A century-old wealthy family that rose from Shanghai

Chapter 291 US Dollar Assets
Walking out of the Citigroup Building, Chen Guangliang saw the cleaner Jack still standing outside respectfully and was very satisfied with his attitude.

What is important to Chen Guangliang at the moment is not American talent, but a "loyal subordinate" who "sees hope."

Jack could undoubtedly be used by him. After all, he had worked on Wall Street and had experiences such as driving a car and living in a villa, which made this person better able to seize opportunities.

"Jack, do you have a suit?"

When Jack heard this, he immediately said, "Yes, of course!"

This is the testimony of his past glory and also his hope for prosperity again, so he naturally dare not give it up.

Chen Guangliang then pulled out a $100 bill from his pocket and handed it to Jack, saying, "Please help me book two rooms at the Waldorf Astoria Hotel. Then, go to Pier XX in New York Harbor and ask for the Golden Zeta ship from Hong Kong. We'll be on this ship."

Jack straightened up immediately and said, "Yes, Mr. Chen, I will report on time."

Chen Guangliang patted Jack's shoulder and was about to call a taxi, but Jack had already waved to a taxi.

When he was about to open the car door for Chen Guangliang, Chen Guangliang stopped him and said, "I don't want a servant, but someone who can be useful to me."

What's more, he was worried that this move would hurt the self-esteem of other Americans and cause unnecessary trouble.

Jack immediately withdrew his hand and said, "I understand."

After Chen Guangliang and Zhang Shunian got in the car, Jack watched the taxi leave with a hopeful look in his eyes.

Through the rearview mirror, Chen Guangliang could see Jack clenching his fists and making a cheering gesture. It seemed that he really wanted the opportunity.

Zhang Shunian laughed and said: "He is really lucky"

Chen Guangliang replied, "Opportunities are reserved for those who are prepared. If he hadn't recommended himself, how would he have had such an opportunity?"

He just needed a local as a guide, and Jack was undoubtedly the right person.

Both parties have their own demands, so this is a perfect opportunity to reach a cooperation agreement.

Over the next two days, boxes of silver from the "Jin Yuan" cargo ship were successfully unloaded from the ship and then sold to the US Treasury by Chen Guangliang.

900 million taels of silver, or 1000 million ounces, based on the New York market price of $0.68 per ounce, the US Treasury paid Chen Guangliang $680 million.

Chen Guangliang deposited all the money into his personal account at Citibank, and he was going to go shopping in the United States.

Waldorf Astoria Hotel.

Chen Guangliang and his subordinates were enjoying delicious Western food, including his accompanying secretary Zhang Shunian, security chief Lin Feng, and newly joined assistant Jack.

During the meal, Jack demonstrated his value by being a good talker.

He said, "Mr. Chen, what do you need to do next so that I can give you appropriate advice?"

At this point, Chen Guangliang also relaxed a bit and said, "I want to buy some properties. What suggestions do you have?"

Jack immediately said, "Manhattan's Upper East Side and Long Island are wealthy areas in the United States. Both the environment and public security are very good. The houses on Long Island are large villas with very large areas and even private beaches. The apartments on Manhattan's Upper East Side are apartments. The largest area seems to be only 500 to 600 square meters, but the transportation is convenient, especially the apartments on Fifth Avenue, which are directly opposite the Central Park."

Chen Guangliang listened carefully, but did not rush to express his opinion. After Jack finished speaking, he said, "Tell me about the situation of the New York Stock Exchange."

Jack was startled, as if this was his area of ​​expertise. He immediately said, "The New York stock market began to plummet in October 1929, falling 10% that year. It then fell 8.9% in 1930, 25.3% in 1931, and 43.9% in 1932. Then, Roosevelt came to power, and the market rebounded 8.9% in 1933. This year (52.9), the US stock market is in a relatively calm state with a slight decline."

Chen Guangliang took the opportunity to ask, "Which do you think is better, Ford or General Motors?"

Jack was convinced he'd found an expert, and without much hesitation, he said, "If it were me, I'd choose General Motors. My reasoning is that Henry Ford is old, and in recent years, many people have questioned Ford's ability to keep up with the times. GM, on the other hand, has more brands, especially Chevrolet, which is performing very well."

