Rebirth Tokyo 1986

Chapter 229 Oral Agreement
"I wonder how President Takeshita would like to find a seller?"

“Should we do a direct block trade or sell slowly through a fund?”

The next morning, Masato Takeshita and representatives of four investment banks formally began negotiations on the sale of Matsumoto Manufacturing shares.

Tokuro Yoshino, head of Nomura Securities' investment banking business, was the first to ask about the sales format.

“Both forms are acceptable, depending on the choice of each company.”

"My request is to complete all transactions before the end of the year."

“For this, I can pay an extra 1% commission.”

In the past life, the Japanese stock market collapsed in February, but who knows if there will be a butterfly effect.

It is better to pay a certain price and complete the transaction early.

It’s only true when you put it in your mouth.

"1% transaction commission?"

The four investment banks looked at each other and saw the excitement in each other's eyes.

If the stock sales task is completed before the end of the year, more than 1000 million US dollars in profit can be obtained.

For the four investment banks, this money is basically free money.

"No problem, we at Yamaichi Securities can take it over."

Subsequently, Goldman Sachs, Morgan Stanley and Nomura Securities also agreed to this request.

"I still highly recognize the strength of everyone here, and I hope we can have more opportunities to cooperate in the future."

Because of Masato Takeshita's generosity in the deal, the parties quickly finalized the contract.

Although Masato Takeshita felt the pain of having to pay a 2.5% commission, he did not feel so bad when he thought about being able to successfully escape the bubble crisis.

If time drags on until after the new year, shares worth US$52 billion can easily become US$26 billion or even US$16 billion.

In a panic environment, the stock market is bound to experience stampedes.

Hong Kong stocks are the most typical example.

When the stock market is at a low point, a company's market value often drops to below 7 times its price-to-earnings ratio.

That is to say, a large company with an annual profit of 10 billion US dollars has a market value of only more than 60 billion.

The reason why Li Chaoren is getting richer and richer is because of the panic mentality of Hong Kong stocks.

When the company's market value drops below 10 times the price-to-earnings ratio, start buying its stocks slowly.

When the company's market value increases to more than 20 times the price-to-earnings ratio, start selling its shares slowly.

You can make a lot of money just by doing this.

Of course, Japanese stocks are more mature than Hong Kong stocks, and company market capitalizations generally will not panic and drop to levels below 7 times the price-to-earnings ratio.

However, there is a high probability that the price-to-earnings ratio will drop to around 10 times.

Mitsui & Co. and Mitsubishi Corporation have both experienced similar situations, and Matsumoto Manufacturing is unlikely to be an exception.

It is estimated that the company's market value will shrink directly from the current US$260 billion to US$100 billion.

After the contract is successfully signed, it is natural to hold a banquet to celebrate.

Still the same place, still the most luxurious recipe.

"President Takeshita, can I talk to you alone?"

Halfway through the banquet, when everyone was chatting freely, Paulson walked up to Masato Takeshita.

"Mr. Paulson, right? No problem, just a moment."

The young man readily agreed at first, and then said to his vice president, Kikuno Shinji, "You should also get busy, so you can spend more time with your old friends."

"President, there is no need to do this."

Shinji Kikuno calmly glanced at the representative of Yamaichi Securities who was chatting with Tokuro Yoshino not far away, without any desire to show off.

He has already gotten everything he wanted from Xinghai Investment, so why should he live in the past?

"You can do whatever you want. I'll be leaving now."

"Well, you are busy, President."

After the two of them came to a place where no one was around, Paulson took the initiative to say, "Excuse me, President Takeshita."

"It's a small matter." The young man smiled heartily, and then asked with a little doubt: "I wonder what Mr. Paulson wants to see me about? If I can do it, I will definitely help."

Paulson did not respond directly, but asked in a positive tone: "Chairman Takeshita sold so many stocks, are you planning to invest in U.S. stocks?"

The young man never thought he could hide the secret from Goldman Sachs, so he nodded in agreement.

"Yes, I am optimistic about the future of the U.S. stock market. Especially the development potential of emerging technology fields such as semiconductors."

Although the United States was defeated by Japan in the DRAM field, it is still the world's number one in microprocessors, complete machines and other fields.

Even in Japan's increasingly powerful upstream semiconductor materials sector, the United States still has Applied Materials, which has the largest market share.

As for the software, there is even less to say.

