corporation, YKM Corporation, New Start Real Estate, Rock Security, all transferred most of their business to Pacific Commercial Bank.

Google, ideo and other companies affected by Abel Investment Holdings also transferred part of the settlement business to the Pacific Bank of Commerce.

Just these companies have allowed the Pacific Bank of Commerce to add billions of dollars in business all of a sudden.

Doing so benefits both parties.

For Pacific Bank of Commerce, it has a lot of extra business.

You can earn more fees and interest.

For these Abel companies, there is a sister bank of its own.

It can also be safer when conducting fund settlement.

At the same time, in case you need a loan in the future.

If you have your own brother bank, you can also get certain discounts in terms of loan interest and term.

This is why the financial core of American consortiums will always be banks.

Who said that in the modern commercial system, commercial banks are already an indispensable and core part?
For Abel's current core company, which is Smith Capital.

When it invests abroad in the market, it finally no longer needs to completely monitor the flow of funds.

With its own settlement bank and financial turnover center.

It is not so easy for Wall Street giants to continue to monitor Smith Capital.

It was also on December 12th.

The second and third phases of private equity funds of Smith Capital have been completed, with a fundraising amount of US$100 billion.

Let the Pacific Bank of Commerce earn more than 3000 million US dollars in underwriting fees at once.

And the money was originally earned by those Wall Street giants.

For example, the four major investment banks were in the first private placement of Smith Capital.

Just the four of them made more than $400 million in profits.

The money is now letting Abel put his left hand in his right hand.

It flowed back and forth, and finally flowed into his own pocket.

The two private placements raised a total of US$100 billion, but subscriptions reached US$182 billion.

The subscription time is 36 hours.

Also on this night.

Contrary to the expectations of many Wall Street giants.

The investment direction of Smith Capital this time.

It is no longer a high-risk, but high-profit international foreign exchange or futures market.

This time, Smith Capital, this huge cash flow, began to enter the US stock market aggressively.

What made the Wall Street tycoons even more painful was that Abel, who always liked to play with leverage, this time.

No leverage!

Or they don't even know it.

Because if the Pacific Bank of Commerce provides leverage.

They have no way of knowing the exact flow of funds!

It is much easier to stare at the flow of funds of an investment company than to stare at a commercial bank with custody funds exceeding hundreds of billions of dollars!
Because they are not used as middlemen

Together with Smith Capital, it already has its own capital turnover center.

That is the Pacific Bank of Commerce.

This makes Smith Capital, this investment, relatively secretive to Wall Street giants.

Many people have no way to know the investment direction of Smith Capital immediately like before.

Everyone spent a long time, used many relationships and channels, and wasted a lot of favors and money.

Only then did I basically find out the general investment direction of Smith Capital this time.

In other words, if you want to check, you can probably check it out.

It's just not as easy to know as before, and it's very detailed.

Now everyone has found out that they are just some general directions.

But exactly how much money, how much and when.

It's hard to find out.

And seeing this, they re-investigated the results.

Everyone found out that Abel Smith had actually changed his gender!

It’s fine if he doesn’t play foreign exchange or futures, and he doesn’t even play leverage.

It's okay if you don't play these.

This time, he actually honestly distributed tens of billions of dollars of funds to more than 100 companies in the US stock market.

On average, about US$1.2 million is invested in each stock.

This investment style has changed the impression he gave everyone before.

Everyone found that this guy changed from a gambler's investment to a fisherman's investment.

What is fisherman's investment?
Just like a fisherman fishing in the sea, the big nets are thrown down one by one.

The fisherman doesn't care what he has to work for or what he can catch.

This completely different investment style immediately made the Wall Street tycoon who had been watching him very uncomfortable.

We have studied his investment style for almost a year.

Some companies have already simulated his investment model.

Although I can't really follow this model, I can achieve the same huge gains as him.

But just follow this model and follow Abel's investment actions closely.

Many times, Abel ate meat in front of him.

These middlemen can also follow behind him, mixing a mouthful of soup or meat.

Just like Merrill Lynch before, due to Charlie Schaff's insistence.

In Abel's many investment operations, they quietly followed him to learn several times.

Although they did not earn as much as Alberto, they also made a lot of profits.

That's why everyone likes to stare at him.

And Wall Street companies like Merrill Lynch are not the only ones.

