Those Years When I Was Forced to Top the Forbes List

Chapter 284 Buffett's Bet
Two months ago, at the Berkshire Hathaway shareholders meeting, Buffett made a bet for the first time, wagering $50 to challenge all fund managers.

The bet stipulated that Buffett would choose an S&P 500 index fund, while the other party would choose a hedge fund and use its ten-year average performance to represent their own performance. After ten years, after deducting all costs and expenses, the one with the higher return would win the bet.

This bet was meant to prove that after professional managers charge clients substantial management fees and incur numerous transaction fees, the returns they bring to clients are lower than simply betting everything on the US stock market.

No one has responded to this day.

In late 2007, Buffett republished the bet in Fortune magazine, finally welcoming a challenger.

In this life, Chen Xuebing no longer wanted to make Old Master Ba spend money to publish articles looking for gambling buddies.

Running a fund in the US also requires a group of investors to pay attention to it, and using Buffett's reputation as a savior is the perfect solution.

"Mr. Duan, you got your green card, right? How about you join us? We can have a joint venture, and you can be the manager." Chen Xuebing gave him an encouraging look.

What we need now is someone to take the blame. With Liu Keqiang already here, it would be even more suitable to have an American as well.

Duan Yongping shook his head repeatedly: "Your investment ideas are too risky. What is CDS? I don't understand."

"Shorting US subprime mortgages is because I'm not optimistic about their real estate market," Chen Xuebing explained simply.

Duan Yongping's expression hardened for a moment.

"Mr. Chen, are you kidding me? I bought a house in California last year, and it's now worth $16 more. US house prices have been rising for a full 13 years now. Are you going to short the real estate market?"

"How long has it been since you went back to the United States?" Chen Xuebing asked in return.

"A few months."

“In the last few months, housing prices in the United States have been falling.”

"The stock price rose sharply in the past two years, so a slight correction is normal."

Upon hearing this answer, Chen Xuebing didn't bother to explain further and turned to Liu Chuan: "President Liu, what do you think?"

Liu Chuan glanced at Duan Yongping and cautiously asked, "You really made four times your money in futures? You didn't have any other investments? You didn't lose a single penny?"

Chen Xuebing laughed: "If you don't believe me, just take $50 and treat it as a game. Since I've already agreed to it, I'll cover the losses if I lose money."

The contempt in his smile was no different from making him sit at the children's table.

Mr. Liu may not care about saving face in the morning meeting, but with a bunch of Taishan Club brothers here, he should at least have some self-respect.

He'd already said he wanted to collaborate with Chen Xuebing, but when it came to a $50 deal, he just couldn't bring himself to ask.

"Haha, Mr. Chen, what are you saying! I'll invest $200 million, just for fun, how about that?"

President Liu's smile was both masculine and timid.

Chen Xuebing shrugged nonchalantly: "I'll give you a guaranteed contract for the money Mr. Liu invests. I'll only take 30% of the profits. I usually take 40% of the guaranteed returns in China. Pretty generous, right?"

Liu Chuan's eyes flickered slightly: "How long is the lock-in period?"

"If you want to withdraw, just tell me two months in advance."

"Mr. Chen is so generous! I'll invest $500 million then!" Liu Chuan's expression brightened. "However, it will take some time to exchange for US dollars. How about you wait two months for me?"

Chen Xuebing chuckled inwardly. This old bastard wanted to exchange for US dollars, so he could just talk to Duan Yongping next to him and swap them. The money would be transferred tomorrow at the latest. Two months was just a way to see if he could deliver on his boastful words at the TD industry conference.

I'm worried that with such a small investment, I might end up scamming him and him running away with my money.

They'll only transfer the money once their multi-billion dollar investment has been finalized.

Guo Guangchang suddenly said, "President Chen, how about I invest three million as well?"

Earning several times his initial investment in just a few months, with such amazing operations both domestically and internationally, he was somewhat tempted. Three million US dollars was a small matter; the main thing was getting involved. If a real opportunity arose, he could always increase his investment.