Whether it is Microsoft, which is about to take off, or Oracle, which is following closely behind, or Sun, the design company of Java, they are all very worthy investments.

If Masato Takeshita does not invest in US stocks, he would be unworthy of his identity as a reborn person.

"Then I wonder if Goldman Sachs can work more closely with Xinghai Investment."

“Closer cooperation?”

Masato Takeshita thought for a moment, then asked tentatively, "Is it with the entire Goldman Sachs company, or with Mr. Paulson?"

Paulson freely admitted: “For now it’s just me, but it could become the entire Goldman Sachs at any time.”

“No problem, it’s our honor to work with Goldman Sachs.”

In the future, Xinghai Investment will develop in the US stock market for a long time. If it can obtain the support of Goldman Sachs, the local tyrant, it will save a lot of trouble.

He didn't want to be fined hundreds of millions or even billions of dollars like Deutsche Bank in later generations.

Later, Wall Street couldn't stand it anymore and even fired the head of Deutsche Bank in the United States.

Of course, Deutsche Bank had this experience. It was not only related to the fact that he was an outsider to Wall Street, but also to the type of business Deutsche Bank did.

Deutsche Bank is also an investment bank and is in fierce competition with Goldman Sachs, Morgan Stanley and Lehman Brothers.

It would be fine if it didn't make money.

As a result, you make a lot of money, even more than local investment banks.

This is intolerable, it must be eliminated.

Xinghai Investment is a hedge fund, so there will be no business conflicts, but we must also guard against making too much money.

But with Goldman Sachs, it's completely different.

The company has very strong strength on Wall Street and can help Xinghai Investment solve these problems.

Speaking of which, the American financial sector seems to be dominated by Jews.

But if you dig deeper, you will find the world of British and German people.

The two most powerful financial groups, Morgan and Rockefeller.

Morgan is of British origin and focuses on the financial market. Morgan Stanley and JPMorgan Chase are the kings in this field.

At the same time, the Morgan consortium also controls many industries.

Whether it was railroads, steel, electricity, or communications, the Morgan consortium dominated.

Rockefeller was of German descent and focused on industry.

Several major oil companies and pharmaceutical companies in the United States are all owned by the Rockefeller family.

At the same time, Rockefeller also has many investments in the financial field.

Goldman Sachs, a financial company also founded by Germans, was supported by the Rockefeller family.

However, with the development of the times, the two major conglomerates gradually disappeared.

Like their European ancestors, they handed over the management of the company to the Jews.

This way, even if something happens in the future, you will be safe.

The Jews also know that they are scapegoats, so they work hard to develop the media industry.

Through various forms, the goodness of the Jews and their miserable history during World War II are promoted, thereby forming political correctness.

For example, the Talmud is a traditional book of wisdom that every Jew must read since childhood.

In fact, this is a success textbook compiled by Jews after World War II. It is not ancient wisdom at all. And the Jews who have really read this are a minority among the minority.

In short, after long-term propaganda and repeated brainwashing by the Jews, countless people firmly believe in various stories about the Jews and think that the Jews are the best in the world.

But with the development of the Internet, Israel's various bad behaviors have been widely spread.

Many people woke up and began to re-examine the Jews.

I found that the Jews are not as good as advertised, and are even more vicious.

The random thoughts in his mind did not affect Masato Takeshita.

He followed up by asking, "I wonder how our cooperation model will proceed?"

"I hope that Chairman Takeshita can entrust all matters concerning his own and Xinghai Investment's stock transactions to Goldman Sachs."

"At the same time, we at Goldman Sachs and your company can also cooperate to establish a new private equity hedge fund."

Paulson was very rude and asked for a huge profit, wanting to take advantage of it.

"Impossible. Xinghai Investment and I will not entrust any company with full authority for stock market transactions."

"The best we can do is to first ask Goldman Sachs when we need help."

Entering the U.S. stock market does not require Goldman Sachs.

Xinghai Investment just wants to add an insurance, not find a father for itself.

"no problem."

Paulson never thought about fulfilling his wish.

He is using Lu Xun's tactics.

It is human nature to like compromise.

First make a very excessive request, and then put forward your true thoughts, a feasible request.

This makes it easier to achieve your goal.

"Then what do you think about cooperating to set up a private equity hedge fund?"

“Yes, but the amount cannot exceed $20 billion.”

Masato Takeshita was very happy about the cooperation between the two parties to establish a private equity hedge fund.