The main reason is that everyone wants to follow him, watch him eat meat, and see if they can drink soup.

If there is a chance, you can go up and bite him hard when he is eating meat, while he is not paying attention or distracted.

The latter approach, because Abel moved quickly.

So far, no one has bitten flesh on Abel.

But drinking soup is also good, and you can feel full if you drink too much soup.

But now, Abel has changed his investment style.

This stunned a large number of Wall Street tycoons who followed him, thinking about eating soup.

Inside the headquarters of PNC Financial Services Group.

The CEO of the group company, Sally Winston, was a little depressed to Lincoln, the general manager of BlackRock Investment under the PNC Financial Services Group:

"How did he change his gender? The analysts of the company didn't say that David Mellon should have done all the previous transactions."

"After he comes back, he will definitely come back with revenge. Or will he cut a ticket in the market?"

"Then why doesn't he do foreign exchange or futures anymore. You must know that before this, he has never entered the US stock market."

PNC Financial Services Group, is a financial corporation headquartered in Pittsburgh, Pennsylvania.

Regardless of its reputation in the investment business, it is far inferior to the four major investment banks at this time.

But its investment business is actually no worse than that of the four major investment banks.

PNC's wealth management business began with the merger of two trust companies in the 20s.

In the mid-90s, BlackRock Investments became part of PNC's asset management business.

In 1999, PNC acquired First Data Investor Services Group.

The company is a major provider of mutual funds and other investment vehicles.

The acquisition strengthens PNC's position as a premier provider of global investment services.

In 2000, BlackRock Investments has become one of the largest listed investment management companies in the United States.

In Hereafter, with the support of PNC Financial Services Group.

BlackRock even became the world's largest custody institution.

At its peak, BlackRock funds managed more than $11.5 trillion!
Of course, now in 2000.

BlackRock funds are not so exaggerated.

Even with the backing of PNC Financial Services Group.

At this time, its custody funds are around 1.2 trillion US dollars.

It's currently in the top five in the US.

There is still a long way to go before being number one in the world.

And the reason why it can become the world's first custody fund in the future.

This is naturally related to its very good annualized return.

It is because it can make money that the rich are willing to believe in it.

Only then are they willing to put money into it for investment and financial management.

In the end, there is an exaggerated scale of ten trillion US dollars.

Since May this year.

The BlackRock Fund has actually been sneaky, drinking soup with Abel many times.

Abel earned more than 100 billion in half a year, and BlackRock earned more than 30 billion in half a year.

The reason why there is so much less is not because the BlackRock fund has no capital.

On the contrary, the BlackRock fund backed by PNC Financial Services Group, the worst thing is the principal.

The reason why the income will be so much less than Smith Capital.

This is related to the fact that the BlackRock Fund did not trust Abel at the time.

And after all, it is a follower in these investments, and it is also worried about being pitted by Abel in front.

In addition, in terms of the timing of exit and entry, it is naturally impossible for the trailer to react as quickly as the pioneer.

The investment of the BlackRock fund has experienced some profit retracement.

This makes it impossible for the BlackRock fund to compare with Abel in terms of income.

It was originally after this Smith Investment Reception.

Because of the amazing profits of Smith Capital.

Many Wall Street firms, including BlackRock funds.

They were all thinking that they might as well drink soup with Abel in the future.

To put it simply, it is to directly imitate the pace of Abel's investment.

Just like the big ticket hot money following Soros Quantum Fund.

Soros or Abel rushed ahead, and their hot money followed behind to make a living.

But this time after Abel's investment reception, Smith Capital actually only had a few transactions a month.

But the amount was very small, and it was sniped by some cheap Wall Street giants.

Also successfully sniped!

It made everyone realize that those investments might not have been Abe's.

It is the behavior of Smith Capital.

Everyone saw this later.

And now, the titans of Wall Street have died down in Abel for a month.

It's time to finally move.

Everyone also took action.

Those who want to drink soup with him are preparing, and those who want to find a chance to snipe him are also preparing.

结果
Abel actually stopped playing foreign exchange or futures hedging.

He ran to the US stock market!

Facing the depressing words of the CEO of the group headquarters.

The general manager of BlackRock Fund, Lincoln wondered how I would know.

