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In mid-July 2003, after the second quarter work conference of the small partner company, Wang Qi began to pay attention to overseas listed Chinese concept stocks. Pen~Fun~Ge www.biquge.info most of the Chinese concept stocks are listed in the United States. Of course, since most of the Chinese concept stocks are related to the Internet, many people include Chinese Internet companies listed in Hong Kong into the scope of Chinese concept stocks.

Which is the king of money in Chinese concept stocks, many people may think that the stock price growth of Tencent, Baidu and so on after listing will create two or three hundred times the return rate for investors.

But in fact, many people are wrong, and the highest rate of return in Chinese concept stocks is actually NetEase. Of course, it must be calculated from the bottom in 02 to have such a high rate of return. After that, the return is not too high.

After NetEase went public, Ding Lei was once worth 7 billion yuan and was praised by the media as the richest man in China. But...... In the blink of an eye, the NASDAQ stock market crashed, NetEase's share price once fell to $0.6 US stocks, and Ding Lei's worth shrank from 7 billion yuan to 30 million yuan.

According to legend, Ding Lei complained during the most pessimistic period in 02 years, wanting to give up running NetEase, sell the company for a few hundred million yuan, and do something else.

In addition, according to Duan Yongping, who calls himself "China's version of Buffett", when NetEase Ding Lei was having a bad time, he ran to chat with Ding Lei and cheer him up, so that Ding Lei did not give up NetEase. This boastful statement is a bit of a gold paste on his face.

Of course, in addition to the two major brands of Xiaobawang and BBK, Duan Yongping has created two major brands before, and the most worthy of boasting is stock investment. In stock investment, the main thing is the amazing return obtained by NetEase.

Of course, the legend of Ding Lei wants to give up NetEase, which is nonsense. In fact, after Ding Lei's wealth was listed from NetEase, 7 billion. When the stock price plummeted to 30 million yuan after the collapse, it was already laying out online games and trying to turn around its losses through online games!

It can be said that NetEase's layout of the online game industry is earlier than Shengda.

At present, NetEase's self-developed "Journey to the West OL" has begun to become popular, and it is like driving a money printing machine every day. Sweeping away the continuous losses of the previous years, there is no hope of turning around the haze!

Of course, NetEase's stock price has gradually risen from a low of $0.6 per share in early 02 to more than $40 in US stocks.

Wang Qinian knew that in the future, NetEase would split each share into 4 shares, and before the money was split, it had already risen to more than $100. After 1 share was split into 4 shares, it rose to more than $100 per share. This means: NetEase has risen 800 times since it fell below the low price of $0.6 in the following ten years!

If you put in the dividends that NetEase has paid over the years, I am afraid that the highest rate of return for NetEase to investors may reach 1,000 times!

However, Wang Qinian clearly knew that NetEase still had a lot of gains, but after making more than 40 times, he still let the company's traders. Sold NetEase's shares and cashed out.

"Sell it all?" The company's trader was obviously puzzled, "NetEase has a lot of potential." It is said to be the most valuable stock of China's Internet, and now it is worth only $1.3 billion, which is far undervalued! The stock of China's most valuable Internet company is worth only $1.3 billion, which is completely unreasonable......"

Wang Qinian shook his head and asked, "Is it the large revenue scale of NetEase, or the large revenue scale of the partner company?" ”

"Of course it's a small partner company!" The company's trader said proudly.

NetEase started in the second half of 2002. Started to turn around and grow. The performance in 2003 has improved, and it is not an exaggeration to describe it as beautiful. In the first quarter, NetEase's revenue reached 118 million yuan, and in the second quarter, its operating income increased to 136 million yuan.

The revenue of the small partner company in the first half of the year exceeded 1 billion yuan. In terms of revenue scale, it is four times that of NetEase!

"How much do we make, or how much does NetEase earn?" Wang Qinian said.

"Of course it's more of us!" Employees are looking more proud.

In the first half of 2003, although NetEase made a very good profit, the profit earned in the first half of the year was only 144 million yuan. At the same time, the profit of the small partner company in the first half of this year reached 670 million yuan.

This does not include the asset appreciation brought about by the speculation of NetEase shares and the rise in stock prices of small partner companies.

Looking at the assets on NetEase's books, the company's net assets attributable to shareholders after deducting liabilities are only $88.2 million, net assets per share are only $2.71, and the stock price per share is more than $40. Holding NetEase's shares is equivalent to spending more than 40 yuan to buy assets of 2.71 yuan, what is the difference between this and the market dream rate before the collapse of the Nasdaq bubble! Wang Qinian said, "Selling NetEase's shares, 40 yuan of assets, I am very sure to earn four yuan a year." The profit I make in a year is more than NetEase's net worth, so why should I hold such expensive assets? ”

"Value investor, Duan Yongping, who calls himself the Chinese version of Warren Buffett, has been boasting about the value of NetEase!" The company trader is a little confused.

"Duan Yongping, hehe!" Wang Qinian was disdainful of Duan Yongping. After successfully buying the bottom, he continued to brag about his value investment.

Of course, even if Duan Yongping bought NetEase, he boldly bought NetEase shares when it was less than $1 and NetEase's cash per share was much higher than the stock price.

