Chapter 1125 The Boss's Thinking

? In 2000, Berkshire Hathaway officially blew the clarion call to enter the field of real estate brokerage by acquiring a majority stake in Berkshire Hathaway Energy, which is now owned by Mid-America Energy Company, which HoServices belonged to at the time. 35xs

At first, among the many investment projects, Comrade Lao Ba did not attach great importance to this acquisition, but over the past few years, the number of real estate brokerage companies has gradually increased, and sales have also hit new highs. So far, hoservices has grown to become the second largest in the United States. big real estate agency

According to the information received by Yang Cheng, hoservices is not greedy for the position of the second child, they are still running on the highway, and are trying to acquire the third largest real estate company in the industry Ong and Foster, the 12th ranked Houihan Rence and Goria Nison, once the integration is completed , hoservices will add more than 12,000 real estate agents, raising the total to the level of 40,000 people.

In terms of real estate sales in the United States, hoservices is already close to the leading position, and it is not a problem for bilateral sales to exceed 100 billion US dollars in one fell swoop.

In addition to this real estate brokerage company, Berkshire Hathaway's n hos company is also one of the largest housing construction companies in the United States. It built more than 40,000 houses last year, accounting for 5% of the new home construction market in the United States. Buffett also plans to acquire more Many such companies.

In addition to residential real estate, Buffett has also invested in commercial real estate. As early as the early 1990s, Buffett bought cheap commercial real estate in Manhattan. The return rate of this investment was as high as 35 that year, and the return rate reached 150 five years later.

In addition, Comrade Laoba also invested in two real estate investment funds, both of which are peers of Yuanshan Capital. In fact, Laoba also invested in Yuanshan Capital, but he only got 12 shares, and he did not even enter the board of directors. , but the annual return of Yuanshan Capital has already allowed Lao Ba to recover the investment cost, and the total return has exceeded 30%.

Seeing the completion of Berkshire's layout in the US real estate industry, it is only natural to seek overseas breakthroughs.

Price was silent for almost 10 minutes. Yang Cheng was thinking about the news from Berkshire. After analyzing and sorting out, a clear investment line appeared in his mind. The more he thought about it, the more frightened he became. Berkshire His influence in the U.S. real estate field has grown to this point unconsciously, like a slap in the face, dare to be complacent about Yuanshan Capital's success in the industry

At this moment, a deep sigh pulled Yang Cheng back from his thoughts.

The panini egg on the plate was already cold, Yang Cheng didn't touch it again, took a sip of coffee and looked at Price, "What are you thinking?"

Price shook his head. "That's not a smoke bomb."

Answering the wrong question, Yang Cheng was stunned for a moment before realizing that Price was answering a question 10 minutes ago, the reflex arc is too long

"jason, how much do you know about kayapap"

Yang Cheng recalled, if he remembered correctly, kayapap company is the first intermediary company in London that specializes in high-end real estate. Is this the goal of Price's trip?

Looking at Price suspiciously, with just one glance, Price knew that Yang Cheng didn't know much, at most he only knew his name, "Kayapap's office is in the most central location in London, and its service scope covers Mayfair, Hyde Park , Regent's Park, King's Cross, Paddington and London's West End and many other core and expensive locations.

Berkshire has been discussing cooperation with the other party since November last year. This trip to the UK is to confirm the final agreement. If there is no accident, the agreement will be formally signed soon. ho services will open a branch in the UK.

operates in partnership with kayapap and continues to seek expansion in London through acquisitions and joint ventures”

Yang Cheng didn't know what to say, Berkshire's actions were too fast, and she didn't give herself a chance to intervene. 35xs

Echoing, "London is one of the most important international business centers in Europe and the world. The real estate here is very attractive to global investors. It has always been the first choice for American real estate companies to go overseas. Berkshire The investment strategy is as clear as ever."

After saying this, Yang Cheng sighed in his heart: As expected of Buffett, the investment structure is far beyond ordinary people. If other people enter the British real estate industry at this time, I am afraid that the first thing they should look at is real estate or commercial real estate, while Buffett directly The sales terminal is controlled, and the problem of unsalable real estate is solved at the root.

The intermediary company is only responsible for selling but not covering, and the financial pressure is not too great. As long as the sales volume is made more beautiful, and the opportunity to go public is found to make a wave of money, even the principal and interest are returned.

However, ordinary people really can’t learn this kind of investment model. First of all, they have already achieved the second largest real estate agency company in the United States. They have rich experience in real estate agency operations, so there is no inexperienced person entering the British real estate brokerage industry. question.

