Return to 88: Starting from Marrying My Sister-in-law

In the conference room, the light from the crystal chandelier cast a sharp shadow on Lu Yang's cold and stern face.

As the New York night deepened outside the window, the atmosphere inside grew increasingly tense due to the debate over where the funds were going.

Goldman Sachs representative Hun Sen tapped his thick fingers on the table: "Mr. Lu, Microsoft is at $53.42 per share, an all-time high! Holding at least 600 million shares? That's practically playing with the company's cash. I really can't think of any way to get me to agree to your plan, Mr. Lu."

The other foreign representatives nodded in agreement, their eyes revealing greed and distrust.

Lu Yang picked up his coffee, took a sip, and his calm voice pierced through the commotion: "Since you are all worried about the risks, how about this—consider this money a loan from the company."

He looked around at everyone, his eyes sharp. “Six hundred million US dollars will be loaned to me personally by the company at an annualized interest rate of 10%. After one year, the company will receive 10% of the six hundred million US dollars in profit. It’s a sure thing. I will bear all the risks of Microsoft’s ups and downs.”

As soon as he finished speaking, Lu Nini quickly handed him a prepared loan draft, the pages rustling on the table.

This was clearly something Lu Yang had prepared before sweeping the floor.

An annualized return of 10% is, frankly, neither high nor low, but above average. However, if you add the words "risk-free," then it becomes extremely high.

It's even ridiculously high.

For example, in the current financing environment, a 10% annualized profit is 5.5 percentage points higher than the current risk-free interest rate of about 4.5%, which is called the "risk premium".

For a risk-free investment, this premium is ridiculously high.

Even for companies with the highest credit ratings (AAA) like Intel and IBM, the financing cost of issuing corporate bonds is far below 10%.

Their bond yields are likely to be only around 5%-6%.

If that company can borrow $6 million on "risk-free" terms, it could easily raise funds from banks or from the capital markets at even lower interest rates...

However, Lu Yang does not meet any of these conditions.

Lu Yang might be able to raise the necessary investment amount from banks or capitalist markets in China at lower interest rates.

But sorry, these aren't US dollars. What he needs right now is US dollars, US dollars for overseas investment.

It's only a 10% risk-free profit. If the representatives of these foreign institutions agree to his loan plan, he is even prepared to increase the amount from 600 million US dollars to 9.975 million US dollars. A year later, he will be rich. He will never lack foreign exchange funds again, and his future overseas investments will be much more relaxed.

This is the confidence that comes from someone who has been reborn, believing that Microsoft's market value a year from now will give him a perfect answer.

At this moment, the representatives of the foreign institutions opposite looked at each other, shocked by Lu Yang's audacity, and wondering with uncertainty about Lu Yang's purpose in doing so.

Is there any inside information they don't know about?

They lowered their heads and began to discuss.

Soon, Goldman Sachs representative Hun Sen stood up abruptly, spreading his hands exaggeratedly and laughing loudly: "Ten percent annualized return? Lu, do you think we're stupid?!"

He counted on his fingers, "Sixty-six million US dollars in interest is barely enough to fill a tooth gap for us. Microsoft's value increased several thousand times back then. If there's a surge now, this little bit of profit is nothing!"

The Morgan Stanley representative chimed in, "Yes! Mr. Lu is so confident, we should get a share. How about... a bet?"

The meeting room fell silent instantly. The foreign representatives exchanged glances, their greed ignited. Lu Yang's confidence made them waver; perhaps Microsoft could truly create another legend.

Lu Yang's lips curled up slightly, having anticipated this move: "Alright, let's gamble then."

He slammed his fist on the table and set the tone: "The $997.5 million raised will be used to purchase at least $600 million of Microsoft stock in batches. The people I designate will be in charge of this. I will decide when to sell. If the annualized profit is less than 10% after one year, I will make up the difference. If there is a loss, I will compensate for it all. The collateral is the shares of Little Prodigy in my hands."

He paused, his voice turning cold, "But if we exceed the target, I'll take half the profits, and the other half will go to the company. Surely you all have no objections to that?"

As she spoke, she clapped her hands, and her assistant secretary, Lu Nini, pulled out a third contract from her briefcase and bent down to hand it to her desk.

Lu Yang picked up the contract and casually tossed it to the other side.

