Chapter 681 Use of Funds

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"How will the withdrawn funds be used?" Liu Zhixing asked.

Guo Shouyun's face showed a hint of thought. Selling a stake in Yahoo would give him $16.2 billion back from the capital markets, and selling a stake in eBay would give him at least $19.6 billion. The acquisition of bonds issued by Merrill Lynch would require about $6 billion with interest. In the early years, his loans and bonds were almost maturing, leaving $4 billion for repayment.

In the end, there is still $15.8 billion left. Selling a 40% stake in Dabor Steel should be able to recoup about $600 million, after all, there is still the second phase of the project that has not been completed. That would be $16.4 billion.

Regardless of whether the final acquisition of Merrill Lynch can be successful, this money will definitely not be used. According to his principle of earmarking funds, unless it is a moment of crisis, he does not want to use the funds under the Guo Family Wealth Trust to develop his own industry in Huaxiaao. Because the former are all charitable funds, and the latter are assets in his own name, once the former's funds come in, it will change the latter's equity structure. In order to avoid changes in the future that would lead to the separation of his family, he did not want to see such changes.

As for the repayment of the loan from Standard Chartered Bank, as well as the development funds of Red Star Automobile Group and Tuniu Tourism, there are more than 800 million US dollars withdrawn from the Mangzhong Fund, which can be held for a while. It's a big deal to issue an ABS with GCA's shares. Although the funds may not be as timely as the loans, the funds injected into Red Star Auto Group and Tuniu Travel are not immediate, and the repayment of the Standard Chartered loan is only once a month.

In short, although the financial needs of Orient Asset Management are huge, the financial system is still very healthy.

Thinking of this, Guo Shouyun said, "It's still the old rules!"

The old rule is to invest in gold and oil for the long term.

Because as early as the beginning, Guo Shouyun put all his assets under the names of five charitable funds: "Stanford Charitable Foundation", "Chinese Charity Relief Foundation", "Sino-American Study Abroad Charity Foundation", "Bruce Charitable Foundation", and "Guo's Disaster Relief Charity Foundation".

Because of the nature of a charitable fund, he has made tens of billions of dollars in the capital market while avoiding paying high dividend and capital gains taxes. It has ensured the rapid expansion of companies such as Kuok's, Apple, Google, Ruby, Pacific Energy Group, and Unocal.

But there are pros and cons, and the rule of charitable funds is that you must devote 5% of your assets to charity every year.

Obviously, it is impossible for Guo Shouyun to directly sell his shares for charity. The workaround is asset-backed securities, also known as ABS!

In this way, he does not need to sell his equity directly, he can return funds from the capital market, and then invest in the gold and oil futures markets, which he understands will rise rapidly in the future.

Because this part of the investment needs to be stable value preservation and appreciation, so he didn't use too high leverage, after calculating the risk tolerance, three times is a good choice, unless the price of gold falls by a third, it will not endanger his support line. In fact, even after the Argentine debt crisis and the sharp rise on 9/11, gold has only returned to its pre-rise level, with a slight decline of two or three dollars at most. So the money has been growing steadily.

From 2001 to the present, the price of gold futures and spot has increased by 65 per cent, and the price of oil futures has increased by 80 per cent. Guo Shouyun has invested in it over the years, with an average annual return of about 60%.

After deducting 5% of the annual donation, and about 6% interest on the bond, he has 49% left. Charitable funds are not taxable. He only needs to pay the salaries and bonuses of less than 50 employees in the Ministry of Finance, the secretariat headed by Liu Zhixing.

With the continuous growth of its various companies, the scale of this money has now exceeded 250 billion US dollars! It has become the top financial force in the international capital market! Except for some sovereign wealth funds, nothing is more huge than this money.

"We have invested a lot of money in gold and oil, shouldn't we consider allocating equity assets, such as the S&P 100 shares?" Liu Zhixing said.

"Now is not the time. ”

Guo Shouyun shook his head. It's about to be a subprime mortgage crisis, and if you allocate equity at this time, you're completely looking for abuse. It is better to wait until the time of the crisis to buy the bottom, when the rally in gold and oil is almost over.

Liu Zhixing did not object after thinking about it for a while. Now gold and oil are really good.

"One more thing!" After Liu Zhixing looked at it, "In the establishment of several sub-funds, the scale of our single charitable fund cannot be too large. ”

Today, there are 37 sub-funds under the names of the five charitable foundations, namely the Stanford Charitable Foundation, the Chinese Charitable Relief Foundation, the Sino-American Study Abroad Charity Foundation, the Bruce Charitable Foundation, and the Kwok Disaster Relief Charity Foundation, but even so, the $250 billion is still scattered and the scale is still amazing. Due to the traditional plot of Chinese people to hide wealth, Guo Shouyun does not want the outside world to easily know how much money he has.

