INVESTMENT LIFE – CHAPTER 46.

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NOTE : please do read this warning before hand.

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In today’s European continent, a new revolution is going on vigorously. The European Community, which has been built step by step since World War II, is seeking a closer way of cohesion. The Maastricht Treaty adopted in 1991 replaced the former Brussels Treaty, and the framework of the European Union has been established. After the disintegration of the Soviet Union at the end of 1991, affected by the drastic changes in the world structure, the development of the EU has also entered a period of high-speed operation. A new generation of the European continent has regained its glory, keeping pace with the mighty United States, and even surpassing the other side by a large margin, which seems to be the best dream of European leaders.

But the most critical European economic and monetary system in the EU treaty is not as perfect as their ambitious plans, that extremely complex European exchange rate mechanism has become a typical case of financial engineering in human history seriously out of control. From 1979 until the birth of the euro in 1999, the European exchange rate mechanism suffered a total of 18 adjustments, affecting the central exchange rate 56 times. Also brewed two amazing currency crisis.

In this rare exchange rate adjustment in the world, hedge funds led by the international money market funds have become the most terrible enemy of European governments, the use of foreign exchange mechanism loopholes, financial giants around the change in Europe launched a fierce attack, The lucrative profits ripped off piece by piece went into the pockets of these financiers. Only in 1992 a year, Soros alone acquired a huge fortune of more than $ 2 billion, while the British government lost in the pound exchange rate attack, and lost more than a few billion pounds.

But the crisis was not the only one in 1992, unlike what most people know, these bloodthirsty financiers did not stay away from European markets, only 11 months later, in August 1993, the second exchange rate mechanism crisis occurred, this time the main target were the French franc and Italian lira. Unlike the previous pound crisis, the hedge funds in 1993 hid their sharp claws and teeth, annihilating the state of affairs under a hidden current, with money moving as silently as running water.

If you really want to choose an investment direction, then this exchange rate crisis can be described as the biggest opportunity in 1993. In Chen Yuanming’s memory, the most profitable one in the European market this year is the founder of Tiger Fund. It is only the beginning of June, and there are still two months before the real start of August. During this period, it is Mr. Robertson’s top priority to establish a new private equity team and gather larger-scale funds.

And Chen Yuanming’s bond operations in the European market are not only to make profits, but more importantly to attract winners who can win this battle. His current assets are only more than 30 million US dollars, which is insignificant in the hundreds of millions of foreign exchange wars, and the complexity and change of the foreign exchange market is not something he can grasp immediately, so it is rather reckless, it’s better to take advantage of these winners and wait for the huge profits to be recorded.

Now that the other side has lifted the veil of hypocrisy and revealed its sharp fangs, he is naturally happy to enter this financial feast with goodwill.

Smiling and nodding, Chen Yuanming’s not-so-standard American pronunciation took on a hint of interest, “Everyone envies Soros’ achievements, don’t they?”

Mr. Robertson, sitting opposite him, frowned slightly. In his mind, his tiger fund is not inferior to Soros’s quantum fund, but the pound sniper won this guy too much reputation, which virtually made him the second.

I was about to say something, but the teenager across the table changed his tune.

“But I’m still more optimistic about the Tiger Fund’s steady style in recent years than the Quantum Fund. What I need is not to show off, not the glory of making a certain country bow down for it, but real profits and victories. There is a Chinese saying that if there is no tiger in the mountain, the monkey is called the king. The tiger itself no longer needs to show off, its strength represents everything.”

The words came out, and even Mr. Robertson, who had been maintaining a polite smile, laughed out loud, for him, he had heard many more exaggerated compliments than this, but this Chinese teenager’s words hit the right note of what he was most proud and confident of. In the financial market, only victory is everything, to be a financial predator that can change the political situation of a country, standing under the neon lights and boasting is very tempting, but that is not his original business. It is the style of a large feline like the tiger to strike stealthily and prey fiercely.

With this laughter, the atmosphere in the conference room immediately became intimate. In Robertson’s philosophy, the money of the collaborators is not the most important thing, but the compatibility of temperament is the key. After all, a hedge fund is not an investment bank business. Its concealment and small scale mean that cooperative groups need to be more closely connected, and a good partner is often more important than a huge capital injection. Although the young man in front of him looks amazingly young, he already has the basic conditions for a qualified financier. If we look at the long-term concept of holding potential stocks, investing in such people is a profitable business.

