Chapter 170: Crazy VAM Agreement

Backstabbing is all too common for Wall Street.

In a parallel time and space, Lehman Brothers falls.

In addition to its death, there is a backstab of Goldman Sachs and Merrill Lynch at a critical moment.

At that time, Goldman Sachs said that it would help, under the guarantee of Goldman Sachs and other Wall Street giants.

Lehman Brothers came up with its best assets, about $30 billion.

Goldman Sachs acted as the evaluator.

After the evaluation, only a 40% price was opened.

With the combined efforts of other Wall Street giants, Lehman Brothers is in dire need of money to continue its life.

You can only sell your most valuable assets.

This is a backstab from Goldman Sachs.

Merrill Lynch sold itself one step ahead of schedule, cutting off the last retreat for Bank of America to acquire Lehman Brothers.

It's fair to say that on Wall Street, backstabs between peers are staged every day.

Abel backstabbed the short-selling Wall Street firm this time.

In this regard, Buffett does not feel that there is anything wrong.

Abel did this, but Buffett felt that this was a normal Wall Street person.

Buffett is the only one who is confused.

It's Abel, how can he know in advance what happened in Scotland on the other side of the ocean.

To say that this matter is led by Abel, there is a glimmer of possibility.

What can't Wall Street do for the sake of profit?

It's just a queen's car

For the sake of profit, the deep well ice gunner opened a package with a big brain, and it was not arranged for the owner of the white house?

But Abel's rise has been too short for a short time, and he has never been out of the country at all.

I have had almost no contact with Europe.

In this case, in such a short period of time.

If you can do it, it will affect the Scottish side.

Then he is too terrifying.

Another possibility is that Abel didn't do it.

Abel only knew this information in advance through some channels.

In this regard, Buffett thinks it is higher.

But even if it is the latter possibility, Buffett also thinks Abel is very scary.

The reason for this is that this affects the intelligence information of the financial markets.

The Wall Street gang didn't get the news, they didn't get the wind.

Abel learned in advance and laid out his hands three days in advance.

Doesn't this mean that Abel is capable of obtaining information?

More powerful than Wall Street, at least more powerful than these investment banks on Wall Street?

The more Buffett thought about it, the more unbelievable he felt.

This shook his idea that he was just going to come and have a look tonight.

Warren Buffett is kind of looking to invest now.

But what makes Buffett want to invest is not Smith Capital, or Smith Capital's private placement.

It was Abel who gave Buffett the idea of investment.

Warren Buffett, who believes in prudent investment and advocates value investing.

I don't like high-risk private equity or investment.

But he now feels that Abel is very valuable.

Then investing in Abel can also be regarded as in line with his investment philosophy and style.

The only thing that is not so good is that in Buffett's view, Abel's investment style is too risky.

Buffett is still thinking about it.

From Abel's point of view, in fact, he only revealed information based on his "talent".

Talent allowed him to observe this in advance.

He knew something was going to happen on the British side.

It will affect the British pound and the euro, and the pound and the euro will be affected later.

This in turn affects the US dollar, which turns from falling to rising.

But he didn't know what was going to happen in Britain.

He did that on purpose, just to let these guys know in advance.

Knowing his own abilities in finance, knowing that he has the power to go short in the midst of a large number of oligarchs on Wall Street.

Also able to cut their ability to leek.

The main reason for this is to make these people less suspicious of his offer.

But he didn't expect that something did happen in the UK.

But something went wrong in this regard.

The bombing of the Queen's car is definitely a big deal in the UK.

Later, David Mellon came to tell him the news, and the queen was unharmed.

He found out about it.

"Amount"

He felt like he had overdone it this time.

If you let these investment banking giants doubt something, it will hurt.

By the way, leak it out and let the British side know

But when he thought about it, he really wasn't too scared.

The main thing is that 2000 is now.

Great Britain is no longer the Great Britain of the past.

Fifty years ago, Abel would have been afraid that "James Bond" would be looking for trouble.

Thirty years later, "James Bond" also has a little bit of deterrence.

In the present year 2000.

The-stirring stick that was successfully privatized by Thatcher's deindustrialization.

Now only the power of rhetoric and finance remains.

In a few years, even the carrier of Muhai's power will have to rely on the United States.

A country that fires Muhai bombs with all its might in the hands of the Americans, what else can they do to the United States except to pay lip service to it?

Great Britain is about to begin to swing and pull across in all directions.

Such a-stirring stick.