Just like in the 80s and 90s, some investors invested in Vanke's corporate shares, but due to policy restrictions, there was no way to sell them for decades, and they could only receive dividends to obtain income. Then, more than 20 years have passed, the return on investment is 1,000 times, the assets are billions, and the money for dividends every year is 100 times the investment amount of that year.

mixed up to such a state, he didn't bother to sell stocks to cash out, but talked about value investing in speeches all day long, held stocks for a long time, and boasted that he had bought great companies without buying them for decades, making him from a millionaire to a billionaire.

Then, some people in the know said that the person who is now boasting of long-term holdings has been pleading everywhere in the past, hoping that the policy will allow him to sell shares and cash out. But it was not until after the share reform in 05 that these original shares were able to circulate. Suppose that it can be circulated at the beginning of the year. I'm afraid that these early investors have already adjusted their stocks, and they can't wait for a thousand-fold rate of return, and they are regarded by many people as stock gods in their old age.

A real value investor is never a buyer who never sells!

The premise of not selling is. Assets are still very cheap and do not need to be sold, and it is already very cost-effective to get a cash return through dividends every year. If the stock price is very high, there is a certain bubble at the beginning, and it takes many years of profitability to make so much money on the books, then value investors, I am afraid, will sell and choose cheaper assets.

Like what. Warren Buffett invested in PetroChina, and when it was less than 1 Hong Kong dollar per share, he casually bought hundreds of millions of dollars in the stock market. Then, when the stock price rose to more than 10 Hong Kong dollars, Buffett decisively sold PetroChina. The company is still the same company, but the stock price is too expensive, and the option of value investing is sold. Then, buy other, cheaper assets.

Later, Warren Buffett sold PetroChina. was ridiculed by many people, thinking that Buffett was nothing more than that. But Warren Buffett's investment in PetroChina has risen more than tenfold in a few years. And the people who laughed at him were carried away by the bubble, and PetroChina's A-share listing price of 16.7 yuan per share was already very cheap. What's even crazier. On the first day of listing, it was actually fried to 48 yuan. Forty-eight yuan PetroChina has at least tied up hundreds of thousands of retail investors and institutional investors.

Is there a problem with PetroChina? There is no problem, but the issue price of 16.7 yuan is already too expensive, and it is speculated to 48 yuan. It's an outrageous price.

What's more, oil companies are not a sunrise industry in the world. Most of the oil companies in the world have assets of 10 yuan, and their stock prices have fallen by 1 yuan.

So why do people spend 48 yuan to buy PetroChina with three yuan of U.S. stock assets? Instead of spending 1 buck and looking for a bargain of $10 per share in the global market?!

Even if it is cheap, the profitability is not as good as PetroChina, but it is cheap, and if it is not good, in the future, the cheap salted fish will turn over and rise above the net worth, which is ten times the income.

Under Wang Qinian's instructions, the traders of the small partner company began to gradually sell 1.4 million shares of NetEase for cash. Fortunately, at this time, the U.S. stock market is gradually stabilizing from the bottom, especially the NASDAQ, where people have just healed their wounds but forgotten their scars.

Under the flickering of Duan Yongping, he is a first-class Chinese investor, who went to invest in Chinese concept stocks after prostrate. Some directly buy NetEase, so despite the continuous sell-off of the partner company, NetEase's stock price is still above $40.

By the time the sell-off is completed, the small partner company already has a windfall of $61.28 million on its books!

This windfall, Wang Qinian ordered, in addition to 11.28 million US dollars, continue to play in the US stock market. Buy some bargains, like Apple, Flix!

Apple's stock price is now only $6 per share, and later Apple's stock was split into five shares, and the stock price was above $120. This means that Apple buys now at a price and will have a hundredfold return on its assets after holding it for more than ten years.

Flix has since become a big name and peaked, but now it is a very unpopular company that not many investors pay attention to. This company mainly provides online paid subscription services for film and television works, and users can pay $10 per month to get a monthly subscription to the Flix website. Monthly subscription users can watch and download paid movies and TV series and other shows from the flix website.

This model started out as an inconspicuous model, but in the end, FLIX became a model for video sites around the world to learn from. Because, the world's free video sites are unreliable to expect to make money from advertising revenue. In China, the United States and other large countries, video websites that use advertising as their main income have not been profitable.

Because, not only the cost of bandwidth and servers is very expensive, but the value of copyright will also rise sky-high in the future. Many video websites are depressed to find that they have spent 10 million to buy popular film and television copyrights, and at most they can earn back hundreds of thousands to millions of yuan in advertising fees.

At the same time, Flix's paid video model has gradually begun to become profitable, and the scale of paid users has grown to 60 million! What is this concept - paying $10 per user per month, FLIX can earn $600 million a month, which is equivalent to half of the box office market in the United States!

Therefore, later Flix confidently declared that it would subvert the traditional TV and film industry. The current stock price of Flix is $15 per share, and the total market value is only $900 million.

According to Wang Qinian's explanation, the U.S. stock holdings of the partner company were exchanged for 1 million shares of Apple and 350,000 shares of FLIX. In addition, $50 million in cash will be remitted to the bank account of the partner company to support the business development of the partner company.

After all, striking iron also has to be hard, financial investment is only a technique, the real avenue, or the company through the main business, a steady stream of cash flow. (To be continued.) )

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