A century-old wealthy family that rose from Shanghai

In December 1976, the Dow Jones Industrial Average climbed to over 1,000 points, nearly doubling the value of the stocks bought by the Chen family in September 1974. At that time, the Chen family had invested a total of US$1 billion in these stocks, mostly in high-quality blue-chip stocks, and most of them saw gains of over 100% in just two years.

That day, Chen Guangliang sat in the study of his high-rise apartment on Park Avenue in Manhattan, opposite his four children from his second wife—Chen Wenjin, Chen Leyi, Chen Wenhua, and Chen Wenhai. His wife and son-in-law were not there.

Jiang Meiying stood behind Chen Guangliang, massaging her husband's shoulders.

Chen Guangliang looked at his four children, all of whom have now become heavyweight businessmen in the United States. Chen Wenjin is the founder of the world's largest commercial real estate company, whose most shocking move was buying eight Manhattan skyscrapers in one go. Chen Leyi is the founder of Amgen Biopharmaceuticals, whose revenue in the last two years was US$3.2 million and about US$500 million respectively. Chen Wenhua is a rising stock market guru on Wall Street, who has grown a small insurance company from a market value of US$5 million to a market value of US$9 million in less than ten years, with an asset value of US$10 billion. Chen Wenhai is the owner of the best-selling arcade game "Shooter" in the United States in 1975-1976, and this year he also made a strategic investment of US$25 in Apple, acquiring a 30% stake.

"This wave of the Dow Jones should have reached a temporary peak and may fall back later, but we don't need to cash out all of it. This time, we cashed out more than 40% of the funds, mainly to pay off some debts and maintain sufficient cash flow to prepare for future investments."

Chen Guangliang's words were like an imperial edict, and the four of them nodded in agreement.

This wave of investment by second homes turned $10 billion into $20 billion in two and a half years, a truly miraculous example of buying at the bottom and selling at the top.

Chen Wenjin then said, "The eight Manhattan skyscrapers that my mother and I jointly acquired last time did indeed have a very high debt ratio. Moreover, there are no signs of a recovery in Manhattan's office building market in the short term, so we can pay off some of the debt and alleviate the pressure."

The period from 1970 to 1979 was a decade in which the US stock market stagnated.

But for Chen Guangliang, the information he had seen about Buffett in his previous life became the 'best decade for repeatedly buying at the bottom'.

The first wave of selling high and buying low occurred when the US stock market peaked in May 1969, followed by a year-long decline of 30-40%. May 1970 was a good time to buy at the bottom. Buffett capitalized on this opportunity.

第二波高抛与抄底：1970年5月至1972年12月的涨势很好，被称之为‘漂亮50行情’。但随着1973年来临，美国股市随之反复波动，1973年10月石油危机彻底下行，跌到1974年10月，道指仅剩下550点。

The third wave of selling high and buying low: After entering an undervalued phase at the end of 1974, the Dow Jones Industrial Average began to rebound in 1975-1976, rising from 550 points to over 1000 points. Entering 1977, the secondary impact of the oil crisis—inflation—reached its peak, therefore the overall stock market is expected to decline slightly the following year.

Therefore, this time, Chen Guangliang only allowed 40-50% of the funds to be cashed out, mainly because the cashed-out funds had a purpose.

Chen Guangliang said to Chen Wenhua, "You work in financial investment. What are your thoughts on this potential correction?"

Chen Wenhua immediately said, "I naturally believe my father's prediction that there might be a correction in 1977-1978. So, I will take the opportunity to look for high-quality companies that are worth investing in when the PE ratio is undervalued."

Indeed, both Buffett and Peter Lynch made a lot of money in 1978 in their previous lives.

"Yes, you can keep an eye on GEICO, the government employee insurance company."

"Yes, father"

Chen Wenhua added, "Father, the board of directors of Haifeng Bank has approved my acquisition request, and I am prepared to officially launch the public acquisition in late December."

"Alright, you handle this matter as you see fit. If it's impossible, there's no need to force it. For our family, there's nothing we absolutely have to have."

His biggest fear was that Chen Wenhua, young and impetuous, would resort to a hostile takeover. Although Wall Street was the originator of hostile takeovers, those who got involved rarely ended up well.

"I see"

Next, Chen Guangliang turned his attention to his eldest daughter, Chen Leyi. After getting married and having children, she was no longer as dependent on him. Of course, this was a good thing!

