Reborn in America, I am a legendary short seller on Wall Street.

Chapter 301: $120 million is yours, other expenses to be settled separately.
Larry Livingston and John D. Rockefeller Jr. clasped hands tightly. Their eyes met, each holding a smile.

Both of them were young and handsome, and more importantly, neither of them looked as young as they appeared; their every move exuded a wisdom beyond their years.

Stillman glanced at the two young and composed individuals, giving a barely perceptible nod that revealed his appreciation.

Mr. Potter smiled and gestured to the two, "This isn't the place to talk. Let's go to the private room on the third floor. It'll be easier to conduct business and talk there..."

Larry smiled and turned to Mr. Stillman, extending his hand towards the stairs. "Gentlemen, please!"

The four men politely declined each other's invitations and then walked up the stairs, followed closely by Stillman's secretaries and bodyguards.

Before going upstairs, John D. Rockefeller Jr. took one last, reluctant look at the car outside.

Larry followed his gaze and glanced at the car as well—by this time, the number of onlookers had begun to decrease, but their quality had improved, as many reporters with flashlights were taking pictures of the car, and Henry Ford was surrounded by several people asking him questions about the details of this great trip.

"What a wonderful golden age of scientific discoveries and rapid technological advancements!" Larry thought to himself, his mind churning with excitement.

People living in this era are constantly witnessing new machine inventions and the exploration and discovery of new and incredible spaces.

Before that came the telegraph, telephone, internal combustion engine, electric light, and automobile; later came radio, broadcasting, airplanes, television, rockets, artificial satellites, and humans landing on the moon.

At this time, often unintentionally, a product that can completely change people's lives is invented. At the time, it may just be a novel machine on the street or a sensational news item in the newspaper.

But in the 19th and 20th centuries, a period of rapid scientific and technological advancement, people were constantly witnessing history. Compared to this golden age of rapid scientific and technological development, the subsequent electronic and internet age seems somewhat utilitarian and tedious.

This is also why many science fiction writers are nostalgic for this era; they want it to extend indefinitely, with humanity venturing beyond the solar system and into the universe. That's why they are so disappointed with the nursing documentation era of the 21st century.

"You promised me the stars and the sea, but all you gave me was Facebook."

Larry's profound connection to this era stems from the fact that it reflects both the unique circumstances of the time and the attention given to it by those who followed. This intertwined, quantum-entangled life has subconsciously led him to never place too much importance on his own gains, losses, or development, because Larry knows that the most important thing is always the trend!

The biggest trend now is the rise of cutting-edge technologies like automobiles.

The automotive technology tree has already been lit up ahead of time due to our involvement, so we shouldn't sit idly by and wait for the opportunity to slip away. Instead, we should do everything we can to get together with the oil tycoons as soon as possible and usher in the automotive era!
Getting involved with the Rockefeller family in the automotive and gasoline industry now is like starting to pay attention to Bitcoin in 2008 or buying Nvidia stock in 2014... Such early involvement means that even if things don't go well later, you'll still be a big shot or a master.

But if it had been a few years later, even just three to five years, and someone with great foresight, like John D. Rockefeller Jr., had seen the enormous benefits that automobiles brought to the era, then there would have been no chance for me...

This is why Larry was so excited when he learned that Citibank President Stillman was actually John D. Rockefeller Jr., the future heir of the Rockefeller family, and tried every means to connect with him.

This was also Larry's original idea to give up taking the train and deliberately have Henry Ford drive his car to New York to create a sensation.

Now, everything is going as I expected.

So, I've presented my gift—the heir to the world's largest oil producer—would you like to join me in ushering in the automobile era?

Larry looked up at the back of John D. Rockefeller Jr. walking ahead of him down the stairs. He hoped that Rockefeller would be as wise and shrewd as he had been in history.

However, at least based on the first impression, that is indeed the case.

The four of them went to the top-tier private room on the third floor and took their seats on the sofas. Mr. Potter's waiters served them red wine and cigars.

“Let’s get down to business, Mr. Livingston,” said Citibank President Stillman, looking at Larry with a serious tone.
"I think you already know that we need 3 shares of your General Electric stock. My previous offer still stands at $220. What do you think?"

“Sure, but I’d also like to know whether you’re going to short-sell these stocks like last time, or buy them outright.” Larry was now in business mode.

“Last time it wasn’t me doing business with you. Oh, by the way, was it 8000 shares of General Electric stock?” Stillman turned to look at his assistant standing to the side.

The assistant nodded in acknowledgment of the figure.

