Chapter 1932 Small Goal
As the head of an investment company who has experienced many exciting moments, seen a lot of money, and made a lot of money, Li Ruiyuan was so excited because his boss's analysis had never disappointed him.
And this time, the field analyzed by the boss was futures.
This is a business that is a moment of heaven and a moment of hell. Because of a transaction, you may lose a lot, so much that it will drag down a company with a good reputation and strong strength, such as the famous Nick Leeson dragging down Baring Bank.
Similarly, you may also make a lot, so much that it is beyond your imagination, such as Jesse Livermore who successfully predicted the stock market crashes in 1907 and 1929.
This is a genius who is hailed as the most outstanding stock investor in history. He only used his own funds and did not use financial derivatives. He finally pocketed $100 million by short selling.
The $100 million in that era was not the $100 million now. Let's put it this way, the fiscal revenue of the US government at that time was only $4.2 billion.
Li Ruiyuan has certainly read his book, Reminiscences of a Stock Operator, which is known as one of the two must-read masterpieces on Wall Street. He had a dream that he would surpass Livermore one day. Now, he sees the hope of realizing this dream.
Because crude oil futures are the king of commodity trading in the world.
How big is the trading volume? In 2004, the average daily trading volume of crude oil futures on the New York Stock Exchange, London Brent, and Singapore was no less than 100,000 lots (it is indeed impossible to find the exact data).
One standard lot is 1,000 barrels of crude oil, which means that the average daily trading volume of crude oil futures on these three exchanges is no less than 100 million barrels.
And China's net crude oil imports last year were 1.515 per ton, and one ton is about 7 barrels, which means that the net import of crude oil last year was about 1 billion barrels, which is probably only equivalent to the world's crude oil futures trading volume in a week.
No one has counted the amount of crude oil futures transactions, but we can make a rough comparison. Last year, the funds spent on importing crude oil in China were 43.15 billion US dollars. From this, we can roughly estimate how big the world crude oil futures market is - it is a super market of several trillion US dollars.
And every time the boss said this with certainty, it meant that he would arrange a specific transaction, just like the previous stock transactions that were fast, accurate and stable, and the results were profitable.
Since the boss is so confident, then how much profit can the company make this time? In US dollars, 9 digits is definitely certain. Is it possible to break through 10 digits, and the 10 digits are starting with a large number? As for 11 digits, Li Ruiyuan thinks that it is better not to dream about it for the time being.
Soros successfully shorted the pound and forced the Bank of England to go bankrupt. The income of his Quantum Fund was only more than 1 billion US dollars. As a man, you must be content.
Because this news is too important to him, Li Ruiyuan couldn't help asking again, "Really?"
"Yes," Feng Yiping glanced at him and said it with unquestionable certainty.
Regarding the international oil price, he probably remembers two years, 2005 and 2008.
In 2008, the international oil price soared to the highest point, and in August 2005, the international oil price also soared to a benchmark.
The reason why he even remembered August was actually mainly due to a product of KFC, New Orleans Grilled Wings, which made him know a city in the United States, New Orleans.
In August of this year, there will be a hurricane called Hurricane Katrina that hit New Orleans.
This hurricane is the most destructive hurricane in the history of the United States, causing a large number of casualties and property. Due to the ineffective post-disaster reconstruction, a large number of residents chose to leave this sad place. This once prosperous city, a large area of the community has become a ruin. New Orleans is also the second city in the United States after Detroit, where the urban population has dropped sharply.
In fact, those Chinese people who have an unrealistic good impression of the American people should have an intuitive understanding of the "kind" American people after CCTV reported the relevant news of this hurricane.
Although CCTV, like Western media, also likes to report some bad news about the United States, no matter how big or small, it is still relatively objective about the New Orleans incident.
What impressed Feng Yiping was that the disaster that the United States will face this year showed the scenes that appeared in our history books during the great disaster.
The Bush administration was not effective in rescue, but the people in the disaster area not only fought on their own according to the United States' usual self-centered habits, but also a large number of thugs took advantage of the chaos to loot.
Florida originally had a high rate of gun ownership, and a large number of unscrupulous thugs took advantage of the chaos to gather and make trouble. They openly burned, killed, looted and raped in front of the guards and police, and had a gunfight with the police.
Under the huge pressure of public security and death, New Orleans, the United States, actually chose to resign in large numbers like some cities controlled by drug dealers in Mexico.