Because such cooperation is sending a signal to the outside world.

Xinghai Investment is backed by Goldman Sachs. If you want to target it, you have to consider whether you have the strength to do so.

"Okay. But I hope that next time when Xinghai Investment's fund seeks investment, it will give us a certain share of Goldman Sachs."

"No problem. It is an honor for Xinghai Investment that Goldman Sachs can invest in our company."

Even if Paulson didn't say it, Xinghai Investment would actively absorb a certain amount of Goldman Sachs funds.

In addition, Morgan Stanley, JP Morgan and the pension funds of various powerful departments cannot be let off.

Since we are investing in U.S. stocks, we must help Americans make money.

If this part is missing, you may be found to have violated financial regulations at any time.

"No, it's our honor to be able to invest in Xinghai Capital."

Paulson was very happy because he had achieved all the plans he wanted to achieve.

He had never thought about establishing a large-scale private equity hedge fund right from the start.

Because it is not an easy task to persuade the senior partners of Goldman Sachs.

He wanted to give it a try because he had the support of President John.

But even so, he didn't have high expectations.

Goldman Sachs has no tradition of cooperating with foreign investment institutions to establish hedge funds, so it is very difficult to convince everyone.

After all, the current investment banking intermediary business is stable and will not incur losses.

It’s different with funds. Even if there is a great hope of success, there are still risks.

After the dinner, President John took the initiative to call Paulson.

"How is it, what are the results?"

Paulson said confidently: "We are Goldman Sachs."

"Very good, have you figured out how to convince the company's senior partners?"

Goldman Sachs' system is very special, it implements a partnership system.

As long as you make great contributions to the company, you can become a senior partner and then compete for the position of president.

Of course, you don’t have to be a president.

Goldman Sachs follows the principle of meritocracy and putting profits first.

Whoever makes more money will have a louder voice in the company, and more people will be willing to support him.

"I haven't decided yet, but I'm confident I can convince everyone to agree."

Paulson had already made up his mind.

Even if other senior partners refuse, he will use his own connections to set up a separate cooperative fund.

Even if it is on a smaller scale, such as establishing a private equity fund with only more than 1000 million US dollars in assets, it cannot be absent.

"Well, go for it boldly. The company will cover you."

John is now more and more optimistic about Masato Takeshita's investment ability.

But he is the president of Goldman Sachs and cannot take the initiative to charge.

Paulson succeeded, and his share of the credit will not be lacking.

Even if Paulson fails, it will not affect his prestige.

"understand!"

Paulson is now full of fighting spirit and can't wait to return to the United States.

At the same time, Jim Duncan, the head of Morgan Stanley, also had an idea.

But thinking of the company's tradition, Jim decided to slow down.

Because he knew that his old rival Goldman Sachs would definitely take action.

If the effect is good, it won’t be too late for Morgan Stanley to get involved.

As for Takeshita Masato, after the dinner he told the three CEOs of the company: "Goldman Sachs wants to cooperate with us to establish a private equity hedge fund, and I agreed."

"Kikuno-san, I'll leave it to you to take charge."

"Yes, President."

At this time, Masato Takeshita had already selected the investment targets for the private equity fund he was about to establish.

If you have sufficient funds, then invest in Intel and Microsoft.

If the amount of funds is relatively small, then invest in Cisco, which is about to go public.

Cisco, like the future Nvidia, is a company that sells shovels to gold diggers.

The only difference is that Nvidia sells GPU shovels leading to artificial intelligence, while Cisco sells router shovels leading to the Internet.

The stock price of such a company is destined to soar soon.

If you sell it in 99, it will be easy to make hundreds of times the profit.

In terms of profits, it is more explosive than Microsoft.

Of course, this is to ensure that Goldman Sachs can obtain higher returns.

Even if you have a large amount of money, you still need to buy a certain share of Cisco stock.

It would be best if Goldman Sachs could help buy all of these shares when the two founders of Cisco choose to exit.

Then these shares are evenly distributed to the various funds belonging to Xinghai Investment.

On the one hand, this is more covert.

On the other hand, the benefits are shared equally and no one misses out.

Of course, in addition to seeking help from Goldman Sachs, Xinghai Investment will also purchase stocks in the market on its own.

He wanted to enter the venture capital industry, and Cisco's stock was a good display platform that could increase the credibility of emerging companies.

(End of this chapter)