Chen Guangliang nodded and said, "Okay, I understand. Let's eat first. I have plenty of time to investigate this time."

He wasn't sure if this was a good time to buy the bottom of the US stock market, but he did know one thing: the next major stock market crash would likely occur around 1941, when the US entered World War II. Therefore, US stocks should have appreciated between 1935 and 1940.

Chen Guangliang cannot keep all his money in the bank. He has to take out one-third to buy US stocks; another one-third to buy properties and land; and the remaining one-third is deposited in the bank to earn interest.

Investing in U.S. stocks is the most promising career for making money. Moreover, stocks in this era have physical certificates. After buying stocks, you can deposit them in a bank safe and wait for them to appreciate in value.

When John Joe from Citibank heard that Chen Guangliang was interested in purchasing an apartment, he immediately recommended Citibank's real estate trust department to Chen Guangliang.

It turns out that during the Great Depression, many Americans had their apartments and homes repossessed because they owed debts to banks; under Roosevelt's New Deal, banks rented out these properties and took on the responsibility of saving the economy.

Citibank has a lot of properties for Chen Guangliang to choose from.

On the third day of his arrival in New York, Chen Guangliang took his men in a car provided by Citibank to the Upper East Side of Manhattan to inspect high-end apartments.

After arriving at the location, Brian, a Citibank employee, handed Chen Guangliang a list and said, "Mr. Chen, this is the list of high-end apartments we have carefully selected for you. I can help you with any one you want to inspect."

Chen Guangliang took the list and took a quick look at it.

He had learned from Jack beforehand that mid-range apartments in Manhattan cost between $2000 and $5000, or less than $100 per unit, while high-end apartments ranged from $10000 to $25000. (One dollar is roughly equivalent to three taels of silver.)

It wasn't expensive, considering it was during the Great Depression.

Soon, Chen Guangliang said, "I'm very interested in 960 Fifth Avenue. Could you please take me to drive it?"

"it is good"

And so, their first stop was 960 Fifth Avenue.

Brian enthusiastically introduced, "Mr. Chen, No. 960 is a 12-story luxury apartment building designed by the renowned Italian-American architect Rosario Candela in the late 20s. The building faces Central Park and is very convenient for transportation. There are 22 rooms on each floor."

Chen Guangliang nodded. He was attracted by the geographical location, and Citibank owned three floors. In addition, there were 3 rooms on each floor, with a total area of ​​22 square meters, which was quite large.

If you use it as your own mansion, you can let your family live on one floor and rearrange the 22 rooms.

Of course, Chen Guangliang would not be so wasteful, so he was looking at its "investment value".

If a room is rented for $50, the monthly rent can reach $1100, which means a gross profit of $13000 a year. Citibank's price tag is only $15 per floor, and $45 per floor for three.

Chen Guangliang immediately asked, "I have a question. If I buy these three floors and use them for rental income, what taxes do I need to pay every year?"

It may seem that it will take ten years to recoup the investment from rent, but in fact, we have to consider the expenses of taxation, maintenance, etc., so it is definitely not possible to recoup the investment in ten years; however, we also have to consider factors such as the subsequent appreciation of the property and the increase in rent, so in the end - it will definitely not take ten years to recoup the investment from rent.

Brian immediately explained that the tax that landlords need to pay is not high, at least far lower than the tax in the Shanghai Concession.

You can invest.

Chen Guangliang immediately prepared to consider these three floors of property within the scope.

Next.

In one go, Chen Guangliang bought an apartment worth $100 million from Citibank.

The three floors (960 apartments) at 66 Park Avenue alone cost $45; there are also some mid-range apartments such as 10 Gracie Square next to the East River, which also has two floors (six apartments) and cost $25.

Chen Guangliang plans to set up a property management company and subsequently entrust Jack to manage these properties for him and collect rent for him regularly.

So during this period, Jack worked very hard and was always attentive.

Of course, Chen Guangliang didn't completely trust Jack. The apartments purchased from Citibank were provided by a law firm, which could provide a lot of help in the future.

