Debuted right after graduating from high school

The financial products that Zuo Ziyan mentioned, which specialize in investing in Chinese concept stocks listed on Hong Kong Stock Exchanges, were quickly found by Fan Wumian.

After reviewing it, he found that the scale was too small, and the leverage ratio of only three times did not meet his needs. It was not suitable for long-term holding. Rather than wasting his money on such a place, he would rather continue to invest in the US financial market. He quickly put the product out of his mind.

During his research, Fan Wumian unexpectedly discovered that "China Petroleum," the company with the highest total market capitalization in the A-share market, had already exceeded 72000 trillion RMB.

This number is terrifying.

In the foreseeable future, once this bubble bursts, it will likely devastate countless investors.

Compared to the negative impact of the sharp drop in PetroChina's stock price, the little money that Fan Wumian saved for the mainland through his extensive efforts seems to have suddenly become insignificant.

An overseas valuation agency analyzed that China Petroleum has a serious bubble. According to its financial report for the first half of this year, its reasonable market value is only about RMB 13000 trillion, corresponding to a price-to-earnings ratio of 8.

Even based on ExxonMobil's price-to-earnings ratio of over 12, China Petroleum's total market capitalization should not exceed 20000 trillion RMB. This shows just how big the bubble is. Once the bubble bursts, the total wealth lost could be more than a 4 trillion RMB stimulus package.

Of course.

More than 86% of China Petroleum's shares are held by the government and do not enter the market. Whether the stock price is high or low, it is just a numbers game on paper. The real negative impact is not that big, but the estimated loss of hundreds of billions of RMB is still quite staggering.

During his research on the company, Fan Wumian also discovered that Warren Buffett had just cashed out approximately $40 billion worth of PetroChina shares from the Hong Kong Stock Exchange, making a profit of over 700%. In contrast, a group of stock investors were clamoring online that "if you don't invest in PetroChina, ten years of stock trading will be in vain."

When people are speechless, they can actually laugh in exasperation.

Knowing that speaking out would likely draw criticism from millions of investors holding shares in China Petroleum, he dared not cause trouble for himself this time. After all, publicly criticizing China Petroleum would be tantamount to slapping the face of its management.

Because of the share reduction and the iron ore issue, Fan Wumian has already gotten himself into a lot of trouble, so there's no need for him to jump out and become the first to stick his neck out.

His recent experiences have taught him the lesson that "there are many things you can do, but it's best not to say anything and cause trouble." Moreover, given how high the total market value of China Petroleum is, it's too late to say anything now.

A quick glance at the list of leading stocks listed on the A-share market is truly astonishing.

Last year, Fan Wumian spent only HK$300 million to acquire 7% of the total share capital of Sanyao Heavy Industry, and now the company's total market value has exceeded RMB3 billion.

The stocks he recently sold to Xinhua Insurance Group, cashing out through a left-hand-right transaction, saw their total value increase by more than 6 million RMB, reaching 21 billion RMB. Since the investment, the increase during that period was barely 700%.

Sanyao Heavy Industry may have a bright future, but judging from its current revenue and profit figures, it is clearly not worth the price.

The vast majority of stock market investors are still unaware that they are already buried up to their necks, yet they continue to sing and dance as usual.

Faced with this rare "bull market," everyone was overjoyed. Some netizens even mentioned that after being scolded by their boss, checking their portfolio information would instantly improve their mood, and they were planning to quit their jobs and stay home to trade stocks full-time.

The market is indeed in a bull market, but unfortunately, this bull is mad.

It's estimated that it won't be long before it rampages and crushes countless stock market investors who dream of getting rich.

There aren't many lucrative prospects in the hydropower sector. Overseas, electricity is seen as a highly profitable business, while in mainland China, it's more like using electricity for charity. Often, even if there are losses, prices aren't raised, allowing hydropower and thermal power plants to earn a meager profit, with a profit margin slightly higher than simply depositing money in a bank for interest.

However, affected by the overall market, the market value of Yangtze Hydropower Group still exceeded 1800 billion RMB, and the price-to-earnings ratio was so high that Fan Wumian dared not even consider any "financing and share issuance" and had to wait for the market valuation to return to a reasonable level before making a decision.

In such a bull market, many people think they are Fan Wumian or Warren Buffett.

Seeing so many comments urging people to sell their houses, withdraw their fixed deposits, and rush into the A-share market, he felt his blood pressure rise significantly, as if the market had no risk and money would just fall from the sky.

at the same time.

Wang Yu, president of Bosera Funds, traveled from Shenzhen to Hong Kong and met with Fan Wumian at his mansion on Repulse Bay Road.

When Wang Yu first visited the mansion at No. 89 Repulse Bay Road, he had studied abroad and was well-informed, but he felt that the mansion seemed somewhat overpriced compared to its exorbitant market price.

For three or four hundred million Hong Kong dollars, one could buy a vast estate in Europe, or a top-tier mansion in places like Beverly Hills in the United States or Kensington Gardens in England. In contrast, Fan Wumian's mansion is not that large, the sea view is partially blocked by residential buildings to the west, and the road in front is not new. Overall, it gives the impression that it is "worth more than this price."

