Chapter 49: Are You Sure You Want to Play So Big (Ask for Collection, Follow-up)

Leverage is a very risky financial behavior.

The advantage is that with a small amount of capital, you can leverage several times, or even ten times the size of the capital.

The disadvantage is that if you are a little bit windy, such as falling a few points, the principal will be wiped out.

If the loss of leveraged funds is caused after the liquidation, then more liability must be pursued.

Therefore, Luo Song is not optimistic about Li Xingchen's risky behavior at all.

Li Xingchen's mind has countless information about future movies.

Although there is no specific stock trend, he can still know the future direction of Microsoft's stock price through various movies and TV series, such as "Silicon Valley Legends", etc.

This year's tearing B war has caused Microsoft's stock price to plummet.

Especially at the beginning of this month, it was an all-time low for Microsoft's stock price, and since then it has never fallen, but has been rising all the way.

If there is a pullback in the middle, it will not touch the current low price!

This means that even if he enters with 10 times leverage, he will not touch the forced liquidation line!

For the next few months, he will only pay daily interest on his leveraged funds, which is not much for the cash flow he will earn from the film industry in the future.

And he has no interest in trading stocks.

Stocks are a game of people playing people.

He invested in Microsoft, and what he valued was the future development of the company and the technical feedback for his future film empire!

"I want to make a bet, directly go to ten times the leverage, within ten days, the principal of 17 million US dollars, and 170 million leveraged funds, all buy Microsoft shares."

Li Xingchen sat up straight and stared at Luo Song, "I took a look, because of Ellison's sniping, which caused Microsoft's collapse after going public, today's market value has fallen to $2.715 billion." ”

"We put in $187 million to get a 6.89 percent stake in Microsoft, and according to the rules of Microsoft's board of directors, we get a seat on the board."

"You're crazy, brother!"

Luo Song stared at the bull's eyes, "Ten times leverage, if it falls by 3%, it will reach the warning level, and if it falls by about 5%, it will be liquidated directly......"

Li Xingchen interrupted him: "I know, that's why I let you go, I paid the money, through Aunt Xiang's relationship, from major shareholders, such as Bill Gates and Paul Allen and others, through large transactions, to get Microsoft's shares, which will not have any impact on the secondary market." ”

Luo Song shook his head: "If you can really make money, then either the world is crazy, or I am crazy." ”

He hesitated for a moment and then persuaded: "Do you know what Wall Street's funding rate is in the last ten times leverage? I just came back from there, and the stock market has been doing well recently, and the annual interest rate of the 10x leveraged fund has risen to 6%! ”

The annual interest rate of 6%, at Citi in the eighties, was not an exaggerated number.

Li Xingchen knows that in the future, this annual interest rate will rise to 18%!

But even if it's 6% per annum.

$170 million in leveraged funds, $10.2 million in a year!

Leveraged funds are charged on a daily basis, and you have to pay $28,000 per day for the use of funds.

Approximately HK$200,000.

Li Xingchen calculated the profit of "The True Color of Heroes", and there is no problem at all to pay this fund usage fee.

Next, "A Chinese Ghost Story" will be released soon.

Coupled with "Prison Storm", "God of Gamblers", and "Heavenly Love", as long as there is a steady stream of cash flow, his shareholding plan will not go bankrupt.

"I'm confident that I can support the stock price of these two companies when it goes up."

Li Xingchen said decisively.

There are movie box office support for daily expenses, plus Bill Gai's MS-DOS has swept the world.

Defeat your competitors to the ground.

The stock price has increased sevenfold in three years!

He didn't even have to last three years.

Just wait until next July, Microsoft's stock price has risen by a full 100%, and he will be able to make a profit of $187 million!

Then he can cancel all leveraged funds.

Using his own profits to continue to hold these shares, just the annual dividends can also improve the quality of his film empire.

Not to mention the hidden benefits of occupying a seat on Microsoft's board of directors, as well as the future increase in assets of up to 355 times.

This investment alone will bring him a future fortune of nearly $70 billion!

He doesn't just have to rely on his works to gain the power to talk to Citigroup.

At the same time, it is also necessary to rely on funds to qualify yourself as a crocodile to sit on the negotiating table!

"Are you sure you want to play that big?"

Luo Song asked uneasily.

"Of course," Li Xingchen smiled, "Didn't Father say that?" If you want to work with the prehistoric crocodiles and get their support, first of all, you must have a good work. ”

"But he still hasn't said something, that is, he must also have the qualifications to become a crocodile!"

"In his heart, he still doesn't take us two little guys seriously."

Luo Song pouted: "This old man has always been like this, he has always looked down on me, okay, then I will accompany you to bet on this!" ”

"I'm going to quietly mortgage five villas in Los Angeles to the bank tomorrow, and even if the mortgage rate is broken by the bank, I can raise at least $10 million."

Li Xingchen was stunned: "These five villas, but your mother is under your name, if she finds out......"

As a member of Congress, Song Xiang has a lot of assets that are not convenient to hang in his name, so he has to hang them in the name of his own son.

But I'm afraid she wouldn't have thought that her assets would be mortgaged by her son to buy stocks!

Li Xingchen, who has future information in his mind, knows that Microsoft's stock price will not have any problems, but the key is that Luo Song doesn't know!

It's purely to accompany him on a desperate bet!

From childhood to adulthood, no matter what happens, Luo Fatzi will support him as soon as possible.

If you want people to pay for people, you want money to pay for money.

Even when he was in middle school, he accidentally enlarged a girl's belly, and it was Luo Fatzi who accompanied him to the hospital to accompany the girl to beat it off!

It's not a brother, it's better than a brother.

At this moment, Li Xingchen's eyes were also a little warm: "Fatty, you TMD......"

He didn't know what to say.

Luo Song, who didn't know the future trend at all, dared to take out 10 million US dollars to gamble with him.

This friendship.

More precious than tens of billions of dollars in the future!

"FK, don't look at me like that," Luo Song rolled his eyes in disgust, "even if our two brothers lose out, there is still Pixar Animation, and we can make a comeback." ”

"My mother's place, I said that all the money is yours, 27 million dollars, not more than your inheritance, and my mother will not doubt it."

"Don't do ten times leverage, you will lose all if you fluctuate a few points, just five times, the principal plus leveraged funds, $162 million, can take 5% to 6% of Microsoft's shares."

"DC SAR and Wall Street, my mother still has a little relationship, and Bill Gates can talk, and the market knows that he now has 45% of Microsoft's equity."

"I think he should want to cash out, let's have gold and win a few points of equity, it's a win-win thing for him."

After listening to his words, Li Xingchen nodded: "Okay, just set up an investment company in Citi with five times leverage to carry out this equity transaction." ”

Luo Song sighed: "Lao Tzu is really crazy, playing with you so much, if I lose everything, I may be kicked out of the house by my mother." ”

Li Xingchen said with a smile: "Your father may expel you from the house, but your mother will not, she is a Chinese, just your son, she is absolutely reluctant to beat you to death, and she will be beaten half to death." ”

“FK!”

Luo Song scolded, thought for a while, and asked, "Then what is the name of this investment company?" ”

"Silverstone Investments."

Li Xingchen said casually.

SILVERSTONE, SILVERSTONE, PURELY FOR THE SAKE OF RHYME SOUND.

Now Li Xingchen doesn't know that this name will become a well-known capital brand in Citi's future financial market!