Does it really dare to send "James Bond" against a Wall Street capitalist?

There is still no evidence at all, only a little suspicion.

What's more, this capitalist himself was born in Texas.

He also has a close relationship with the incoming Grand Commander's family.

By my side, I have an elite infantry platoon around me at any time to defend myself.

In the absence of conclusive evidence, how dare the-stirring stick do it?

If he dared to do it, then Abel felt that he might have to be happy.

Because after that, he has an excuse to fight exploitation and stirrers financially.

At that time, even the white house was embarrassed to stop him.

You must know that London is still the world's financial center, and the British at this time are more oily than neon!

Not to mention the fact that Abel is on the Irish side.

The only link is that he has a capital company registered in Ireland.

For the rest, he really doesn't have anything to do with it.

Great Britain must really have the ability or determination to do so.

Nasoros sniped the pound in 1991, causing the pound to plummet.

So that year, the United Kingdom lost close to 5% of GDP.

Britain, which has such determination, has long been attacking Soros.

And then what?

Soros is alive and well now, and NGO funds are being set up one after another in Europe and the United Kingdom.

In another ten years, Lao Suo will soon become the emperor of Europe.

&1 year has collapsed, can it still rise in 2000?

Rather than worrying about suspicion and retaliation from the British side.

It's better to worry about the woolly bear, it's hard to say whether you can do it, at least there is absolutely no shortage of people in terms of determination.

After this incident, the dollar began to rise.

The giants who shorted the dollar tonight are in no mood to stay in the cocktail party at this time.

As soon as they leave, the drinking party will be less than these investment banking giants.

Abel and Warren Buffett got together.

"Warren."

Chatting and chatting, Abel

Suddenly, he pointed in a certain direction and whispered to Buffett, "Let's go over there and talk."

Buffett was stunned and looked at the direction Abel pointed to.

The god nodded, and the two walked to another circle at the reception.

In that circle, the three people at the head were John Chris Morgun, David Rockfeller, Davis Brown, and other old men.

As soon as the investment banking giants left, this circle suddenly became the highest-ranking guest circle in the cocktail party.

Well, there's the Morgun and Rockfeller.

This circle has always been the most eye-catching circle in the audience except for Abel.

"Hi~"

Abel walked over with Warren Buffett.

Among the three old men, the youngest of them, John Chris Morgun, greeted them with a smile.

"Warren and Abel. The god of stocks and Wall Street's investing. The two of you stand together, and I feel like I see the present and the future of Wall Street."

"Ha~" David Rockfeller also smiled and said, "John said it well. The present and future of Wall Street, this metaphor is too apt!"

Abel smiled with Buffett, picked up the red wine on the plate of the passing waiter, and came over to touch the guests in the circle lightly.

After a glass of wine, David Rockfeller suddenly gave Abel a thumbs up and smiled, "Well done, young man."

Abel, who was talking quietly to Davis Brown, didn't know what David Rockfeller meant.

He looked at the other man, who whispered a word.

"Dollars."

Abel immediately understood what he was boasting about.

Abel smiled and said, "I did a very hard job. In order to hide from them, I doubled the commission I gave to both Citi and Phu Fargo."

After the events on the Scottish side.

Those Wall Street giants who are shorting, just check it a little.

It will soon be possible to find out who is leading the way in this rise in the dollar.

One is because Abel didn't want to hide it at all, he was showing off his muscles by doing so.

Second, these giants are united and have the intention to search.

It's easy to find.

When they left the party, they knew that Able had stabbed them in the back.

Of course, anger is anger, but the one who speaks of anger must be at odds with Abel.

Not really, because the situation is not so bad that it cannot be saved.

Not to mention that backstabbing is all too common on Wall Street.

Laughing in front of Yan Yan and calling her brother and brother, stabbing her in the back is a common thing.

At this time, Davis Brown, who was chatting quietly with Abel just now, said with a smile:

"It's just normal investment behavior."

"David, this kind of thing happens every day on Wall Street in the United States, in the financial world all over the world."

"That's right." John Chris Morgun smiled, "Indeed."

Both Morgun and Rockfeller set the tone for the matter.

After that, the giants who shorted the dollar this time and suffered losses, even if they wanted to find fault, there was no good reason.

It is that Abel needs to pay special attention when making investments in the future.

But then again, even if there wasn't this backstabbing incident.

Each time Abel invests, he also needs special attention.

When investing in Abel.

