Chapter 2005 The King of the Internet Era
Latest website: "Damon, you guys, no matter how long your brains are, you can come up with such a method!" Qin Feng sighed.
"This is the power of finance!" Dimon said with a smile.
Finance is not a simple zero-sum game. Financial derivatives are completely an art.
An art that makes money make money, makes money valuable, keeps money from depreciating, and keeps money in your name forever.
Play this art well, and your family will be immortalized, so to speak.
For example, this era is turbulent and changing rapidly. It is very possible to become rich overnight today and become a bankrupt wretch tomorrow.
As for how to preserve your wealth and prevent it from shrinking as much as possible, trust funds are the best choice.
For example, when you become wealthy and make a major decision, you can place your main assets in a trust fund in advance and then sign a holding agreement.
In this case, if you sign the decision you cannot come out permanently. In other words, in the future, you will only have the right to control the dividends of all assets, but not the right to withdraw them. Then no one can take away this asset.
At this time, if your decision causes the business investment to fail and you face huge debts, you can file for bankruptcy.
After bankruptcy, all your income goes to your creditors for three years. At this time, the trust fund dividends belong to the creditor within three years. After three years, when your bankruptcy protection ends, it no longer belongs to the creditor.
The money in it and the future dividends every year will belong to you forever.
At that time, your life can still return to its previous level. At the same time, you will also have another chance to make a comeback.
This is a very good way to prevent risks.
Of course, there is also a drawback to this, that is, once all your assets are placed in the trust fund, they cannot be retrieved. In the future, you will only be able to enjoy its dividends, but cannot take them out.
This is the only slight drawback.
But as long as you can get back the trust fund, then your creditor can take it away if you go bankrupt.
Therefore, this kind of trust fund can be said to have more advantages than disadvantages.
As for such an operation, wouldn't it be very detrimental to the creditor?
This situation is also normal. Because in many cases, when you lend money to others and enjoy the interest, you also naturally have to bear risks.
How is that possible if you don't take the risk.
The moment you want to make money, you have to take risks.
Therefore, regardless of whether the other party has adopted this method to refuse to return your money, you can call the other party cunning and despicable, but this is the other party's method.
You can only blame yourself for not being smart enough and not doing detailed research when lending money.
It is even said that it is useless for the other party to use this kind of trust fund as collateral.
Because the law cannot force a beneficiary of a trust fund to be taken from him or her.
Even if the other party uses the trust fund's income for the next few years to make a loan, you seem to be able to sit back and relax.
In fact, as long as the other party declares bankruptcy. Then the loan agreement signed before will have to be processed in accordance with the bankruptcy law.
Therefore, Western financial rules are indeed unpredictable.
Through various financial means, financiers on Wall Street in the United States are raking in wealth while trying to preserve their wealth as much as possible.
This has also led to the division of classes in Western society.
The strong will always be strong, and the weak will always be weak.
This is ensured by these financial laws.
In the past, history relied on machetes and guns to rob from the poor.
This kind of robbery often arouses the anger of the poor, causing them to fight back or even rise up.
Princes, generals and prime ministers would rather have their own kind.
Even poor people have angry days.
But now, it is useless.
The rich use financial rules that everyone knows to extract benefits from the poor, so that you can only stare at such exploitation.
This is the power of knowledge.
Earn profits through knowledge.
This is also what the Chinese ancestors said before, a gentleman loves money and gets it in the right way.
Of course, this approach naturally makes many people angry.
It's a pity that no matter how angry you are, you can't explain why.
Moreover, most people will not help you redress your grievances.
"However, this share will never be available again," Dimon said.
This trust fund is permanent.
Unless one day the trust fund collapses.
But this is usually impossible.
Because this kind of trust fund is the safest investment channel. Usually it's treasury bonds, bonds and the like. Relatively speaking, the income is not that big, but it is very stable and the risk is very low.
Of course, when the amount of funds is large enough, even if the rate of return is not that high, the post-income figures are very impressive.
Only the poor would pursue that kind of high-return investment.
Because the poor are eager to stand up, and often the giants in the financial world take advantage of the poor's eagerness to stand up and set up various traps, eventually allowing them to swallow up the little money they have saved through hard work.
Generally speaking, most investors will pursue investments with relatively low investment but smaller risks. Of course, this does not mean that they will not invest in risky investments. However, the proportion of money invested in high risks is very small.
Moreover, you will never put your eggs in one basket, but you will definitely put them in multiple baskets to avoid the basket falling and the eggs breaking.
"It's okay, I don't care about the money." Qin Feng said with a smile, "The most important thing is safety."
What matters is being able to control the company in the future. In this way, although its equity cannot be sold, the income it brings is still its own. So, there is no difference.
What's more, after establishing the company, according to Qin Feng's character and the current reality, it would be impossible for Qin Feng to kill the goose and lay the eggs.
Selling equity, that's impossible.
Since it is impossible to sell shares, it does not matter whether the equity can be sold.
As for the sale of 20% equity of Qin Feng's Qin Heavy Industry in China, what Qin Feng got in exchange was Buffett's investment. What is important is Buffett's reputation, and being able to use it as his own shield when necessary.
Therefore, Qin Fengcai sold his company's shares.
Of course, the price of US$1 billion is not a loss now. This also solves the current problem of Qin Feng’s insufficient investment funds abroad.
For example, without this money, it would be impossible for Facebook to develop rapidly.
There is absolutely no way that Melissa can be allowed to develop crazily and enclose territory in the Internet era like she is now.
At present, the entire Internet has not yet realized the influence of social media and its stickiness to users. If you occupy it first, there will be no enemies in the future.
As long as you don't make mistakes, you will always be invincible.
This is the horror of social media software.
Whoever masters social media will be the king of the Internet world.