Shenhao started as a military training anchor

Chapter 1088 Holly and Buffett's Billion-Dollar Game

Short selling means being bearish.

But there is a lot of knowledge in the word "look".

For professional fund managers and investment banks, there will be a lot of data analysis and research before shorting a stock.

Look for potential problems with this stock, such as financial problems, industry bubbles, etc., and after identifying the problems, start building positions and shorting the stock.

Wait until the company goes bankrupt and its stock price falls, and then start harvesting.

Obviously, this approach will not work for Apple, a global technology company with a market value of 3 trillion US dollars.

The second type is "badmouthing", which is to use various channels to badmouth the stock, causing panic among investors and reducing the confidence of investment banks, thereby causing the stock to fall.

This method has a prerequisite, that is, the subject of the pessimistic opinion must be a very influential person in the financial industry or a securities service company, so that their words are credible.

For example, people like Warren Buffett, the stock god, and Jim Chanos, the short-selling tycoon...

Not only is it credible, but in many cases you can get first-hand policy and market information, making short selling easier and increasing the success rate.

But it doesn’t mean it’s necessarily stable.

People like this also make mistakes sometimes, such as Tesla, which is probably the most shorted stock in history.

No one in the North American financial market is optimistic about it.

In the end, it was China that saved him. Musk brought Tesla into China, where production soared, sales surged, and market value soared more than ten times.

Those fund managers and investment banks that shorted the market suffered heavy losses.

Therefore, short selling actually means limited gains, unlimited losses, and extremely high risks.

But if it succeeds, it would be a great trick of getting something for nothing.

The shares are borrowed, the money is earned by you, and you didn’t contribute a penny.

Holly now has a certain influence in the global financial circle. Although his credibility in "badmouthing" stocks is not as high as Buffett's, he has a set of combined punches.

2.98 million shares of Apple were borrowed from the Saudi prince, with a market value of nearly billion US dollars. Such a large-scale short selling will definitely attract the attention of Apple's board of directors, that is, Berkshire Hathaway, BlackRock, Vanguard... these fund companies.

Because the Apple tax has caused too much trouble in the Chinese market, it has affected Apple's stock price, which has fallen significantly.

Holly has now borrowed shares and is pretending to be planning to get into the mobile phone manufacturing business, which is to put pressure on Buffett and others.

Force Buffett and others to communicate with politicians in the United States, temporarily lift sanctions on Holly and Eon Auto, and support Apple to open up its global ecosystem and cooperate with Eon Auto.

If they don't reach an agreement, Holly will short Apple.

Public pressure on Apple tax.

Several companies sued Apple.

Sales have plummeted.

Holly may start making mobile phones to squeeze Apple's market share in China.

Cook went to China to negotiate for the result.

Apple may face a huge antitrust fine again...all unfavorable factors point to Apple.

Moreover, they are all closely related to Holly, and the chain reaction caused by Holly's actions directly affects Apple's stock price.

There will definitely be a sharp drop, after all, one-fifth of the global market is in China.

Holly is sure to make money by shorting Apple.

As the CEO of Apple, Cook had only one solution in mind when faced with Holly's combination of attacks, which was to agree to Holly's request and open Apple's global ecosystem to E-Sun Auto.

He informed the board members of his ideas.

After hearing this, Buffett fell into deep thought.

Based on his years of experience, even if Apple agreed to Hawley's request, there was no guarantee that Hawley would not short Apple.

It's possible that Holly will have it both ways.

As long as he seizes the time difference, operates steadily and runs fast, Holly can still make a fortune from shorting the stock market.

At the same time, he also got the Apple global ecosystem he wanted.

This makes it difficult for Buffett.

I had to analyze Holly's previous tactics and gaming mentality again.

Buffett ultimately determined that Holly was a very ambitious and vengeful person.

He will definitely try to do both and want them all.

Instead of waiting for Holly to short, it’s better to short yourself first.

On the one hand, after communicating with politicians as a representative of the Jewish consortium, the strategic cooperation between Apple and E-Sun Auto was approved at the board meeting.

