Simon has been closely monitoring the progress of various projects in China, but his expectations for the brocade book system built around China's film and television industry are actually very low, far less than the real industries such as steel, real estate, and food.

Or the same reason.

Until 20 years later, China's annual movie box office volume is not as good as that of crayfish farming. Moreover, the situation in China's film and television entertainment industry is too complicated.

This can be seen from the complex shareholding structure of the subsidiaries of the Jinshu system in the planning.

For those who are not allowed to enter the foreign capital for the time being, they can only play the side ball and look for a completely independent spokesperson for the Chinese mainland; those that are not allowed to be controlled by foreign capital, such as the cinema industry, can only be joint ventures; in order to avoid losing control, it is necessary to design a relatively complicated equity structure; even if foreign capital is allowed to take full control, it is necessary to give up interests to a greater or lesser extent according to the specific situation.

All in all, more than a dozen companies of all sizes that have been registered around the 'Jinshu system' basically have different shareholding structures, and they are registered in a variety of places, including the United States, Cayman and other tax havens, Hong Kong, and the mainland.

It's good to say that in the start-up stage, after it grows bigger in the future, it will inevitably cause some disputes because of interests, which is the main reason why Simon did not let Daenerys Entertainment play in person.

If it really causes disputes in the future, then make yourself look like a bully.

After all, the Westeros system is strong enough in other walks of life in China, and it has been 'bullied' by the more high-profile film and television entertainment industry, which just eases the imbalance of some people, and will also make the layout of other aspects of the Westeros system more secure.

Simon Westeros is a good friend of the Chinese, and he can't go too far.

"The 50-square-kilometer area is not as dramatic as Orlando's 120 square kilometers, but according to the photos that came back from there, it was still very beautiful. But, my dear, even if this project is barely built, are you sure it will be successful? I don't mean the consumption potential, but the business environment in China. ”

Malibu, Cape Dume Estate.

In the early morning restaurant, Janet was chatting with Simon about the topic of Jinshu Film and Television City, which she had also been paying attention to recently.

It's Saturday, October 12th.

Simon stretched out his hand to help Melbourne, who was sitting next to him, tidy up the napkin, before saying to Janet on the other side: "Of course I understand that the situation in China is very serious, and I also know what problems this project will encounter in the future, so the project of Qin Wanggong is just a test of the waters." ”

Jennifer, who had to take care of the four little ones opposite, said at this time: "The investment of 23 million US dollars, it doesn't matter if you lose it." It's just that if there is no follow-up planning, it is difficult to form an industrial scale for a single Qin Palace. ”

"It depends," Simon shrugged and said, "Actually, I value the private land we got on the shore of Taihu Lake to build a manor, and yesterday I asked the Levison Group to consider developing another villa area on the shore of Taihu Lake, in short, as long as these real estate projects are finalized, the result will not be too bad." ”

Jennifer looked up at her own man, who was fond of real estate: "The state of China's real estate industry seems to be very bad?"

"This is all temporary, China's commercial housing reform has been continuing, coupled with the rapid economic growth, the real estate industry boom is almost inevitable. ”

Janet, who was leaning next to Simon, raised her fork and shook it: "That's why you plan to get that super-large villa project in Beijing?"

"yes. ”

Janet pouted slightly: "I also read the information, that project, an area of 50 hectares, the land cost is only 17 million US dollars, which is indeed very advantageous." However, this project is still in a quagmire state, even if China's real estate industry recovers in a few years, and it is really sold and cashed out, I don't know when it will be, I think you should know the time cost, even if you earn 10% in 1 year, compound interest is much higher than 10 years to earn. If the cycle is too long, there is no profit at all. ”

Simon said with a smile: "I have asked people to investigate, China may restrict the development of villa projects in the next few years, and when the time comes, this part of the real estate, you know, is in the capital of China, and the value will be very fast." ”

Jennifer wondered: "Why does the Chinese government restrict the development of villa projects?"

"This is nominally to protect arable land, but in fact, I think it is still the most fundamental democratic factor. ”

Janet was also curious: "What do you mean?"

Simon thought for a while and said: "To put it simply, in ancient China, there were strict hierarchical restrictions on the food and clothing of different classes, how big a house the emperor could live in, how much the area of the nobleman's mansion, and what kind of specifications the commoner's house was, all of which had very clear regulations. ”

Janet blinked wide-eyed, "What does this have to do with villa development?"

Simon shook the cutlery in his hand: "I've made it very clear." ”

Jennifer on the other side paused and said tentatively, "You mean, um...... That, some people think, some people, don't deserve to live in a villa?"