"Okay, but I have to take 40% of the profits."

"Hey? Mr. Chen." Guo Guangchang's forehead wrinkles furrowed. "You can't treat me like this! I'm a long-term, patient investor! Aren't you going to give me some kind of discount?"

He is genuinely prepared to invest long-term.

Having reached this level of success, who wouldn't keep some US dollars overseas for unforeseen circumstances?

"It's just this little bit of money, whether you invest it long-term or short-term, it's all the same!" Chen Xuebing stood up, stretched lazily, and said slowly, "It'll only last for two years at most. If I play well, I can make dozens of times my initial investment. If I don't play well, I'll have to lose my principal. I'm taking the risk, so if I win money, I should at least make some, right?"

"Dozens of times." He said it so casually that everyone present exchanged somewhat awkward glances.

If others heard this, they would think they had been completely fooled by someone who was just bragging!

But their profits are right in front of them.

A 500% return, five times in a year, wouldn't that be 25 times in two years?

Chen Xuebing offered no further explanation to these old foxes. He had already explained his investment strategy, and those who didn't believe him would soon suffer the consequences of missing out.

His words actually left a loophole.

—If you want high returns, just invest all your money in Liu Chuan.

Liu Chuan is too cautious; this amount of money is too little. He should be made a major shareholder.

"However, Mr. Liu, for the special conditions I've given you, you have to do something for me."

"what's up?"

“CDS investment is quite complicated, you’ll have to help me contact Goldman Sachs.”

Liu Chuan's mind was stirred. He was just worried about where to find out if this investment was reliable, so he immediately clapped his hands.

"Sure thing! I know it well!"

Guo Guangchang stared at Chen Xuebing's youthful and confident expression for a moment, feeling that something was amiss.

This young man was arrogant, but unlike many other arrogances he had encountered before, he seemed to be hiding a lot of bad intentions beneath his arrogance.

After thinking for a long time without figuring it out, he picked up his phone, stood up, and gestured to Liu Chuan.

"Chairman Xu should be arriving soon, let me check."

Chen Xuebing arrived early.

Around 7:30, two distinguished guests arrived.

Liu Chuan and Guo Guangchang went downstairs to greet them, and after they introduced themselves, everyone stood up.

"Mr. Xu from Shimao!"

Xu Rongmao is currently the richest man in Shanghai. People waited for him for a while, but after waiting for a long time, there were quite a few complaints.

But Xu Rongmao said with a smile, "I'm really sorry to keep you all waiting. I was also waiting for Chairman Wu to come over so I could introduce him to you. He is Wu Guangzheng, Chairman of the Hong Kong Trade Development Council, and also the Chairman of the Board of Directors of Wharf Holdings! Wharf Holdings is planning to invest in the mainland next, and I came here today to pay my respects to you all."

The words were very polite.

Wu Guangzheng smiled and nodded to everyone: "I'm sorry to bother you all. I was just passing through Shanghai and thought I'd freeload a meal!"

Upon hearing the name and the string of titles, some people realized what was going on.

Even if this person's family isn't one of the four great families, it should still be considered one of the five or six great families.

At this moment, Chen Xuebing was quietly chatting with Jack Ma in a booth in the corner of the hall, as if they were having a banquet in a rural area.

"The shipping magnate's son-in-law is here too?"

"I don't know. Old Liu didn't mention it beforehand. Do you know him?"

I've only heard about it once.

"Should we go and greet them?"

"Welcome my ass! It's from Hong Kong, what does that have to do with us? Give me a straight answer on whether Alipay is going to work or not."

Jack Ma was a little surprised: "Damn, this is such a big deal, can't you at least give me some time to think about it?"

This guy is so unpredictable! He came over like we were old friends and immediately asked to invest in his Alipay account!

They also want 35% of the shares!
Are we that close?

(End of this chapter)