A confident smile spread across his face: "I've prepared the new contract. It's also on the guarantee documents. Everyone, please take a good look at it. If you have no objections, please sign it."

I'm all about efficiency.

Lu Yang had prepared three plans, one for each stage, and was able to change them at any time.

This scene made Xiao Jun, who was sitting next to him, stare wide-eyed, like a bull's eyes.

"Hold."

"How handsome!"

This kid tricked me again! Why wasn't it me? I'm the CEO of Little Prodigy!
Hun Sen and other representatives of foreign institutions exchanged glances. Although they were surprised by Lu Yang's diverse methods, they were still satisfied with this third plan. It did not require taking any risks and could still generate profits of at least 10% per year.

"make a deal."

"Lu, I wish you success!"

"Although I don't know where Mr. Lu gets your confidence from, I'll sign this..."

"I'm willing to sign."

Lu Yang was already a major shareholder of Little Prodigy and the chairman of the board. Now, with the support of foreign institutional shareholders led by Goldman Sachs, an agreement was quickly reached and a preliminary agreement was formed, setting the stage for a high-stakes gamble on capital.

of course……

The news spread very quickly.

Some were dismissive.

Some people find it ridiculous.

Some people think this kid from the East is daydreaming.

Even after Microsoft's stock price hits new highs, it remains a high-value stock worth holding for the long term. However, this young man from the East has clearly underestimated the ruthless nature of Wall Street's brokerage capital; they are the real manipulators behind the stock price.

Capital can be a vampire.

Some people bet that if this kid from the East dares to seriously buy Microsoft stock according to the plan, Microsoft's stock price will immediately plummet. Capital will definitely not let go of this $600 million cake. When the stock price falls to a certain level, this kid from the East will have to cut his losses and run away in a panic.

The media also joined in the fun.

Unable to interview Lu Yang himself, they unilaterally criticized his bullish stance on Microsoft stock in the newspaper, claiming it was a publicity stunt to mislead the ignorant public and advising investors to be cautious about buying Microsoft stock in the short term.

Some institutions have even stepped forward to lower their confidence ratings for Microsoft's stock price.

Only Goldman Sachs and other parties involved in the case chose to remain indifferent, while the child prodigy's shareholders chose to stand by and watch.

But what happened behind the scenes, whether there were any shady dealings, remains unknown. The loan agreement has already been signed.

With the shares of the prodigy as collateral, the success or failure of Lu Yang's plan is of great significance to these foreign institutions.

It's done, the deal is done. Microsoft stock soared in the short term. They sat down together to wait for their share of the profits. Although Lu Yang took the lion's share, everyone was happy.

The deal fell through, and the Microsoft stock was manipulated by institutional investors, turning from bullish to bearish. They will take advantage of the situation to reap the rewards, and may even make more money. As for the losses, Lu Yang, this young man from the East, will be responsible for making up for them.

Furthermore, they might even be able to seize the opportunity to acquire more shares in Little Prodigy, thereby squeezing out Lu Yang, the founder of Little Prodigy, from the company, removing the current president of Little Prodigy, and supporting a new president of their own, turning Little Prodigy from a Chinese-funded company into an obedient foreign company with a yellow exterior but a white heart, disguised as a Chinese-funded company.

Therefore, even at a cost, they would rather earn less.

What about Lu Yang?
Lu Yang remained unmoved.

The more the enemy promotes a plan they don't believe in, the more necessary it is to implement it.

Buy, just buy! Buy Microsoft stock without thinking, and you have to be quick, before someone drives Microsoft's stock price to a new high.

"and then?"

Lu Nini is Lu Yang's assistant secretary. Although she didn't handle all of the $600 million deal, she had been keeping a close eye on it.

She had never been so nervous before. She was curious, and her eyes were full of admiration. How could Brother Lu Yang not be nervous at all?

If things go as the outside world expects, capital will take the opportunity to suppress Microsoft's stock, causing Lu Yang's brother to lose a lot of money. If the company loses hundreds of millions of dollars out of the six hundred million dollars, wouldn't the company suffer huge losses?

"Yes, what do we do next?"

Xiao Jun was also very curious.

Although Lu Yang was a strange young man who was invincible in his mind, he had always invested in China before. This was his first time investing abroad, and he was a little uneasy.