Lincoln responded:
"Maybe he changed? Maybe he knows our actions and behaviors? He didn't dare to take risks, so he chose the relatively safe stock market?"

Sally Winston was not too good a judge either.

The main reason is that Abel's sudden change in investment style surprised everyone.

It's like a guy who is used to drinking and eating meat every day, suddenly one day says he wants to be a vegetarian and become a monk.

Everyone has seen it, and of course they will be very uncomfortable with his transformation.

After thinking about it, Sally Winston said softly:

"Looking at the current situation, we choose to observe temporarily."

Lincoln agreed.

"I think so too. Because I think the sniping behavior of those cheap guys has made him realize that he is being targeted by us!"

Sally Winston agrees:

"Absolutely. Otherwise, he wouldn't have spent so much money in such a short period of time to set up his own commercial bank."

Regarding Abel's sudden change in investment behavior.

The two giants of PNC Financial Services Group can only judge why he suddenly became cautious.

It was because he sensed that some people on Wall Street were attacking him.

This made Sally Winston and Lincoln couldn't help complaining at the same time.

Complaining about the guys who made millions of dollars in sniping last month, disturbed everyone's meat.

Let Abel now have vigilance.

In the future, let everyone choose to follow suit or snipe.

The difficulty will increase several times.

But Wall Street has always been this urine.

Want to bring everyone together.

Even if the original Morgan and Rockefeller were reborn, they couldn't do this kind of thing.

Just like the capitalists behind many other interest groups in the United States, they themselves cannot be united.

Wall Street is full of hills, and the United States is also full of hills.

Sally Winston and Lincoln obviously couldn't make everyone obey.

In the end, a few mouse droppings ruined everyone's good soup.

Rat shit in the eyes of the two giants of PNC Financial Services Group.

Merrill Lynch's investment department doesn't think so at the moment.

Merrill Lynch's investment department was the company that sniped David Mellon's several tentative foreign exchange investments last month.

On those investments, Merrill Lynch made millions of dollars.

It was Mr. Stanley O'Neill, the president of Merrill Lynch, who led these sniper operations.

Merrill Lynch Chief Financial Officer Charlie Schaff objected.

But today's Merrill Lynch, even CEO David Komansky, is about to be emptied by O'Neill.

Charlie's objections didn't help at all.

And afterwards, O'Neill said to Charlie with some pride:

"Look, the invincible Wolf of Wall Street is not terrible! Isn't this still a loss to Merrill Lynch?"

This incident once made Stanley O'Neill's already high prestige in Merrill Lynch even higher.

Fortunately, Merrill Lynch found out afterwards.

These few transactions of Smith Capital should not be presided over by Abel Smith.

It was done by David Mellon, managing director of Smith Capital.

This made O'Neill's voice in the company lower.

It also allowed Merrill Lynch CEO David Komansky to avoid the bad possibility of being replaced early.

Now I also want to drink some soup, or try to see if I can continue to attack Merrill Lynch.

At this moment, I am watching Smith Capital invest more than 100 billion US dollars in the stock market in more than 100 US stock companies.

In the office, Stanley O'Neill was a little dumbfounded.

"Invest in US stocks instead of international foreign exchange?"

The most powerful black president on Wall Street, muttering to himself.

Beside Charlie Schaff remained silent.

"Charlie." O'Neill didn't let him go, "What do you think Smith meant by doing this?"

Charlie wondered how I would know.

But as the company's CFO, he had to answer questions in this regard.

Charlie Schaff had no choice but to try and say:
"Maybe it was our sniping behavior last month and the beginning of the month. Made the other party aware of the risk? Smith was worried about the risk and decided to put his funds in safer US stocks?"

That's kind of in the black Stanley O'Neill.

After all, at the end of last month and the beginning of this month, Merrill Lynch's sniping behavior.

They were all choices that O'Neill insisted on, or he took the lead.

This is almost pointing to O'Neill's nose and saying-you are the one who scared the snake!

But this explanation may be the most realistic one.

What makes O'Neill even more helpless is that Smith Capital has invested in hundreds of US listed companies.

They are spread across the four stock exchanges and the three major stock indexes in the United States.

More than ten categories and more than 30 subcategories have companies invested by Smith Capital.

There is no trace of Abel's investment strategy, choice and wind direction this time.

Let everyone on Wall Street be completely untraceable! !

(End of this chapter)