America's Road to Wealth

Chapter 347 Repercussions of $45.8 Billion in Profits

On the morning of the 16th.

The largest daily-selling newspaper in the United States.

The Wall Street Journal, which just changed from monotonous black and white to a color newspaper last year, is out today.

If any readers buy it, they will find today’s front page headline of the Wall Street Journal. The title is——

"Who is the most profitable company in America?" 》

[As we all know, General Electric has been the most valuable company in the U.S. stock market for seven consecutive years. General Electric's sales revenue in 2000 was US$129.9 billion. Net profit $12.7 billion ($1.27 per share)]

[Ranking second is Wal-Mart. The total retail sales of Wal-Mart Supermarket Group in 2000 were US$135.013 billion, earnings per share were US$1.45, and adjusted earnings per share were US$1.38. Net profit was US$4.141 billion]

[These are the top two. We can look at the data of Ford Motor Group last year. Last year Ford Motor Group had global sales of $170 billion and sold a total of 7.4 million vehicles. Net profit attributable to parent companies was US$5.4 billion. 】

[Then there is Microsoft, the overlord of high-tech Internet companies. Microsoft's total operating income last year was US$22.96 billion, and its net profit attributable to its parent company was US$9.42 billion. 】

[Finally, let’s take a look at one of the giants in the financial industry, Warren Buffett’s Berkshire Hathaway. Berkshire Hathaway's per share growth last year was 0.5%. By calculation, its net profit was approximately US$7 billion]

[These five companies are all number one in different fields in the US stock market. Except for Ford Motor Group, each of these five giant companies has a stock market value of more than 100 billion US dollars. 】

[Among them, Wal-Mart and General Electric have market values ​​exceeding US$300 billion. In early 2000, Microsoft's market value even exceeded that of General Electric, exceeding US$400 billion. Later, the Internet bubble burst, and Microsoft was implicated. Its current market value is approximately US$267.9 billion. 】

[Berkshire Hathaway has a market value of US$165 billion and Ford Motor Group has a market value of US$65 billion]

[Readers who see this can do a simple addition, that is, these five industry-leading giants in the U.S. stock market, what was their total profit last year? 】

[The answer is US$38.95 billion. The profits of the leading companies in the five major industries in the United States last year were this number. 】

[Then let’s look at another company’s net profit for the fiscal year from November 2000 to November 2001]

[The name of this company is Smith Capital, which must be familiar to many readers. 】

[And Smith Capital’s total profit for this fiscal year was US$45.869 billion. Net profit attributable to parent companies was US$42.8 billion. 】

[Seeing this, the author wants to ask readers a question. That is, how much greater is 428 than 389.5? 】

[The answer is 35.5. 】

[In other words, Smith’s company’s profits for the entire year this year were US$3.55 billion more than the combined annual net profits of the top five U.S. industry leaders last year. 】

[Last year, General Motors Group’s annual net profit was approximately US$3.785 billion. 】

[In other words, add General Motors Group to the five companies: General Electric, Microsoft, Wal-Mart Supermarket, Ford Motor Group, and Berkshire Hathaway. 】

[The total net profits of these six companies in 2000 can exceed the profits of Smith Capital for the entire year this year]

[For another algorithm, the author inquired about the financial reports of 5,000+ listed companies in the U.S. stock market last year. 】

[After summarizing the data, excluding those listed companies with poor management and negative profits and losses. The author found that Smith Capital’s net profit this year is roughly equivalent to the total profit last year of the 300 or so U.S. listed companies with the lowest profits! 】

[Readers who see this must already understand the question in the title and what the answer is. 】

[That’s right, except for the Federal Reserve and the IRS! The most profitable company in the United States last year was Smith Capital. 】

[And the founder and operator of this company must be familiar to everyone. 】

[He is Mr. Abel Smith, the world's richest man on this year's Forbes list, a young man who will not turn twenty-two until April next year, a...]

【.】

The Wall Street Journal's reports and articles are as data-driven and rigorous as ever.

It will put all the usable data it has searched into newspapers for readers to watch.

This approach makes the reading experience not very good. You must at least have a certain degree of education and a certain mathematical foundation to be able to read its articles in full.

But even so, its sales are stable and exaggerated, and it is the number one selling broadsheet in the United States.

It can be seen from this that basically the most educated daily newspaper readers in the United States have the habit of reading the Wall Street Journal.

Otherwise, why don’t everyone read newspapers like the American Sun Daily and the New York Post that are more relaxed, have more explosive headlines, and have more entertaining content?

In the United States, to put it bluntly, the Wall Street Journal is the largest financial and current affairs news daily.

The New York Times needs to add the Los Angeles Times. The two major newspapers on the east and west coasts combined will be able to compare with the Wall Street Journal in terms of sales.

Such a huge daily sales volume means that its readers are spread over an extremely wide territory.

