Return to 1958 and build a century-old giant

Chapter 801 The Return on Investing in Apple

British-owned enterprises in Hong Kong are easy targets for any Chinese-owned enterprise. In the early years, these British-owned enterprises started their businesses through government connections. Among their descendants, there are basically no capable people, but they control the most abundant resources in Hong Kong.
If it weren't for the rise of mainland China and the decline of the British Empire, Hong Kong's Chinese capital would never have reaped such immense wealth.

Fang Xianming replied, "Okay, I understand what to do."

As the head of Changxing Financial Company, he has accumulated a great deal of experience in the stock market over the years, and he is naturally very knowledgeable about how to secretly plot against a company.
After leaving the Four Seasons Hotel, Bao Yugang went directly to HSBC, found Sir Michael Sandberg, and told him about his plan, but did not mention that it was Yang Wendong who suggested it.

"What? You want to acquire CLP Power?" Sir Michael Sandberg's arm, which had just been raised to drink tea, froze in mid-air. "Are you kidding me?" he exclaimed in surprise.

Bao Yugang formally stated, "Of course it's true, but it's just an intention for now. To make this happen, I also need HSBC's help."

Those who do big business don't use only their own funds; they all use bank funds, and some even use other people's money when they have their own. This has become the norm in Hong Kong. Many people do business by having 10 HKD, borrowing several hundred thousand more, and then taking out loans of over a million, maximizing their leverage.

Large companies need to keep a sufficient amount of cash on hand at all times, so when faced with short-term, large-scale needs, they will prioritize using bank funds to ensure a final safety net.

Moreover, the acquisition of CLP Power would be another instance of Chinese capital fighting against British capital, bringing the local "quasi-central bank" HSBC to their side, which would greatly reduce the political pressure. After all, the Hong Kong government is not dead yet, and if it intervenes, it would be very troublesome.

Sir Michael Sandberg thought for a moment and said, “Okay, I understand. I will provide you with financial assistance. But as you know, the Kadoorie family is still a director of HSBC, so we need to keep a low profile in the early stages and not let the Kadoorie family find out. We can discuss the next steps after it becomes public.”

Even though Sir Michael Sandberg held considerable power at HSBC, the board of directors still exercised some restraint over him.

He wasn't afraid of one director, but most of HSBC's directors were heads of large Hong Kong conglomerates. If he targeted Kadoorie, it might alert others, and if they all targeted him, that would be troublesome. Although it wouldn't be a huge problem, it was better to avoid it if possible.

“That’s no problem. I need to keep things confidential to a certain extent in the early stages,” Bao Yugang said with a smile.

He didn't expect Shen Bi to be so easy to talk to; he had originally thought the chances were slim.

Shen Bi asked, "How much funding do you need in the initial stage?"

“Let’s start with HK$5 million,” said Bao Yugang. “I can take out a loan under the guise of buying a new ship. We’ve been working together for a long time, so the HSBC board shouldn’t mind.”

“Alright, let’s go with that name then. But you need to actually release the news, even if it’s not a real purchase of ships.” Shen Bi thought for a moment and said, “It would be best to check with Europe and America. That way, it will be harder for others to investigate. Otherwise, the news might leak out in Japan and Taiwan.”

“Europe and America? Great, I was just about to go to England,” Bao Yugang said with a smile.

Sambi frowned and said, "Britain? Britain's shipbuilding industry isn't very good, is it? Isn't France stronger?"

"I'm going to England for tourism, and after that, I'll go see France." Bao Yugang smiled.
He doesn't want to expose the IVF thing yet. Once it gets out, the Bao family will definitely become a hot topic in Hong Kong news, which will not be good for his plan to acquire CLP Power.

Besides, whether it will succeed is still uncertain.

A few days later, the trading volume of CLP Power's stock began to rise slowly, but the increase was not significant and would not normally attract attention. However, Fang Xianming had already known about it in advance. When he discovered it, he immediately ordered his subordinates: "Simultaneously acquire shares of the Grand Hotel, but do so slowly, using multiple accounts. When the time is right, you can also sell some shares to suppress the stock price, but don't let outsiders find out."

"Yes, Mr. Fang," replied the operations manager of Changxing Financial Company.

Fang Xianming added: "In addition, send someone to TVB and Changxing Media to ask them to report more good news about the future industrial development of Kowloon and the good news about Hong Kong's tourism industry."
Therefore, it would be normal for the stock prices of both the Grand Hotel and CLP Power to rise.

Although skilled traders can manipulate stock prices, mathematical laws dictate that once sufficient funds enter the market, stock prices will inevitably rise in the long term; therefore, to avoid arousing suspicion, a suitable reason must be provided for the stock price increase.

