Return to 1958 and build a century-old giant

Chapter 877 Investing in Mercedes-Benz
After the intention to cooperate was agreed upon, Yang Wendong and Chris and others also exchanged views on the future development of the electronics industry.
One is a top entrepreneur who will succeed in starting a business in the future, and the other is a time traveler who knows the future. Naturally, they can have a very pleasant conversation. Of course, Yang Wendong will not reveal any obvious future information, but only talk about his own views.

Even so, Chris was still amazed by Yang Wendong's talent and thought to himself that it was no wonder Yang Wendong was so successful in the electronics field; it was definitely not just luck.

“Mr. Yang, if you were from Silicon Valley, I think your achievements in the electronics field would be even more dazzling,” Chris said with a smile.
Yang Wendong shrugged and said, "Maybe, but they have to be white. Otherwise, they won't be able to work in some of the most cutting-edge fields."

Chinese tech entrepreneurs in the United States are caught in a dilemma: they are distrusted by the White House and disliked by mainland Chinese communities. This was the case with Mr. Huang in his previous life, and there have even been cases of wealthy Chinese Americans having their assets confiscated.

"Not necessarily. Isn't Wang An doing a great job?" Chris countered.
Yang Wendong said, "Wang An, forget it, let's not talk about it anymore. There's no need to argue about something that doesn't exist. It's getting dark, and I'm going back now. I hope we can reach a cooperation agreement as soon as possible."

Wang An's ending wasn't great, but it also avoided a political crisis. If Wang An had continued to succeed in the original history, it's hard to say what would have happened later.
Chris nodded and said, "Okay, I will reach a cooperation agreement with you as soon as possible, which is also what my company needs."

"That's good. I hope we have a pleasant cooperation." Yang Wendong stood up and shook hands with Chris and the others.
After some more pleasantries, Yang Wendong and the others left.
On the way, Yang Wendong said to Liu Weimin, "Old Liu, you need to pay attention to this Acorn company in future negotiations. As long as the resources they need are not too outrageous, we can discuss them and help them grow as quickly as possible. In the future, we should also have our own chip suppliers in the Commonwealth."

"Mr. Yang, you think so highly of this company?" Liu Weimin asked curiously.

Yang Wendong said, "I can't say I'm very optimistic, but at the very least, they're prepared to challenge Intel's chips, so they have the guts. And judging from the chips they've already made, the quality is decent, which is enough. Let's nurture them and give it a try. The British government is also trying to develop the electronics industry, which won't do us any harm."

Liu Weimin nodded and said, "Okay, I understand."

Yang Wendong thought for a moment and then said, "Also, you can investigate whether there are similar companies in the UK. You can invest in them; it's not much money anyway."

On the one hand, history may be altered because of his existence, so he cannot only invest in companies that are historically promising but also needs to cast a wide net and invest in a portion of the companies, just like normal venture capitalists.
On the other hand, his multiple investments in the United States were so precise that they were abnormally accurate. Therefore, when making other investments, he also needed to randomly invest in other companies to mix them up, so as to appear as a venture capitalist with a high success rate, rather than an unbelievable entity with almost 100% accuracy.

Among the other companies he invested in, some might succeed. Even if they don't reach the level of ARM, Intel, or Apple, becoming mid-level companies would still be a worthwhile investment for him.

Liu Weimin replied, "Mr. Yang, I've also researched the IT industry in the UK. There are very few companies making chips, but there are some making computers. They all learned from the US. Do we need to invest?"

"Computer manufacturers?" Yang Wendong thought for a moment and then said, "Invest, and have Glory Electronics and Best Buy send professionals to investigate the quality of these computers. If possible, let them enter Best Buy in North America for sale."

Liu Weimin laughed and said, "Mr. Yang, these conditions are too good to pass up. These small computer companies must be going crazy for them."

Best Buy is currently the largest electronics retail chain in the United States, and the United States is the world's largest market for computers. Any brand that can get into Best Buy, as long as there are no major problems, will see its sales grow exponentially.

Yang Wendong said, "I promised Thatcher that I would help Britain develop its electronics industry, and now I have fulfilled that promise. Moreover, I need Britain to make some achievements in the computer industry."

