Reborn Russia As An Oligarch

Chapter 1075 Bringing everyone together to make a fortune

Just look at Buffett to see how difficult it is for big money to make a profit. Since 1999, his average annualized rate of return has basically not exceeded 10%, mostly around 8%.

Just like this, it has been regarded as the "Stock God" by global investors!

Don't take the annualized rate of return of retail investors or small private equity funds as an example, because small funds and huge amounts of funds are completely different things.

But now Wang Ye says that he wants to build an investment fund worth hundreds of billions of dollars, which can double in two years, which means the annualized return rate will reach about 45%, or even higher.

The people present were all super rich with a net worth of billions, so they naturally understood what this meant, so they were so shocked that they stood up.

"You...Misha, are you kidding me?" Abu blurted out.

Since he cashed out most of his property and transferred it, he has also made some investments. After all, you can't just sit with so much money in the bank and earn interest, because it can't keep up with the rate of currency depreciation.

However, by combining various financial management methods, his annualized return on funds can barely reach about 5%, which is considered a relatively stable return.

Hovchenko and Konstantin sat down reservedly first, feeling that they had lost their composure, but they also agreed with Abramovich's statement. Wang Ye must be joking, otherwise it would be too magical.

Wang Ye is really not joking. Doubling in two years is his conservative statement. In actual operation, the income should be higher!

There were many books and reports about this subprime mortgage crisis. In his previous life, Wang Ye read a few news articles out of curiosity. Among them, the one that impressed him the most was an American fund manager named John Paulson. .

Paulson stood out during this economic crisis and made a lot of money. It is said that in 2007 alone, the annualized return of the hedge fund he managed was as high as 590%!

The next year, 2008, the annualized rate of return of the fund he managed also reached about 500%!

This is more than doubling?

This has increased several times in one year!

Moreover, the size of the fund controlled by Paulson is not small, with funds as high as more than 20 billion US dollars.

What's more, Paulson's understanding of future trends is definitely not as good as Wang Ye's, so he should be a bit conservative in actual operations, resulting in the revenue not being maximized...

Wang Ye is now looking for "problems" with "answers" and is very clear about the future economic trend. It would be outrageous if his returns are not as good as Paulson, a fund manager.

…………

“Of course I’m not kidding, let’s put it this way, based on the information I have, it is expected that a very serious economic crisis may break out in the United States from the second half of this year to next year.

Since it is a crisis, danger is naturally accompanied by opportunities, so I want to take advantage of this opportunity to make a lot of money!

The United States is so rich, so it shouldn't be a big deal for us to earn tens of billions of dollars from it.

However, in order to avoid being held accountable in the future, we should also recruit more allies to act together.

Grandpa, can you contact the people in the European royal family and ask them to also invest some funds to invest in my fund. If you have money, everyone can make money together and bear the risks together. "

With that said, Wang Ye turned to look at Constantine and said with a smile.

After thinking for a moment, Constantine nodded and said cheerfully: "I believe in your judgment. Since you are so sure, it means that this investment has a high probability of achieving the expected profit. An investment with such a high rate of return cannot be made anytime." If we can meet it, I believe the royal family should also be very interested. As for making American money, their financial market is open, and we don’t break any laws or regulations, so what are the consequences?”

In fact, Wang Ye just did it just in case, and he also wanted to take this opportunity to win over the old guys from the European royal family and expand his network.

Anyway, you don’t have to pay out of your own pocket, all you earn is the Americans’ money, just a favor.

After completing this investment, I will have an astonishing amount of cash in my hand, and I can do many things, such as providing additional funds to Wagner to expand its scale.

Or even establish another security company to avoid anything happening to the Wagner family...

You can also take advantage of the global economic crisis to buy high-quality assets that have oversold.

Anyway, the "beautiful young master" pays all the bills!

As for the risk of being held accountable by the United States, it is indeed not big. After all, in Wang Ye's memory, although the subprime mortgage crisis caused heavy losses to many countries, there were also many people or institutions who took advantage of this opportunity to make a windfall!

Just that Paulson took advantage of the situation and made tens of billions of dollars. Isn't it different? He was also regarded as the god of investment!

This is just a small person who has surfaced. Who knows which giants behind the scenes have made more money.

For example, Citibank, Goldman Sachs Investment, etc. all know that they made a lot of money at that time, but no one outside knows how much.

Of course, Hovchenko trusts Wang Ye more. After all, there is an example of Polar Bear Investment. He only invested "a little money" there, but now the shares of Polar Bear Investment have become his most valuable asset!

It can even be said that the shares of Polar Bear Investment Company alone have already exceeded the sum of all his other properties combined, and are enough for him to spend the rest of his life casually and wastefully!

However, Abu was still more cautious. He frowned and asked: "Misha, although I have no doubts about your investment acumen, but saying that there will be a big economic crisis in the United States...why do I think it is impossible? My investment The consultant has been encouraging me to invest more money in the United States. Various data reports he has produced prove that the United States' economy has been booming in recent years and will continue for many years to come. Look at the United States' The stock market and real estate market are both rising."

Also, according to Wang Ye, this investment is not just a small matter, but a big deal.

Maybe everyone present would have to shell out billions or even tens of billions of dollars!

If it really turns out to be nothing, even if you are as rich as Abu, it will be a bit overwhelming...

He can't compare with the other people present. In terms of wealth, apart from Elena, he is definitely the "poorest" one!

Even Irina has an industry fund worth hundreds of billions of dollars, and the funds she can use are much more than hers...

So he must be cautious and ask questions before deciding how much to invest.

Wang Ye was already prepared for this, and he didn’t even think about asking everyone to pay billions or tens of billions to him with just a few words. After all, no matter how much people trust him, they have to be cautious when it comes to such huge investments. .

