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Bit off more than you can chew!
Lin Fan knew that he had been misunderstood.
Although he doesn't need to prove anything or explain anything to anyone, it still won't feel good if he is really regarded as a fool.
What's more, the funds in his hands are no less than those of Lao Ba in front of him.
However, before he could speak out, Gates jumped out to defend him.
"You may not know Lin well. He started investing when he first founded Fruit Phone. In 2002, he invested in the Chinese Internet company NetEase..."
After Gates invested in Facebook, he also got close to Mr. John, Breyer and others several times, and learned many secret stories about Lin Fan.
At this time, he told everyone about Lin Fan's investment in NetEase, then his investment in Amico, then his angel investment, and finally the establishment of a professional investment institution.
The story of Lin Fan in the past few years since he came to the United States is very exciting, legendary and magical.
Many people don’t know that in addition to Facebook, he has also blossomed into a brilliant flower in the investment field.
At this time, Buffett and the other three people were stunned when they heard about investment cases such as Lin Fan's investment in NetEase and his investment in NetEase and his investment in Aimee and his investment in Aimee and his investment cases of ten times his return.
How can you do so well if you start a business and invest at the same time?
Is this even a human being?
When Gates threw his final trump card and the Lixia Fund achieved a rate of return of nearly 700% in one year, Buffett and others finally couldn't bear it anymore.
Old Man Ba was the first to ask: "Lin, can you talk to me about two investment cases?"
Lin Fan was quietly listening to Gates bragging about himself.
It feels great to hear the world's richest man praise himself.
But when Buffett suddenly asked about it, he simply talked about two investments.
The process is very simple, and the results are also very simple. What is difficult is the various analysis before investment, which can be said to be the crystallization of investment wisdom.
Naturally, Lin Fan cannot say that he has foresight. He can only speak optimistically about the company's future performance based on the company's fundamentals.
Buffett and a few others also believed that the investment was so successful, and it was not an accident. It was almost an accurate investment.
Apart from his amazing judgment and financial talent, there is no other more reasonable explanation.
Buffett asked: "Are you raising a second hedge fund?"
Lin Fan answered and introduced: "Yes, Lin Capital's second hedge fund is called grain rain, which is taken from one of the twenty-four solar terms in Chinese cultural tradition."
Buffett found it interesting and said with a smile: "Investing and managing asset portfolios are indeed no different from growing crops.
You have to sow, fertilize, hoe, and watch out for weather (black swan events).”
Charlie Munger had a lot of contact with Li Lu and had a certain understanding of Chinese culture. The 80-year-old man also followed and asked Lin Fan about the names and allusions of other funds.
The reason why Lin Fan named the fund Twenty-Four Solar Terms was, firstly, to show that he never forgets his roots, and secondly, to tell stories and play the Chinese card.
At present, all domestic industries are still in their infancy, and technology and technology are also lagging behind, and they have not yet ushered in an industrial explosion.
But in the future, it will be a major trend for capital to be long in China.
So after Lin Fan introduced the Chinese allusions to the three solar terms, he started talking about the Chinese market.
"...Last year, that is, 2004, China's GDP was 13,651.5 billion yuan, an increase of 9.5% over the previous year."
Lin Fan glanced at the four people present and continued: "Perhaps everyone has paid attention to these data, and everyone knows that China's economic growth is very rapid.
At the same time, there are also some skeptical voices who believe that the economy has a bubble and that this economic miracle cannot continue for a long time.
But I want to say that it only proves that these so-called experts and scholars do not understand the national characteristics of the Chinese people."
Buffett and Charlie Munger, two old men in their seventies, looked at each other and smiled.
Gates nodded, "Yes, the Chinese people are very smart and hard-working, and I also believe that China's economy will continue to improve.
In fact, Microsoft has been increasing its investment in China.
We established an office in Beijing in 1992, and then established branches such as the Microsoft China Research and Development Center, the Microsoft Global Technical Support Center, and the Microsoft Asia Research Institute.
