Chapter 563: Stock God Buffett said

The US government is not in favor of the merger of "Second World" and "AMD", and very much hopes that the merger will eventually be aborted. After all, after entering the 21st century, it is the world of IT and the world of the Internet. "Second World"

After the acquisition of AMD, the impact will be multifaceted and multi-level. If the merger is successful, it means that the "second world" has the ability to design, manufacture and produce CPUs, especially the "second world" is a Chinese company. And

This is undoubtedly something that the US government is very taboo on.

In order to prevent this merger, the U.S. government also sent relevant officials to lobby AMD executives to cancel the merger. Regarding the U.S. government’s lobbying, AMD President Ruiz did not say much and directly asked the U.S. government to approve their 5 billion

US dollar loan. However, the current leader in the CPU industry is "Intel", and the U.S. government supports "Intel". Naturally, it is unwilling to agree to the budget of "AMD" and is only willing to help it apply. This naturally makes Ruertz dissatisfied.

For Ruertz, the company's development is the key. Being able to catch up with "Intel", fight against "Intel", and finally be able to stand on the same starting line and challenge it is what Ruertz needs.

"ati" is the dawn that Rurtz sees, and the "cloud computing" owned by the "Second World" is also what Rurtz longs for.

In the end, under the covert interference of the US government, AMD decided to merge with the "Second World", and "ati" founded by Chinese-American He Guoyuan was also merged into the "Second World" and became a super company. The three parties each took what they needed and supported each other.

The Nasdaq Securities Regulatory Commission of the United States, after carefully reviewing the transactions between the three parties, finally agreed that it could be re-listed on Nasdaq despite the covert obstruction of some U.S. government departments. (The advantages of the separation of powers of the U.S. government. This is

The time is undoubtedly reflected.)

On August 15, 2002, at 9:30 U.S. summer time, the "Second World" reopened for trading after the integration.

At this moment, financial analysts around the world are paying close attention to the "Second World", wanting to see what the company's prospects are and whether it can create another miracle.

Investors are also paying close attention to this super company that has risen in the past two years and created the "Wall Street myth" in the East, hoping to invest in it and make a lot of money. Especially in today's post-dotcom bubble burst era, like the "Second World"

There is only one profitable Internet company in the world: Google. But it is still early for Google to go public.

Analysts from various newspapers and magazines are also paying close attention. What they are concerned about is not how much the stock price of "Second World" can eventually rise, but how much the chairman of "Second World" Lin Feng can be worth. The outside world has been

It is rumored that Lam Feng is very likely to challenge the position of Li Ka-shing, the richest man in China, but whether he can really challenge it depends on the results after the opening of the market.

Various competitors in the "Second World" are also paying attention, especially many domestic online game companies. They also want to see what this company that suppresses them and others will achieve. Of course, some smart people

Financial giants are also thinking about whether they can annex the "second world".

With much anticipation, the Nasdaq opened, and the "Second World" finally opened and appeared on the Nasdaq stock market.

After being reviewed by the Nasdaq Securities Regulatory Commission of the United States, "Second World" has a total share capital of 700 million shares, a net income of US$0.42 per share, 70 million shares in circulation, and an approved opening price of US$18.

All investors were waiting. As the bell rang, the whole Wall Street suddenly became excited. A new day began, new miracles, and new wealth. But today is different from the past. Wall Street, which had just been boiling, suddenly became excited because of a purchase order.

Solidify.

The huge purchase order of 10 million shares of "Second World" at 30 yuan per share was placed as soon as the "Second World" opened.

There was a loud bang! - The whole Wall Street seemed to feel a magnitude 9 earthquake. Never before had any company just opened for trading and someone offered to buy it at nearly double the price. This was incredible and crazy.

Many traders and analysts on Wall Street rubbed their eyes in disbelief. Then whoever was the first to follow suit also raised the price to 30 US dollars, which immediately caused a chain reaction. The stock price of "Second World" was very high.

It was quickly raised to 35 US dollars, and this was only 2 minutes after the opening. Then, under the pursuit of everyone, the stock price of "Second World" continued to rise, which was jaw-dropping.

By the end of the first day of trading, the share price of "Second World" was fixed at 57 US dollars, which doubled. In the following three days, the price continued to rise, and finally stabilized at around 83 US dollars.

This price definitely exceeded the expectations of all stock commentators, financial analysts, and other "experts". Although many "experts" had expected that "Second World" would be popular, they did not expect that it would become "hot".