Simon denied it solemnly: "No, I said it all, in order to protect the cultivated land." ”

Janet gave her man a blank look: "What a hypocrisy." ”

Simon shrugged his shoulders again: "In short, even if you don't sell this project, just hold it in your hand and wait for the value-added, it's actually very cost-effective." Seriously, we're not short of money, and I really don't plan to sell it anytime soon. ”

According to the information obtained by Simon, the 800-acre rose garden villa area in Changping District plans to develop about 800 villas. If it can be won, including debt repayment and follow-up development, the total investment will not exceed 1 billion yuan. And 800 villas, after holding them for more than ten or twenty years, the average price can easily reach 20 million, and the total value is 16 billion.

Up to 16x increase in value.

Although calculated according to 20 years, 1 billion to 16 billion, the average annual compound rate of return is actually only 15%, but after all, the volume is placed here, and this income is already considerable. Most enterprises or individuals, when the asset scale reaches more than 1 billion level, it is difficult to increase their assets by more than 10 times in the same period of time because of the volume factor.

For example, a certain golden retriever real estate developer inherited assets of up to $1 billion in the 80s, but twenty or thirty years later, his personal assets were only $4 or 5 billion, and there were frequent media outlets of serious adulteration. Taking into account inflation and other factors, it has actually shrunk a lot. After all, in the eighties, he could become the richest man in the United States with billions of dollars, and thirty years later, the assets of the richest man in the United States have reached the level of 100 billion.

Jennifer heard Simon say this and joked, "Then it can't be vacant after it is built, right?"

Janet glanced at the 'naïve' Jennifer: "It's not easy, just arrange a large group of women to live in, tsk, a whole villa area." ”

Simon nodded, "Good idea." ”

Then there was an elbow on Janet's waist, and a roll of Jennifer's eyes.

Simon cooperated, showing a pained expression.

In fact, everyone knows that the property is not for sale, but it can be rented, and the income for ten or twenty years is also considerable.

All in all, whether it is the rose garden in Changping District, or the golf club at the foot of Xiangshan, or the high-end apartment on the banks of the Huangpu River in Shanghai, or even the real estate planned by the Taihu Lake in Suzhou, Simon actually has a plan to keep it in his hands as much as possible after investment.

The main reason is that the cash that the Westeros system has at the moment is simply too large.

In comparison, investing in China's real estate, especially in popular areas, the longer the holding time, the higher the value, and the average yield after ten or twenty years will not be lower than most of the current popular industries.

Speaking of which, including the buyout of the real estate arrangement of the cinema under the Jinshuyuan Line, Simon also considers it in the same way.

The planned Jinshu Cinemas are basically in the golden area of China's core cities, and it seems unwise to many people to directly acquire the properties where these cinemas are located in cash, but Simon knows that this part of the investment will inevitably bring significant value in the future, and also find a place for the huge money owned by the Westeros system.

In fact, too much money is also a very distressing thing, especially when the volume is large enough to a certain extent.

It's like Warren Buffett in the original plane.

Berkshire Hathaway once had hundreds of billions of dollars in cash and had nowhere to go, and it just so happened that a certain old man was the type of person who didn't pay dividends to shareholders, so in the eyes of Warren Buffett, who pursues compound interest and fears inflation, this is quite a first distress.

Now Simon has begun to face this problem.

The money is really not spent.

This is not the disease-free moaning of the super-rich, but the truth.

After the weekend, a new week, October 17, Daenerys Entertainment Group officially released its full-year financial results for the 1995 fiscal year, proving this once again.

From October 1995 to September 1996, Daenerys Entertainment Group's total revenue reached $36.1 billion, and the annual revenue growth rate still maintained a 31% increase, significantly exceeding Wall Street's previous average annual growth forecast of 25% to 28%. After all, it is definitely a very rare thing that the revenue volume exceeded 30 billion yuan that year, and it can still maintain a growth rate of more than 30%.

However, Daenerys Entertainment Group did just that.

Not only that, Daenerys Entertainment Group's full-year profit also reached a new high of $5.27 billion, a year-on-year increase of 40.5%, and the net profit margin also rose to 14.7% from 13.4% last year.

This financial performance, which is beyond the reach of all other major Hollywood studios, is not due to the explosion of Daenerys Entertainment's business, but due to the fact that this super media and entertainment giant spanning film, television, music, games, comics, theme parks and other fields has started to grow in all aspects of business.

Daenerys Entertainment Group's market capitalization has exceeded a staggering high of $450 billion during the release of the Forbes US 400 list in August.

With the release of the annual earnings report on Thursday, October 17, Daenerys Entertainment's stock price rose 3.7% on the day, breaking through the $500 billion mark in one fell swoop, and reaching a market value of $503.4 billion at the end of the day, becoming the second company in the world to exceed $500 billion in market value after Igret.

On the same day, a financial reporter commented on the market value of Daenerys Entertainment on his Facebook page, using only one phrase: irrational.

At a time when the new technology wave is surging, the market seems to have completely lost its mind when the market value of a media and entertainment company that should not be so sought after can reach such a high level. It's just that when analyzing all aspects of Daenerys Entertainment's business, I have to admit that a series of core companies in the Westeros system are Daenerys Entertainment, which is the company with the most solid foundation.