Basically in the entire United States, as long as you are an elite, you can see it.

This means that the question "who is the most profitable company in the United States" has been promoted to the whole country within one day.

More importantly, the Wall Street Journal is not alone in making similar reports.

After all, the total profit for the year was US$45.8 billion and the net profit was US$42.5 billion.

It was too exaggerated for the time of 2001.

The quantitative easing policy of the White House has just begun, and dollar inflation has not yet been as exaggerated as in later generations.

In this era, with a market capitalization of US$400 billion, it is the most valuable company in the world.

A company's profits are more than 40 billion US dollars a year.

Such news is roughly equivalent to the exaggeration that in 2021, a company's profits for that year will be 300 billion US dollars.

Because the other five companies with the highest net profits in 2021 will only have a combined net profit of about US$240 billion.

The names of these five companies are Apple, Tessa Aramco, Neon SoftBank, China Commercial and Industrial, and Microsoft of the United States.

Such a big news was immediately reported by more than just the Wall Street Journal.

The "New York Times", "Los Angeles Times", "USA Today", "Washington Post", "New York Post", "Chicago Daily News", etc., etc., all national daily newspapers in the United States have also published similar news reports. .

The "New York Post", which always likes to use shocking headlines to attract readers' attention, directly used the title of this report today - "Who can buy the United States?" 】

So many newspapers published it, plus the staggering numbers.

Even ordinary people who originally didn't care about these things couldn't help but read these reports.

One of the results is that at the noon break today, American Express's stock price exceeded $45 for the first time, an increase of 11.1%.

The reasoning behind this crazy stock rally is simple.

That was Abel Smith, who was "definitely determined" to win American Express, and he was so rich.

Then if he really wants to buy American Express, wouldn't it be a matter of one year's profit for him?

He can earn one American Express this year. So if he really wants to buy American Express, wouldn't it just be a matter of signing a check?

If you don't buy more stocks now, then when Abel comes to take over, won't you lose a lot of money?

Experts on stock forums and traders at stock companies analyze their customers in this way.

The market situation is hot, and a large number of institutions have begun to scramble for funds.

After Smith Capital's astonishing profits this year were announced, it aroused envy, jealousy, and exclamation throughout the United States and even the world.

The leeks who bought American Express stock all hoped to share some benefits with Abel.

But just when everyone was waiting for Abel Smith to come over and take over.

Noon on the 16th.

The latest issue, the biweekly "New York Observer" released on November 16, published a small exclusive interview with Abel Smith.

This exclusive interview contains authorized pictures of Abel Smith, which were published by the New York Observer, Smith’s most important magazine.

This means that it is likely to reveal Abel Smith's attitude towards American Express.

After learning the news, everyone who had invested in American Express stocks had a copy of the magazine.

Let the sales volume of this magazine in this issue increase by at least 100% compared to the previous issue.

In fact, the interview did reveal Abel Smith's attitude towards American Express.

In the exclusive interview, the reporter asked "Why do you want to buy American Express?"

Abel Smith said: "When I first came to New York and made money, I didn't even know how to stay in luxury hotels. American Express helped me, and its excellent advanced customer service allowed me to avoid a lot of trouble in this regard. It saves a lot of time. I want to better enjoy AmEx’s services in this area, so I think becoming its boss would be a good choice.”

The reporter asked again - "Isn't it because American Express was acquired because of its great role in Pacific Bank?"

"If you think about it purely from this aspect, I think BOK Bank, Royal Bank of Canada, Bank of Montreal, Imperial Bank of Canada, etc., they have greater value for money."

"Especially Canadian Imperial Bank. It has 900 branches in Canada and more than 100 branches in the United States. The key is that it is cheap, and its market value is only US$20 billion now. If it is for business complementarity, I think it is the only way to acquire it. This is what Pacific Commercial Bank should do. Because that will allow us to open up the Canadian market and become a major regional bank in North America."

"Then you acquired American Express mainly for its high-end travel services?" the reporter asked.

"That's pretty much what it means. Of course, it is an old brand. Having such an old brand is also a good choice in some ways."

The reporter from the New York Observer asked the last question in the small interview, "Do you have anything to say to investors who invest in American Express shares?"

"Yes. But only one sentence."

"What words?"

"Investment is risky, so be cautious when investing."

The interview ends here.

In this article, Ashley, a beautiful reporter from the New York Observer, wrote more than 2,000 words, which is very long.

But in fact, this interview never happened at all. Abel just mentioned one sentence to David Jones.

This is the advice given to investors at the end of the interview.

The rest of the content was half guesswork and half fabrication by Ashley and editor-in-chief Dylan.

But this exclusive interview was released with the release of the new issue of the New York Observer.

In just over two hours, it made a huge impact.

After the U.S. stock market reopens at noon.