At this point, Rockefeller Jr. took over the conversation and readily admitted, "Last time, I entrusted Mr. Samuel to rent 8000 shares of stock, for which I have already paid Mr. Livingston a rental deposit of $120 million."

"Is it really that much?" Stillman frowned, turning to Larry. "How was the price set last time? Can you tell me?"

“That was a securities lending agreement, and the collateral was 150% of the face value.” Larry smiled and recounted the whole story of how he signed the contract with Samuel.

After hearing the explanation, Stillman didn't say anything, but simply nodded to indicate that he understood.

Rockefeller Jr. looked at Larry and said, "You did a brilliant job with your reversal trade last weekend. Did you foresee the stock going up and buy those 30,000 shares at the last minute? Or was there another reason?"

Larry raised an eyebrow, thinking to himself that this was the crux of the matter; it wasn't surprising that the other party knew his trading records. For top American capitalists like him, even without obtaining trading records from Paine Weber Securities, they could easily check their trading details from the stock exchange.

But the other party probably doesn't know about his relationship with Morgan... But even if they do know, it doesn't matter, because everyone is doing business. Even though the Morgan family and Rockefeller have some conflicts now, they might be able to sit down together and drink and become close friends in a couple of days.

"Well, I'm someone who makes a living by the market, or as others say, we're 'paper worms'," Larry said with a smile, making his opening remarks to the two of them.

“You’re being modest. I understand. You are an exceptionally skilled stock trader,” Rockefeller Jr. said calmly.

Larry neither confirmed nor denied it, but continued to tell the two, “Ever since I first came into contact with stock trading through Mr. Porter, I have had a unique understanding of stocks. Stock prices may seem like just some fluctuating numbers, but behind them lies the psychology of the group... that is the consensus and emotions of the masses.”

“Emotions? Or the masses?” Stillman repeated with a smile.

"Yes, emotions! Every trader on Wall Street who quotes their price seems like a rational individual, but in reality, they are heavily influenced by those around them. Most of the time, they don't know the intrinsic value of the stock; they simply like to follow the crowd. If everyone wants to sell desperately, then they will do the same..."

Larry spoke while glancing at the other person.

Stillman's face remained impassive, while Rockefeller Jr. wore a thoughtful expression, clearly taking his ideas very seriously. Larry continued, "This is the herd effect, which manifests in stock prices as overbought and oversold conditions. There are often those extreme, so-called 'black' days in the stock market. On those unfortunate trading days, the market crashes dramatically, and traders rush to sell, causing stock prices to reach an absurdly low point that shouldn't have occurred in the first place—what we secondary market traders generally call oversold."

"So you noticed this oversold condition you mentioned last Saturday, when GE's stock price was fluctuating the most?" Stillman asked.

"It's obvious. The stock has been driven down to $40. Keep in mind, I bought it at my original cost of $35. The market price is now the same as the original price. This price is definitely irrational," Larry said confidently.

“That seems perfectly reasonable, Mr. Livingston,” Rockefeller Jr. took over the conversation, looking at Larry and frowning. “But there’s one thing I don’t understand. Since you’re a shareholder of General Electric and even bought shares in the initial public offering, why did you start shorting General Electric when it went public?”

Larry looked at Rockefeller Jr., his gaze equally attentive.

Wow! John D. Rockefeller Jr. is very wise. Well, even better than I imagined! Especially when compared to J.P. Morgan's only son, Jack Morgan, it further demonstrates the value of choosing John D. Rockefeller Jr. among the "second-generation rich."

"This is very easy to answer, and it's not directed at you or at any particular stock I'm bullish on..." Larry looked at the two of them and patiently explained.
"The reason is still because I am a trader. Since I know that someone will start to suppress the stock price of General Electric when it goes public, and my 8000 shares are just leased out and I can't sell them to make a profit now, I might as well go short and make some money. This is both a trader's instinct and an opportunity that you have clearly pointed out."

Rockefeller Jr. remained silent for a long time before turning his gaze to Stillman. "Mr. President," he said, "I was confident that my plan was sufficient to handle any unexpected situation. Even after losing so much money this time, I didn't know why... But seeing Mr. Livingston today, I realized that there are always people more capable than you, and there's always something beyond your understanding. My plan was full of flaws without my knowledge, and the responsibility for this is mine..."

Stillman nodded slightly, then looked at Larry. "So here's the question: how did you know we were shorting it? I didn't even know the details before..."

That's a really dangerous question; the other party is laying their cards on the table.