Lu Yang smiled and looked at the two of them, saying, "What are you standing there for? Go pack your bags. We're going back to China soon. I'm starting to miss home after being away for so long. Hurry up."

"what!"

Lu Nini covered her mouth in surprise.

"What?"

Xiao Jun's mouth dropped open. "No way, you're just throwing all that money into the stock market and leaving it there?"

Lu Yang shook his head slightly: "Never mind."

Xiao Jun's eyes widened: "What if it drops? That's six hundred million US dollars, what if it drops by half..."

"If it falls, it falls. Value investing doesn't require worrying about the short term. Let the dust settle."

"But……"

Xiao Jun wanted to say something more.

Lu Yang had already gone upstairs to rest for a while, while he sent Lu Nini to book her plane ticket.

They went back to China without hesitation.

Although Lu Nini also wanted to go upstairs, her curiosity was like a cat scratching at her, and she couldn't figure out why her brother Lu Yang was so confident.

However, her duty as a secretary compelled her to stomp her foot and run out of the room after a few seconds.

along the way.

Still uneasy, she secretly called Wei Shu, the company's female strategist and CEO, who was in Singapore negotiating an investment project for an eight-inch wafer fab. She complained, "The boss wants me to buy a plane ticket immediately and go back to China right now. Isn't that a bit too reckless? Wei Shu, please give me some advice. If all else fails, try to persuade him to delay his return a few days and assess the situation before making any decisions..."

Wei Shu asked her a few questions on the phone, focusing on whether Lu Yang, the young boss, had used leverage from institutional financing... Then she smiled and said, "Listen to the boss, it's okay. Your boss is very shrewd. It's not so easy for outsiders to set him up."

"Oh."

Lu Nini nodded, seemingly understanding but not quite.

At the same time, Xiao Jun followed Lu Yang upstairs and asked the question that had been bothering him: "Wait, buddy, since you're so bullish on Microsoft stock, didn't a lot of Wall Street firms contact us before, offering to provide leveraged financing? As long as we could repay on time, the total interest would be far lower than the loan agreement you signed with the company. If it were really as good as you say, and Microsoft's stock price only rose to about 10% of what you're hoping for, that would achieve your goal too. So why..."

"Why should I refuse, right?"

Lu Yang turned around and smiled at him, saying, "Because as long as you're not greedy, and only stick to value investing, without using so-called leverage and aiming to get rich quick, the value of your stock will never be zero. Microsoft's stock can be suppressed in the short term, but no one can suppress its stock price in the long term. My money is in there, and as long as I don't move, the enemy can't do anything about it. In the end, capital will still vote with its feet and help me push it up. Do you believe me?"

Xiao Jun shook his head vigorously, like a rattle drum.

He didn't understand, didn't quite grasp it, but it seemed both incomprehensible and impressive.

Lu Yang ignored him.

I closed the door, intending to take a nap first.

In the following days, things unfolded much as Lu Yang had predicted. While he was still on the plane, the Nasdaq stock market was hit by a bell, and Microsoft's stock plummeted, losing 17% in just one morning.

Panic gripped the market.

Someone did the math with Lu Yang, this young man from the East. In just one morning, Lu Yang's $600 million had been swallowed up by $100 million, leaving him with only $500 million.

Although the situation improved somewhat after the market opened in the afternoon, it still couldn't withstand the panic caused by the market's pessimism. Of course, institutional manipulation was also a factor. Under the pressure of various bad news, Microsoft's stock actually fell by 27% by the close of trading.

What a bloody feast of capital!

The hype surrounding the betting agreement with Lu Yang, this young man from the East, has probably led countless stock market losers to secretly climb onto rooftops, close their eyes, and jump off in despair.

But none of this affected Lu Yang.

After getting off the plane, he learned that Microsoft's stock had fallen for two consecutive days.

He even had the leisure to tease his new secretary, who was almost in tears.

"Boss, why don't we go back? It's not too late to back out now..."

Lu Nini was horrified by the newspaper reports of investment failures who jumped from the rooftops of numerous buildings on Wall Street.

I was terrified that even my boss might do something rash.

Lu Yang raised his hand, patted her head, and laughed, "No need, it's too late. If we turn back, we'll really lose. We can't turn back. Even if this 600 million US dollars drops by 90%, your boss can't turn back. If we don't turn back, it will definitely rise back up. Do you believe that?" (End of this chapter)