Japanese investors

Chapter 230 Accountability
Masao Ishihara left Tokyo, Japan, on a private plane and flew directly to Seoul, South Korea.After he arrived at his destination, he took a special car to leave the airport, and finally arrived at the Karuizawa Hotel in Gangnan District.

For the convenience of Ishihara Masao and his entourage, the hotel not only reserved the best floor in advance, but also arranged the best service staff and security personnel.

Shortly after Ishihara Masao sat on the couch in the presidential suite, Park Yerim personally led his son Park Junyong in.

Park Junyong's first reaction when he saw his father was not a greeting like "It's been a hard journey", but a standard Japanese-style earthen seat in the direction of him without hesitation.

He did not get up, but still knelt on the ground and said, "I take full responsibility for the mistakes I made."

Masao Ishihara did not ask him to stand up first, but asked coldly: "You should have heard of the name John Paulson of Wall Street in the United States!"

Park Junyong replied with a serious face: "It was like thunder. He was among the few big winners of the financial crisis that broke out in the United States in 2008."

Masao Ishihara leaned back on the sofa cushions and said calmly: "The initial size of the first fund founded by John Paulson in July 2006 was only US$7 million.

Of this, US$3000 million was all the investment he made after selling the house.And the fund in your hand is also your first fund.

The initial capital size was US$5 million, and the 2000 billion won lost by you was almost US$1.53 million, which exceeded the initial size of John Paulson's first fund.The loss rate of your fund is as high as 30%. "

Park Junlong said cautiously: "I have lived up to my father's expectations of me. However, I know that at the beginning, when everyone was not optimistic about John Paulson, Dad, you were very optimistic about him and directly invested $[-] million in him.

At that time, everyone thought you were crazy. In January 2007, when John Paulson founded his second fund, it was also noticed by Soros and others.

The initial size of his second fund was US$7 million, but Dad, you were as optimistic about him as ever, and you even increased your investment in the other party to US$5 million.

Dad invested a total of $6 million in two John Paulson funds.In the end, you made nearly $50 billion with interest, a profit margin of over 800%. "

Ishihara Masao showed an undisguised expression of disappointment on his face and said: "It seems that you still don't realize where you went wrong?"

Park Yelin, who had never dared to sit next to him, suddenly became very nervous when he heard what he said.He quickly jumped in to help: "Before John Paulson founded his first fund in July 2006, he had a lot of relevant experience and was definitely a financial expert on Wall Street.

Our Junlong, no matter in terms of age or experience, is far from being able to compare with him.Besides, the losses caused by Junlong were not entirely due to his own decision-making disappointment.The negative impact of this black swan event is the most fatal. "

Ishihara Masao couldn't help laughing and said: "According to what you mean, I was wrong. I should not have handed over the US$5 million fund to Junlong in the first place."

Park Yelin said anxiously: "No, no, no, you are not at fault at all. This is all the fault of the Black Swan incident."

Pu Junlong said straightforwardly: "Mom, I know you are helping me with good intentions. However, my fault is my fault. As the person in charge of the fund, I must bear full responsibility for the losses." Masao Ishihara smiled and said: "You keep saying that you take full responsibility. How can you take full responsibility? Is it possible that you can afford to compensate for the 2000 billion won loss?"

Facing the pressure from his father, Park Junlong still did not make any attempt to shirk the responsibility and said: "I will work hard to make back the money I lost this time."

What Ishihara Masao values ​​​​is a person who takes responsibility and says: "Stop kneeling and get up first. Theoretically, you don't have to be responsible for the losses. However, that is only theoretical.

You don’t know that big financial groups, big banks, and the financial vultures on Wall Street cannot owe money.Once you owe money, you have to pay it back even to the ends of the earth.

Laymen mistakenly believe that family trusts and personal trusts can carry out certain property divisions, and they will never be liquidated to that extent.

In fact, Credit Suisse's pursuit of the debt owed by the founder of Luckin Coffee is a living example.Even though the family trust was established in the Cayman Islands, it still did not escape the final result of being liquidated.

In the financial industry, if you lose once, you can lose it for the rest of your life.Although it is normal to have losses and profits in investment, losing money is always hard to accept.

Therefore, if the person who creates the fund does not invest a large amount of money first, then others will not invest money in it.Only when life and death are shared and interests are at stake, can a trusting relationship be established between each other.

The most stable relationship in the world is not a blood relationship, but a relationship of interest.Among those who invest, are there any who don’t pay tuition?The tuition you pay this time is not small. "

Pu Junlong stood up slowly and said, "I know. I will definitely learn this bloody and profound lesson."

Masao Ishihara said bluntly: "Tell me your summary."

Park Junlong replied seriously: "I shouldn't put all my chips on the real estate in Seoul, South Korea. The correct operation is to reduce the risk, and I should make a corresponding hedging beforehand."

Although the team members have reminded me about this aspect, I did not adopt it.At that time, I was out of my wits and only thought about making more profits, so I turned a deaf ear to it.

My wrong judgment at the time was that real estate in Seoul, South Korea would not fall and would continue to rise.Unexpectedly, a thunderstorm incident involving full-rental housing in South Korea was that the landlord ran away and hundreds of tenants lost all their deposits for full-rental housing.

This caused an uproar, thus forming the first domino to fall.As a result, the other tenants who rented the house were frightened and asked the landlord to return the deposit of the full rent.

Even if it is an active breach of contract and liquidated damages are paid, the full rental contract between the two parties must be terminated.The root cause of all this lies in the Federal Reserve's continuous interest rate hikes.

In order to curb the excessively rising inflation in the country, the Federal Reserve has been raising interest rates continuously. At the same time, the Bank of Korea has been forced to continue to raise interest rates.Regardless of whether there is US coercion or not, the Bank of Korea can only do so. "

(End of this chapter)