In Hong Kong, we build a global business empire
Chapter 96: Goal achieved, this happened
Chapter 96: Goal achieved, this happened
Bao Yugang heard this and after a moment's silence, he replied, "Oil crisis? To be honest, I'm not sure. After all, the oil supply of the Pahlavi dynasty is still normal, and the global crude oil price is relatively stable.
However, the Pahlavi dynasty has the support of the United States, and it is expected that these revolutionaries will not be able to overthrow the Pahlavi dynasty in the end, so the oil crisis is unlikely to occur. "
This is also the idea of the vast majority of people. In their view, how could the Pahlavi dynasty lose when it has such a powerful military ally as the United States?
But what many people don’t know is that the United States was ostensibly an ally of the Pahlavi dynasty and one of the allies trying to contain the Soviet Union.
In fact, they secretly planned and supported the overthrow of the Pahlavi dynasty, just because the Pahlavi dynasty had been pushing up oil prices, causing serious economic losses to the United States.
Lin Haoran knew all these inside stories well, because they came from his memories of his previous life.
But in this era, the United States will naturally not easily make these secret plans and actions public, and they can only be kept secret in the hearts of a few people.
This is exactly the question that Lin Haoran wants to discuss most urgently: "Uncle Bao, I imagine a scenario. If the Pahlavi dynasty is really overthrown in the future, it will trigger an oil crisis similar to the 1973 oil crisis, and the price of crude oil will soar several times. I happen to have a considerable amount of funds on hand, and I hope to make a profit before the price soars.
But the problem is that time is running out and I can't just hoard crude oil. In this case, how do you think I can get a share of the upcoming oil crisis?"
Bao Yugang smiled and replied, "There is always a way, and it is not complicated. Since there are many oil producing countries, you can choose a reputable and reliable oil producing country as a partner, pay the funds in advance to purchase crude oil, but do not extract the physical goods for the time being, but let them store it for you temporarily.
When the oil crisis really breaks out and crude oil prices soar, you can resell the crude oil to petrochemical companies in urgent need, and thus achieve your goal.
However, Haoran, I have to remind you that although such operations seem tempting, the risks should not be underestimated.
Do you really think that there will be another oil crisis? In my opinion, the probability of this happening is not high.
Moreover, if the crisis does not occur as you expected, the money you invested in advance will not be completely wasted, but you will suffer losses due to the time cost and the price discount when resell.
After all, you are not running a petrochemical company, and it does not make sense for you to hold crude oil for a long time. "
In Bao Yugang's opinion, the probability of an oil crisis is too low.
As an elder, Bao Yugang felt that it was his responsibility to guide and persuade Lin Haoran, a junior with great potential.
After several pleasant conversations, his liking for Lin Haoran grew day by day, so he placed high hopes on Lin Haoran's future. Chinese entrepreneurs are weak and if they want to fight against the powerful British companies, more outstanding Chinese entrepreneurs need to emerge.
Faced with Bao Yugang's sincere advice, Lin Haoran responded with a warm smile and had his own plans in mind.
He was naturally well aware of the inevitability of the Second World Oil Crisis. This was the wheel of history and could not be easily reversed by individual power.
Therefore, although he was grateful for Bao Yugang's concern, he did not take it too seriously.
In Lin Haoran's opinion, Bao Yugang's proposal was indeed a clever strategy.
By signing a contract and paying for goods in advance, future crude oil supplies can be locked in. This is essentially a non-traditional "oil futures" trading method, but it eliminates the complexity and uncertainty of the futures market and directly connects with the cargo owner, which is more direct and efficient.
However, choosing a trading partner became a difficult problem for Lin Haoran.
He understood that this decision was related to the success or failure of the entire plan and must be made with extreme caution.
So he asked Bao Yugang for advice again: "Uncle Bao, I understand the risks involved, but I decided to give it a try. I can fully bear the risks. In your opinion, if I want to choose a country to conduct this transaction, which country is the most suitable?"
When Bao Yugang saw this, he already understood Lin Haoran's determination.
