Chapter 146 Greatness is nothing but scrap metal (first update, please subscribe)
Spring in London is rainy, and the continuous spring rain can even affect the mood of many people.
At least, to the directors of the great shipping companies, their mood was like the London smog in winter and like this persistent rain in spring.
It never gets better.
And now, inside the building of the great shipping company, the shipowner directors were in an even worse mood!
It was the worst possible situation, they were either smoking a pipe or a cigar, and they all remained silent, their moods were extremely simple and complicated.
Buffett is speaking to the ship owners of the great shipping companies in a condescending tone.
"My dear gentlemen, sometimes I have to admit that some undertakings may be great, but as we all know, great undertakings often result in losses. For example, the Great Eastern, we all know very well that from the time it was bought from the slipway by your company, from completion to sea trials, it has never earned a single pound for your company!"
In response to Buffett's blunt words, David Duncan, chairman of the great shipping company, said nonchalantly.
"For now, we can afford the losses."
In fact, he was just strong on the outside but weak on the inside, and everyone was very clear about this. Although the other ship owners present did not say anything, they had only one thought in their minds - to sell the loss-making guy!
Is the Great Eastern great?
Of course it was great. It was a behemoth with a displacement of nearly 30,000 tons. It was a floating city on the sea, the largest iron ship in the world, an industrial miracle of Britain, and even their company was called the "Great Shipping Company" because of the greatness of the "Great Eastern".
But it's certainly a loss leader!
Moreover, it is the kind of loss-making stuff that can drag everyone to death and even bankruptcy.
A great miracle?
No matter how great it is, it is useless if it keeps losing money all the time! They invested real money in this iron ship, but now not only can they not make a penny, but they have to put money in every day. How can they not have a headache?
It was more than a headache, it was simply heartache. This ship was like a nightmare to them, and it had already brought down countless people. Just like his former owner Russell had already been brought down.
It's only a matter of time before they fail. You have to stop the loss in time.
"Really? Mr. David, how long can you hold on? As we all know, due to the company's deficit, you can't even afford the cost of a direct voyage to Australia. And now the French are building the Suez Canal. The Great Eastern may be great, but it can't go through the Suez Canal, and the canal greatly reduces the voyage to Australia. You changed to the American route, but what was the result?"
Buffett threw the firm's investigation report on the table and sneered at David Duncan.
"Until now, the most passengers on your ship has only been a thousand. Every voyage of the Great Eastern has been a loss-making one. Sir, just last month, how much loss did it bring to the company? Ten thousand pounds? Twenty thousand pounds? Or more? Can you afford such a loss?"
Turning his attention to other ship owners, Buffett spoke bluntly.
"Over a hundred thousand pounds a year. What has that great ship, the Great Eastern, brought you in return for the past two years? A loss of two hundred thousand pounds, gentlemen..."
Pointing to the "Great Shipping Company" plaque on the wall, Buffett laughed.
"A miraculous loss for a great ship! This is the reward it brings you! Well, I'll only give you one chance. Now, you have the chance to decide whether to sell it or continue to bear the great loss. Gentlemen, I think..."
Buffett said, opening his pocket watch.
"I have an hour! As you all know, I'm very busy!"
As soon as he finished speaking, the ship owners started talking one after another, and David Duncan could no longer sit still.
"Mr. Brino, even so, your offer is simply buying scrap metal."
In fact, it was not that David Duncan was unwilling to sell the Great Eastern. No matter how great a ship is, it is useless if it cannot make money! He was unwilling to sell it because Buffett's offer was really unacceptable to him.
Because the prices are shockingly low!
They were basically buying it at the price of scrap metal. How could they accept such a low price?
"Scrap metal?"
Buffett put away the smile on his face and spoke seriously.
"At least the scrap metal won't cause losses to the shipowners, but each piece of that pile of scrap metal will cause the shipowners to lose 100,000 pounds. Mr. Duncan, my friend, can you find anyone willing to bid for the Great Eastern? No!"
No one would buy the Great Eastern.
This much is certain. In London, no, in the whole world, everyone knows that the Great Eastern is a loss-making ship. That loss-making ship!
After shaking his head vigorously, Buffett looked at the ship owners and said.
"No one will take it over, because... it's just a pile of scrap metal! Gentlemen, you all know this very well. Maybe in a month or two, or maybe in half a year, you will stop sailing because you can't afford the loss. Then it will rust in the port day by day, and it will eventually become a pile of scrap metal!"
Buffett raised his chin slightly, he was so proud in his heart!
Although he didn't know whether the company would suffer a loss after buying back the ship, one thing was certain: it was so refreshing and comfortable to speak so arrogantly in front of these arrogant guys. It was so cool!
Of course, this kind of comfort and pleasure can be bought with money!
Of course, this is just a negotiation skill. Just like in some relationships between men and women, it is to seize the other party's weaknesses or disadvantages and do PUA vigorously, and then you will always get what you want.
So what if they are the elite capitalists of Britain? They are still our pua.
Scrap metal!
It's just a pile of scrap metal.
This sentence was like the last straw that broke the camel's back, making David and the others breathless. They smoked cigars with frowns on their faces, taking puffs of them intermittently. After a moment, David Duncan said.
"I hope we can discuss the price a little more."
Finally, he decided to face the reality. The reality was that the Great Eastern was indeed a pile of scrap metal that could not be sold. It might be great, but it could not earn a penny, so it was worthless.
"Discuss? I don't think there is any room for negotiation!"
said shipowner Frank Baring when Buffett flatly refused.
"Of course there is room for negotiation. If you can make concessions on the price, Bahrain Bank is willing to provide a 70% low-interest loan for your company to purchase the Great Eastern."
As the chairman of the Bank of Barings, Frank Baring saw his business opportunity. By providing a loan in exchange for the other party's concession on price, it would be a win-win for him. After all, banks make profits from loans, and raising the selling price could also reduce his losses.
"Um……"
After a moment's silence, Buffett thought about it and said.
"I will add another 20,000 pounds, but in addition to selling the Great Eastern, you also have to sell all of your company's facilities, including the dock warehouse in Liverpool!"
(End of this chapter)
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