It seems their goal today isn't just to get their 3 shares, but also to assess whether we're friend or foe. To put it simply—how did you know we were shorting the stock? Did you have other sources of intelligence? Or had you been watching us all along?

Larry's heart skipped a beat, but he remained calm on the surface.

"Let's use logic, sir. The inventor of General Electric was Mr. Edison, who invented countless things throughout his life, benefiting mankind. I don't think Edison himself had any problems that would be targeted..."

But General Electric has its original sin; it's a completely new technology business model, and every technological product it produces deals a huge blow to the existing industry landscape—"blow" might be too strong a word, or perhaps we should rename it "reconstructing the industry ecosystem."

Upon hearing Larry's words, Stillman's usually calm face showed a serious expression. At this time, people believed that technological products would inevitably infringe on the interests of the old powers, but his idea of ​​"reconstructing the industrial ecosystem" was very apt and vivid.

Larry secretly observed their expressions while continuing, "Actually, I had no idea you were setting this up, but it's clear that the electric lights are affecting gas lighting companies or kerosene companies that use them for lighting. And the people targeting General Electric are definitely closely related to gas lighting or kerosene."

Larry was very confident in dealing with this problem. Ever since he learned that the other party was the Rockefeller family, he quickly figured out the root of the problem after a little thought.

At this time, the largest product of the petroleum industry is kerosene, and the largest function of kerosene is lighting.

So, while gas lamps are widely used in cities, in vast rural areas and even in Europe, Asia, or other parts of the world, their greatest need for petroleum is kerosene for lighting.

The advent of electric lights must have already made the shrewd and powerful old Rockefeller wary.

Historically, ever since Edison founded the electric light company in 1880, Rockefeller Sr. had been studying this potential rival.

If electric lights had become widespread back then, Rockefeller's oil empire would have been half wiped out!
This may also be one of the reasons for the conflict between the Morgan and Rockefeller families.

Fortunately, the promotion of electric lights was very slow in the initial stages, which inadvertently delayed the duel between the two families.

Therefore, it wasn't until 12 years later, when General Electric went public, that the Rockefeller family cautiously made their move. If they hadn't encountered them, the other party's scheme would undoubtedly have succeeded.

John D. Rockefeller Jr. nodded, then turned to look at Larry.

“Mr. Livingston, I understand… Oh, well, I regret to inform you that due to the urgency of the matter, we have already paid off the 8000 shares you pledged as collateral to the brokerage firm… We are unable to buy back these shares and return them to you in the short term. As agreed, the $120 million bank draft pledged to you is now yours.”

Larry raised an eyebrow, thinking to himself, "Young master, I may have high hopes for you, but you can't treat me like a fool."

Those stocks are now more than 150% of the original loan amount.

当时可是按100美元的票面价格算的，8000股的总成本为80万美元，然后按150%的保证金算了个120万美元……

If we calculate based on the price of $220 for 30,000 shares, you'll have to make up the difference for me.

Perhaps noticing the confusion on Larry's face, Rockefeller Jr. quickly added, "Perhaps I didn't explain clearly. What I meant was that the $120 million is already yours. Later, when you sell the remaining 3 shares to us, I can arrange a time to return the 3 shares, along with the previous 8000 shares, to you—this is a forward contract."

Alternatively, you can choose to settle at $220 now, and I will cover the difference for the 8000 shares. In that case, you might lose those 38,000 shares of General Electric stock that you're most optimistic about…”

John D. Rockefeller Jr. made it very clear that he was considering Larry's need for those 38,000 shares, so he preferred to work out a forward swap contract.

Now, spend money to buy 3 shares of stock and pay Larry for the purchase.

They made another agreement: after one or three years, they would sell the 3 shares, along with the previous 8000 shares, back to Larry. In this way, Larry would still own 3.8 shares, and they would also get some of their money back from the transaction.

This is a very common forward contract at present.

Larry thought for a moment, then turned to Mr. Potter. "What do you think?"

Mr. Porter had been paying close attention to their conversation. When Larry asked, he nodded and said, "Actually, this is already a very generous offer. It guarantees that you lock in your current profits without losing future stock. You wouldn't be willing to sell all these stocks now."

Larry nodded, then fell into deep thought again.

Silence fell over the room. Stillman and Rockefeller Jr. exchanged a glance: they had already prepared the money, and in fact, they had a plan in place for whatever choice Larry made.

After a full two minutes, Larry looked up at the two men and said, "Gentlemen, your proposal is already very fair. But please allow me to present my third proposal..."

(End of this chapter)