Microsoft China can now be said to be Microsoft’s most complete subsidiary outside of its U.S. headquarters.”
Li Lu smiled and nodded at Lin Fan from the side. He felt that the latter had many of the same views as him.
The optimism about the Chinese market is not due to ethnic bias, but because I grew up there and am familiar with many things that cannot be seen in research reports.
“Investment is an art, and it can also be said to be an interdisciplinary subject. In addition to the most basic financial knowledge, you also need to understand politics, history, philosophy, management, psychology, etc.
Every investment decision is made based on your own knowledge.
One’s own cognitive circle is the vast and complex life-long learning of each person.”
Lin Fan pointed at himself, "I spent the first few decades of my life in China. I can talk about China in my eyes.
Not to mention the past, after the reform, China established special economic zones in coastal cities to provide policy, land, human resources and other resource support.
As we all know, China is a traditional agricultural country. It will be long and extremely painful to completely transform into an industrial power.
What pains are there?
Farmers in the central and western regions have to go to the eastern coastal cities to work, leaving their children to be taken care of by the elderly at home. They can only see their children once a year or even several years...
The workers' work is also very hard. They work two or three shifts, and it is normal to work more than ten hours a day...
Even if family members are separated, the work is difficult, and many people may even face situations where their bosses are in arrears with wages, Chinese people will not be knocked down by difficulties, nor will they give up their pursuit of a better life."
Buffett nodded, "I understand this. The Chinese are indeed a very resilient nation."
"This kind of tenacity is a gene engraved in every Chinese person's body after being washed away by five thousand years of history."
Lin Fan said with a smile: "Chinese people will not "cultivate the afterlife" like Indians, let alone "muddle through" like people in Latin America and Southeast Asia.
As for Africa and the Middle East, where political power is divided and military conflicts are frequent, let alone the Middle East.
If you look at the map, there are more than 200 countries and regions in six continents. Excluding the developed countries in Europe and North America, the next one to rise must be China, and it can only be China.
In addition to external factors such as a stable political environment, conducive to business, and a large demographic dividend, the most important internal factor is the national characteristic of "constant self-improvement."
"Even so, I think China can only do some low-end manufacturing and processing for foreign trade exports for the time being. The economy will continue to grow until it becomes a middle-income country.
Per capita income has stagnated at the stage of US$4,000 to US$12,000 and has stopped growing.
Then you will face the terrible middle-income trap!”
Buffett lay on the sofa, looked at Lin Fan, and said: "Traps include the intensification of the polarization between rich and poor, difficulties in industrial upgrading, hindered urbanization, prominent social conflicts, etc.
At this time, there will be new developments in China, low-end industries in middle-income countries will be transferred, and capital will flow to new value areas."
"There is only one way to solve the problem, which is to upgrade the industry and move into high-end fields to provide citizens with a better life and win living space."
As soon as Lin Fan finished speaking, Buffett shook his head and laughed: "It's very difficult, and the success rate is slim!"
Lin Fan did not argue, because it is meaningless to argue now. In his previous life, in 2020, he was still at this stage - the per capita GDP was US$10,000, and he had to continue to work hard!
"Even if it becomes a middle-income country, based on China's size, it will still be an economy of 15 trillion U.S. dollars, with many investment opportunities!"
Buffett nodded, "That's right. Is Guyu Fund planning to invest heavily in China?"
Lin Fan shrugged and said, "Of course, is there any better investment opportunity than this?"
"How is the fundraising going for the Guyu Fund?" Charlie Munger asked from the side.
“Including the US$100 million raised by Lao Gai, we have already reached our intention to raise US$400 million.”
Bill Gates looked at Lin Fan with his mouth wide open, wondering if he should say "fuck".
When did I agree to invest $100 million?
It was so forcibly assigned.
"I am very interested in the Chinese market, but unfortunately, I have already invested in it."
Charlie Munger pointed at Li Lu and said to Lin Fan with a look of regret.
