Chapter 192: The Power Law of Investment
"You just said that the sooner an investor invests, the more profitable he will be. But there is a small loophole in it, that is, the earlier you invest, the greater the risk, and the higher the possibility of losing money. This involves how venture capital institutions can grasp this profit point. β
Roy fortunately pretended to be cowardly: you're welcome, take away all your vanity. He thought for a moment and said, "I've heard that in venture capital, just one out of a hundred is successful. But I don't know why. β
Alyssa smiled and said radiantly: "There is a concept called the 'poer la' of investment. The argument is that a fund's returns, i.e., performance, are determined almost exclusively by the one or two companies in which they invest the most. That is to say, if you invest in 100 companies, there may be 2 companies that are doing very well, and there are seven or eight that are okay, and they have grown to a medium size, or they are acquired by large companies, and the remaining 90 companies may all die, that is, lose money. But most importantly, you're going to invest in one or two of the best companies. β
"Oh~ I understand, for venture capital, what I am afraid of is not the loss of money caused by investing in the wrong company, but missing out on a good company. Roy seems to understand, why many funds will invest in some particularly strange founders, or entrepreneurial projects, those investors have no brains?
I was afraid of missing out. Maybe the one he let go of is likely to be the company that determines the success or failure of his investment.
In 2004, who would have thought that an otaku who usually only wore slippers and didn't finish college would make a $400 billion company Facebook, which changed an entire era?
"Every year, our company holds an internal review meeting, and at that time, the big boss will put out a chart of all the companies we have invested in and how much return these companies have brought to the whole fund," Alyssa said. As a result, among the dozens of companies we invested, the one that brought the largest return accounted for 90% of the total return, and the rest of the companies together accounted for 10%. But that's not all, the boss put another chart, which is the calculation of the return after taking the most successful company out, and it turns out that among the remaining companies, the company with the largest return still accounts for 90% of the entire return. β
Roy thought so, and thanked Alyssa for waking him up. If this is the case, why should I create a team of investors and cast a net all over the world to find projects? I have invested in well-known Internet businesses, at least half of the country, and I have saved money.
Now it seems that Alyssa's value to herself is not too big.
Regardless, Roy no longer questioned Alyssa's professional abilities. She is an elite talent, but as a woman, she may have a disadvantage in the competition in the shopping mall, but overall she is very good.
Alyssa taught Roy like a melon, and the two of them were weak and strong, and they had dinner in such an atmosphere.
As they approached to separate, Roy casually confirmed, "Are you really not coming to my company?"
Alyssa smiled back, her dark brown eyes showing a rare watery warmth, "That depends on your performance, bye." β
"Bye-bye. Roy looked at the other party's slender back, and sighed: There is no fate, I am afraid that there will be no chance to perform in the future.
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Roy's Office.
Alyssa with a financial assistant is sorting out Roy's personal assets while Roy's mother, Fan Xiao, is also listening.
"Boss, here is a list of your assets:
The valuation of Red Coral's 44% stake has risen to 380 million, and the company is expected to go public by the end of the year, when the valuation will increase exponentially.
70% of Erweima's shares are in the process of going public, and it is expected to be valued at more than 600 million after listing.
Worry-free payment of 49% of the shares, the valuation has risen to 500 million.
90% of the shares of Peanut Venture Capital, now valued at about 20 million (the company's value mainly comes from the partnership of the worry-free payment financing platform), and the cash flow is 700 million (the financing platform borrows 330 million + 4.1 billion for 4 short speculations - 200 million for investing in the source water fund - 3.3 billion for buying Apple shares - 200 million for the villa, dock, land and three motorboats on Lake Tahoe)
80% of the shares of Yuanshui Fund are now valued at about 5 million (no big achievements have been made), and the cash flow is about 200 million.
Apple is 95% owned and now valued at 3 billion.
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Last year, the company's dividend was 0.
The total real estate is 4.55 billion, the cash flow is 700 million, and the debt is 330 million. β
Roy was very excited, his financial situation was quite good, and he finally didn't have to be stretched thin, and he could show his ambitions. With such a high start, building a closed and violent business empire is not easy to do.
Alice reminded: "The financing platform of Worry-Free Payment has stabilized, according to the data provided by Thomas, the monthly new financing will exceed 100 million US dollars, and the amount will increase by 10%-30% every month, so the cash flow of Peanut Ventures is now too abundant, and it is recommended that you make arrangements as soon as possible." β
Roy understood the specific details in detail, and let Alice and them go out first, Fan Xiao did not forget to continue to pour chicken soup on Roy when he left: "Roy, move forward boldly, never forget, you can do anything!"
After everyone left, Roy burst into a weird smile, and a person in the office went wild, "It may be too arrogant to say that I don't have shackles on my body now, but I believe that the moment of dominating the world is not far away." β
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California suburbs, affluent areas, villa complexes.
Doyle's striped underwear shirt highlights the proud body, white cropped pants underneath, a beige trench coat draped over the shoulders, and a Hermès black retro black bag in his hand. This dress lacks the usual professional style, and releases the style of a mature woman decently, with her bright face and star-like eyes, which makes the opposite sex who passes by salivate.
She walks on a delicate path, with sycamores planted on both sides but rarely populated, without the high rate of turning heads on the street, which sets off her charming and elegant posture.
She didn't want to deliberately tempt anything, she was dressed like this today, just to go to the invitation of her boss. It's just that this invitation made her faintly uneasy and had to pay attention to it.
Perched on a small hill, the villas are laid out in a sturdy manner that gives it a relaxed feel.
Doyle has been living here for more than 2 years, and the surrounding grass and trees are very familiar, and her boss has bought a villa here, and the two families are not far away, only a 10-minute walk away. In terms of human movement, it can be regarded as a unique advantage.
The security guard at the door had already been notified and enthusiastically ushered her in, she glanced at the car parked at the door, and the feeling of unease was getting bigger and bigger.
This villa seems to be bigger than Doyle's house, with gardens, swimming pools, European-style villas, and a poolside bar, which is luxurious and tasteful, and is a great place to host a summer party.
Walking further, Doyle entered the front hall on the first floor, three familiar figures came into view, and her heart couldn't help but beat heavily, her boss Roy, this time he was really ready to make a big move.