His cooperation with Thatcher was mutually beneficial. When the mainland had just opened up and did not yet have a great influence on the global economy, he needed the British government to provide him with certain support. In name, Hong Kong is still part of the Commonwealth, which is reasonable and legal.

If he wanted Thatcher to help him, he would have to do something for her, the most important thing being the issue of employment, but direct investment wouldn't work;
That indirectly helped the development of the British electronics industry, which can be considered a contribution, whether it was investing in chip companies like ARM or letting Best Buy sell British-branded computers. Of course, if British computers were too weak and couldn't capture the market, then there was nothing that could be done.

Historically, the global computer industry was basically dominated by the United States, a situation that Yang Wendong did not want to see. Even if Britain could not defeat the American computer industry, it would be good if it could occupy a part of the market. Moreover, with his investment in Britain, these industrial chains or some equity would also fall into his hands.

Liu Weimin said, "That's true. After all, we are both members of the Commonwealth. Utilizing British talent to develop our company is also one of our important plans."

“Okay, go ahead and make the arrangements. Let the British electronics industry grow bigger, and then they will naturally become a topic of discussion in the British Parliament. If it succeeds, our industry in the UK will be even more successful.” Yang Wendong nodded and said.

When a business reaches his level, the general strategy is to develop an industry in a region, binding himself with local conglomerates and political forces, so that everyone can use their own resources to make a profit together.

Hong Kong is severely lacking in talent. Although Deepsea University has been established, it cannot be of much help within five years. The electronics industry absolutely cannot afford to waste five years. Therefore, making full use of talent from the UK, Japan, and the US is also a top priority for Honor Electronics. Among these, the UK is the most convenient.

Once the number of talented people in the UK increases significantly, the number of people going to Hong Kong may also increase considerably, or they could establish their own research centers here. As both are Commonwealth members, the two sides have a history of cooperation spanning over a century, which would be much more convenient than with Japan and the United States.

After things were settled in England, Yang Wendong called his family and they traveled to Germany together.

Over the years, he hasn't visited Germany much because there hasn't been much cooperation between the two sides. He has cooperated with Deutsche Bank, but only with its New York branch.

When Yang Wendong came to Germany this time, Deutsche Bank personally sent a vice president to pick him up at the airport, and the two had a very pleasant conversation along the way.

Yang Wendong was then taken to the headquarters of Deutsche Bank and met with CEO Helmut Schmidt.

"Hello, Mr. Schmidt," Yang Wendong said with a smile, shaking hands.

Helmut Schmidt replied, "Hello, Mr. Yang, just call me Helmut."

“Okay, then you can call me Eric.” Yang Wendong nodded and said.
He generally prefers to address the heads of top Western companies by their first names, as this makes it easier to discuss matters. In Western society, people with even a slight connection usually address each other this way.

“Eric, please have a seat. I’ve prepared the tea that you Chinese people like the most,” Helmut said with a smile.

Yang Wendong said, "Thank you." Soon, several servings of tea and coffee were brought up, and after some pleasantries, the conversation quickly turned to other topics.
Yang Wendong said, "Helmut, my funds have been in your bank account for some time now. I wonder how the matter I entrusted is progressing?"

When investing in gold futures, Deutsche Bank was one of the investors. The account eventually held $2.5 million. Given Deutsche Bank's capabilities, figuring out Yang Wendong's current net worth wouldn't be difficult. Even if it's not entirely accurate, the level is roughly the same.

So, six months ago, Deutsche Bank took the initiative to contact Hong Kong Changxing Group to inquire whether they were willing to cooperate. After Changxing Group informed Yang Wendong, Yang Wendong also commissioned Deutsche Bank to conduct investment research in Germany.

Germany is also one of the most powerful economies in the future, and its industries will inevitably spread all over the world in the future, so there is no need for it to miss out on this opportunity.

Helmut said somewhat awkwardly, "I'm sorry, Eric, it seems that your previous plans to invest in Mercedes-Benz, BMW, Audi, Volkswagen, or some auto parts companies will be difficult to realize now."
Because none of these companies are publicly listed, we can't acquire them through the stock market. I've also consulted with these companies, and they all disagree with external capital investment.

“I’m familiar with the German family business model,” Yang Wendong said, glancing at Helmut. “As far as I know, Deutsche Bank is a major shareholder of Mercedes-Benz, right? Would you consider selling some of your shares to me?”