Seeing her father looking at her, Chen Leyi happily stepped forward and said, "Father, Amgen Biopharmaceuticals is about to be launched, but it's a pity that you, the one who made the greatest contribution, can't come to ring the listing bell."

Chen Guangliang laughed and said, "I never enjoy that kind of attention! Of course, you and Wensheng are now quite successful in your family and career, so I'm relieved!"

Chen Leyi's nose tingled with emotion, and she took the child to Chen Guangliang's side. Jiang Meiying could only shake her head helplessly. "How old is she? Why is she still like this?"
"Dad, now that my third daughter's surname is Chen, I feel like she's both your daughter and a member of the Chen family!"

Chen Guangliang couldn't help but sigh. He was the one who "forced" Chen Leyi to get married, and he had always wondered if he had done the right thing or the wrong thing. So now, he really didn't want to introduce Chen Mengyi in Hong Kong; he'd leave it to her own fate.

“Silly girl! Do you think that just because your brothers are married, they don’t care about their own little families anymore? For this family, people just need to know that it still exists, and they get together occasionally. In reality, it’s all about their own little families.”

Chen Leyi then stopped crying and started laughing.

Chen Wenhai then reported: "Father, Atari's game console will be released next spring. The current total R&D cost is close to 8000 million US dollars, which is much larger than the expected R&D cost."

雅达利2600采用1.19MHz MOS 8位元6507处理器，支持160 X 192分辨率屏幕，最高128色，当然，还有主机上有128 bytes的RAM和6Kb的ROM内存。游戏盘每个售价25美元，容量4KB，不过通过技术手段可以使卡带达到10K的容量。

The system architecture it established, which separates the home television set from the host computer and uses a cable-connected handle as the control unit, became the standard system architecture for the vast majority of home computers (excluding portable computers).

At that time, most home video game consoles had built-in displays and integrated controllers. This increased the price of the entire console and made operation inconvenient.

The Atari 2600 cleverly utilizes the widespread availability of home televisions, reducing costs while achieving excellent visual effects.

Another groundbreaking innovation was the introduction of interchangeable game cartridges.

Previously, game consoles had their games pre-installed in ROM, meaning that once you got tired of a game, the console's lifespan would end.

The Atari 2600's cartridges could be continuously refurbished, keeping the console consistently attractive. It's fair to say that this is what truly allowed home video game consoles to surpass other toys and reach the pinnacle of entertainment.

Chen Wenhai founded Atari, and after officially deciding to develop its main unit in 1974, it achieved initial success within two years. This success was not only due to the huge R&D costs, but also because Chen Wenhai himself was a master of hardware development.

Chen Guangliang said, “The greater the investment, the greater the return. However, Atari mainly focuses on hardware, while software is primarily provided by third parties. I advise you here: if you continue to neglect software, one day you will find more and more poorly made games using your game console. Then one day, you will be abandoned by all players. The correct approach is to value both hardware and software. For example, establish a review and production monopoly model, stipulating that third-party games must be reviewed by Atari, and a maximum of five games can be released each year. Games involving violence or sexual content are directly rejected, ensuring that game quality meets family entertainment standards. A built-in 'encryption system' prevents unofficial cartridges from running, while requiring third-party manufacturers to produce cartridges through Atari-designated production lines, charging a processing fee per cartridge. This combination of hardware encryption and production control creates comprehensive control over game content.”

Hearing the rest, Chen Wenhai broke out in a cold sweat, never expecting the consequences to be so severe.

Indeed, over the past two years, he has been pursuing the ultimate in hardware development. As for software, he believes that since it is already a 'removable game cartridge,' then there should be a free-for-all, and game software companies can log in to Atari as long as they pay Atari's licensing fee. "Yes, I will seriously plan the software management framework after the Atari 2600 is released."

Chen Guangliang nodded. The Atari 2600 only has an 8-bit processor. Of course, once a 16-bit processor comes out, the Atari 2600 can also be upgraded with hardware; the same goes for other things. In short, the Atari 2600 may be the best gaming console in the next six or seven years.

What's a hundred million US dollars in R&D expenses now? We'll make billions back in the future.

After talking with his four children, they left. There was no gathering this time; it was just to learn about their businesses and offer some suggestions.

"Husband, I'll take you to a wonderful place!" Jiang Meiying said mysteriously as her children left.