The television stations and newspapers controlled by their own group are powerful propaganda tools. Sometimes, even movies can spread some advertisements, although it is relatively difficult to be direct.
“Okay, Mr. Fang,” the person in charge of operations replied.

Media and finance are often intertwined interest groups, and their previous investments have all fully utilized the advantages of the media.

Yang Wendong was relieved to hear that things were progressing on both sides. With his and Bao Yugang's financial resources, the Kadoorie family was basically doomed to lose unless they could find a white knight with sufficient strength.

Next, we'll see when Bao Yugang makes his move. Generally, in the early stages of a takeover battle, the acquisition is carried out covertly for a period of time, until it becomes easily detectable, at which point it is revealed and the takeover is launched.
The timeframe depends on the acquirer's patience and needs. When he acquired Wharf Holdings, he took his time, planning for several years before finally succeeding in one go. However, Pao Yue-kong might be eager to abandon his current position and land, so it probably won't be a long process. Historically, his acquisition of Wharf Holdings followed this style; although he ultimately won, he also suffered heavy losses.
With things on this side temporarily out of reach, Yang Wendong boarded his private jet and headed to the United States. Nowadays, the group's business in Europe and America is growing, and he needs to travel frequently because of communication difficulties. In fact, not only now, but even in the future mobile internet era, many business deals will still require his personal involvement.

Upon arriving in Los Angeles, Yang Wendong checked into the Four Seasons Hotel, where Tang Xingzhi personally greeted and accompanied him.
Looking at the number of customers downstairs, Yang Wendong asked, "How's business at the hotel here?"

Tang Xingzhi replied, "It's not bad. Our hotel collaborates with many airlines, advertising on the seats in front of their first and business class cabins. Although it costs millions of US dollars a year, it brings in many customers, and these customers are quite satisfied with our hotel's service."

"First class and business class, that's quite suitable for our hotel's target customer base," Yang Wendong said with a smile.

Tang Xingzhi said, "Yes, the hotel's customers mainly rely on tourists from other places, so we adopt this kind of advertising strategy in many hotels around the world. On the contrary, advertising directly on TV and in newspapers is very ineffective."

"Yes, that's a good idea." Yang Wendong nodded and asked, "Has the Four Seasons Hotel in Las Vegas opened yet?"

Tang Xingzhi said, "Yes, it has been open for a month. Our partner Smith invited you to come over. He said he could give you $100 million in casino chips."

"I wouldn't take it even if you gave me a hundred million. I'm not touching this stuff." Yang Wendong waved his hand and said, "He's over there. Just cooperate with us to run the hotel well."

Some things are matters of principle, and Yang Wendong would never touch them, not even for a single penny. His family members are the same; in this regard, the Yang family's rules are stricter than the law.

A person can be mediocre, even their own descendants. As long as everyone except the successor grows up happily and healthily, that's enough. But if they get involved in things they shouldn't, their lives could be ruined. "Okay, actually he invited me to come along, but I didn't go," Tang Xingzhi said with a smile.

Yang Wendong said, "Well, it's best if no one in our group touches anything. Just focus on doing business. If you want to gamble, you might as well go to the stock market."

Changxing Group also has explicit internal regulations that anyone involved in such activities will be dismissed immediately, even if they win the game. Of course, at the company level, the game has to go too far before it gets discovered, so it's not as strict as the company rules.
As for the stock market, theoretically the same applies, but we won't go into that, since it's a legitimate industry supported globally.

"Understood, Mr. Yang." Tang Xingzhi continued, "There's already a convoy downstairs. Mr. Yang, you can rest for a while tonight and head to Silicon Valley tomorrow."

"Okay, thank you." Yang Wendong said politely.

Tang Xingzhi said, "Mr. Yang, you're too kind."

The next morning, Yang Wendong traveled to Silicon Valley in a Mercedes armored convoy. Although the 70s were relatively safer than 50s in the United States, firearms were everywhere, so he still had to be extra careful.
So, besides Hong Kong, there are also specially customized Mercedes-Benz armored vehicles in the United States, a place where people stay for extended periods. These vehicles can even protect against poison gas and have internal oxygen supply capabilities. If criminals don't have heavy firepower or explosives, they can't do anything to these cars.

With one car on the left and the other on the right, they can easily transfer vehicles from the US or Hong Kong to other parts of the world, as private jets can carry two cars on board.

Soon, the car arrived at an eight-story building in Silicon Valley, where several familiar figures were waiting for them at the entrance.

