The two looked at each other again, having already developed a tacit understanding through their long time together.
Buffett knew that Munger had the same idea as he did, so he said, "A long golden age has ended. Recently, all major indexes have been slowly falling. More importantly, investors' confidence has been destroyed. If you come across an insurance company with an undervalued market value, it is definitely worth buying some of its shares, but the problem is that no one can guess when it will fall to a low point. I think there is still room for decline."
"Yes, just like I am paying attention to your Berkshire Hathaway stocks in advance, you can also pay more attention to insurance and brokerage stocks in the near future, and wait until you think the time is right before buying. The key now lies in oil and the decision of the Federal Reserve. I am optimistic that the market should pick up next year, and my financial advisors also think so. This round of interest rate hikes has affected the global economy. The Federal Reserve is likely to help us entrepreneurs and release more funds to the market."
Such views have spread throughout the mainstream financial media.
Han Chudong is not an analyst who knows everything, but he understands that if the benchmark interest rate remains so high, not only will businessmen and investors be in trouble. These people have already been angry about the decisions made by the previous "steward" in Washington, and the Federal Reserve has also become a target of criticism.
The person who backed the arms and oil businessmen has now voluntarily resigned in disgrace. This shows who the winner of the game behind the scenes is.
Since last month, Getty Oil, Mobil Oil, and Exxon Oil have led the decline, dragging down the entire sector. In terms of arms, there is the support of the powerful imaginary enemy in the north, and the official procurement amount continues to increase. Except for Boeing, which is stuck in the quagmire, everyone else is doing relatively well.
Businessmen, especially those involved in financial investment, must understand the domestic market environment as well as the global environment. Mason United Group employs more than a dozen analysts of various types who specialize in studying these things all day long, and regularly submit analysis results and suggestions to Han Chudong and other senior executives. From time to time, they also spend money to purchase intelligence from consulting firms with more informed channels.
Buffett obviously understood this and asked, "I understand your idea. You will definitely choose the right time to start. Your financing can be used in the insurance industry, but I want to know how much money is expected to be raised and how long it will take to get the funds in place?"
"In November or December, I will inform you in advance. If it is financing, the amount can be between 15 million US dollars and 20 million US dollars. It also depends on your ideas."
"……OK."
————————
The brief exchange is over.
When entering the elevator and going downstairs, Munger said: "I think Mason Han wants to wait and see for the time being, and then buy in after our company's stock price continues to fall. He is indeed a very shrewd businessman."
"It's normal to think this way, isn't it? Our company has no good news to support it, and Blue Chip Stamps' performance has shrunk significantly. More importantly, we lack a source of float. Mason just said it himself, he is just paying attention to us in advance."
Buffett sighed, pondered for a few seconds, and added: "If there is no need to worry about funding, it is better to let him buy other people's stocks. After financing and issuing new shares, our share of the company will shrink. But fortunately, with his joining and solving the funding problem, the stock price should rise a little, and we can also expand our market share in the insurance industry, which is more beneficial in the long run."
He is rational, and Munger is not bad either, saying in an approving tone: "Overall, it should be a good thing. Investors like him who have cash in hand will be welcomed everywhere. If I were not afraid of that little Chinese guy getting angry, I would really like to use the news of financing to stimulate the stock price to rise, and then he will definitely get fewer shares."
"The final result will definitely be abandonment, Charlie, please don't mess around..."
While Buffett and Munger were pondering, Han Chudong was much calmer.
If it was for investing for himself, Han Chudong would most likely directly acquire shares of certain high-quality insurance companies. There would be no need to go through the trouble of implementing the layout through Berkshire Hathaway.
However, this money comes from Mason Private Equity Fund, and only a small portion of the assets belongs to Mason United Group, nearly 40 million US dollars. The remaining more than 100 million US dollars belong to other individuals and companies. He only has the right to charge management fees and transaction fees.
Therefore, Han Chudong was too lazy to spend much energy to manage it personally. As long as he could make money and outperform the market and similar companies, it was enough.
The entire Mason Private Equity Fund currently has only 30 employees, including lawyers, accountants, and secretaries, and the office area is only more than 200 square meters. Considering that the labor expenses are not high and the normal expenses are relatively low, if everything is done well, it can bring in a lot of net profit every year.
These profits can also be used for investment in the future, and the interest will be compounded...
If I think about it this way, it should be pretty good in the future. Actually, at first I just wanted to help others make some money and win over some connections.
After reading the financial statements, I lay down to rest for a while. Thinking about the sarcasm made by the editor-in-chief of that newspaper in the morning, I still felt a little angry.
He immediately asked Arthur's assistant to help collect information, saying that he wanted to buy shares of some mainstream newspapers and wanted to find some information for him to look at first, especially the data behind the Wall Street Journal.
Today's schedule is concentrated in the morning.
After talking with several representatives of the New York Public Employees' Retirement Fund, Han Chudong received about 7 million US dollars in subscription intentions. These official and semi-official foundations have a long history and plenty of funds on hand. Take the Los Angeles Employees' Retirement Fund and the California Teachers' Retirement Fund, for example. Half a year ago, they subscribed for a total of 13 million US dollars from Mason Private Equity Fund and have made a profit so far. Recently, they have sent people to discuss with them about continuing to increase their holdings and subscriptions, so there shouldn't be any problems.
These organizations are not short of money, but they lack safe investment opportunities. Han Chudong uses Mason United Group as a guarantor and promises to protect the principal. This provision is very much in line with their needs.
There is no wrong version in the 1619 book forum!
People may not care about a 10% or even greater depreciation in purchasing power, but if $100 becomes $95 and they are intuitively aware of the loss, then these fund managers may lose their jobs.
Therefore, under the premise of agreeing on a minimum capital guarantee, the managers of these organizations are willing to provide some funds to test the waters, which provides stability and the possibility of obtaining higher returns. Other fund management companies will invest most of their funds in currencies and bonds, which, although safe, often provide less profit.
The reason why the last fundraising of 100 million US dollars was so smooth was mainly because although Mason Private Equity’s projects were aggressive and heavily invested in the securities financing market, they also provided sufficient guarantees.
This time, another 100 million US dollars was raised.
As traditional funds suffered collective losses, Mason Private Equity Fund outperformed bank interest rates this year, making it easier to find money. Some people began to believe that Han Chudong, the third richest man in the United States who "became rich in one year", can really give them satisfactory returns.
That's right.
With the market falling and pharmaceutical stocks in a slump, the second richest man who inherited a large sum of money has fallen to fifth place.
There seems to be news of inheritance tax collection. If I get hit hard, I might not even be able to keep my top ten position...