With a faint smile, Wang Ye took a sip of water from his water glass, moistened his throat, and began to introduce the background and reasons for this investment in detail to the people present.

“As we all know, America is very wealthy, every household has a big house and a few cars, and there is a lot of waste.

The main reason for this phenomenon is that the American people have a strong willingness to consume. Almost all people have the habit of excessive consumption. Credit card overdrafts and borrowings are common.

Of course, the same goes for the government of the United States. Their total national debt is staggering, haha. "

Everyone nodded unanimously. In the past 20 to 30 years, it is no exaggeration to say that the United States has been unparalleled. The quality of life far exceeds that of most countries. Even the quality of life of people in countries such as the United Kingdom, France, Germany, and Japan, which are also developed countries, has far exceeded that of most other countries. Far from being comparable to the old Americans.

Could it be said that the people of the United States have created wealth that far exceeds that created by the people of other developed countries?

Not really!

To put it simply, consumerism is rampant and we are spending future money.

It’s not often said that “the average American cannot afford a deposit of $400.” Although this statement is a bit exaggerated, it is actually about the same.

It can even be said that many ordinary Americans not only cannot afford a deposit of US$400, but may also be carrying loans of tens of thousands or hundreds of thousands of US dollars...

The big house was bought with a loan, the car was bought with a loan, and even the home appliances, furniture, and mobile phones were bought with a loan.

It's just that the American economy has continued to prosper and develop over the past few decades, the unemployment rate is also very low, and everyone's expected income is stable, so it can support such consumption habits.

But what if the economic environment changes...

…………

Wang Ye continued: "Recently, I have observed a phenomenon, that is, in the American financial market, there are more and more defaults on subprime loans. By the way, everyone knows what subprime loans mean, right?"

Hovchenko and the others nodded, indicating that they understood.

The so-called subprime loan is actually a type of housing loan. People in the United States all want to live in big houses, but even in rich countries, there are low-income groups at the bottom. This group of low-income groups also want to live in big houses, but they cannot afford enough. What should I do if I want to borrow money?

Originally, according to bank rules, these users with insufficient credit were not eligible for loans.

But how can they have the heart to reject the people's yearning for a better life? That is too undemocratic and unfree!

Therefore, the smart Wall Street elites came up with the new thing "subprime loans".

It refers to the housing loans of these low-income groups. Because the risks of these loans are relatively high, the interest charged is naturally higher than that of normal loans. This is reasonable.

As a result, this subprime loan has become a high-risk, high-reward business.

Many banks and financial institutions were involved. The scale of this business alone reached hundreds of billions of dollars, and the derivative business was even more astonishingly huge.

…………

Wang Ye continued:

“I believe that this economic crisis was caused by the subprime mortgage business.

In the subprime mortgage business, there are four parties involved, namely lenders, lending institutions, investment banks, and insurance companies.

Sometimes I have to lament that the financial industry in the United States is really developed, almost to the extreme. This can be seen through the subprime mortgage business.

But this is a double-edged sword. When the economy is stable and upward, everyone can make money happily, but once the economy goes into trouble.

For example, if house prices cannot rise, loan interest rates increase, unemployment rate increases, etc., what consequences will it cause? "

Thinking of what Wang Ye just said about "frequent subprime loan defaults", Elena blurted out: "Residents default, lending institutions, banks and insurance companies are in crisis!"

Wang Ye nodded, "Yes, it's just beginning to take shape now. I predict that in a while, a large number of US-funded banks will go bankrupt, which will inevitably form a financial tsunami that will sweep across the United States and even the world!"

Everyone shuddered. If Wang Ye was really right, the consequences would be disastrous...

But as Wang Ye said, crisis is both danger and opportunity!

Since you can know the development trend in advance and "lurk" into the American financial market in advance, it is very easy to make a lot of money. No wonder Wang Ye is confident that this money will double in two years!

You can make a fortune just by shorting the U.S. stock index or bank stocks, not to mention shorting various derivatives such as subprime mortgage bonds.

And although this amount of money is staggering, in the huge American financial market, it can only be said to be a drop in the bucket, and it will not be too noticeable.

…………

"Okay, I trust your judgment, Misha. Tell me, how much money do we need to pay and how will the profits be distributed?" Constantine said simply.

Brothers are settling accounts. Although everyone has a good relationship, especially him, Wang Ye is still his grandson-in-law.

But you still need to agree on the rules in advance to avoid wrangling later.

Several other people also nodded in agreement.

Wang Ye smiled and said: "I will set up an offshore company overseas and register a hedge fund. In order to allow everyone to invest with more confidence, and of course to allow the European royal families to invest with confidence, I will fully cover this investment!

In other words, for all your investments, I can guarantee a minimum return of 50%. If it is lower than this amount, I will make up for it. "

Hovchenko frowned, because the risk to Wang Ye would be too great!

Before he could say anything, Wang Ye immediately said: "Since I took the biggest risk, I must also get the corresponding benefits.

Therefore, if the income from this investment exceeds 100%, I will take half of it first, and the rest will be distributed according to everyone’s investment ratio! "

Hovchenko burst out laughing when he heard this. Sure enough, this kid was not a "good man", and he was waiting here.

But this is also very reasonable. Although Wang Ye vowed that a major financial crisis would occur in the United States, he basically convinced everyone.

But in fact, they were still a little unsure. They were only willing to join forces with Wang Ye because of Wang Ye's "invincible" record in the past and the astonishing rate of return on polar bear investment.

But Wang Ye has now directly covered all the risks, ensuring that everyone will get at least 50% of the profits, so why should there be any hesitation? You must invest!

Wang Ye took the biggest risk, and of course it was right to demand more returns.

That is, only half of the profit after exceeding 100% is taken away. This is reasonable...

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