To the extent that almost as soon as the "Second World" opened, buy orders poured in, and a week later, there were only buy orders and no sell orders. This phenomenon is beyond everyone's imagination. It is too crazy and incredible.

Are all investors so optimistic about the future prospects of the "Second World"? Is the "Second World" worth holding on to so tightly? - Even super companies such as Microsoft, Pepsi-Cola, and IBM, when they opened,

Many investors will give up their stocks after making a fortune, but no one is willing to give up on the "second world". Why is this?

Especially the $30 purchase order for 10 million shares at the opening was even more unbelievable, and everyone was spinning. Who was the owner of this purchase order? And why on earth was he so bold to buy "Second World" stocks?

Faced with this "bizarre phenomenon" that has never been heard of before, all financial analysts on Wall Street began to continuously analyze why this is and why no investor is lucky enough to buy "Second World" stocks, even if the stock price has increased several times.

After that, I was still reluctant to sell.

In terms of technical content, both "amd" and "ati" are relatively weak in the IT computer industry. They are suppressed by "intel" and "nvidia" and can hardly stand up. As for the "second world", although in

The online game industry is all-powerful, but after all, it is only an online game. Although according to the financial statements for the first and second quarters, the quarterly net profit has exceeded 100 million U.S. dollars, and the annual net profit is around 450 million U.S. dollars, but compared with "amd" and "ati"

"After the merger, this profit cannot support the losses of "amd" and "ati".

After all, in the computer hardware industry, once there is a misunderstanding or goes astray in technology research and development, the loss will be billions of dollars. Faced with the strong "Intel" and "Nvidia", how can investors be sure that the "Second World" can not make mistakes?

?

Technically speaking, there is nothing worthy of recognition in the "Second World". Except that "cloud computing" is the industry leader. However, "cloud computing" can only play a role in the joint calculation of multiple large-scale computers or databases. For

For a personal computer, it's not very useful.

From a financial analysis, although "Second World" currently has 3.2 billion US dollars in cash, which seems like a lot, for a super company like "Intel" that frequently reserves tens of billions of cash, a mere 3.2 billion US dollars is really nothing. Moreover,

The headquarters building currently under construction by "Second World" is known as the world's tallest skyscraper, with a budget of US$1.5 billion. Although the Cheung Kong Industrial Group will advance the payment on its behalf and "Second World" will repay the loan in installments, this is another huge sum.

Expenditures. There are also "War of the Worlds" that has always kept the industry guessing, with a billion-dollar investment, and the construction of new factories for AMD and ATI, etc. With so many money-attracting holes, US$3.2 billion is really nothing.

Since it has no technological advantage and is absolutely strapped for financial resources, what does the "Second World" rely on to attract investors to hold on to the stocks of the "Second World"?

After analysis, after analysis, in the end, Wall Street financial analysts could only focus on the first huge buy order at the opening of the "Second World" that day, 10 million shares, a $30 buy order. It was precisely because of this buy order that

This has caused the current crazy stock prices in the "Second World".

So who is the owner of this huge bill?

After many reporters dug deep, they finally found out the owner of this huge bill. When they got the name, everyone was shocked. The owner of this bill was none other than the person who is currently ranked second in the world's wealth list.

Stock God - Warren Buffett.

Warren Buffett, an American investor, entrepreneur, and philanthropist, is known as the God of Stocks, respectfully known as the "Prophet of Omaha", or the "Sage of Omaha". His current assets are US$42.9 billion.

When it was revealed that Warren Buffett was the craziest buyer on the first day, the world was in an uproar and was so shocked that it was almost speechless.

Buffett has an investment rule - do not do business if you are not familiar with it. This means that he will never touch stocks and companies that he is not familiar with. In his stock mythology of more than 50 years, Buffett has never touched any high-tech stocks.

, never. Even in the early 2000s, when the Internet stock boom drove the global economy and created countless billionaires, Buffett did not touch high-tech stocks. Instead, he advised other investors to invest rationally.

In the end, the bursting of the dot-com bubble proved that Buffett was right. But such a person actually bought a high-tech stock that had just undergone a major merger after the dot-com stock bubble burst. This puzzled everyone.

I also can’t understand. Especially those Wall Street financiers, they can’t understand why Buffett wanted to buy “Second World”, and why he put a high price of 30 US dollars in the first order, and bought 10 million in one go.