On the other hand, Buffett began to build a position and prepared to short Apple.

Holly smiled when he saw Buffett reducing his stake in Apple. The old fox was trying to compete with him in speed.

Of course Holly couldn't let him get what he wanted, and he also wanted him to fail in it.

He immediately asked Tianhong Capital to stop shorting Apple, and made a call to the International Affairs Department of Shunwei Capital in Singapore and Hong Kong, asking them to go long on Apple.

When Buffett sells, he buys.

In fact, if Holly cooperated with Buffett to short Apple, he could also make money.

But with such a good opportunity, he not only has to make money, but also has to teach his opponent a lesson.

Buffett sold 4 million shares of Apple stock in one week, with a market value of nearly billion US dollars.

This is waiting for Apple's stock market to fall so that the harvest can begin.

Holly suddenly stood up and did three things at this time.

One is the withdrawal of the lawsuit against Apple.

As soon as he withdrew his business, companies such as Tencent, ByteDance, etc. also followed suit.

The reduction in Apple tax is good news for users of WeChat and Qiangyin.

Public opinion began to reverse.

Domestic Apple users began to stand up and praise Apple. At the same time, those big V bloggers also received money and began to promote Apple.

Apple's brand image is gradually improving.

The second thing was that Holly held a press conference in Jiangcheng before Cook returned to China.

Press conference on strategic cooperation between E-Sun Auto and Apple to mutually develop ecosystems and serve global users.

When Cook was invited to the stage to attend the press conference, he once again felt like he was being held hostage.

From the moment he entered Jiangcheng, he became Holly's tool and was at Holly's mercy.

The cooperation between the two multinational companies is major good news.

Apple's stock is starting to recover.

Buffett was very sensitive. As soon as he saw that the situation was not right, he decided to stop shorting Apple and adopted a long-short strategy to go long on stocks of its peers.

Use hedging to stop losses.

He was already running very fast, but Holly did something else that made him unbelievable.

During the Double Eleven event, Holly teamed up with e-commerce platforms such as JD.com, ByteDance, Alibaba, and Pinduoduo to launch a 3 billion yuan subsidy for C products.

In the past, all product categories were subsidized by 3 billion yuan. This year, major e-commerce platforms have provided billion yuan in subsidies to the C sector alone, and a quarter of the subsidies have been spent on Apple products.

This resulted in unprecedented prices for Apple products during Double Eleven.

After Apple's domestic sales plummeted at the end of the third quarter and the beginning of the fourth quarter, they saw a surge in the middle of the fourth quarter.

The increase is unprecedented.

Year-on-year growth of 360%.

At the same time, Apple's stock price began to soar.

For Buffett, who shorted Apple in advance, the losses were huge.

And the upward trend was good, so Buffett had to buy back Apple shares at a high price to secure his position as actual controller.

Now it was Holly's turn to reap the rewards, and another call came to Hong Kong City and Singapore.

Started selling off his Apple shares.

Now he is selling at a high price and Buffett is buying at a high price.

All in all, after deducting the losses and interest from shorting the Saudi royal family's shares, Holly still made nearly 70 billion US dollars.

When seeing Cook off, Holly joked, "President Cook, say hello to Mr. Buffett for me."

Buffett's analysis of Holly's character is correct. Holly is very ambitious and vengeful, and he wants both Apple's global ecosystem and stock market returns.

Just misjudged Holly's tactics.

Short selling is just a cover, the actual goal is to go long on Apple.

However, Buffett reacted promptly and relied on the long-short strategy to hedge the short-selling risk, so he did not lose too much, only about two or three hundred billion US dollars.

This was the biggest setback he had ever encountered in his career.

But Buffett did not refuse to accept it, because Holly had the initiative from the very beginning. No matter what tactics Holly used, it would be disadvantageous to him. He could only analyze his opponent and bet on him.

Obviously, an opponent like Holly is not someone you can win by just gambling. (End of this chapter)

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