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In December 2004, in order to cope with Shengda's entry into the online literature market, the small partner company carried out a series of integration and merger actions, which naturally cost a lot of money and will continue to invest in the future. Pen @ fun @ pavilion wWw. ｂｉｑUｇE。 ｉｎｆｏ

Who's going to pay for it?

Wang Qinian had already prepared to shear sheep from Shengda Company to subsidize the capital needs of the expansion and development of the partner company.

This kind of shameless dismissal can only be played by Wang Qinian!

In May, under the auspices of Wang Qinian, the newly established subsidiary of the small partner company, "Little Partner Value Investment Company", which focuses on stock investment, bought 1 million shares of Shengda at a cost of $12 per share. At that time, the scale of investment was about 12 million US dollars.

After seven months, the stock price of Shengda has risen to $40 in the United States, and the market value of Winner's online stock held by the partner company is more than $40 million!

In the Shengda listing feast, Chen Tianjiao was known as the richest man in China because he held 70% of Shengda's shares, with a market value of 1.5 billion US dollars, or 12 billion yuan.

This richest man in China is similar to Ding Lei, who was worth 7 billion yuan after NetEase went public a few years ago, and is known as the richest man in China. Later, after NetEase's stock price plummeted, Ding Lei's richest man was short-lived and became a thing of the past. At its lowest, Ding Lei's worth was only 30 million yuan!

There is no doubt that when a small partner company invests in Shengda Online, it is a value investment, but because Shengda shares have risen too fast, they have to sell and cash out, rather than Buffett's story, which holds a company for decades to make a profit.

It's also normal, though! Even if it is a good company, it must have a good price, and it is appropriate to buy and hold shares. A slight overvaluation can continue to hold. But it is too overestimated, overdrawn for many years of development, and there are countless better targets in the market that can be replaced, so it is obviously a better choice to sell.

Although Shengda is a company in the wind, as long as the company boss is not too tossed. It is not necessary to find some money-burning projects to fool around, the company will definitely have a very promising future. Even though it is now 100 times P/E, it is expected that as the performance increases, the P/E ratio will gradually decrease, and the valuation will gradually become less expensive, and become reasonable or even cheaper.

However, that will be for a later date, and the problem now is that the share price of Shengda is very expensive!

To know. At present, many listed game companies in Japan, the United States, and Europe have price-to-earnings ratios of several times or more than ten times. Many companies are far more internationally known than Shengda, but those good companies are so cheap. Why can Shengda be several times more expensive than game companies in Europe, the United States and Japan?

Some Wall Street commentators have begun to put Shengda's valuation into a 100x P/E ratio of Chinese gaming company stocks that already has a clear bubble. It is almost overvalued like the technology concepts that flew into the sky on the eve of the collapse of the Nasdaq bubble four years ago.

-- To this day, the companies on the NASDAQ. 500 companies have already declared bankruptcy and 40% have announced delisting...... Four years later. People recall how impetuous and irresponsible they were to be frantically boasted about by those enterprises!

Buy some better companies at a high price, such as Microsoft, Yahoo and the like, although they are trapped, but. It is clear that these companies are expected to be very difficult to go bankrupt. But a lot of junk companies, even ...... Not only did the stock price plummet, but 500 NASDAQ companies declared bankruptcy. Thus. What a terrible bubble it was. This is also the largest number of companies declared bankrupt in human history!

In the past, many stock market crashes, even the Great Depression of 1929, most listed companies were holding on, and there were not many listed companies that really went bankrupt. After all, most of the companies that can be listed are relatively good and relatively large compared to the companies that are not listed. In an economic crisis, if 50% of the listed companies go bankrupt, the number of listed companies may be less than 10%!

The stock market crash of the NASDAQ, the reason why so many companies went bankrupt. Because, many companies have no business at all, no business to speak of, only foolish dreams, telling how great the future may be. Then, during the storytelling period, the most exaggerated period, you can speculate the assets of 1 yuan to thousands of dollars. And the assets of this dollar are even constantly losing money, not increasing in value, but constantly shrinking. When people wake up from their dreams, they know that when the whole world is talking about dreams, investors should calm down and not believe in anyone's dreams.

Because, the vast majority of dreams belong to scams.

The vast majority of companies that say how great the future will be are actually foolish.

Because -- many company owners who have really created great miracles, he didn't know how great he would be before, on the contrary, he thought that he was a weak person, and he couldn't do it at all, and as a result, many years later, he found out that I was so great back then?!

A fast-growing industry does not mean a money-making industry! Some industries have been growing rapidly, but this is an illusion caused by a steady stream of investment.

In many high-growth tuyere industries, if you are not a strong person in the industry, you may be miserable, and these good industries will not be able to make money, and they will not be able to make money...... Even, some companies have never created a penny of profit for more than 20 years since their establishment!