Stock. This is so unreasonable.

Although it was once again proven that Buffett's vision was extremely accurate. He bought 10 million shares for US$30 and invested US$300 million. Now each share is US$83. In just one week, Buffett earned US$530 million, with a terrifyingly high profit margin.

But no matter how much you earn, this is inconsistent with Buffett's investment theory, and everyone can't understand it.

Many people even wonder if this is some kind of agreement between Buffett and Lin Feng, using Buffett's reputation to deliberately raise the stock prices of the "second world" so as to facilitate the financing of the "second world" and fight against "Intel".

Suddenly, all kinds of rumors spread. Of course, none of the rumors were convincing enough, especially that Buffett only bought 10 million shares, and the remaining 60 million shares were in the hands of other investors. No one sold them.

This shows that the problem is by no means that simple.

Amid speculation from the outside world, Buffett accepted an interview with Fortune magazine, and during the interview, he explained to the public why he bought "Second World" stocks at high prices, and why all investors held on to the "Second World" stocks.

The reasons why we don’t sell stocks in the “Second World”.

——Yes, my investment in the "Second World" high-tech stock this time conflicts with my investment theory. But everyone, I didn't invest in high-tech stocks before because I thought high-tech stocks were too risky.

, and I am a very practical person, hoping to get safe returns at the smallest cost. Choosing stocks is like choosing a husband: mystery is not as good as security. This is my principle. - Buffett said sincerely.

Then why did you invest in the "Second World" this time - the reporter asked.

——It's very simple, because "Second World" gives me enough sense of security, I feel that investing in it is safer than any other company. This is why all investors who bought "Second World" stocks have made several times their profits.

The reason why they are still unwilling to sell is because they believe that holding "Second World" stocks for a long time can definitely bring them more profits.

Mr. Buffett, can you explain to all investors why you are unwilling to sell "Second World" stocks? - Reporter asked.

——Haha, there are three reasons for this. First, although the "second world" is currently technically weak, the merger of "amd" and "ati" will definitely create a new era, enough to challenge the industry of "intel"

Dominant status. In particular, the "Second World" now holds the right to operate public Internet cafes in East China and South China, which will allow "amd" CPUs and "ati" display chips to occupy absolute dominance in these two regions.

.

China will be the world's largest consumer market in the future. If AMD and ATI can occupy about 80% of China's market share, it will be enough to change their own destiny, and this will also bring huge profit returns to the "second world". Occupy the Chinese market

, is equivalent to occupying the global market. - Buffett lamented.

But currently "Intel" has a market share of 79% in China. - Reporter said.

——Haha, don’t forget that the chairman of “Second World” is Chinese, and the company is also headquartered in China. This is an absolute advantage that “Intel” does not have. I believe that if the product performance of the two companies is

Almost, 1.3 billion Chinese people will know how to choose.

The reporter was speechless for a while. From this point alone, the "Second World" has indeed occupied a dominant position in China. Perhaps it will also occupy a dominant position in the entire Chinese world. And Chinese people are all over the world. Thinking of this, the reporter of Fortune magazine was speechless.

——Second, on funds. Currently, the “Second World” has a cash reserve of 3.2 billion U.S. dollars. Although it cannot be compared with “Intel”’s tens of billions of dollars in capital reserves, don’t forget that the essence of the “Second World” is

An online game company, and its profits are astonishingly huge. Two years after its establishment, the annual net profit is more than 400 million US dollars, which is simply a miracle. And currently, the influence of the "Second World" is only limited to Asia. When "

When the influence of "Second World" spreads to the whole world, its profits will expand ten times compared to now. You know, now that the world has entered a peaceful era of high development and high technology, entertainment has become the most pursued thing by people. Games, movies and other entertainment

industry will be the most profitable project in the world in the future.

"Fortune" magazine reporters nodded for a while, this is indeed true. Especially now the rise of hedonism has further promoted the development of the entertainment industry.

——As for the third point, it is because of Lin Feng, the chairman of "Second World". This young man is so magical and surprising. I have carefully checked his information. He is only 22 years old this year and started from scratch.

In three years, he has become a super rich man who owns two listed companies, China's three major portals, a B2C trading platform, an electronic technology company, a TV station, a newspaper, and an NBA team. Only with this qualification and the speed of making money

, which makes people believe in investing money in his company.
To be continued...