He did not force them to dissuade him anymore, because respecting everyone's choice is what an elder should do.
In addition, Bao Yugang felt that since Lin Haoran was full of confidence in this matter, letting him learn through practice, even if he experienced some setbacks, was also part of his growth.
After all, in the business world, which is full of uncertainties, even those powerful giants mostly learn lessons from failure and move towards success step by step.
For real entrepreneurs, a smooth journey is often something they can only encounter but not seek. As a person who has experienced it, he gently reminded: "Haoran, choosing a trading partner is like choosing a close friend. The other party's reputation, strength and stability are all crucial considerations.
My global shipping group has a deep cooperative foundation with many countries in the Middle East, especially Saudi Arabia. As an important transportation partner for many oil-producing countries, I am quite familiar with the market there.
If you really want to make this deal, I strongly recommend that you consider Saudi Arabia first.
Not only do they have abundant crude oil reserves, but they also have an excellent trading reputation. No matter whether the transaction is large or small, they will cherish their reputation and will not easily damage it.
Besides, I have a good relationship with Saudi Aramco, and I can help you make the connection if you are really interested.”
When Lin Haoran heard this, a hint of surprise flashed in his eyes, and he thought to himself that this visit to Bao Yugang was a wise move.
Although this meant owing Bao Yugang a favor, he didn't care.
In his opinion, personal connections are the norm in the business world. As long as his own business grows stronger in the future, deepening cooperation with the Bao family will be the best reward.
Currently, he is in the early stages of his business and capital is the most scarce resource, so he must seize every possible opportunity to accumulate wealth.
In this era full of opportunities, his current priority is to quickly accumulate funds and lay a solid foundation for the long-term development of the company.
"In that case, I'll have to trouble Uncle Bao to connect me with Saudi Aramco." Lin Haoran said sincerely.
At this time, personal connections become particularly valuable.
"It's a small matter. I'll call the head of Saudi Aramco and ask him. But, Haoran, how much crude oil do you plan to buy?" Bao Yugang asked with a smile.
"Probably two or three hundred million Hong Kong dollars." Lin Haoran thought for a while and said.
Although the HK$6300 million he currently has is not a small amount, it is obviously not enough for oil investment and cannot satisfy his ambitions.
Therefore, Lin Haoran was secretly planning to use loans to make up for the funding gap.
With the large number of Qingzhou Yingni shares he held and his position as the company's chairman, he was confident that he could easily gain the favor of banks or financial institutions and raise sufficient loan funds.
"After you acquired Qingzhou Yingni, you were able to quickly mobilize two or three hundred million Hong Kong dollars in funds?" Bao Yugang's voice revealed incredible surprise. He was both curious and admired Lin Haoran's ability to manage funds, but out of respect, he did not delve into the details.
Two or three hundred million Hong Kong dollars is not a small amount.
Lin Haoran responded with a smile: "Uncle Bao, capital is the key to business operations. Without sufficient support, I will not be able to successfully complete the acquisition of Qingzhou Yingni."
Bao Yugang nodded in agreement, and then said: "In that case, I will contact Saudi Aramco for you as soon as possible and notify you once there is any progress."
The night was getting dark and their conversation was about to end.
Before leaving, Lin Haoran, considering Bao Yugang's help to him, still did not forget to give Bao Yugang his own advice: "Uncle Bao, if you are interested in increasing your income, this opportunity of oil investment is really not to be missed.
Although there is a certain amount of risk, I think the risk-to-reward ratio is quite attractive.
Even if the oil crisis does not break out, our losses will be just some discounted costs; but once the crisis comes, the profits will likely increase exponentially.
So I think the risk is worth taking.”
However, Bao Yugang remained cautious after hearing this: "Haoran, thank you for your advice, but my funds are currently mainly concentrated on the competition with Wharf Holdings. I really don't have the extra funds to take this risk. However, I still appreciate your reminder and concern."
Obviously, Bao Yugang rejected this suggestion without hesitation.
(End of this chapter)
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