With this idea in mind, after some detailed discussions, a secret agreement was reached. As the new partner of Tiger Fund, Chen Yuanming invested 30 million US dollars to participate in the next sniping operation against the sub-European foreign exchange market. After the action is over, you can collect the funds and withdraw the funds. This kind of short-term entry into hedge funds is not without partners, but after all, there are not many. When Mr. Robertson asked about this and his views on future Eurobonds, Chen Yuanming just smiled and shook his head.

“I still have some important things to use this money, and now European bonds are overheating. Although I have not experienced the disaster in 1987, the hidden dangers caused by too much international hot money are still alarming. Now the European market is not necessarily repeating the situation of that year. So I am not optimistic about the European bond market next year. ”

Robertson said this with a slight frown. He was a person who had personally experienced the terrible scene of “Black Monday” in 1987, and he was absolutely clear about the disastrous consequences of the stock market crash. But now it is only the middle of the year, the European bond market influx of funds is far from saturation, this teenager dares to make comments on the trend of next year, should I say he is too bold, or too cautious?

But since the other party has no intention of doing long term, there is no point in forcing it. There were no more terms and agreements, and after the two shook hands again, the deal was done. The next day 30 million dollars will be transferred to Mr. Robertson’s account, and the more lucrative profits will fall into Chen Yuanming’s pocket in the near future.

After negotiating the business, at the warm invitation of the other party, the two enjoyed a hundred-dollar steak dinner at the well-known restaurant “Smith & Wollensky” steakhouse at the entrance of Third Avenue in New York. This time, there is no business to look back on, and the topic seems relaxed and casual. Chen Yuanming also heard a lot of news about Wall Street and those secrets that are not known to ordinary people with great interest. For this great financial empire, what he knows is indeed too superficial.

However, Mr. Robertson did not discriminate against Chen Yuanming because of his ignorance. On the contrary, he was increasingly different from his first impression. The Chinese teenager showed quite interesting financial ideas. Some of his ideas were not as old-fashioned as those of the old Wall Street elites, but with something very novel. Maybe these ideas are too fashionable for Wall Street today, but they may not be impossible in the future.

After a polite farewell, the three left the crowded restaurant and drove home in the Land Rover Defender. After entrusting the funds to Tiger Fund, Chen Yuanming’s short-term layout on Wall Street was already completed, and the rest was just handed over to Kevin Song, who was responsible for continuous follow-up.

he profit ratio that can be obtained from this investment may not be as exaggerated as in China. After paying a management fee of up to 20%, it can get a maximum of 60 or 70% of the profit return, but it is still not to be underestimated for the capital base. In the current Chinese stock market, investing 30,000 to 50,000 yuan to earn hundreds of thousands may be a very easy thing, but if you invest 100 million yuan there will be no room for such a huge amount of money in the open market, no matter which stock, this is a number that can become a banker. Want to use a hundred million to earn back a hundred million is already a rather difficult thing.

But in the United States, this kind of high investment to achieve higher returns is commonplace. Those business giants have an unimaginable capacity and growth potential and sometimes the profit from dividends far exceeds the profit from short-term investment. Therefore, as Warren Buffett said, buying good stocks and holding a long-term position is the best profit model. But this kind of big investment is not what Chen Yuanming can do now. He is too short of money. How to make use of short-term revitalization and expand the scale of funds is the most important thing today.

Can only take one step at a time slowly …… After dealing with the remaining details of the issue with Song Kaiwen, Chen Yuanming walked back to his bedroom, through the still glossy glass walls, he looked into the distance that glorious concrete jungle, there is an unnamable emotion in his heart. Now it’s just a little bit of water, and you can vaguely see the power of the money on Wall Street, so in the near future, can he stand on a similar starting line with these giants?

There are still so many thrilling events and so many coveted opportunities in the years to come. This is a time when financiers are prying the world apart, single-handedly taking down governments and manipulating the lifeblood of the economy. He only hoped he would have more capital to do something more worthwhile before that day came ……

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