Rebirth of England

Chapter 191 Take a bite of the apple

Barron himself does not believe that he can run global Internet companies like Google and Facebook just by relying on his own capital investment, even though he has the memories of his previous life.

After all, a good idea or having better technology are not necessary conditions for a company to become a giant.

Just like Google has acquired dozens of various start-up companies in the process of development, don't these companies have good ideas or better technology?

But they eventually became nourishment for the giants.

"What do you want us to do?"

Faced with Morris’ question, Barron smiled and said:

"I know that Sequoia Capital has a very large influence in Silicon Valley. I hope you can help me contact the shareholders of a company and, if possible, acquire their shares."

After hearing what Barron said, Morris couldn't help but become curious:

"Which company?"

"Apple!"

"You want to buy Apple stock?"

When Morris heard Barron's words, he didn't know whether the other person was too smart or stupid.

In short, he was full of surprises. At first, he thought that Barron was interested in a Silicon Valley start-up, but he did not expect that it was Apple, which has been developing for many years.

You know, Apple's stock price performance this year is not good or even very bad.

Their stock price fell by more than 66% in half a year from US$36 at the beginning of the year to US$12.

In the second half of this year, Apple's stock is still continuing to fall. As of now, it is close to falling below $7.

At this time, Apple's market value has almost dropped by 5 billion US dollars!

It can be said that now, even Apple's founder Steve Jobs is no longer optimistic about the future of Apple's stock...

Morris doesn’t know why Barron chose to buy Apple stock at this time. It is true that Apple’s stock is at the bottom compared with before, but the key is to invest in Apple now. Will it return to its former state in the future? What about its market value?

The fact is that most people now believe that Apple is finished, and just like those companies that were once brilliant before, they are destined to decline.

At this time, Apple's most important product is the iPod, but only people with Apple MAC computers can use this MP3 player. Therefore, the iPod only has about 3% of computer users in this market.

It doesn't look competitive at all.

Therefore, it is difficult for Morris to comment on Barron's statement that he hopes to buy part of the shares of Apple shareholders, but it is not too difficult...

"That's no problem, Your Highness the Duke. I will help you contact some funds that own Apple stocks right away. I believe that under the current circumstances, some people are also willing to sell their stocks through direct sales..."

After all, such large-scale stock sales that do not go through the secondary market directly have a very low impact on stock prices. If the selling of stocks is completed through the exchange, it may immediately cause a sharp drop in stock prices.

The reason why Barron hopes to purchase stocks directly from Apple shareholders in this way is because he wants to maintain the current "undervalued" atmosphere of Apple's stock.

If you buy directly from the secondary market, it will be easy to increase the price of Apple stock after purchasing a certain amount.

"I think you can also contact Mr. Jobs. Maybe he is also interested in selling his Apple stock..."

The reason why he said this was because he remembered that he had read relevant reports in his previous life.

After Apple's stock price fell below $7 this year, Apple's founder Steve Jobs sold off 55 million shares of Apple stock he held in panic, leaving only 4.5 million shares in the end.

It can be said that compared to Apple's subsequent market value, his sell-off caused heavy losses.

In the era of Barron's rebirth, even many people who didn't know much about technology companies knew that Apple was the company with the highest market value in the world at the time.

So now that he encounters such an opportunity, Barron certainly doesn't need to think about it. The only thing he needs to do is to buy as many shares of this company as possible...

It just so happens that the Mars Fund will soon increase its investment by 200 million pounds from Abu, plus other funds, which can be used to purchase these Apple shares.

According to the initially stipulated profit sharing rules of the Mars Fund, DS Capital will share 20% of the profit share of the client's profit below 20%; and 30% of the profit of the client's profit of 20%-50%. For the part where the customer gains 50% to 100%, they will get 40% of the revenue share; for the part where the customer gains more than 100%, they will get 50% of the revenue share.

According to this share ratio, when the initial investment of 50 million pounds matures in one year, these funds are already worth more than 200 million pounds, a rate of return of more than 300%.

Therefore, after withdrawing the profits, DS Capital received a total profit share of approximately 66.5 million pounds!

After withdrawing their earnings, almost all of the earliest investors chose to continue investing their earnings into the Mars fund.

In addition, because of the ultra-high returns of the Mars fund, investors have once again welcomed enthusiastic investment. Therefore, this time plus the 200 million pounds from Abu, more than 350 million pounds of funds have once again joined Mars like a flood. in the fund.

So far, the funds controlled by the Mars Fund have exceeded 1 billion pounds!

The additional funds will be used to invest in technology stocks including Apple - as signs of the Nasdaq stock market's recovery from previous crises have become increasingly apparent.

According to Barron's memory, he knew that in a year's time, Apple's stock price would have more than doubled from this time.

Because by then Apple's latest version of iPod will be compatible with ordinary computers, thereby gaining 97% of the new market. Also because of iPod's excellent shape and sound quality, it has become popular among MP3 users since then.

Morris acted quickly. In order to join the investment in Woaw, he used his contacts in Silicon Valley and the financial industry to help Barron contact Jobs himself and three other fund companies that held shares in Apple.

Just as Barron expected, Jobs was no longer confident in continuing to hold shares in the company because of the plummeting share price of Apple, and was preparing to sell most of his shares.

Now someone is willing to take over the deal at the current price of $7 per share without having to sell it in the secondary market, causing the price to fall. This makes Jobs happily agree to the deal.

He will sell the 55 million Apple shares he holds to DS Capital for a total price of US$385 million, leaving only 4.5 million Apple shares.

The other three fund companies will also sell a total of approximately 107 million shares of Apple for a total price of approximately US$750 million.

In this way, DS Capital and its private equity fund Mars Fund will purchase a total of approximately 162 million shares of Apple, costing approximately 760 million pounds!

In this way, the shares they held in Apple at this time accounted for approximately 22.5% of Apple's total share capital, making them its single largest shareholder.

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