Based on the principle of treating high-quality customers, Citibank can also provide Chen Guangliang with a lot of help. On this day, Chen Guangliang brought Zhang Shunian and Jack to Graham-Newman Company on Wall Street, which is also the company of Mr. Buffett.

In Chen Guangliang's memory, he knew that Buffett's teacher was Benjamin Graham, and Buffett initially entered his teacher's business, so after he was preparing to invest his funds in stocks, he decided to allocate half of the funds to invest in Graham-Newman Company.

Chen Guangliang's original plan was to divide the money into deposits, properties and stocks, each accounting for one-third (US$680 million), but he has now decided to make a more specific distribution: deposits will account for the majority, or US$280 million; properties and stocks will each account for US$200 million.

In terms of stocks, he also bought half of them himself and half of them in investment funds. The reason for doing this was that Chen Guangliang was worried that if he made a lot of money from stock speculation and the GM government knew about it during the Anti-Japanese War, he would become a "fat sheep".

As for why he was so sure that he could make money by trading stocks?

It’s very simple, Chen Guangliang just wants to make sure he can make money.

First, the stocks had to be cashed out in the first half of 1941, as the United States' entry into the war in the second half of the year would inevitably cause the stock market to fall.
Secondly, in terms of individual stocks, if you want to invest in stocks in the military industry, steel, and automobiles, you will see a surge in prices during the 1939 wave (when the European battlefield began).

Therefore, Chen Guangliang thinks there is nothing wrong with making money by speculating in stocks. Instead, he is afraid of getting into trouble by making money.

"Who are you?" Benjamin Graham looked at the three people who walked in with a confused look on his face.

What could two Asians and one American possibly want from me?
Chen Guangliang immediately said, "Mr. Benjamin, I heard from Jack that you are a partner of Graham-Newman & Co., so I came to visit you specifically, hoping to work together. Let me introduce myself. I am Chen, a businessman from China. Because my hometown has been plagued by war for many years, I am interested in investing some assets in the United States."

Actually, he thought of Benjamin Graham, but he attributed it to Jack so that it would be more understandable.

Upon hearing this, Benjamin Graham said directly, "I'm sorry, but we at Graham-Newman are not short of funds, at least not yet."

Chen Guangliang was stunned for a moment, then said, "No way. The Great Depression caused many American fund companies to go bankrupt or suffer losses. You may have escaped this, but you are definitely short of funds. I have $100 million in funds here, all from my legal business income."

Now it was Benjamin Graham's turn to be surprised. Before he could speak, another partner, Jerome Newman, quickly took over the conversation.

"Are you really willing to invest 100 million in our fund?"

In fact, Graham-Newman Company was very short of money and almost went bankrupt in 1932. It was Jerome Newman's father-in-law who invested 75000 yuan, and then in 1933 the company temporarily saved Graham-Newman Company from bankruptcy.

Chen Guangliang said: "Of course, my money is in Citibank, how could it be fake?"

Upon hearing this, Jerome Newman hurriedly entertained everyone, and Benjamin Graham no longer refused.

During this time, Chen Guangliang couldn't help but ask Benjamin Graham: "Mr. Benjamin, did you reject my investment just now because you discriminate against us Chinese people?"

This is a very serious problem. If he has this tendency, he will naturally not stick to someone who is popular.

Benjamin Graham immediately said, "No, I just don't think we're familiar with each other."

In fact, he didn't expect Chen Guangliang to be so rich, but he still looked down on him a little because he was Asian.

Chen Guangliang didn't make a fuss about it. After all, when investing in a potential stock, one can't ask for too much.

He took a gamble to see if the master of the future stock god would cheat him of his money.

After that, the discussion went smoothly because Jack used to work on Wall Street and knew the process of this kind of investment.

Of course, a lawyer is indispensable.

afterwards.

Jerome Newman said excitedly, "Benjamin, are you so famous now? This is one million, twice the amount of assets we manage. Incredible!"

He did not blame his partner at all for almost pushing the 100 million away, but instead praised his partner's popularity.