American Express's stock, which soared 11.1% in the morning, fell by about 1.2% immediately after the market opened.

Then it went all the way down, and by about three o'clock, today's original 11.1% increase was only about 4.5%.

In other words, over an hour.

It fell almost seven percentage points because of the problems with the New York Observer article.

But then its decline slowed down a lot, because experts, gurus, and elite commentators quickly came forward.

They said that this interview was most likely published by Abel Smith to suppress American Express' stock price.

The more Abel Smith does this, the more he values ​​American Express stock!

Everyone, hurry up and buy it, it will be gone later.

The emergence of these calls stopped American Express's temporary downward trend.

But the vigorous rise in the morning cannot be repeated.

In the exclusive interview, the stocks of the banks that Ashley and Dylan made up about all rose to varying degrees after the market opened in the afternoon.

Especially the Canadian Imperial Bank, whose stock price has always been very sluggish, actually rose by more than 5% in an hour.

This is undoubtedly a surprise to the shareholders and investors of Canadian Imperial Bank.

But at this time, none of the named banks and their original investors wanted to sell their stocks at this time.

Most of them bought more. The reason is that if Abel really loses interest in American Express, what if he comes to acquire these banks with lower market value and better acquisitions?

From the attitude of these investors and those of Express Company.

In fact, it can already be seen, after it topped the Forbes list and came out to rescue the market on 9/11.

Abel already has the ability to affect the rise and fall of stocks in the U.S. stock market with just his words.

In the U.S. stock market, Buffett was the only one with this ability before.

So Buffett was later banned, and the stock god was not allowed to discuss any topics related to stocks and listed companies in the media.

It is because of some of Buffett's words that can affect the stock prices of a large number of U.S. listed companies.

In contrast, Soros does not have this ability.

He is the financial sword of Wall Street, which is very useful when attacking small countries.

When it comes to internal affairs, even Soros has to be obedient. If he wants to cut the leeks in the United States, he has to do it carefully.

Originally, only Buffett had the ability, but now there is another Abel Smith.

It is estimated that the treatment that Buffett enjoys, Abel may soon encounter.

That is, he can no longer talk nonsense in the media.

Snapped--

lower manhattan,

At Charlie Brown's Pizza.

Soros, who was sitting in the store, smashed the New York Observer magazine that Tims had just brought over on the table.

The Oilers financial capitalist looked at Abel across from him with a smile and said:

"Canadian Imperial Bank? I think it's pretty good. I think you should acquire it."

"Okay, then it's up to you. I'll buy it when I get the chance." Abel said with a smile.

At the reception last night.

The two made an appointment to talk in private.

Abel chooses the location, and Soros decides the time.

Abel chose the place at Charlie Brown's Pizza.

Soros was more anxious and directly made today the day for the two to talk.

"What do you want to say to me? George, the things in Norway are over. You don't still hate me now, do you? You know, it wasn't that I didn't help you at the time. It was you who couldn't bring me anything to move me. The benefits are great, and Norway has come up with them.”

"You know. For people like us, interests are the most important thing. You don't like to say it, you just do it. As for me, I am not afraid to say it."

"so."

Abel spread his hands toward Soros, "George, what do you want to talk to me about?"

Abel said something that Soros agreed with very much.

That is, for people like them, interests are the most important.

Even though Soros is an Oiler, he often works hard to safeguard the collective interests of the Oilers.

But that's mainly because he can bring a lot of benefits to himself by doing so.

As a huge financial and media collective, the Oilers come together to help each other and become a powerful community of interests.

But if one day, the benefits of betraying the Oilers are greater than the benefits of having Soros side with the Oilers.

Soros will definitely attack the Oilers before anyone else.

Real capitalists can even sell the noose to hang their own necks, let alone their race?

Thinking of this, Soros said softly: "Okay, then I won't be verbose. I'll just say it directly."

"Abel."

The old guy looked at Abel and said softly: "I wonder what you think of China?"

Hearing the word Huaxia, Abel couldn't help but cheer up. He couldn't help but say:

"You want to attack China? Come on, their financial controls are indestructible and harder than a tortoise's shell. You might as well go and mow down the Bear Country again."

"That's true. But what I want to say is not China, I'm talking about China's Hong Kong Island. It's true that China's mainland is inaccessible, but what about Hong Kong Island?"

Soros looked at the protagonist.

"Hong Kong Island."

Abel pondered for a moment, then asked with a deliberate smile: "Do you want revenge?"

In 1997, Soros led international hot money to Hong Kong Island with the remaining power of ravaging Southeast Asia.

I originally wanted to explore Hong Kong Island, but in the end I got nothing.

This is one of his few failures.

Abel said this deliberately for this reason.

Tap the screen to use advanced tools Tip: You can use left and right keyboard keys to browse between chapters.

You'll Also Like