Chapter 558: Take Control of General Motors!!

After listening to this story, Wang Hengyue let out a long breath.

The fighting on the stock exchange was no less tragic than on the battlefield.

And Martin, like those heroes on the battlefield, is undoubtedly a hero in the stock exchange! One and a half million dollars is not a particularly remarkable figure in Wang Hengyue's eyes, but the loopholes in the New York Stock Exchange are completely in his hands.

When the conditions are ripe, it will be dealt a fatal blow!

Or to be more precise, Wang Hengyue saw a huge business opportunity in this, an opportunity to earn a new astronomical fortune through the New York Stock Exchange!

This opportunity is so consistent with the plan formulated by Wang Hengyue, Cai Chenfang and Hu Qiying.

Perhaps, even God is helping Wang Hengyue!

"President, there's still a chance to be able to control General Motors, I don't know if you're interested?"

"What? You repeat, control General Motors? Wang Hengyue was taken aback.

Martin nodded: "Yes, Durant, the owner of General Motors, is facing a huge crisis that cannot be escaped. ”

"Say." Wang Hengyue didn't have time to think about it.

"It's incredibly easy to lose money on Wall Street, even if you're not caught up in a conspiracy to kill people, and Durant, the current owner of General Motors, is a sales genius who has amassed some fortune in the carriage business," Martin was quick to say. He realized that the car would become the star of the future in human transportation, and that year he took control of Buick, which was in financial crisis. A few years later, Durant had successfully transformed it into the largest automaker in the United States, selling 8,820 more vehicles a year than its other two competitors, Ford and Cadillac, combined.

Durant was a natural optimist, and he started his merger and acquisition spree, buying other car companies and parts suppliers and integrating them with Buick to form a new company, General Motors. Although Durant is a genius when it comes to sales. But he's an out-and-out fool when it comes to M&A."

Martin pouted contemptuously: "He often spends too much money when buying companies, or buys companies that he shouldn't have bought at all." When the recession hit in 1910, General Motors had to rely on bankers to get by, and the company's stake was held in escrow, and Durant lost control of the company for five years.

While bankers were busy straightening out the internals of General Motors, Durant formed the Chevrolet Company, whose Model 490 was first introduced to the market in 1915. It was a great success. Although the price point of this car is slightly more expensive than the legendary Ford Model T, it offers more comfort to the driver and passengers. The sale of the 490 was the first successful example of a mass marketing strategy. It offers consumers a wide variety of affordable options, including a variety of different colors, while Ford only knows how to keep prices down. In the following period, GM adopted this mass marketing strategy to overtake Ford and become the leader in the automotive industry.

In the year that GM's equity trusteeship was about to expire, Durant used the money he made on Chevrolet cars to start buying an equity stake in GM. And, securing proxy voting rights from his friends who owned GM stock, Chevrolet bought a controlling stake in GM the following year, and Durant took full control of GM.

In the midst of the war-induced economic boom, General Motors exploded. 1918 year. It produces almost 250,000 cars and trucks, in addition to which it also produces a large number of munitions products. It already had 50,000 employees and a profit of $15 million that year. The second year. Its profit increased threefold to $60 million, the number of employees reached 10,000, and production rose to 400,000 vehicles"

Wang Hengyue didn't quite understand, he didn't know much about this history: "Since General Motors is already in a benign prosperity, where is the opportunity to control it." ”

"The problem is Durant's madness, childishness!" "At the beginning of the year, when I started working on Master stock, GM stock was split 10:1," Martin said. At $42 per share after the stock split, Durant, who owned at least a few million shares of GM stock, became one of the richest people in the United States. …,

But. The following April, auto stocks began to lead the market. As stocks with the latest technology of the times consistently perform in the market. Durant could have waited patiently for the end of this decline. However, out of the psychology of protecting his investors and employees, he stubbornly tried to hold the city alone!

It's naΓ―ve, big president, that the chances of success are so slim that it's like standing at the top of Niagara Falls and trying to stop the waterfall from leaking with his hat.

