Chapter 692 – Buying out at bottom prices
writer:
穷四 update:2022-08-22 14:03
Feng Yu had nothing to do with the compensation and the Japanese companies no longer demand Tai Hua Supermarket Corporation to apologize to them. All the Japanese companies in China were keeping a low profile.
It was going to be New Year’s Day soon, and it was time for another Tai Hua Supermarket shopping cards frenzy. But Feng Yu did not remain in Beijing. Instead, he flew over to Hong Kong.
“Nephew Feng, after this round of beating, is their share prices at rock bottom? Will the rebound happen soon?” Fu Rongqi asked.
Feng Yu shook his head. “It’s not time yet. Those companies only accepted to pay the compensations and agreed to the fine. I heard there is still shocking news that was not announced yet. After the news is announced, their share prices will drop further.”
Fu Rongqi frowned. There’s more shocking news? This should be interesting. Feng Yu is close to the top Chinese officials and should be able to get insider information.
“Sony-Columbia Pictures will be releasing a blockbuster movie this Christmas. I had asked my men to spread rumors that this movie sucks. The moviegoers will avoid this movie, and the ticket sales will not be high. Lesser cinemas will be screening this movie, and their movie-related merchandise sales will drop. Even their VCDs for this movie will not sell. Sony’s share prices in the US will drop further.” Fu Rongqi was smiling like a cunning fox. He does not need to spend much to press a company’s share prices down. Sometimes, a rumor was sufficient.
“Let’s stick to our plan. I will be mainly acquiring those chemical companies’ shares, and you will acquire those electronics shares. I believe that in January, those companies will take some measures to save their companies’ shares, and the share prices will rise slowly. We will be able to make high profits then!”
In less than a week, those companies’ share prices fell by almost 50%. It was still falling now, but the drop was not as drastic as earlier the week. But after the compensation was announced and those companies sold their factories in China, their shares will drop again.
All these large multinational enterprises’ shares will definitely rebound after their share prices crashed. The rebound will be strong. Also, it’s the end of the year, and after the financial reports were released, these companies will take the opportunity to announce their future plans and profits forecast.
The key shareholders will also announce they will be increasing their stakes in the companies to boost the confidence of the investors. Their shares will surely recover from the crash. Now, Feng Yu and Fu Rongqi only need to predict when will the share prices hit rock bottom!
……
Buffett was sitting in his office, looking at his computer. This Japanese companies saga was an excellent opportunity for him.
Warren Buffet had lots of investments, and he invested the most in the financial market, especially shares. He had invested in Washington Post, Coca Cola, General Dynamics, etc. and made high profits from these companies.
Although Buffett also owns an industrial factory, dealing in textile manufacturing, but the profits from this factory was a small part of his income. Most of his money came from his shares.
His formula for investing was very simple. He looks for “cheap” shares to buy and then wait for the share prices to rise. But he did not explain what he meant by cheap.
The dividends and the returns from the sales of his shares gave him high profits.
Basically, whenever Buffett acquires large amounts of the shares of a company, that company share prices will shoot up. His strategy for investing is long term investment. He was in no hurry to sell even if the share prices plunged after he bought it. This was because he believes that the shares will rebound soon and he will have high returns.
Since he started his company, his company’s value had increased by almost 400 times! No one could compare to Buffett’s foresight in investing.
There was a strange phenomenon. People start to follow whatever Buffett invest, and this creates a short term increase in that particular company’s share prices.
Warren Buffett had become an indicator of the stock market!
Now, Warren Buffett had set his sights on those Japanese companies. Those companies that were kicked out of China.
Buffett realized that the output of many factories in China was not very high and was not a significant proportion of the companies’ total production. When those companies withdraw their management staffs from those factories in China, they will surely think of other ways to increase their companies’ profits and the company’s share prices will inevitably rise again.
Although the company’s brand will be affected in the short-term, in the long run, Buffett felt those companies will be able to recover. These companies have a strong technological background and do not have any cash flow problems. Also, the Japanese Government will think of ways to help those companies. After all, the Japanese Government cannot afford these companies to fail.
Warren Buffett had also researched on these companies. Some of them were doing quite well and had high returns for this year. It was not normal for their share prices to plunge so suddenly. When these companies announced their annual profits, the investors will regain confidence in these companies, and the share prices will bounce back.
Warren Buffett was considering which company’s shares should he acquire. There were too many choices. He wanted to look for a company that is stable and have good returns.
There was one more important factor. If another big player were investing in the same company, the share prices would rise faster.
……
“The compensation amount was agreed upon. Although it was still not announced yet, the rough estimation was a significant amount!” Fu Rongqi’s assistant exclaimed.
“Most importantly, those companies had withdrawn out from the Chinese market, and their factories in China were sold to other Japanese companies. The selling prices are undisclosed, but from the looks on their faces, the prices should not be high. Japan had played its cards well this time. They had shown their sincerity and did not suffer any heavy losses. Japanese companies are still making money in China.” He Zhaoji was impressed at how Japan handled this situation. The Japanese Government did not suffer any losses. The ones that suffered losses were those companies.
“When this news is release, those companies shares will drop again.”
“That’s right. But it would be best if their share prices plunged. It’s such a dilemma. On the one hand, I wish for their share prices to bounce back as soon as possible for us to make profits. On the other hand, I hope those companies will go bankrupt.” Someone said and laughed.
Hahaha…… The rest of the staffs are laughing while staring at their computer monitors. There were monitoring the stock market closely.
Feng Yu and Fu Rongqi were also starting at their computers, and both stood up at the same time suddenly. A few stock brokers also stood up, and everyone said at the same time. “The prices are almost rock bottom. Prepare to buy in!”