[Please subscribe again tomorrow]
In a small conference room at the Firefly headquarters, Warren Buffett frowned as he quickly read the investment materials of the Clover Fund in front of him.
Buffett originally thought that he would be rejected by Eric if he wanted to look at the stock portfolio of the Clover Fund. After all, it should be regarded as a company's business secret. can not be seen.
However, to Buffett's surprise, Eric agreed very readily, without even asking him to sign any non-disclosure agreement.
Now, looking at the pages of information in his hand, Buffett also realized why Eric was completely defenseless against him.
Clover Fund's stock portfolio is mainly concentrated in three areas.
The first category is Internet technology stocks. The main investment targets include Microsoft, Intel, Cisco, AOL, SUN, Oracle, etc. These stocks account for more than half of the total investment scale.
The second category is telecommunications company stocks, that is, AT-T, Sprint, Verizon, etc., and the investment ratio of this part is about 30%.
In the end, less than 20% of the investment was basically put on several large cable TV operators, namely Comcast, Telecom, Basic Cable and even Time Warner.
To put it simply, these three types of company stocks are basically technology stocks that are currently very hot.
In recent years, both large investment funds and small retail investors have basically been chasing these types of stocks. Therefore, even if the investment portfolio of the Clover Fund is disclosed to the public, in the eyes of outsiders, there is nothing special about it.
In Buffett's eyes, Eric's investment portfolio is completely random, without any rules at all.
Generally speaking, the more complex a fund's stock portfolio is, the stronger its ability to resist risks. But again, the less likely the fund is to earn high returns. Because of the diversified stock investment, the fund's return on investment will be consistent with the overall market.
Excellent investors have always been able to outperform the market. The reason why Buffett himself is called a stock god is that Berkshire Hathaway's annual growth rate has basically been far behind the Dow Jones Index by more than ten percentage points for decades.
It simply doesn't make sense for a fund to return in line with the broader market, in Buffett's view. Because the growth of the stock market actually means the overall growth of the national economy. If factors such as rising prices and currency inflation are removed, the actual value and purchasing power of assets will not change much.
Of course, Buffett also understands that Eric is betting on the arrival of a new bull market in the Nasdaq market, and then taking the opportunity to carry out stock arbitrage, which is actually equal to outperforming the 'big market'. Buffett isn't against stock arbitrage, and he does it regularly himself. It's just that, for arbitrage stocks, Buffett never holds them for a long time, let alone buy them in a large amount for a long time without any purpose like Eric.
However, seeing the final total asset value of the Clover Fund's stock assets, although Buffett's brows did not stretch, he couldn't help but be speechless.
In two years, the investment of 5 billion US dollars before and after has reached 9.1 billion US dollars.
If all the shares of the Clover Fund can be sold, excluding taxes, plus the surplus of Firefly Group itself, the company's annual net profit will exceed 7 billion US dollars.
Most of the company's financial reports in 1997 have not been disclosed. However, Buffett clearly remembers that in 1996, General Motors, the most profitable company in North America, had a net profit of only US$6.88 billion for the year.
As a top investor, Buffett couldn't help thinking about how to invest if he had the 7 billion US dollars before he put down the information in his hand.
Perhaps, you should first buy the National Insurance Company, which you have been looking at for a long time, as a whole, and you can also increase your holdings of Coca-Cola's stock. Compared with these high-risk stocks with a price-earnings ratio of 50 to 60 times, insurance companies and Coca-Cola are the best investment targets that can bring long-term stable returns.
When Eric walked into the conference room, he happened to see the old man thinking or dazed in such an obsessive way.
Sensing a figure sitting opposite him, Buffett reacted, put down the documents in his hand, took off his reading glasses and said to him, "Eric, I want to know, what are your plans?"
"Next year, Firefly will continue to invest another US$2 billion in technology stocks. I plan to accumulate capital for the next major expansion of Firefly Group, so that the company can minimize the proportion of equity transactions."
Buffett shook his head slightly, and said, "Eric, you haven't experienced a stock market crash, so you don't know how terrible it is, but I have seen some multi-billionaires, facing a stock market crash, sometimes it only takes one day. Will go bankrupt. In my opinion, once the stock market crash occurs, most of the stocks invested by the Clover Fund may fall far below your buying price in a short period of time.”
"Warren, I'm not a greedy person, so I think I can still figure out when to take the opportunity," Eric said with a smile and confidence.
The reason why Eric did not hesitate to show the stock portfolio of the Clover Fund in front of Buffett is because Eric is confident that these materials will not bring any useful information to Buffett. His most important trump card is to know the When to sell these stocks, and how to sell them.
Once the sale starts, Eric will definitely be the first to clear the most frothy stocks such as AOL and Cisco, while stocks such as Microsoft and Intel can still be held for a long time even if they miss the selling opportunity.
…
…
In a small conference room at the Firefly headquarters, Warren Buffett frowned as he quickly read the investment materials of the Clover Fund in front of him.
Buffett originally thought that he would be rejected by Eric if he wanted to look at the stock portfolio of the Clover Fund. After all, it should be regarded as a company's business secret. can not be seen.
However, to Buffett's surprise, Eric agreed very readily, without even asking him to sign any non-disclosure agreement.
Now, looking at the pages of information in his hand, Buffett also realized why Eric was completely defenseless against him.
Clover Fund's stock portfolio is mainly concentrated in three areas.
The first category is Internet technology stocks. The main investment targets include Microsoft, Intel, Cisco, AOL, SUN, Oracle, etc. These stocks account for more than half of the total investment scale.