Thinking this to himself, how could Wang Yu possibly say it out loud? While smoking cigars with Fan Wumian on the lawn in the backyard, he sighed:

“When A-shares plummeted before, investors did not redeem their shares. However, due to the recent surge in the stock market, more than 350 billion yuan has flowed out.”

"Fortunately, there was a lot of redemption and purchase, so overall we barely broke even. Otherwise, the data would have looked terrible and would have affected the company's normal operations."

"The fund managers from other companies who were heavily criticized during the previous market crash are now jumping around, thinking they've turned the tables and beaten our company. They're willing to risk everything to make money, even knowing the market is extremely dangerous, they're still absorbing funds and busy adding to their positions, probably hoping to make a quick buck and retire."

Fan Wumian was well aware of what Wang Yu was saying. After taking a few puffs, he placed the cigar next to the exquisite crystal ashtray and simply asked:
"What do the employees think inside the company?"

"I can play the long game, using short-term gains to build a good reputation and long-term benefits. They probably won't be able to wait that long."

"If it were me, I'd probably curse them out in private, blaming me, the boss, for making them miss out on a chance to make a fortune."

Wang Yu, who manages Bosera Funds, did not offer any clarification or explanation. The situation was obvious; trying to unfairly praise Fan Wumian was pointless. He simply replied:
"There are so many asset management companies in the world, but there is only one stock god, Warren Buffett. The old stock god is also good at holding cash and observing, avoiding risks, and there is a famous saying: 'Be fearful when others are crazy, and crazy when others are fearful.'"

"Looking at Mr. Fan's recent investment strategy, it's starting to resemble Buffett's style. Your decision is definitely not wrong. It's just that investors are not mature and rational enough, and the market order is not perfect enough. Winning first doesn't mean winning. The real winner is the one who laughs last."

"As long as other fund companies collectively run into problems, then Mr. Fan, your reputation and that of your company will be reversed in a very short time. I can already imagine that at that time, hundreds of billions of RMB of safe-haven funds will probably flood into our Bosera and Mountain King Funds."

Flattery is a profound art.

Getting started is easy, but mastering it is extremely difficult; both intelligence and emotional intelligence are indispensable.

Wang Yu's words clearly struck a chord with him, and Fan Wumian couldn't help but laugh:

"Others are thinking about making quick money, grabbing whatever they can get. The reason I'm holding back is actually to gain some goodwill from the north, so as not to be seen as saying one thing and doing another, and squandering the goodwill I've built up over the past few months."

"No matter how much mainland asset management companies mess around, the meager profits they make in the short term are only worth two or three hundred million US dollars at most, which isn't very meaningful. If we're going to do something, we should do something big. To be honest, my small goal is to grow both Bosera Asset Management and Mountain King Asset Management to a scale of one trillion RMB."

"By the way, have any of the other major shareholders of Bosera Asset Management protested my decision, or even tried to cash out and leave in anger?"

Sensing that Fan Wumian wanted to increase his holdings further, Wang Yu shook his head and said:

"No, recently the returns of various funds have been far behind those of their peers, yet the total assets under management have actually increased instead of decreased. Anyway, charging a 2% management fee doesn't have a significant impact on performance. Besides, the major shareholders are all state-owned enterprises, so how could they not be sensitive in certain aspects and join private companies and foreign companies in causing trouble?"

Fan Wumian clicked his tongue and said, "What a pity."

Taking a puff of his cigar and blowing it away, Wang Yu changed the subject and said:
"However, the company's cash flow is insufficient, and I feel we need to guard against potential risks. If Mr. Fan contributes a portion, the other major shareholders have no reason not to support it. At that time, the company will have ample funds, and you can increase your holdings at a lower price, which is more suitable than directly acquiring shares from other major shareholders."

It was obvious that Wang Yu had just given him a handout after he had just taken a nap, promoting him internally to become the president of Boshi Fund. He really hadn't misjudged the person he chose.

It's estimated that it won't be long before international speculative capital collectively flees, draining hundreds of billions of US dollars from the A-share market. It would be strange if it didn't fall.

While the overall valuation of Boshi Fund is still not high, Fan Wumian had long considered increasing his holdings. The potential for investment in it is much greater than that of investing in hydropower stations or office buildings, and there is also the opportunity to enjoy decades of continuous dividends.

I don't have much cash on hand right now, but my personal account, WM-Rogers hedge fund, and Paulson hedge fund have all made a fortune. Since I don't have any major living expenses, and the rate of currency depreciation will accelerate with the massive monetary easing by central banks around the world, it's a good time to allocate some high-quality assets.

The market is not optimistic about Bosera Funds in the short term, which presents a good opportunity to buy at the bottom. If you miss the opportunity now, it is unlikely that the price will be so low when you want to increase your holdings and grow your wealth.

Fan Wumian nodded decisively and said:

"If the other major shareholders have no objections, then let's raise more funds. This will allow Bosera Funds to use its own capital to buy at the bottom in the future. We won't distribute dividends for now; the snowball needs to keep rolling to get bigger and bigger. If anyone objects, just say I plan to list Bosera Funds, and that'll shut them up." (End of Chapter)