As long as they are shown to be profitable, even if they do invest in Smith Capital later.

Or bought a private equity fund from Smiths Capital.

Even in Abel's investment, part of it is their own money.

As long as it is profitable, these people will never hesitate to start.

Fortunately, it is limited to the field of finance and capital.

Frankly.

Abel felt.

What Peter Lynch, Warren Buffett, Soros, Julian Robertson, Mark Mobius, John

Borgle and so on and so forth.

He wasn't afraid.

What Abel is afraid of is just an off-the-board move, just a physical trick.

In the financial markets, as long as Abel wants to.

Then he is God.

By this time, it was close to nine o'clock in the evening.

The reception had been going on for almost two hours, and it was almost time to end.

In this reception.

Smith Capital has announced its own profits for the year.

Privately, Abel announced his astonishing valuation of Smith Capital to the outside world.

also stabbed someone else in the back by the way.

Tonight, the purpose of this investment reception has been successfully accomplished.

The end is the end.

According to the custom, the host Abel could not leave until the reception was completely over and the guests were gone.

But at nine o'clock, I talked to David Mellon and Merio.

He then left early, before John Chris Morgun and David David Rockfeller left.

He was joined by Davis Brown and John Brown. J. Brown, two Texans.

Oh, and there's also a Nebraska Omaha-based man.

Together, they arrived in an executive corridor at the Hilton Hotel.

After taking a seat at the table, Davis Brown spoke first.

"Abel, don't mind if I call you that, do you? I used to play with Alex a lot."

"Of course. My grandfather also told me about it." Abel smiled.

To Abel's left at the moment is Nebraskan Warren Buffett.

To Abel's right is John Abel. J. Brown.

The reason why he left the field early with these three people.

It is because Davis Brown and Warren Buffett have expressed interest in investing in Smith Capital.

Talk to him.

So he brought them here.

"Abel." Davis Brown's calm words:

"The valuation of $500 billion is still too exaggerated."

"But we think $200 billion is a relatively normal and acceptable figure."

In the face of bargaining from fellow villagers, he is still a friend of his grandfather.

Abel doesn't have the kind of love to buy when facing the four major investment banking giants on Wall Street.

Abel said seriously:

"I'm still sticking to the $500 billion valuation. But Davis, we can sign a VAM agreement."

"Oh?" Davis Brown's thick, heavy white eyebrows furrowed.

"What kind of VAM agreement?"

"A four-year VAM agreement." Abel said:

"This VAM agreement is also true to Warren."

After he said this, whether it was Buffett or the two Browns, they all stared at him seriously.

"The first year of the VAM."

"I have to make sure that Smith Capital's total profit for the year is more than $10 billion. Goldman Sachs was $4.2 billion last year. 10 billion is more than twice as high as Goldman Sachs."

"Goldman Sachs has a market capitalization of about $65 billion, and Smith Capital has a market capitalization of $100 billion, isn't that too much?"

"The content of the second year's bet is that Smith Capital's profit that year must exceed $20 billion. The index grew, and the market capitalization of Smith Capital was $200 billion at the time."

"In the third year, it's $30 billion, with a valuation of $400 billion."

"In the final year, I have to make sure that Smith Capital makes more than $60 billion in profits."

"That's over $600 billion, I don't think that's too much, right?"

Abel doesn't feel that the market value in his VAM agreement is too much.

If nothing else, let's talk about General Motors, which is the largest in market value this year, and Walmart Group, the retail overlord.

At its peak this year, GM's market capitalization was close to $500 billion.

Now only more than $430 billion remains.

Its net profit attributable to the parent company in the first three quarters was US$9.95 billion, and it is expected to be around US$13 billion for the whole year.

When Walmart's market capitalization peaked this year, it was about $266.6 billion.

The net profit attributable to the parent company in the first three quarters was higher than that of GM, at $10.1 billion.

It is also about $13 billion for the whole year.

The net profit is more than 13 billion.

One has a market value of 360 billion and the other has a market value of 260 billion.

If only Smith Capital could make a net profit of $60 billion.

According to the price-to-earnings ratio of about 33 times that of GM Group.

The market capitalization of Smith Capital can be 600X33 times, $1,980 billion.

If you think this P/E ratio is too high.

Using Walmart's price-to-earnings ratio, it is also 20.5 times.

That translates to a market capitalization of $1.2 trillion in U.S. dollars.

&000 million US dollars, 600 billion market capitalization, and a price-to-earnings ratio of only 10 times.