The second category is telecommunications company stocks, that is, AT-T, Sprint, Verizon, etc., and the investment ratio of this part is about 30%.
In the end, less than 20% of the investment was basically put on several large cable TV operators, namely Comcast, Telecom, Basic Cable and even Time Warner.
To put it simply, these three types of company stocks are basically technology stocks that are currently very hot.
In recent years, both large investment funds and small retail investors have basically been chasing these types of stocks. Therefore, even if the investment portfolio of the Clover Fund is disclosed to the public, in the eyes of outsiders, there is nothing special about it.
In Buffett's eyes, Eric's investment portfolio is completely random, without any rules at all.
Generally speaking, the more complex a fund's stock portfolio is, the stronger its ability to resist risks. But again, the less likely the fund is to earn high returns. Because of the diversified stock investment, the fund's return on investment will be consistent with the overall market.
Excellent investors have always been able to outperform the market. The reason why Buffett himself is called a stock god is that Berkshire Hathaway's annual growth rate has basically been far behind the Dow Jones Index by more than ten percentage points for decades.
It simply doesn't make sense for a fund to return in line with the broader market, in Buffett's view. Because the growth of the stock market actually means the overall growth of the national economy. If factors such as rising prices and currency inflation are removed, the actual value and purchasing power of assets will not change much.
Of course, Buffett also understands that Eric is betting on the arrival of a new bull market in the Nasdaq market, and then taking the opportunity to carry out stock arbitrage, which is actually equal to outperforming the 'big market'. Buffett isn't against stock arbitrage, and he does it regularly himself. It's just that, for arbitrage stocks, Buffett never holds them for a long time, let alone buy them in a large amount for a long time without any purpose like Eric.
However, seeing the final total asset value of the Clover Fund's stock assets, although Buffett's brows did not stretch, he couldn't help but be speechless.
In two years, the investment of 5 billion US dollars before and after has reached 9.1 billion US dollars.
If all the shares of the Clover Fund can be sold, excluding taxes, plus the surplus of Firefly Group itself, the company's annual net profit will exceed 7 billion US dollars.
Most of the company's financial reports in 1997 have not been disclosed. However, Buffett clearly remembers that in 1996, General Motors, the most profitable company in North America, had a net profit of only US$6.88 billion for the year.
As a top investor, Buffett couldn't help thinking about how to invest if he had the 7 billion US dollars before he put down the information in his hand.
Perhaps, you should first buy the National Insurance Company, which you have been looking at for a long time, as a whole, and you can also increase your holdings of Coca-Cola's stock. Compared with these high-risk stocks with a price-earnings ratio of 50 to 60 times, insurance companies and Coca-Cola are the best investment targets that can bring long-term stable returns.
When Eric walked into the conference room, he happened to see the old man thinking or dazed in such an obsessive way.
Sensing a figure sitting opposite him, Buffett reacted, put down the documents in his hand, took off his reading glasses and said to him, "Eric, I want to know, what are your plans?"
"Next year, Firefly will continue to invest another US$2 billion in technology stocks. I plan to accumulate capital for the next major expansion of Firefly Group, so that the company can minimize the proportion of equity transactions."
Buffett shook his head slightly, and said, "Eric, you haven't experienced a stock market crash, so you don't know how terrible it is, but I have seen some multi-billionaires, facing a stock market crash, sometimes it only takes one day. Will go bankrupt. In my opinion, once the stock market crash occurs, most of the stocks invested by the Clover Fund may fall far below your buying price in a short period of time.”
"Warren, I'm not a greedy person, so I think I can still figure out when to take the opportunity," Eric said with a smile and confidence.
The reason why Eric did not hesitate to show the stock portfolio of the Clover Fund in front of Buffett is because Eric is confident that these materials will not bring any useful information to Buffett. His most important bargaining chip is to know the When to sell these stocks, and how to sell them.
Once the sale starts, Eric will definitely be the first to sell the most frothy stocks such as AOL and Cisco, and Microsoft, Intel and other stocks, even if they miss the opportunity to clear their positions, there is still no problem in holding them for a long time.
When Eric walked into the conference room, he happened to see the old man thinking or dazed in such an obsessive way.
Sensing a figure sitting opposite him, Buffett reacted, put down the documents in his hand, took off his reading glasses and said to him, "Eric, I want to know, what are your plans?"
"Next year, Firefly will continue to invest another US$2 billion in technology stocks. I plan to accumulate capital for the next major expansion of Firefly Group, so that the company can minimize the proportion of equity transactions."
Buffett shook his head slightly, and said, "Eric, you haven't experienced a stock market crash, so you don't know how terrible it is, but I have seen some multi-billionaires, facing a stock market crash, sometimes it only takes one day. Will go bankrupt. In my opinion, once the stock market crash occurs, most of the stocks invested by the Clover Fund may fall far below your buying price in a short period of time.”
"Warren, I'm not a greedy person, so I think I can still figure out when to take the opportunity," Eric said with a smile and confidence.
The reason why Eric did not hesitate to show the stock portfolio of the Clover Fund in front of Buffett is because Eric is confident that these materials will not bring any useful information to Buffett. His most important bargaining chip is to know the When to sell these stocks, and how to sell them.
Once the sale starts, Eric will definitely be the first to sell the most frothy stocks such as AOL and Cisco, and Microsoft, Intel and other stocks, even if they miss the opportunity to clear their positions, there is still no problem in holding them for a long time. (To be continued.)