Liu Zhixing nodded.

"Where are the donations from these sub-funds going to?"

$250 billion, or $12.5 billion a year, is such a huge amount of money that it is a lot of thought to spend it in the name of charity and for the benefit of oneself.

Let more Chinese people study and work in the United States, and strive to let them stay. Guo Shouyun said without hesitation.

As a Chinese American, he was inevitably branded with an ethnic group. And the strength of the race will also bring him some benefits in all aspects. So, since the establishment of the charitable foundation, half of his donations have been used to provide charitable donations to Chinese students and migrant workers, to help them get green cards and jobs, and to adopt Chinese orphans. While the Chinese population in the United States continues to increase, it also helps the motherland China to reduce population pressure by the way.

He set a small goal for himself: to make the Chinese population in the United States exceed 20 million in his lifetime!

Although this goal seems a bit big now, he still has fifty or sixty years to work on.

"Looks like we're going to buy more farms!"

Liu Zhixing shrugged his shoulders, and he was also very much in favor of the proposal and action to increase the Chinese population in the United States. However, except for international students, many Chinese who come to the United States are basically uneducated. So arranging for them to go to the farm became the only realistic option.

Over the years, more than $4 billion has been spent on land sales alone. By the way, it provides a richer supply to Kwok's Commercial Group.

In addition, there is another interesting phenomenon in the United States. The more urban the population, the lower the fertility rate. The more agricultural the population, the higher the fertility rate, and generally more than 2 per cent.

Guo Shouyun only hopes that these Chinese who own land can be lined up as a football team. Moreover, when he donated the land to these new people, he promised that his charity fund would cover all the money that these children need to go to school in the future.

With the idea of having more children and grandchildren and more blessings and longevity in the heads of rural people at the end of the 20th century, and in the face of a large area of land, the situation of six or seven aunts and more than a dozen uncles in each family will be repeated in the United States.

Moreover, these new Chinese Americans who came out of the countryside have a series of relatives in the countryside, and as soon as they return to their hometowns, the number of people who immigrate to the United States will definitely skyrocket. Taking advantage of the fact that the immigration policy in the United States is still lax and it is relatively easy to get a green card, Guo Shouyun decided to work harder.

……

After dealing with the affairs of the secretariat, Guo Shouyun came to Ruby's headquarters. Brought together the company's top management. Kick-off of Ruby 2004 Mid-Year Meeting.

Although Guo Shouyun is not involved in the internal management of the company, it does not mean that he does not know anything. He knows most of Ruby's nine subsidiaries in 2004. It's just that some details are delegated to the CEOs of each company, and they don't pay much attention to it.

Moreover, this 2004 ruby mid-year meeting, listening to the development of each company in half a year is only incidental, and the real purpose is the division of the ruby mall.

“… The Ruby Institute has used the company's idle computing resources to provide cloud services to 2,700 institutions and 2.38 million individuals across the United States. In the middle of 2004, the total main business income was 238 million US dollars, and the net profit was 28.7 million US dollars. ”

After Dave Drainey, CEO of the Ruby Research Institute, finished speaking, Guo Shouyun briefly praised him, and then looked at John Roberts, the ruby mall who was specially left by him at the end.

The latter understood and took out the information he had prepared a long time ago.

Ruby Mall, in the first half of 2004, the total transaction volume was 27.847 billion US dollars, the total revenue in the first half of the year was 4.675 billion US dollars, the logistics business income was 2.834 billion US dollars, the financial investment income was 1.273 billion US dollars, and the intermediary service income including e-commerce was 568 million US dollars. Half-year net profit of $53 million. The company has total assets of US$15.78 billion and total liabilities of US$10.476 billion, of which liquid liabilities are US$1.672 billion. ”

"In the three major businesses of e-commerce, logistics and financial investment, the commodities operated by the e-commerce platform have 73 kinds of commodities in 21 categories, including iron ore, oil, natural gas, electricity, coal, copper ore, grain, soybeans and edible oil; platform income, legal intermediary services, logistics intermediary services, financial intermediary services, etc., accounting for 12.4% of the total revenue; financial investment, including investment income based on forward agreements and short-term investment, accounting for 31.73% of the total revenue; ports, terminals, Direct revenue from logistics such as shipping accounted for 54.67% of the total revenue. ”

"In terms of logistics. Up to now, the shipping department of Ruby Logistics Company has registered and managed 1,023 cargo ships of various types, with a total capacity of 1.104 million TEU, of which 31.4% is self-owned capacity, 77 cargo planes are registered and managed by the aviation department, of which 51.3% are owned, and 97,000 trucks of various types are registered and managed by the land transportation department, of which 33.4% are owned. The Terminals segment currently has 103 berths in 42 countries, 37 of which are owned and 612 warehouses and yards. Among them, there are 157 with a total area of 319,800 square meters. ”