After getting out of the car, Yang Wendong smiled and shook hands with him, saying, "Jobs, Wozniak, it's been a long time."

“Eric, it’s rare for us to see you,” Jobs said with a smile. “We’ve heard your business is expanding globally and growing bigger and bigger.”

"Haha, compared to Apple's reputation in the United States, it's still not enough," Yang Wendong said with a smile.

In fact, my current business empire is certainly larger than Apple's in terms of scale, but if my company no longer has the foresight to help it grow, it will definitely not be able to compete with Apple in a few decades.

Jobs was even happier to hear this, since Apple's fame was equivalent to his own. So he said, "I also want to thank Eric for your help to Apple in the early days, otherwise there might not be an Apple today."

“I was just an investor, and now I’ve reaped a substantial return,” Yang Wendong said with a smile. “I came to Apple this time to discuss Apple’s third round of financing, as well as some cooperation matters that we also need to discuss.”

Apple's popularity in the United States has soared in the past two years, naturally attracting the attention of many venture capitalists who all want to invest in Apple. Yang Wendong's early agreement with Apple included the right to make follow-up investments.
In the previous two rounds of Apple's financing, the scale was not large, and he simply added some money to maintain his shareholding. This time, Apple's valuation is relatively high, so he also wants to come and participate.
While I know that Apple will not lose money at any price today after its IPO, as a major shareholder, I must participate in this matter; otherwise, it would be too abnormal.

"Okay, please come in. Let me first give you an update on Apple's recent situation. The investors will be attending the meeting around 10 a.m.," Jobs said.

“Okay.” Yang Wendong nodded. He also wanted to know what this rapidly developing company was like.

For the next hour or so, Jobs gave Yang Wendong a tour of Apple's interior, but when it came to core new businesses, he didn't take him in. Jobs said, "Eric, I know you're also working on computers. Although the market is huge, we're competitors, so I can't tell you about the new projects."

“No problem, I understand.” Yang Wendong didn’t care at all; this was actually the right thing to do, as he was both a shareholder and a competitor.

In other words, Honor's computer market size is small now, but once it grows large enough to threaten Apple, then he, as a major shareholder, will probably be excluded from the board of directors and may not even be able to participate in understanding some of Apple's basic information.
Of course, Yang Wendong could have withdrawn his investment from Apple as early as the early 80s.

If he invests in Microsoft in the future, it will be a long-term investment. But with Apple, it's a short-term investment plan in the early stages, and he will sell all his shares when the time is right.

If history had changed and Jobs had stayed at Apple, he could have decided around the 90s whether or not to invest in Apple again, depending on Apple's development and his own performance.

"That's good. Let's go upstairs. The investors are coming." Jobs felt much more relaxed seeing that Yang Wendong was so easy to talk to. He was also worried about conflicts among the internal shareholders.

The group quickly arrived at the conference room, where quite a few Americans were already present. Jobs introduced them to Yang Wendong, including well-known venture capitalists from Silicon Valley and people from Wall Street.
But there was one person Yang Wendong himself knew: "Tang, it's been a long time."

This is Don Valentine of Sequoia Capital; they had worked together in the past.

Tang laughed and said, "Eric, you were the one who invested in me, but I think I should have been the one investing in you. Your investments in Silicon Valley have been far more successful than mine."

"Haha, you flatter me." Yang Wendong smiled.

As a time traveler, I invest in precise targets. Intel and Apple alone are enough to equal the achievements of many venture capitalists over ten years.

After some pleasantries, the group quickly got down to business.
First, Jobs stood on the stage and described Apple's performance, growth rate, market trends, new project research progress, competitors, and so on over the past six months, making Apple's bright future clear at a glance.
Even Yang Wendong had to admit that Jobs was truly eloquent. Even IBM, a giant competitor, was rendered worthless by him from a cunning angle.

After another discussion, Don Valentine said, "Jobs, just tell me how much you're raising this time."

"I'm prepared to raise $3000 million and give up 10% of the shares." After Jobs finished speaking, the crowd erupted in uproar.

Yang Wendong did some mental calculations: with a valuation of 3 million US dollars and him holding 25% of the shares, that would be worth 7500 million US dollars.

Some people present also thought it was expensive, but they didn't show it. After all, Apple's reputation in the United States was growing, and Jobs himself had become an entrepreneurial hero. If anyone had an opinion, Jobs could refuse to invest with just one sentence.

Jobs continued, "Ladies and gentlemen, in addition to funding, Apple also needs resources in areas such as technology, management, government relations, and channel sales. So, I will talk to you all separately about investment matters and then decide how much to invest."

PS: Please give me a monthly ticket
(End of this chapter)