My Age of Investment

When Li Yaozu walked into the hotel conference hall surrounded by a group of people, the place was already full of people.

At a glance, it's all densely packed with human heads.

These hedge fund managers and entrepreneurs looked as if they had lost a battle, with their heads downcast and their faces ashen.

There are far more fish in the big pond of Volkswagen than Li Yaozu imagined.

He roughly counted the number of participants and found that there were at least a hundred people attending the meeting, representing more than a hundred organizations.

There are only two winners, one is Vision Capital and the other is Porsche.

Neither Wolganf nor anyone from the Porsche family showed up. The person who came was a professional manager of Porsche. .

He shook hands with Li Yaozu in a very friendly manner, invited him to sit down, and then briefly communicated for a few minutes.

Soon, officials from BaFin and the Frankfurt exchange showed up.

These people came up and strongly criticized the speculative behavior of the short-selling public, saying that they had caused huge disasters to the entire financial market and disrupted the financial market.

Although the words were unpleasant, the hedge fund managers present could only choose to accept them.

Without official mediation, they would still have to bear the pressure of skyrocketing stock prices.

After knocking off these bold hedge funds, officials from the Hong Kong Monetary Authority and exchanges talked about over-the-counter agreement to liquidate positions.

When he heard that the position was to be liquidated according to the current market price of 1,500 euros/share, the highest price in the market, a white-haired old man in his seventies jumped up as if he had stepped on the tail.

"This doesn't work! You can't do this! This price has far exceeded the position of our short stock price, and we cannot afford such a huge loss!"

Everyone looked at the old man who suddenly stood up from the table to protest.

He was wearing a well-dressed high-end suit and a pair of glasses, like a learned professor.

But at this time, he seemed to have completely lost his mind and kept reporting his difficulties.

Someone recognized this old man, Adolf Merkler, a well-known rich man who ranks fifth in Germany and 94th in the world according to Forbes. He is worth nearly 10 billion U.S. dollars and owns companies including Heidelberg Cement Group. There are hundreds of companies with more than 100,000 employees.

Such industrialists also come here to engage in financial speculation? Still trapped?

Adolf Merkler's defense was not considered by the officials. They only said coldly: "If you do something wrong, you will have to bear the consequences. If you don't complete the agreement to close the position today, tomorrow's price will be 2,000 euros, 3,000 euros.”

Adolf Merkler collapsed in his seat, unable to stop himself from sweating when he thought of the huge loss.

If he had not encountered a financial crisis, he would not have cared so much about the loss of a few hundred million euros.

But now the company's capital chain is inherently difficult, and the failure of speculation has consumed his last remaining liquidity.

Otherwise, just die?

Merkel's miserable look made many speculators feel sad, and some even started wiping tears.

Their hedge fund was severely damaged by the collapse of Lehman Brothers. Old wounds have not healed, but new ones have been added. Maybe the entire fund will collapse.

Each has its own difficulties, each has its own pain.

Neither Li Yaozu nor the Porsche professional manager sitting opposite had any sympathy for these people.

If they had lost, they would be the ones crying now.

Playing finance is just like gambling, how can you only win but not lose.

Officials from the Hong Kong Monetary Authority are actually right. If you do something wrong, you will have to bear the consequences.

Shorts are the public who are shorting in the range of 400 euros to 200 euros, with an average of 300 euros.

Now the position is closed according to the 1,500 euro/share agreement, and the loss has reached 500%.

This is also often said: short selling profits are close to 100% at most, while short selling losses have no upper limit.

More than a hundred short sellers are like meat on the chopping board, with no say at all.

Except for Merkel who jumped out and protested, everyone else chose to accept their fate.

There's nothing they can do if they don't accept their fate. They will only suffer the consequences if it drags on.

In this way, Vision Capital and Porsche Group reached a liquidation agreement with more than a hundred short sellers.

Envision Capital sold 3% of the equity and options to the short side, totaling 8,835,821 shares, and the short side needed to pay a transaction consideration of 13,253.73 million euros;

Porsche Group sold 4.6% of its shares and options to short sellers, totaling approximately 13.55 million shares, and the short sellers needed to pay a transaction consideration of 20.325 billion euros;

The short sellers suffered heavy losses. In addition to spending more than 30 billion euros to close their positions, some people also spent a lot of money to raise funds in the secondary market. The total losses were at least 40 billion euros.