"Like you, he is also a person who is determined to be long China."
Buffett glanced at Li Lu and added something to Lin Fan.
"Really? Then I feel like I have found a companion."
Lin Fan knew that Charlie Munger was the main investor of Himalaya Capital controlled by Li Lu, but he didn't want to poach him.
According to the transcripts handed over by the Lixia Fund, some investors came to support it, but they did not have the halo bonus of the "Bamang" two.
Buffett pondered for a moment and said slowly: "Lin, I will never invest in areas that I am not familiar with. I'm sorry, but I can't provide you with a sum of funds."
Lin Fan thought to himself that these words were clearly excuses.
Mr. Ba invested nearly 500 million U.S. dollars in PetroChina in 2003, and he still holds it now. He will not sell it until 2007, making a huge profit of 3.5 billion U.S. dollars.
However, the other party is engaged in finance. He controls his own investment and does not invest in outsiders. It is normal and not difficult to understand.
"It doesn't matter. The main reason I came here today is to visit two old gentlemen.
You two are evergreens in the investment world, and I am a newbie in the industry and would like to hear your experience."
After hearing Lin Fan's words, Buffett waved his hands repeatedly, "Lin, you are already better than 99.99% of the young people in the world, and I have nothing to teach you.
If you have free time in the future, you are welcome to come to Omaha as a guest at any time, play table tennis, or talk about investments.
You have started a business and have your own mature investment theory. The road has been smoothed. I firmly believe that you can create your own brilliance in the investment field."
After the conversation, Lin Fan followed Bill Gates and prepared to say goodbye and leave.
If it weren't for Buffett's sudden backlash, he would have stayed with them to have lunch and play bridge.
But because they were injured, Buffett did not retain them.
Along with Lin Fan and Bill Gates, Charlie Munger and Li Lu also left together.
Li Lu helped Charlie Munger out of the yard and onto the road outside, preparing to get in the car.
Lin Fan walked up and handed a business card to Li Lu, "We will communicate more often in the future!"
Li Lu also handed back a business card to Lin Fan, chatted briefly, got in the car and left.
After watching the other party leave, Lin Fan got into the car waiting on the roadside, sat in the back seat with Bill Gates, and prepared to go to the airport.
"Lin, when did I agree to invest 100 million US dollars in you?"
Gates had been holding this sentence in his heart for a long time, and now he found the opportunity and said it quickly.
Lin Fan smiled and said, "Hey, let me ask you to endorse us. Who knew that these two old men wouldn't even buy your account?"
Seeing Lin Fan's generous look, Gates shook his head and laughed, not as knowledgeable as a young man.
"Hey, I was planning to invest 200 million U.S. dollars in your investment, but who knew you only wanted 100 million U.S. dollars."
Lin Fanxian glanced at Gates and smiled, not taking it seriously.
…………
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Sand hill road, translated as "sand hill road" in Chinese, is located in the southeast of San Francisco, backed by the Pacific Coast Mountains, facing the San Francisco Bay, with a clean and beautiful environment, close to Silicon Valley and Stanford University.
This is the most prominent road in Silicon Valley and even the United States, gathering the most important venture capital institutions in the United States. It is to the technology startup market what Wall Street is to the securities market.
Zhang Chenguang was driving in the front seat, while Lin Fan sat in the back seat and looked at the entire neighborhood.
The entire Sand Hill Road neighborhood can be seen as a venture capital fund town, with Sequoia Capital, Kleiner Perkins, Axel and other venture capital institutions all concentrated here.
In the earliest days, Stanford University faculty provided financial support to entrepreneurial students, which can be regarded as the prototype of Sand Hill Road venture capital.
In 1972, the first venture capital institution Kleiner Perkins Caufield & Byers settled on Sand Hill Road.
In 1980, Apple successfully went public, attracting more venture capital to Silicon Valley.
Today, it has gathered one-third of the venture capital institutions in the United States.