Not to mention, based on the market capitalization of $503.4 billion that closed that afternoon, the price-to-earnings ratio of Daenerys Entertainment stock is actually only 96 times.

The P/E ratio has reached 96 times, which seems to not be the word 'only', but compared to the current number of companies with P/E ratios of hundreds of times in the Nasdaq market, Daenerys Entertainment's bubble composition is actually very low.

Moreover, all aspects of Daenerys Entertainment's business, whether it is movies, television, music, and games, although they have been unbeatable compared with their peers, they have not lost their own high-speed growth, which is the most direct proof that Daenerys Entertainment's annual revenue growth rate can still be maintained at more than 30% this year.

Simon, on the other hand, still holds a whopping 78.3% stake in Daenerys Entertainment Group.

Based on Daenerys Entertainment's profit data in 1995, Simon can theoretically get $4.1 billion in profit dividends, so not to mention the value of Daenerys Entertainment's stock itself, not to mention the continuous profits generated by all other companies in the huge Westeros system, just Daenerys Entertainment, with more than $4 billion in dividends a year, just personal expenses, Simon needs to squander an average of 11 million a day to spend it all.

If Simon does not have the habit of investing unless he throws money at random without considering the benefits, then a rational investment that ensures the possibility of increasing value requires a huge team to rack their brains to find a reasonable place to go.

And that's just Daenerys Entertainment.

If the profitability of all the companies in the Westeros system is not fully stimulated, taking into account factors such as tax avoidance or reinvestment, the annual dividends attributable to the Westeros family alone can reach the scale of one or two billion dollars, and this is only at this stage, and this number will only grow in the future.

In comparison, no matter how luxurious Simon's life is, his personal expenses will only be a small part of it.

Daenerys Studios, Malibu.

The day after the earnings report was released, after the meeting with the participation of a group of high-level executives, and waiting for the others to leave, Nancy Brill, the president of Simon's little children, couldn't help but ridicule: "Are you worried about the money you can't spend lately?"

Simon sat in the center of the large conference table, looking through a sales data file for the January release of "Diablo", and probably understood that this was some small gossip that the woman got from chatting with two Jennies in private, and asked with a smile, "Do you have any good ideas?"

Nancy moved from the opposite side of the conference table to sit directly opposite Simon, shook her head, and said, "I can't help it." It seems to me that as the Matthew effect of the Westeros system becomes more and more apparent, the similar distress you will face in the future will be more severe, and I think this is a very dangerous tendency. ”

"Huh?"

"Obviously," Nancy said, "you have so much." Even if everything is legitimate, the problem is that you have so much that many people are afraid, and so much that the sense of imbalance among the people at the bottom will only get stronger. ”

Simon stopped his movements and asked with a smile, "So, what do you think the result will be?"

Nancy leaned forward slightly and shook her head again: "I don't know, obviously, you don't know, because there has never been such a precedent in human history, not to mention, it is still the most civilized stage in human history for thousands of years, and the probability of your personal property being violently seized is almost none, but there is a certain danger, so I don't understand." ”

Simon still smiled at the corners of his mouth and said, "Obviously, you have understood. ”

Nancy wondered, "What?"

"Violence," Simon said, "there's nothing new under the sun, and the thousands of years of history on this planet, whatever the type of change, are all because of violence." Moreover, in my opinion, the more so-called civilization is, the more fragile it is, the more easily it is destroyed by barbarism. ”

Nancy was slightly abrupt: "It seems that you have definitely thought about these issues more than once. ”

"Of course, I also took a lot of substantive action. ”

Nancy tilted her head for a moment and asked, "Since you are sure that civilization will be destroyed by barbarism, do you think you will be able to escape this fate?"

"Why not?" Simon asked rhetorically, the smile on his face narrowed slightly, and his temperament turned sharp: "I never said that I intended to be on the side of 'civilization'. ”

Nancy was frightened by Simon's sudden change of momentum, reacted, and couldn't help but-for-tat: "Boss, if you turn to barbarism and use violence, isn't that equivalent to directly giving the excuse against you to someone else?"

"I turn to barbarism, but I don't necessarily use violence," Simon regained his restraint, and the corners of his mouth once again showed a relaxed smile: "Little Nancy, in my concept, barbarism and violence are two concepts, and many times, barbarism without violence at all is far more destructive than violence. ”

When Nancy heard the title of "Little Nancy", she became more and more motivated, and asked for the bottom of the matter: "I don't believe it, for example?"

"For example...... Simon deliberately dragged his voice, thinking about what he was doing in France, and felt that it was better not to tell this French girl, so he sold it a little, and waited for Nancy, who was looking forward to it, to widen slightly, before he said slowly: "...... Don't tell you. ”

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