50s: Starting with a storage ring

Chapter 332 The Vision of Borneo
"A 10% capital gains tax isn't high. So, you can get about $50 in after-tax income from stocks each year."

"And as long as the company in which it holds shares doesn't go bankrupt, the investment will be continuous."

"Then there's the farm. The advantage of owning a farm now is that the agricultural bureau supports farms. Subsidies and tax rebates can give you a stable income of $10 to $20 per year."

"The beauty is that agricultural subsidies and tax rebates are not subject to income tax, and if you buy agricultural machinery, you can also use them to offset other income taxes."

Sun Zhiwei didn't know this; only the farm owners who had been running the farm for a long time would know. He nodded upon hearing this.

"Then there are overseas mines. I own several iron ore mines overseas, but as long as the money I earn doesn't come into China, I don't have to pay taxes in China."

"Those iron mines are located in Australia and Borneo, both of which have US military bases, so the interests of the US people will be protected."

"Although the annual income is not high, only $10, the mine has abundant reserves, the income is stable, and there is no burden."

"Then I'll talk about two small islands. One of my islands is in the U.S. Virgin Islands in the Caribbean Sea, and the other is in the Northern Mariana Islands in the western Pacific Ocean."

"That island in the Caribbean is relatively small, only 10 square kilometers, but it has a pleasant climate. If developed, it would be a great place for leisure. It's worth $50."

"The island in the Pacific is larger, about 30 square kilometers, but it's in the middle of the Pacific, which is very inconvenient. Fortunately, it has fresh water and forests, and it's worth $10."

“I have always intended to sell these two islands. Xiao Milan is my only grandson.”

“You know, given his personality, he wouldn’t care about these two small islands, so I want to leave him some useful assets.”

Seeing that he had already made himself so clear, how could Sun Zhiwei possibly refuse?

"Give me both of these small islands; they might have development value in the future."

"No problem, Jim. Do you have any other suggestions?"

"The stock will proceed as you stated, but where is the farm located?"

“I own a total of 6 farms, and the one we’re standing on right now is the most valuable.”

"But it's already affiliated with the Rifle Association, so it can provide Milan with a stable rental income and also allow him to gain access to the association's connections."

"So, I'm sorry, I can't give this to you."

"No need to apologize, I never intended to take this farm. What about the others?"

"The other five are California (one), Texas (two), Pennsylvania (one), and Maryland (one), and they are all about the same size."

"I suggest you choose the one in Maryland. The farm in Maryland is right on the Potomac River, less than 20 kilometers from Georgetown."

"Okay, where is the mine you chose for me?"

"I suggest you choose the iron ore mine in Australia. Although the value is about the same, there are other iron ore mines nearby, so it's easier to find equipment and personnel, and the development cost is lower."

However, what Lancaster called an advantage is actually a disadvantage in Sun Zhiwei's view.

Because of the low cost of intensive mining in the area, it is easier to attract the covetous eyes of conglomerates.

He vaguely remembered that Australia's high-quality iron ore areas were later monopolized by Australia's three major mining groups.

So, what happened to those small mine owners? Were they sold off or eliminated? It's terrifying to think about.

There are also the mining areas in Borneo, which are now occupied by three countries. Java, which occupies the largest area, is no good and its practices are quite unseemly.

Even though he has the outward appearance of an American, he still has to pay money to ward off trouble when little devils come knocking.

But after careful consideration, he still chose the iron ore mines in Borneo. He had some other ideas, such as using the iron ore mines as a link to bring in domestic resources and then gather the local expatriates.

Armed security forces are permitted in the mining areas there.

So far, he has selected: $10 in cash, $200 million in stock, $100 million in a Maryland farm, $200 million in a Borneo mine, and $60 for two small islands.

These assets total $570 million.

Seeing that Sun Zhiwei had accepted his offer and chosen assets worth 570 million, old Lancaster smiled happily.

“Jim, here’s another $230 million. Pick out some antiques here.”

"Wait a minute, Som, could I have one of the mines in the country?"

"Have you thought this through? Some of the mines in China aren't even that good, but the prices are still higher?"

“It’s alright. I need a legitimate business in M ​​country. My shop alone isn’t enough.”

"Your thinking is not wrong. Without a factory or mining enterprise, you would be at a disadvantage in your interactions with others."

"How about this, you take 100 million less of the stock, and then use 300 million to buy one of my gold mines in California."

“You know the value of gold mines. Although mine is just a small, low-grade gold mine, and even half of the reserves have been mined.”

"But it can still mine more than $4500 million worth of gold, which, at a 20% yield, is more than $900 million."

“I agree.” Upon hearing about the gold mine, Sun Zhiwei didn’t hesitate and quickly agreed.

Old Lancaster just calculated the value of the gold mine based on the current gold price, but the current international gold price is only $110 per ounce.

If he had just waited three more years, until the peak of the first gold bull market in 1980, the price of gold would have risen to $850 per ounce, an eightfold increase.

The value of the gold mine would then rise accordingly. How could he possibly miss such a lucrative deal? It was practically free money.

Moreover, old Lancaster was referring to the reserves he knew of; his last prospecting trip was 20 years ago.

But Sun Zhiwei knew very well that California was located on a major gold vein, and it could be said that gold was everywhere.

The detection capabilities of 20 years ago are incomparable to those of today. He is very confident that he can detect even more gold reserves in the vicinity.

Another advantage of having a gold mine at home is that no one will question the source of his gold anymore.

If anyone questions him, he can simply say that his family owns a mine.

After the mine was selected, old Lancaster continued, "In that case, we're still short $30. Would you like to pick out some antiques, or do you have other ideas?"

"Som, do you own any property in New York? Could you lend me one? I might be coming to New York often in the future, and staying in hotels all the time isn't a good idea."

"Ah, yes, I have three properties in New York: a villa, an apartment, and a detached house. Which one do you want?"

"Let's get the smallest detached house. I don't need much space since I live alone."

“No problem, $10. The house is a bit smaller than the one you live in now, but it’s in New York where land is incredibly expensive. You can understand that, right?”

“I understand, that detached house.”

(End of this chapter)