While many companies in the world were attracting the attention of Fengyu Holdings Group, Kirilenko had quietly arrived in Xiangjiang.
"Feng, why has crude oil dropped again?" Kirilenko asked impatiently as soon as they met.
"Brother Ji, calm down, be calm." Feng Yu smiled and patted Brother Ji's big hand that grabbed his shoulder. "If you follow what I said and don't use more than ten times the leverage, then there is no need to worry."
Crude oil had already risen to US$55/barrel, but in the past two days it has fallen back to US$51. The drop is less than ten percent, so as long as more than ten times leverage is not used, the position will not be liquidated.
Kirilenko's lips moved but he said nothing.
Feng Yu's eyes widened: "Brother Ji, does your agent recommend you to use a higher leverage?"
If that's the case, that agent is simply unqualified. The greater the capital, the more stability is required. This is an eternal truth.
Kirilenko said sarcastically: "No, they don't agree. They even don't agree with me using ten times the leverage. They suggested that I use two times the leverage first."
"Well, that's pretty much it. It's considered qualified." Feng Yu nodded with satisfaction, "So you didn't do any hedging?"
"No, don't you also think that crude oil will definitely rise this time? It's just a matter of how much it rises or how little, so I didn't let them do hedging." Kirilenko lowered his head, "And I have a sum of money that I can use High leverage.”
Another sum of money
"Brother Ji, didn't you also invest the risk reserve?"
Risk reserve is money used to increase margin at any time, reduce leverage multiples, and reduce losses. For example, if you use ten times leverage, but see that the futures decline is about to reach 10%, then you need to double the margin to increase the leverage to five times. Only if the decline reaches 20% will the position be liquidated.
In addition, this money can also be used for reverse operations. If the decline is sharp, then there is no need to add margin. Instead, short selling is performed in the reverse direction, and the profits from this contract are used to dilute the losses of the previous transaction.
Risk reserves must not be used lightly. Even when you think you are sure to win, you must have a surplus. Nothing is absolute, and with such a large amount of money, you absolutely cannot risk it all.
"Half, only half," Kirilenko whispered.
"And then, the money is lost?"
"No, I used the remaining half to reduce the leverage ratio. But if it continues to fall, I will still be liquidated."
Feng Yu shook his head: "Brother Ji, with your wealth, there is no need to take such a big risk. If you are more conservative this time, it will be enough for you to make a lot of money. Why bother? The futures market itself is risky, and you still use It’s too risky to use higher leverage.”
"I still have some money, and I will lend it to you later. You invest it first, and then lower the leverage multiple again to get the capital out. Although you will still lose some money, you must have a risk reserve in your hand!"
"Okay, it's all up to you."
When Kirilenko came here this time, he actually wanted to borrow a sum of money from Feng Yu and then get some of the capital out. When he used high leverage, although his agent objected verbally, he was the boss and his objections were invalid.
But now he has regretted it for a long time. He doesn't even know a little about finance. In the future, it is better to be more cautious like Feng said.
He wanted to make more money and surpass Bill Gates, so he took the risk.
But if the result of the risk is that he cannot even keep his status as one of the top ten richest people in the world, that would be a huge loss.
This time it was also a lesson for him. Playing finance is much more difficult than managing a company. Kirilenko envied Feng Yu very much. Feng Yu could actually handle such a difficult business.
"This time, how much money can you invest in total?" Feng Yu asked.
"Currently, I have raised close to 8 billion US dollars, and some stocks will be transferred immediately through agreement, and I can earn about 2 billion US dollars in revenue. The total will be almost 10 billion US dollars."
Although Kirilenko has a net worth of 30 billion US dollars, he can only spend so much cash. It is also very rare for a rich man like Kirilenko to spend one-third of his net worth.
This number is similar to Feng Yu's estimate. He knows that Brother Ji will definitely raise more funds, and then he wants to surpass Bill Gates in one fell swoop and become the second in the world.
"Where's the deposit? How much have you set aside?"
"A billion dollars."
"Less. It's just the beginning, and the general trend has not yet formed. You should leave a little more margin. Then, depending on the situation, you can add more contracts. But it's okay. If it's one billion U.S. dollars, I can help you get back almost nine hundred million U.S. dollars. If you’re lucky, you might be able to get all your principal back.”
Kirilenko grinned. He could still accept the loss of only $100 million.
In fact, Kirilenko did not tell the truth this time. He could raise more than 10 billion US dollars.
He is running several of his subsidiaries to go public, and taking advantage of the current good stock market conditions, he will definitely be able to raise a lot of funds.
Of course, he cannot touch this fund. When raising shares, I have never heard of raising funds to distribute dividends to shareholders. But he can withdraw the working capital of this subsidiary in advance in the name of dividends or other means.
Use the funds obtained from the stock offering to allow the company to develop normally.
That is to say, a company that originally did not need to raise funds and could develop well, but if it does not raise funds, the capital chain will be strengthened.
He paid out shares in those companies, but also raised a significant amount of capital. And through this method, he has become more closely connected with wealthy people in some countries such as the CIS, and others have united around him, with him as the core.
Also, he plans to mortgage some company stocks and obtain loans from banks. The reason for the loan is also very simple. Just make up one that makes sense. His high-quality stocks are not only in Russia, but also in Europe and the United States. It is not difficult to borrow money. The main thing is to see how much can be loaned.
For example, if a company's assets are valued at RMB 100 million, but if you pledge all of them, the bank can only lend you a maximum of RMB 70 million, or even RMB 50 million. They have to consider the risk of asset depreciation, even if everyone The same goes for identified high-quality assets.
Of course, Kirilenko also collected a lot of antiques and art, and he is also asking banks to evaluate them and prepare to mortgage them all.
This time, he wants to get more capital so that his profits can become higher. Feng said that this is the best opportunity to surpass Bill Gates. Next time, it may take another seven or eight years.
In 1978, Kirilenko could no longer wait that long. This time he would surpass Bill Gates. Next time, he would make his assets exceed 100 billion US dollars!
… (To be continued.)