The reason why Yang Jing dared to do this was because he knew the specific situation when the stock market crash broke out.
By purchasing stocks of those companies from now on, one can certainly make a lot of profit in the first ten months, but on the day when the stock market crash occurs, all previous profits will be wiped out, and one may even lose a little. But Yang Jing doesn't care.
For example, the current purchase price of General Electric's stock is US$3.6 per share, but on the day of the stock market crash, General Electric's stock price will fall to US$3.2 per share. Not only will all the profits Yang Jing earned previously disappear, but he will also lose a lot of money. The same is true for other stocks.
But how much can he lose? 5% of the cost price? Or 10%? Even if it reached 10%, Yang Jing didn't care. It was just a loss of 500 million US dollars. He could afford it.
But at the same time, by losing $500 million, he can obtain more circulating shares in the stock market. If these companies agree to Yang Jing's repurchase of shares, then Yang Jing can control more shares.
Take Microsoft for example. This year, its highest stock price is only $48 per share. At this price, Gates' net worth is just over $500 million. But once a stock market crash occurs, even if Gates wants to buy back shares, how much money can he mobilize?
In the case of a stock market crash, as Yang Jing, who controls 5% of Microsoft's shares, only needs to propose to use a large amount of cash to buy back shares, and Microsoft will have almost no chance of refusing. In this way, Yang Jing has a great chance of buying back more than 5% or even 10% of the circulating shares in the circulation market, making Yang Jing the third largest shareholder of Microsoft after Gates and Allen. In the future, as long as Yang Jing does not reduce his holdings of Microsoft's shares, he can even surpass Paul Allen to become the second largest shareholder of Microsoft.
The most important thing is that Yang Jing became the third largest shareholder of Microsoft, and the money he spent was not much, $150 million was enough! He didn't even need to spend it!
This is true for Microsoft, and it is also true for other companies.
In other words, Yang Jing can spend ten months plus a loss of $500 million and eventually obtain a large number of stocks in companies such as Microsoft, Oracle, IBM, Intel, Walmart, General Electric, and General Dynamics!
Did Yang Jing really lose money? Obviously not. In the US stock market, there is another operation method called "hedging".
Yes, I lost money on stocks, but I will make a lot of money on stock index futures!
Don't forget that Yang Jing only authorized David Anderson to use 5 billion US dollars to acquire stocks of major companies. The KY Fund still has a full 7 billion US dollars in its account!
What was this money used for? It was simple: it was used to short the stock index on “Black Monday”, October 29, 1987!
Seven billion US dollars is also the maximum investment amount given by Holy Ring, and Holy Ring also clearly told Yang Jing that the profit of this investment cannot exceed 700%!
Compared with last year's speculation on the US dollar and the Japanese yen, Holy Ring only gave a 300% profit limit, and the current 700% is already generous enough.
With an investment of $7 billion, you can get a 700% profit, which means you can get $49 billion. Compared with this kind of profit, the money lost in stocks is just a drop in the bucket!
The most important thing is that it is not easy to short the US stock market and make a fortune by taking advantage of the stock market crash.
The US securities market has been developing for nearly 200 years and has a very complete system, especially the monitoring system, which is very strict. If you want to make money from the stock market crash, it is fine if you can't find out. Once the Securities and Exchange Commission finds out, you will end up in jail. There is absolutely no other way. Even if you are the richest man in the United States, it's useless!
Americans are absolutely merciless in this matter. If you use the stock market crash to make money, it is equivalent to cutting the flesh of all American stockholders. It would be strange if they could let you go!
In fact, during the stock market crash in 1987, there were many people who took advantage of the opportunity to make a fortune. As a result, all of them were arrested without exception. Among them, six well-known American tycoons with a net worth of over $1 billion were arrested!
Those guys are stupid. You can short the US stocks if you want, but you should at least cover it up. Do you really think the people in the US Securities and Exchange Commission are just there to do nothing? You shorted the US stocks so openly. It would be strange if people don't hold you accountable later!
However, it was precisely because of the previous examples of these wealthy people being arrested that made Yang Jing wary.
It is not difficult to take advantage of the stock market crash to make a fortune from the Americans' national disaster. The difficult part is to find a legitimate reason to make a fortune from this national disaster.
Yang Jing has already made sufficient preparations. For example, he has started to acquire a certain proportion of the stocks of major companies now, and then used his status as a major shareholder to buy back the stocks when the stock market crash comes. No one can say this.
Similarly, the stock market crash in the United States was not sudden. In fact, the market had already shown signs of the crash a week before it occurred. Therefore, when Yang Jing shorted the U.S. stock market on the day of the crash, he could have used hedging to explain his shorting of the U.S. stock market.
Right? I am a major shareholder of so many companies. When the stock market crash came, I did not sell my stocks, but repurchased them vigorously. This is enough to prove my determination to maintain the US stock market. I shorted US stocks, which is just a normal hedging method! Besides, I shorted US stocks not to make money, but just a means of preserving value. Although I shorted US stocks, the profits I earned from shorting were used to repurchase stocks. I didn't make a penny myself. Not only am I not guilty, I should also be meritorious!
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