"Boss, are you really sure you want to buy Berkshire's stock at such a high price? The stock price of this company has risen from less than seven dollars per share twenty-three years ago to nearly three thousand dollars per share now, an increase of more than four hundred times! I think the price of this company's stock has reached its peak. If we acquire this stock, the risk will be very high!" David Anderson obviously did not agree with Yang Jing's proposal.
But he had no choice but to agree, because Yang Jing was the boss. The most important thing was that David Anderson didn't know the miracle of Berkshire Hathaway, but Yang Jing knew it clearly!
Although Bill Gates and Warren Buffett have been competing for the title of the world's richest man, and Warren Buffett has only won over Bill Gates once, this does not mean that Warren Buffett is not good. On the contrary, in some aspects, Buffett, known as the "God of Stocks", has done better than Gates, such as Berkshire Hathaway, which is controlled by Buffett.
Compared with Microsoft, Buffett's Berkshire Hathaway is equally strong. Yang Jing will not let go of this behemoth whose market value will be even larger than Microsoft in the future.
This diversified investment group, with a total share capital of only 1.6455 million shares and currently only 856,000 shares in circulation, is definitely a weirdo.
Berkshire's predecessor was a textile mill on the verge of bankruptcy. In 1964, it was spotted by the then insightful Buffett. Under the careful operation of Buffett, who was later hailed as the "God of Stocks", this textile mill on the verge of bankruptcy began to come back to life. The stock price soared from less than $7 per share at the time to a maximum of more than $320,000 per share in later generations. On January 29, 2018, it created a magical valuation of $100 per share, making it the stock with the highest unit price in the world! The market value also soared from less than $23 million in 1964 to nearly $500 billion in 2018, making it a giant enterprise ranked in the top ten of the Fortune 500!
Yes, compared to 1964, Berkshire's valuation has indeed soared 400 times, but compared to 2018, the price of less than 3,000 US dollars per share is still far away. Even if you buy Berkshire's stock now, in 30 years, this stock will increase by 100 times!
How could Yang Jing let go of this stock?
"Well, you are the boss, since you gave the order, I must obey." David Anderson looked a little reluctant.
Yang Jing said, "David, I am not forcing you. I am just very optimistic about this stock, just like you are optimistic about Microsoft and Oracle. I am also very optimistic about Berkshire. According to my analysis, if nothing unexpected happens, within three years, the price of this stock will increase by about two times, almost reaching the price of 9,000 US dollars per share. Within five years, the price of this stock will definitely exceed 15,000 US dollars. As for the more distant future, the price of this stock is very likely to exceed 100,000 US dollars! David, trust my judgment."
Hearing Yang Jing's firm words, David Anderson couldn't help but waver. "Boss, can the share price of this stock really soar so high?"
Yang Jing nodded affirmatively and said, "My analysis is based on Warren Buffett. Berkshire can only develop rapidly under the control of this genius investor. Therefore, when you acquire Berkshire shares, it is best to contact Buffett. Of course, when acquiring the shares held by Berkshire's small shareholders, you can purchase them at a premium. I can authorize you to purchase this stock at a 30% premium! But my requirement is the same as before. You must control 5% of Berkshire's shares before October this year."
When Yang Jing said the price, even David Anderson couldn't help but take a deep breath. A 30% premium was not a small number. It seemed that the boss was really determined to buy Berkshire's stock.
"Okay, boss, I will complete this task within the time you specify." Although the current valuation of Berkshire Hathaway is close to three thousand dollars per share, the company's overall market value is less than five billion dollars. The boss asked to acquire 5% of its shares. Even if it was a 30% premium, it was nothing for the KY Fund.
"Boss, are the Qualcomm and Cisco companies you just mentioned also prioritized?"
Yang Jing nodded and said, "That's right. The investment priority of Cisco and Qualcomm is the same as that of Microsoft, Oracle and Intel. We must acquire enough shares before they go public."
Are you kidding me? If not now, when will you invest in Qualcomm? Qualcomm, which was established less than two years ago, will be the absolute overlord of the mobile communications industry in the future. If Intel is the hardware overlord of the computer industry, then Qualcomm is the hardware overlord of the mobile communications industry.
In the future mobile communications industry, ARM of the UK controls software licensing, while Qualcomm controls the core chips of hardware. One of these two companies has just been established, and the other is not yet in existence, so investing in Qualcomm now is absolutely urgent.
As for Cisco, it goes without saying. Everyone in the world knows what this company will be like in the future! This company will be synonymous with the Internet, and its market value even exceeded that of Microsoft at its peak.
Now, both Qualcomm and Cisco are just in their infancy, and few people pay attention to these two companies. But once Qualcomm emerges in the mobile communications industry and Cisco shows its strength in routers, it will not be so easy to invest in these two companies.
My dear, there is more to this chapter. Please click on the next page to continue reading. It’s even more exciting later!
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