Secondly, the political situation in the UK is currently in turmoil. Seeing that the Brexit negotiations are about to be held, once the bad news is implemented, I am afraid that in the last 12 years, the British real estate market will experience a cold winter. If they couldn't sell at a good price, they just held their hands and didn't want to sell. When the two parties didn't want to sell, the real estate transaction volume also dropped sharply.

what does this mean

This means that real estate agents who rely on commissions for buying and selling houses have no money to make.

If there is no sales, the profit will decrease, and the decrease in profit will directly lead to the shrinking of the valuation of real estate intermediary companies.

Especially kayapap, they mainly manage high-end real estate in the best areas of London. These areas are affected by Brexit, and the transaction volume is much more affected than other rigid demand areas.

Buffett chose to enter the market at this time. It is estimated that the purchase price can cut down the other party's psychological price by a lot, or even cut it in half. After all, the life of the other party in the past two years must have been difficult.

Taking advantage of the Brexit process, Buffett has picked up a bargain, and the price of cabbage has bought the bottom of the British real estate agency industry.

When he has full control over the intermediary and has the right to speak in buying and selling, it can help him better understand the real estate market in London, and it can also pave the way for his subsequent entry into real estate development and even commercial real estate investment.

Moreover, in a city as big as London, housing prices cannot stay in the doldrums forever. Even if the UK does leave Europe, this is an important reason why Buffett dares to take big actions. He is optimistic about the future trend of the UK real estate market.

Regardless of Brexit or not, the British authorities cannot just sit back and watch the social chaos. One day it will calm down. When everything stabilizes, the volume of real estate transactions will inevitably pick up. Can't help but satisfy my own needs.

As long as the trading needs of these people still exist, they will definitely trade wildly after the market picks up. This is beyond doubt.

Once these transactions start to pick up and rise, the real estate agency's income will also rise sharply, and the company's valuation will soar.

In fact, regardless of the rise or fall of housing prices, people still want to buy and sell houses. As long as there is a transaction, the real estate agency industry will make money, more or less. In other words, even if the British economy is really affected by Brexit, If the depression continues, the real estate agency industry will not be eliminated, and this investment will not lose too much, and it will be recovered sooner or later.

Yuanshan Capital didn't even think about this kind of trading idea, Yang Cheng didn't know what expression to make other than a wry smile, anyway, a big boss is a big boss, anyway, he is a stock god, and it seems that there is no shame in admitting that he is not as good as others.

Since the skills are not as good as others, why don't you lower your face and follow the boss's ass to drink soup? It's not plagiarism

London, as the world's financial center, attracts rich people, elite talents and students from all over the world to come here every year. A stable and developing economy and a steady stream of inflowing population are the fundamental driving force for the vigorous development of a real estate market in a region. The beauty of the real estate market.

Businessmen all over the world are the same. Where there is money to make and where it is safe, put the money there.

Everyone thinks that the stock god only loves stocks. The wrong old man is interested in any business that can bring stable returns, and he really loves real estate

Well, it's not too late for Yang Cheng to realize this, now is the time to get in the car and eat leftovers, the food is still not cold, and it can still taste the original taste.

Price suggested, “Berkshire is willing to cooperate with any sincere friend, and sincere and capable partners are what we urgently need.

I have a little idea here, I don't know if you are willing to accept it. "

Regardless of what the other party said, it's better to show your attitude first, Yang Cheng said quickly, "Of course, as long as it's beneficial to me, it doesn't matter if you earn less, just treat it as learning from Berkshire. "

Price didn't take the polite words seriously. Who in the United States doesn't know that Yang Cheng is a typical representative of the new generation of little foxes. Is there any truth to what the fox said?

"Before we contacted kayapap, we learned that they had contacted Qatar and the UAE consortium, trying to cooperate to open the high-end residential market in London."

Yang Cheng didn't quite understand, "What do you mean kayapap develops itself?"

Price shook his head, "No, it was developed by a cooperative consortium, and kayapap was bound for sale, but the conditions they offered were not satisfied by the consortium from the Middle East, so the cooperation has not been reached, if you are interested, Jason...

I know that Yuanshan Capital has recently started several projects in London and Liverpool at the same time, and it definitely has the ability to develop high-end residential buildings in London. "

Yang Cheng frowned slightly, "I never doubted the strength of Yuanshan Capital, but with all due respect, I failed to see the benefits from this cooperation. After the development of the real estate, it is bound to expand the sales area and cover the potential as much as possible. Clients, the faster and more properties are sold, the faster the developer can get back the funds. It may be difficult to meet the needs of the developer with only one intermediary responsible for sales. I believe that the consortium in the Middle East refused to cooperate because of this. "