Benjamin Graham said puzzledly, "I'm also very surprised that an Asian man suddenly came to my door. I originally thought he was a corrupt official or warlord from his country. If the country is so poor, how could there be such a wealthy person? The money must come from something shady."

Jerome Newman replied, "He's just a businessman. Besides, there are many wealthy businessmen in China, so don't worry."

At this time, Jerome Newman was mainly responsible for managing the company, while Benjamin Graham was more focused on analyzing stocks and writing books. The division of labor between the two was relatively clear.

During this trip to the United States, Chen Guangliang kept a very low profile and did not even visit Chinatown because he did not want anyone to know about his trip to the United States and expose that he was transferring his assets.

After a period of running around, Chen Guangliang finally distributed his $680 million fortune, which was slightly different from what he expected:

地产180万美金：曼哈顿多处公寓130万美金、长岛一幢别墅15万美金（占地52亩）、旧金山35万美金的公寓；

$200 million in stocks: $100 million invested in Graham-Newman Investment Management and $100 million purchased on your own.

Deposit USD 300 million: Fixed deposit
After staying in the United States for more than a month, Chen Guangliang was ready to return home.

Before leaving, Chen Guangliang invited Jack and others to have dinner together.

According to the contract signed in advance, Jack became the manager of Chen Guangliang's properties in the United States. Except for the Long Island villa, he was responsible for collecting rent and maintaining the other apartments. The Long Island villa required him to maintain it regularly.

Jack will receive 10% of the property management company's annual profits. Assuming the annual rental income is $18, Jack will earn $1.8. In the United States, a shipyard worker only earns about $800 a year.

As for the stock issue, it naturally had nothing to do with Jack. The stocks Chen Guangliang purchased were all physical and were directly deposited in the safe of Citibank.

"Jack, I hope you can maintain the villa in Long Island for me. I will live there when I come to New York later, but please don't arrange for servants to live there."

Jack has followed Chen Guangliang for so long, and he knows that Chen Guangliang is an Oriental man with a very open mind, and such a boss is not easy to fool.

Take the property management company for example. He is indeed the person in charge, but Chen Guangliang also has a lawyer as his agent, and a lawyer will regularly supervise his work.

Of course, he was also very grateful to Chen Guangliang for giving him the opportunity and cherished this boss. After all, he had been sweeping the streets for two years.

"Understood. I will regularly check the maintenance of that villa."

Then, Jack couldn't help but ask, "Boss, why don't you settle in the United States? This country is much safer and more developed than your home country."

Chen Guangliang laughed and said, "Everything I did in the United States was just adhering to the investment philosophy of not putting all my eggs in one basket. In fact, I own a much larger industry in the Shanghai Stock Exchange."

Jack suddenly realized that his boss was not planning to immigrate with his family, but was just keeping a backup plan.

Chen Guangliang then said to Jack, "Jack, I'll also give you an investment philosophy. If you invest in stocks again, you must adhere to the principles of value investing and compound interest, and focus on the effect of compound interest. Assuming my annual stock return reaches 20%, in 38 years, your wealth will have increased times. I remember there was a 'speculative genius' on Wall Street, Jesse Livermore. He always made money, but he always went bankrupt. Once his family was broken up and his supporters left, he would have been doomed. Instead of that, it's better to invest in value and use the effect of compound interest. Wealth will accumulate day by day, and we will always be rich."

Jack listened very carefully, even Zhang Shunian was listening intently beside him.

After a long while, Jack said, "Boss, I feel like you are the real god of investment. If you were an American, you would definitely become a billionaire."

Chen Guangliang laughed and said, "It was easy for me to become an American. I just immigrated. But making money on Wall Street is not easy!"

Jack, who had been sweeping the streets for two years, nodded without hesitation.

He also went bankrupt because of stocks and lost his job due to the Great Depression.

However, this time, he calculated that his annual income would reach about $15,000, which could be considered a comeback.

“What a generous boss”

When interacting with Jack, Chen Guangliang always revealed his knowledge intentionally or unintentionally, no doubt wanting Jack to work cautiously and knowing that he, as a boss, was not so easy to fool.

Although he believed that Jack would be a good subordinate, he still had to take the necessary precautions.

(End of this chapter)