German companies in this era are similar to Italian companies; most are not publicly listed and are family-owned. Relatively speaking, they may be better off than Italian companies, because Italian companies are truly completely family-controlled, while German companies are generally controlled by multiple shareholders.

For example, the main controlling family of Mercedes-Benz Group is the Friedrich Flick family, which holds about 25% of the shares. There are many other shareholders, including Deutsche Bank. However, because it is not listed, even Yang Wendong does not know who the other shareholders are or how many shares Deutsche Bank holds.

The same applies to the BMW Group, where the Quandt family is a major shareholder, and even the King of Kuwait is one of BMW's major shareholders.

As for Volkswagen, it's a bit of a special case, as the German government holds a large percentage of its shares.

Helmut nodded and said, "That's right. Deutsche Bank is indeed one of the major shareholders of the Mercedes-Benz family, but this share is not for sale. I have contacted several other shareholders, but they are not very willing to sell their shares. As you know, Mercedes-Benz has been doing quite well in recent years, and the oil crisis has not had a great impact on it."

"I suppose the reason you're unwilling to sell is because the price isn't right?" Yang Wendong said with a faint smile. "Let's be more straightforward. I don't believe that there's absolutely no chance, whether it's your bank or the other shareholders of Mercedes."

With the money in hand, he really didn't believe no one would be tempted.

Helmut pondered for a moment and asked, "Mr. Yang, if I may ask, why do you insist on investing in Mercedes-Benz?"

Yang Wendong said, "First, like you, I am optimistic about the future of Mercedes-Benz; second, I have already entered the automotive industry, so I hope to cooperate with some top car companies, and holding shares in these companies will be one of the powerful means to help them."

Putting aside the gold gains, as the 80s approached, the electronics industry experienced a boom, and his funds inevitably increased.
While the mainland will certainly become a huge money-making place for my investment, investment in the mainland is also gradual. In the 80s, the development of the mainland itself was very uncertain, and foreign investment was not fully utilized. Some large-scale infrastructure projects could not be invested in at will, and the timing was also wrong. Therefore, the period when funds were really consumed was in the 90s.

In overseas markets, the main investment is in real estate in Asia and in the stock market in Europe and America. When investing in the stock market, the best choices are top companies in the future. In Germany, the best choices are BBA (BMW, Mercedes-Benz, Audi), Volkswagen, or a series of top auto parts companies.

However, German companies at that time were generally not publicly listed and were doing quite well, and they did not accept financing, which increased the difficulty of acquiring shares by more than tenfold. Therefore, he could only entrust Deutsche Bank to handle the matter.

Helmut nodded and said, "Okay, I understand. I can also sell some of my Deutsche Bank's Mercedes-Benz shares, but we hope that Mr. Yang can agree to one condition."

"What are the conditions?" Yang Wendong asked.

Helmut said, "I hope Deutsche Bank can be one of the underwriters for Best Buy's future IPO."

“I’m afraid that won’t work. Best Buy is listed in the US, and you’re not good at roadshows,” Yang Wendong shook his head and refused.

He certainly wants to acquire Mercedes stock, but he won't use it for business that would be detrimental to Best Buy.

Helmut said, "We know that too, so we will reduce the distribution fees to a level lower than Goldman Sachs and Morgan Stanley, and we only need to be one of the underwriters."

"Are you trying to use this opportunity to open up the market?" Yang Wendong asked rhetorically.

The closed-loop operation of large financial groups within Germany has also caused great trouble for Deutsche Bank. Since these large companies are not listed on the stock market, many of the bank's financial tools cannot be fully utilized.

This is why, although Deutsche Bank is headquartered in Germany, its main financial business is in the UK and the US, attempting to compete with local British and American banks for market share. However, the difficulty of this is self-evident.

Helmut nodded: 'Yes.'

"I can consider it. How many Mercedes-Benz shares can you offer me?" Yang Wendong asked.

Helmut said, "Our bank holds about 12% of Mercedes-Benz's shares, and we can give you 5%, but the price will need to be evaluated separately."

“Price is negotiable, but I want 8%. One of Best Buy’s underwriters can give it to you, but that price needs to be negotiated separately,” Yang Wendong said after thinking for a moment.

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