Chen Guangliang stood up with interest and asked, "What's on the program today?"

You'll see when you get here.

The two left the study and went to the room next door. They pushed open the door and found that it had been converted into a gym.

These apartments are all properties invested in by Jiang Meiying, and this entire floor was transformed by Jiang Meiying into Chen Guangliang's office and rest place when he came to the United States.

As for the villa on Long Island, it's more suitable for long-term vacations; Chen Guangliang prefers the high-rise apartments on Park Avenue.

"How about it? This gym has a pool table, and the treadmills here overlook Central Park," Jiang Meiying said happily, pointing to the view through the floor-to-ceiling windows.

Chen Guangliang felt pretty good, so he picked up the pool cue and gave it a feel for it.

Jiang Meiying immediately understood and took out the triangular frame. When she bent over, her perfect and hot figure was on full display.

At this time, Jiang Meiying was somewhere between a young woman and a mature woman, and could definitely be considered a 'beautiful mature woman'. Even when she was bathing, her skin was still very good, unlike the huge contrasts of celebrities under the magnifying glass in later generations.

"Wait for me a little longer, I'm going to change!" Jiang Meiying said charmingly.

Chen Guangliang laughed. Even after being married for so long, they still needed to find something new every now and then. He picked up the cue and started hitting the pool ball; his technique was quite good, excellent for an amateur.

Soon, Chen Guangliang's eyes began to admire Jiang Meiying as she changed her clothes. She was wearing an office uniform skirt, with black sheer stockings covering her shapely long legs, and a white strapless top underneath.

The fitted blazer she wore accentuated her S-shaped curves perfectly.

"Husband, do I still have charm?" Jiang Meiying asked nervously and expectantly, fiddling with her hair.

Chen Guangliang nodded and said, "No man would dislike that!"

Jiang Meiying spat, "Disgusting. I only like it when you have this kind of thinking."

Chen Guangliang smiled, thinking that his woman was attractive and he had no reason to be jealous.

The two quickly started playing billiards, which was actually a way of flirting.

A few days later, Yan Renmei also arrived in the United States.

Chen Guangliang, accompanied by Yan Renmei and Jiang Meiying, went to Boeing in the United States, along with his assistant and the management of his family office, to inspect the Boeing 747 aircraft. The president of Boeing, Mike, received Chen Guangliang.

The reason for such a grand occasion is that Chen Guangliang is not only the "richest Chinese man," but also the owner of "Hong Kong Airlines," and has been cooperating with Boeing.

Furthermore, following the oil crisis, the aviation industry has been sluggish, with some countries even defaulting on their aircraft orders.

"President Mike, I want a Boeing 747, and I'm prepared to convert it into a private jet!"

Upon hearing this, Boeing's executives were surprised, assuming it was a Hong Kong airline purchasing two aircraft. They never expected it to be this wealthy individual buying a private jet.

Mike quickly replied, "No problem! We happen to have an aircraft order that's almost completed. The previous owner cancelled the order due to the oil crisis, and it can be produced in six months at most. Of course, the interior modifications will require a third party, but we can introduce you to a modification company."

Chen Guangliang nodded and said, "Third-party modifications are fine, I can take a look. However, Boeing needs to send someone to supervise and monitor to ensure the safety performance of the aircraft."

"Can"

Without much preamble, an order was placed that same day after the Boeing factory visit. Chen Guangliang then went to the modification company for another inspection. He would provide the general plan, while the designers would handle the details.

After everything was completed, Yan Renmei and Jiang Meiying were still immersed in joy.

Yan Renmei even remarked, "This is truly a palace in the sky!"

Jiang Meiying nodded and said, "If it's a private jet like this, long-haul flights don't seem to be a problem!"

At this point, Chen Guangliang said, "Each of you can also consider owning your own private jet, though it doesn't have to be as big as a Boeing 747."

Jiang Meiying didn't hold back at all, because her second branch of the family had the means to do so.

The eldest son's family doesn't need it, and Chen Guangliang's private jet will definitely be mainly parked on the Hong Kong tarmac, which everyone can use.

Of course, not all private jets in each household can be this luxurious. A private jet worth tens of millions of US dollars is already considered very luxurious. A private jet like Chen Guangliang's, with a total value of nearly 100 million US dollars, is already among the world's top private jets. (End of this chapter)