Chapter 24 Futures
George stayed at the winery for a week. After all the newly merged wineries had stabilized, George said hello to Ryan and left the winery alone.
The next day, George came to the Plaza Hotel in New York again and opened a new high-end business suite. He was told by the front desk that someone had left a message before. George took the letter signature and saw that it was Paul who had come to New York. George gave it
After tipping the hotel front desk US$1, they asked the hotel to arrange a car to pick Paul up at the address on the letterhead.
George returned to the room, took a shower, changed his clothes, poured two glasses of wine, and waited for Paul's arrival in the study.
Not long after, there was a knock on the door. George opened the door, and sure enough it was Paul who arrived.
After taking Paul into the study and sitting down, George asked: "How are things going in Washington?"
Paul replied: "Boss, we have already negotiated with the publishing house. The publishing house is only responsible for publishing the books. All other adaptation rights are in your hands, and the royalties are 10%."
"Our patent documents have been issued, including two car charger batteries, 10 car seat headrests, and an electronic starter device that was later applied for. Here is the original patent document."
"I also went to Georgia to meet with Mr. Ernst, the Coca-Cola company you asked me to contact. He said that if the price is right, he could consider selling part of his shares."
"Well, okay, you give me the address of Coca-Cola, and then I will go and talk in person. Next, you can help me register the company first, and you can arrange the company's office space. Then go and buy two
Put the cars under the name of the company. You can use one, and find a warehouse to store the other. I want to modify it. Also, help me reserve a booth for the technology exhibition next month." George said after listening to Paul.
After the report, a company assigned him several tasks.
Paul directly took out the banknotes and wrote down all George's requirements to prevent forgetting.
"Are there enough funds?" George took a sip of whiskey and asked again.
"Well, if we buy a car and rent a warehouse, it won't be enough."
"Well, okay, I got it." George knew that this was probably the case, so he asked this question. It's not formal enough now, but after the company is opened and there are finances, he won't have to worry about all the accounts and keeping the company. After that, he said again
He took out an envelope directly from the drawer and opened it. Inside was the cash he had prepared in advance.
After the two chatted for a while, Paul got up and left.
After Paul left, George also turned downstairs and used the hotel car to arrive at the Bank of America headquarters again. This time he walked directly into the VIP room, then showed the $1.1 million check he had just received from the Corleone family and handed the money.
Transfer everything to your own account.
But he did not touch the money in the space because it was still black money.
The Bank of America directly came to a vice president named Henry. George estimated that it was the $16 million in the account that prompted him to come forward in person.
"Hello, Mr. George Orwell, I am the vice president of the New York Branch of the Bank of America. My name is Henry Groman. It is a pleasure to meet you. It is our company's honor to serve you."
The old man walked up to George and stretched out his hand to shake George's hand, and then said: "Although I already know your age, I am still very surprised to see you in person. You have so much savings at the age of 16. Haha, you
We have accumulated wealth that many people will never get in their lifetime."
"You're so flattering. I'm just lucky." George was so humble.
"Haha, okay, young man, let's sit down and talk." Henry said with a smile.
The two of them sat down, and everyone else around them stood far away.
Groman picked up the coffee that had just been delivered, took a sip, put down the cup and asked: "George, do you have any plans for the future?"
George knew that Grohman might want to discuss some business matters with him, and might want to make some investments together.
But is Grohmann really so kind to help him make money? George doesn't believe it. To these capitalists, he is just a piece of fat now, and he must want to take a bite.
Moreover, since I am so young, all this money was earned from casinos, which can be easily found out. As a rookie with no business experience, as long as I agree to cooperate with them, they will have a hundred ways to make it happen.
You lose everything you lose, and capital is always bloody.
Therefore, George did not give Grohmann any room to play, and replied directly: "Yes, Mr. Grohmann. I already have plans for the investment direction in the future. Of course, if I can cooperate with your bank, it will also save me money."
time."
"Oh, I wonder what investments you are planning to make?" Groman glanced at George with a thoughtful look.
"Haha, that's it. I want to open an account and borrow two brokers from you to help me operate it."
"Haha, George, which stock are you interested in?"
"I'm not very optimistic about agriculture, so I don't know if I can make arrangements for it." George didn't explain much, so he changed the topic directly.
"Of course, there is no problem. The philosophy of my bank is to serve every customer well. Don't worry, I will arrange your request later, and I will have everything ready tomorrow." Groman said with a smile.
"Then please excuse me, Mr. Groman." George said gratefully.