…………

…………

As soon as an agreement was reached, the German Financial Supervisory Authority, the Frankfurt Stock Exchange, and the Volkswagen Group immediately issued announcements and began to calm market sentiment.

Li Yaozu also came to the hotel to report back to Xia Jingxing with the good news.

Xia Jingxing was very happy and immediately opened a bottle of red wine, first poured a glass for Li Yaozu, and then poured a glass for himself. The two clinked glasses to celebrate.

"We built positions in Volkswagen in two batches this year. The holding cost of the first batch of positions was 143 euros/share, and the holding cost of the second batch of positions was 210 euros/share. The total investment was about 1.5 billion euros. .

The return rate reached 883%, with net income of 11.8 billion euros.

This deal is quite good! I don’t know when we will meet again next time. "

As he talked, Xia Jingxing actually felt a little sentimental. As time goes by, this kind of opportunity to make big money is becoming less and less.

Li Yaozu didn't know what kind of madness his boss was having. He made more than 10 billion euros and was still thinking about the next time.

To be honest, he never thought that his career would have such a glorious day.

The gains from the public, the gains from sterling foreign exchange, plus the gains from shorting financial stocks in European countries, together almost reached 20 billion euros.

What a brilliant achievement this is!

At the same time, it also shows how important it is to follow the right person.

If Xia Jingxing had not given the London office a principal of US$20 billion in the early stage, and then added an additional US$1 billion, even if an opportunity appeared in the market and he seized it, he would not have been able to gain so much profit.

Calculated based on the capital after adding three times the leverage, he only used 20 billion US dollars to earn 20 billion euros. The return rate is almost equal to the exchange rate, about 1.3, or 130%.

As far as he knows, both trading teams in the New York office have made considerable gains, and their income is no less than that of the London office.

The performance of the Hong Kong Island office was slightly worse, earning only US$8 billion.

If you add up all the offices around the world, the return rate of Envision Capital’s funds this year would be terrifying.

The absolute value of the return is even more terrifying. He estimates that it will be tens of billions of dollars, and it is not necessarily close to hundreds of billions of dollars.

"What are you thinking about?"

Seeing Li Yaozu in a daze, Xia Jingxing smiled and tapped his cup with his cup.

Li Yaozu reacted quickly. He did not dare to ask his boss if he had earned US$100 billion this year, so he had to use a pretense: "I was thinking about the stock price of Volkswagen. It would be great if I could go short on the backhand."

"You can die if you want. The Porsche family likes people like you who are not afraid of death. They also hold close to 70% of Volkswagen shares, and they can repeat the short squeeze for you in minutes."

Li Yaozu smiled and said, "I'm just kidding! Porsche should soon complete its controlling stake in Volkswagen, leaving no chance for others to short-sell."

Xia Jingxing thought about it in his mind and concluded that the Porsche family would not increase its stake in Volkswagen through the secondary market.

In their previous life, they had the idea of ​​"merging the Porsche car brand into Volkswagen as an asset, so that the shareholding ratio would exceed the 75% holding line in one fell swoop."

Because the financial crisis spread to the real world and Porsche had its own debt problems, Volkswagen in turn acquired Porsche cars.

Even so, the Porsche family still holds more than 50% of the shares of the Volkswagen Group, and Porsche Cars is a wholly-owned subsidiary of Volkswagen. It is equivalent to turning the left hand into the right hand, and the son becomes a grandson. The Porsche family is still the real power behind the two companies. Big boss, largest shareholder!

In this life, Porsche made more money from the short squeeze than in the previous life. Maybe it can withstand the debt pressure and turn the Volkswagen Group into a subsidiary of Porsche.

No matter which plan is adopted, the Porsche family is in an invincible position in this acquisition battle.

He felt that he had slightly offended the Porsche family this time. In the future, the other party would not bring Volkswagen, Audi, Skoda, Seat, Porsche, Bentley, Lamborghini, Bugatti, Ducati, Moia, Scania Will 13 brands including MAN Trucks, MAN Trucks and Volkswagen Commercial Vehicles come together to fight Tesla and Fuxing Motors?

Of course, he won't be shy if he comes. He is already a competitor, so it doesn't matter if he adds some new and old grudges.