The Bush administration first sent several hundred veterans who had returned from the Iraqi battlefield to provide local support, but found that they were useless. Later, more than 5,000 soldiers were dispatched to the disaster-stricken areas in the Gulf of Mexico for "support", which was actually suppression or repression.
Such things have never happened in our country after 49 years when some bigger natural disasters occurred.
Another direct consequence of this disaster is that it greatly affected the United States' own oil production capacity.
The Gulf of Mexico, where Katrina hit, concentrates 30% of the United States' crude oil production capacity and 24% of its refining capacity. The hurricane caused fires in many refineries, and a large number of oil fields and refineries had to be closed.
Not only Katrina, there seem to be many major events that will directly affect crude oil production in the rest of this year. It seems that there are also major oil fields in India that have caught fire, oil fields in Iran have exploded, and the king of Saudi Arabia in the Middle East seems to have passed away...
In addition, because of the United States, the turbulent Iraq has seen a sharp drop in crude oil production...
In short, Feng Yiping still remembers clearly that at the end of August, international oil prices will soar to a high level.
It is not clear how high it is, but it seems to be about twice the price at the beginning of the year.
"What should I prepare for?" Li Ruiyuan asked immediately.
"I still need to do some analysis," Feng Yiping said, "What you need to do now is to temporarily stop buying other crude oil futures and collect funds to the maximum extent. Well, I will also give you some more."
"No problem, but is the company facing relatively large financial pressure now?" Li Ruiyuan said.
The acquisition of Marvel Pictures is another big deal of more than 2 billion US dollars.
From last year to now, first the acquisition of Netflix, and then the launch of Facebook and YouTube. Although the development of these two projects is not generally gratifying, they have not started to make profits after all, and are still burning money. The company's capital reserves, mainly in overseas US dollar reserves, should not be enough to support this acquisition.
"Because of the rumors on the domestic Internet before, I think it will be difficult for Chinese banks to provide us with financial support this time," he said.
As the head of an investment company, he still has this sensitivity.
Those rumors all said that there was something fishy about the $2 billion loan approved by ICBC to Forex. Although Forex has repaid the loan in advance, it would be difficult for domestic state-owned banks that have not fully realized market-oriented operations, even if they have been listed on the international market, to approve large dollar loans to Forex if the rumors have not completely disappeared.
"I don't know whether they will approve it, and I don't need to know, because this time, I don't plan to raise funds from Chinese banks," Feng Yiping said.
The bank's reaction this time made him a little unhappy. Maybe they didn't speak out to avoid suspicion. Feng Yiping felt that it was not impossible to make them feel a little pain.
For banks, a loan business of $1 billion is not so easy to do? How can there be so many opportunities?
"Then how are you going to raise funds? Is it equity pledge?" Li Ruiyuan immediately thought of a feasible solution.
"Yes, I have submitted an application to the Google board of directors to pledge 3% of my personal Google shares. At the same time, I am also in contact with several banks on the issue of NEXTDOOR equity pledge,"
"That's too easy," Li Ruiyuan said immediately.
That's indeed too easy.
Google's market value has now exceeded 70 billion US dollars. By pledging part of the 10% publicly available in its name, it can easily raise 2 billion.
I believe that the Google board of directors also understands its own strength and will not be unable to recover the pledged equity, so it is not a problem for the board of directors to pass its proposal.
As for why NEXTDOOR was also included, it was because he wanted to take the opportunity to see the severity of the financial industry in the United States and the market value of the main body of his own business in the United States.
In general, for Feng Yiping now, as long as he wants to raise funds, let alone more, a large number of American banks will come to him with a quota of 10 billion US dollars.
2 billion, that's really a drop in the bucket.
"Mr. Li, I have another idea. From now on, you can also look for some targets. I think it's time to acquire a suitable company in the United States so that we can have our own trading agency in the United States."
"Really?" Li Ruiyuan was happy again, "Okay, I'll prepare it right away."
He was only happy about the expansion of the field he was responsible for. In fact, he certainly didn't know why Feng Yiping brought up this matter now.
Feng Yiping was targeting 2008, specifically, the US real estate market in 2008.
Of course, it was not real estate speculation, but shorting the US real estate market.
It can be expected that such an operation would make amazing profits. In order to facilitate delivery and the investigation that the US government will definitely have, it is best to trade in the United States.
As for this year's crude oil futures, Feng Yiping actually has a plan now. Although he doesn't remember specifically which day the oil price hit the highest point at the end of August, he thinks that it is probably not wrong to buy contracts every day from August 24 to August 30.
As for income, he has a small goal of 100 million US dollars a day.