"Haha, you're welcome. I hope there will be room for cooperation in the future."
After saying that, Groman stood up, shook hands with George, and left. However, before leaving, he also arranged for a manager named Pete to cooperate with George.
The next day, he first asked Paul to bring a lawyer, and then told Paul that he was not optimistic about agriculture. Then he told Paul that he was going to put up 10 million U.S. dollars as a margin to short wheat futures.
George took Paul to the bank and asked him to contact Pete from Bank of America. George opened an account first, and then deposited the money into the account. The rest was left to Paul to communicate on his behalf, and he could just instruct Paul directly.
George now has a total of 16 million funds. George did not use all the funds to short-sell. Using 10 million as a margin to short wheat means that George can use 100 million US dollars to purchase futures contracts. Futures all come with their own leverage.
And even if the 10 million is lost, it will not affect his next plan.
George was going to visit the exchange, and several people came to Manhattan. The streets here are very narrow, and the tall buildings on both sides of the streets make people feel very depressed.
And the bull on the street looks very energetic. On Wall Street in recent years, the stock market has indeed maintained a high state for a long time.
This building located at 11 Wall Street in New York City was opened in 1903. The exchange has three stock trading halls including the main hall, the blue hall, and the "car room" and a bond trading hall. It is a gathering place for securities brokers and
There are a total of sixteen trading booths in mutual trading places, and each trading booth has sixteen to twenty trading counters.
The sudden rise and fall of the stock market here will have a chain reaction in the stock markets of other capitalist countries, causing fluctuations.
In the exchange, the roaring trading method seemed very ridiculous to George. He couldn't understand how the two parties confirmed the delivery with this roaring trading method.
Fortunately, these transactions are all handled by the stock economy, and there are no retail investors. Ordinary people may not be able to accept this at all. This group of stock brokers are roaring like chicken blood. If there is a sudden rise or fall,
, people with a weak heart will definitely not be able to do this job.
Seeing a group of traders with ferocious expressions, George couldn't complain. It wasn't his own money, so why did he make himself look like he was crazy?
The stock exchange is a very old-fashioned place, not to mention that there is no online trading now. In later generations, when everyone sat in front of the computer to buy stocks, the trading center in New York still looked like this. I really don’t understand why this thing is necessary.
.
After walking around in a circle, George led a few people to leave Wall Street. Before leaving, he took another look at the cow in the distance. George couldn't help but think to himself, in the next year, what else will come from where?
Bull market.
Starting from the next day, the people arranged by George intervened in the wheat transaction. There is no doubt that the choice was short selling.
Wheat has been very popular in recent years. The price of wheat has ranged from US$0.92 per bushel in 1914 to US$1.96 in 1920, where one bushel is equal to 27.216 kilograms. But George knows that in three years, the lowest price of wheat will directly fall to US$1.96 per bushel.
Bushel $0.86.
But George was not prepared to buy futures contracts for that long. What George wanted to buy was only a three-month contract. Because George remembered that agriculture was the hardest hit by the economic crisis. After the crisis broke out, the price of wheat kept falling. One month later, wheat prices
The value will drop to $0.98 per bushel.
It is not a secret that George is shorting wheat. Logically speaking, George alone cannot affect this market. However, opportunities are on his side.
“Boss, we’re halfway through building a position, what should we do next?”
"Then just keep building positions."
"Okay, boss, I'll notify them right away."
One thing he was very sure of was that his capital was far from enough. If he had enough funds, he could have done a few short-wave operations before this. Paul came over to inform that the price of wheat is now around US$1.95.
At this point, victory is actually certain. As long as the economic crisis breaks out in these three months, the price of wheat will inevitably fall. Whoever wants to liquidate his position needs to increase the price of wheat by 10% to per bushel in three months.
2.145 US dollars. If there is no economic crisis, they will definitely have the strength to do it, but George is betting that the economic crisis will definitely break out.
"Paul informed them to lock up their positions."
"Boss, don't we do band business?"
"No, we have too little funds now, and I have other uses for the remaining money."
"Okay, boss, I'll notify you right away."
Generally, those who speculate in futures in the short term will not choose to spend their funds overnight. Those who choose to do this usually do so in small amounts, and they are usually companies that really need physical goods, such as flour processing plants, etc., borrowing futures inventory. But like George, buying
The risk is very high if it is empty. If you cannot return it in time, you will be jailed.
If George is not nervous, it is absolutely impossible. He has already invested 10 million US dollars.
Chapter completed!