The neighborhood is very ordinary. The houses on both sides of the road are very low and hidden among the lush trees and bushes.
Sand Hill Road is 17 miles from Silicon Valley, and it takes about 20 minutes to drive from Silicon Valley.
The car stopped in front of a simple two-story building. Lin Fan got out of the car, looked at the leaf sign at the door, and walked in.
Moritz stood at the door and greeted Lin Fan with a smile.
"Lin, long time no see!"
Lin Fan shook hands with the other party and said, "Yes, we haven't seen each other for a long time."
Lin Fan had some mixed feelings about Old Man Mo.
Sequoia Capital wanted to invest in Facebook for a long time, but couldn't agree on the valuation, so it was overtaken by the more ambitious Axel.
Seeing Facebook's development getting better and better, Mr. Mo regretted it and tried to get on the bus again and again. The valuation quotations ranged from one billion U.S. dollars, two billion U.S. dollars, all the way to five billion U.S. dollars.
When discussing investment with Microsoft some time ago, Lin Fan contacted Old Man Mo and offered him $10 billion, no counter-offer!
Then Mr. Mo really gave up without counter-offering.
Sequoia Capital has a great reputation, which sounds very bluffing, but in fact, it is just that.
The operations of VC institutions and PE institutions are two different models, and their investment targets are also far apart.
Facebook's valuation has ballooned to US$10 billion, which is no longer a size that Sequoia can afford.
Of course, more than ten years later, top VCs will easily invest 300 million to 500 million US dollars. It is not that big now. The first phase of the fund may be that big, but no one dares to invest all of it in a company. If it loses money, it will be completely
Cool.
In fact, Sequoia Capital can also invest and acquire a small stake in Facebook for more than US$100 million.
But Moritz didn't take the initiative to mention this, and Lin Fan didn't say anything either, lest the old man feel that he was humiliating him.
In fact, old man Mo is really regretting that he has lost his fortune to his grandma's family.
But business is business, so he didn't vent his anger.
After a few words of greeting, Lin Fan was taken to his office.
Instructing his secretary to make a cup of coffee for Lin Fan, the old man sat down on the sofa next to him and said slowly: "Lin, do you plan to engage in investment career for a long time in the future?"
Lin Fan didn't know what the old man meant by calling him here today, so he didn't ask any more questions, took a sip of coffee, nodded and said, "Yes."
"I see that your business is quite large, with several types of funds operating at the same time."
Moritz looked at Lin Fan with a smile.
"Haha, the funds have to flow, right?"
Moritz nodded and said, "I know you are a good hedge fund manager, but there seems to be no movement in VC?"
"I have invested in several companies, just for fun. I am just a layman."
Moritz laughed dryly and said, "You are being modest. I heard that Skip has been valued at several billion dollars, and eaby is very interested in this software with 20 million users."
Few people know that they have invested in Snap, and even media reports have omitted the company.
Lin Fan looked at Moritz with a somewhat wary look. What did the old man want to do? Investigate himself?
Moritz smiled and waved his hand, "Lin, don't get me wrong, this information is not difficult to check.
I also know that you have invested in Chinese video website Tudou.com, classified information website Ganji.com, and elevator print advertiser Frame Media.
In addition, you personally participated in LinkedIn and Tesla’s first round of financing.”
Lin Fan smiled and said: "Mr. Moritz, just tell me, we don't want to play hide-and-seek anymore."
Moritz smiled and said: "I really don't mean anything else. I find that Lin, you seem to be born to do our job.
I briefly took a look at the survey reports of the companies you invested in, and the evaluations are all very good, and there is hope for success."
Lin Fan didn't say anything and just remained a quiet listener.
"When doing VC, business sense and judgment are very important. This requires professional training and countless cases to be cultivated."
Seeing that Lin Fan didn't answer, Moritz finally stopped playing casually and got to the point: "Sequoia Capital has been studying the Chinese market for a long time, and we plan to set up a fund in China.
I invited you here today because I want to cooperate with you."