When a bunch of Wall Street commentators were not optimistic about Shengda, Wang Qinian knew that he was actually right. Assuming that Shengda can maintain an annual growth rate of 30%, it will take seven or eight years to earn cash equivalent to its current market value. It will take seven or eight years to fill the current overvalued market value bubble and turn it into a solid asset. After that time, it is uncertain how much performance and growth Shengda will be able to maintain every year.

So, selling Shengda now and cashing out is obviously a good choice!

"Boss, all the 1 million shares of Shengda were thrown away, and 41.78 million yuan in cash was cashed out." Zhang Wei, CEO of the investment company, said excitedly.

Wang Qinian looked at the cash balance on the securities account, 41.78 million yuan in cash, this investment in just a few months, earned nearly 30 million US dollars, is indeed a very successful speculation!

A small partner value investment company, nominally an investment. In fact, he often sells dog meat on the head of a sheep, and often engages in some speculation of "stealing chickens and touching dogs".

For example, investing in Shengda is purely speculation, but there is also a bit of investment in it.

Although Shengda is currently very expensive and has a high valuation, it will grow in the future due to the right choice of the industry. Looking at the valuation in a few years, it is estimated that it is not too expensive.

Value investing has cigarette butt stocks to pick up cheap investment, for example, the net worth is 5 yuan, but the stock price is only 1 yuan, even if the company is not so good, but the winner is cheap, pick up more of this "garbage", it is not good. One day, a cigarette butt stock, the value returns, and the stock price skyrockets.

Back then, value investing also included buying growth stocks that weren't cheap now, but won't be that expensive in the future. This kind of value investment with a development vision is more risky, of course. If you catch a great company, get the benefits. It is also far more than the rate of return that can be obtained by picking up unpopular cigarette butt stocks in the market and not being wanted by others.

For example, Tencent can obtain the original shares before going public, which is naturally more profitable. Even if you buy more than 3 shares at the time of listing, the return rate will not be low as the company grows in the future. A few years later, more than 30 Hong Kong dollars were bought in one share. It seems to be more expensive than 3 yuan, but it will still grow to more than 300 or even 600 shares in the future...... Therefore, buying a growth stock can often bring a huge rate of return.

The only problem is that the vast majority of growth stocks are pseudo-growth stocks. There are also growth stocks that only grow at a certain stage. After that, it began to grow and even decline.

Growth stocks that can rise in company value and stock prices at the same time as Tencent, forming a Davis double-click effect, are still relatively scarce, at least one in a thousand. The difficulty of judging growth stocks is often cheaper than picking up, and buying some cigarette butt stocks is 100 times more difficult.

Value investing is already very niche, most people just pay lip service, in fact, they don't understand value investing at all, and even if they do, it is difficult to endure the loneliness of value investment.

The growth stocks in value investing are also niche among value investors. Most of those who talk about growth stocks are pseudo-value investors.

Because, whether a company is great or not, whether it can survive the difficulties again and again, is tested after the fact.

For example, in the 50s, Graham bought an insurance company, the Government Employees Insurance Company, for $1.7 million, but Graham was not optimistic about the company, but said to his disciples, if this investment fails, we will go bankrupt and liquidate the company and get our money back. Obviously, with Graham's ability, he does not dare to say that he has made the right investment, nor does he dare to guess what kind of return this company can bring in the future.

And the government employee insurance company, after being invested by Graham, has been growing rapidly, making Graham a hundredfold profit.

Just when people are talking about the myth of government employee insurance companies, such a powerful company flourished and declined in the 70s, with annual losses of several million yuan in a row, to a huge loss of more than hundreds of millions of dollars a year, and continuous huge losses quickly eroded its company's assets.

Many people think that the government employee insurance company is not good, but I never expected that Buffett invested in this company.

From the 70s to the 90s, Warren Buffett invested $45 million in the purchase of shares in government employee insurance companies, and was about to buy them all. In the '90s, the company had already brought Warren Buffett more than $2 billion in returns.

Since then, the company has become a powerful tool for Buffett to obtain insurance floats to invest in the stock market and other assets. Since then, the insurance business has become one of the main businesses of Warren Buffett's Berkshire Hathaway, bringing Berkshire Hathaway at least tens of billions of dollars in returns.

Through the death and resurrection of a company, a period of rapid growth, a period of continuous huge losses, and then a greater growth.

It is actually difficult to judge whether a company can grow! Even, the performance of the same company in different periods may not be stable.

It is precisely for this reason that it is difficult to make a clear judgment on value investment, especially growth value investment. Somewhat similar to traditional Chinese medicine, different Chinese medicine practitioners make judgments and prescribe different prescriptions, and there is no unified formula to solve this problem.

Therefore, in Wang Qinian's view, the "cigarette butt stock" investment method may be more reliable. However, at this stage, Wang Qinian relies more on investing in growth stocks to make profits. This is also an advantage for the Reborn, who knows for sure that certain companies are great for a period of time, at least for a certain period of time. (To be continued.) )

PS: First update, thank you for the desperate sashimi and generous reward!

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