Durant began buying shares of General Motors on exchanges and amplified his buying power by paying margins. In the New York Stock Exchange, you only need to pay 10% of the stock price as a margin to buy stocks, and the shortfall is paid by the brokerage company. This practice is of course a huge profit when the stock rises, but if the stock price falls, the broker will ask for more and more collateral, and if the customer does not have enough value of collateral, the broker will sell his stock at a low price, and the customer will have to suffer huge losses. In this game, the rules of the game have always been like this - risk and reward match"

"I see." Wang Hengyue nodded: "Now every stock on the New York Stock Exchange is falling, and the same is true of the general stock in Durant's hands. ”

"Yes." Martin quickly spoke; "According to my analysis, GM's stock will fall to $10 to 15 in the next two months, and Durant, who was nominally extremely rich, will come to an end. Then, according to the New York Stock Exchange, he will receive a notice to increase the margin, about 150,000 to 200,000 dollars, and even if Durant can raise this margin, it will only make him a good margin. As long as the stock continues to fall, there will be an avalanche of collapse.

If we can provide Durant with financial help and buy his shares at this time, then we can successfully avoid the collapse of General Motors, and at the same time, we can buy Durant's three million shares at the lowest price, and become the new owner of General Motors in one fell swoop."

"You can do it!" Wang Hengyue's answer did not hesitate.

Although he didn't know what was going on between Durant and General Motors, Wang Hengyue seemed very decisive.

Not only will it be easy to control the huge General Motors and become the owner of the largest automaker in the United States, but in the next few years, Wang Hengyue vaguely remembers that the price of General Motors stock will rise to a few hundred dollars.

God, with the largest automobile company in the United States in his hands, and the Chevrolet Motor Company through General Motors, the fate of American cars is in his hands?

And not only that, but he was able to become the richest person in the world through GM stock in one fell swoop!

This is a fool not to do it!

"How much money Durant needs in the deposit, all of it will be lent to him!" Wang Hengyue thought about it for a while: "We must control the entire company through this opportunity!" ”

"Yes, I'll do it." Martin said quickly.

"Martin, you've worked hard." Wang Hengyue smiled and encouraged: "After these two things, you can take a break." Although you won the war with the New York Stock Exchange, you have become a thorn in their side and a thorn in their flesh, they will definitely find ways to retaliate, go back to China for a good vacation, and I will arrange everything for you. ”

Martin also had a smile on his face. His success is inseparable from the support of the president, and the president's resolute and resolute approach and decisive decision are also the best help to himself.

Similarly, Wang Hengyue is also very satisfied with his own employment. Use Americans against Americans, even though Martin has only a quarter of Americans in his veins.

After sending Martin away, Wang Hengyue saw that Ma Yunxin was packing up, and he walked over with great interest to take a look: "What did you buy for your sisters and children?" ”

"It's all here." Ma Yunxin pointed in front of her.

"Not enough, not enough, where are these things enough?" Wang Hengyue said with rare generosity: "Bring 10,000 US dollars, buy a lot of things, buy more things, and give everyone a gift when you return to China." ”

Ma Yunxin is extremely strange, when did her husband, who has always been "stingy", become so generous?

In her impression, there is only one reason why her husband is generous:

He's making a lot of money!

Lu Rongting: That was a disaster, and it was also a disaster in the Shanghai gold stock. So what about this time? Where did the husband get a lot of money?

Ma Yunxin looked at her husband suspiciously.

Wang Hengyue said with a smile: "I returned with a full load on this trip to the United States, not only did I sign a large number of agreements and contracts, but I also made a lot of money. You can't imagine how rich I am now. ”

Ma Yunxin glanced at him: "How can you look like an upstart?" ”

"Huh? Haha, nouveau riche, nouveau riche, yes, now nouveau riche again! Wang Hengyue said with a smile: "If you let me be a nouveau riche a few more times, it doesn't matter how you want to mock me." ”

Ma Yunxin laughed and laughed.

Well, her husband is really an out-and-out money fan, only money can be earned, no matter what, as long as it doesn't violate his bottom line, he can laugh it off!