Becoming the King of Bottom Fishing After Going All-In on A-Shares

But amidst this jubilation, one person did not laugh.

Zhang Yixing stood at the back of the crowd, clutching his phone, his brow furrowed.

He had just received a message from the institute's chief researcher:

"He sold CITIC Securities and bought BYD? Are you sure he bought BYD?"

Zhang Yixing replied: "Confirmed, HKD 8, 10x leverage, just started the position today."

The chief did not reply, but Zhang Yixing noticed that the other party's status showed "typing" for almost a minute, but nothing was sent.

This is unlike the chief's style; he is always quick to respond and precise in his wording.

Zhang Yixing had only seen this kind of hesitation in him once.

On the day Lehman Brothers went bankrupt, the chief executive stared blankly at the screen for ten minutes.

Zhang Yixing put his phone away, squeezed into the crowd, and walked to Lu Chenzhou's side.

He lowered his voice: "Shen Zhou, my team leader asked me why you chose BYD."

Lu Chenzhou glanced at him but did not answer.

Zhang Yixing then asked, "Do you know something? I mean, do you have any news?"

Lu Chenzhou was silent for two seconds: "What I know, many people know, but they just don't believe it."

He turned around and looked out the window at Zhongguancun Street.

The setting sun was shining from the west, turning the whole street golden.

"Tomorrow is the weekend, and the Hong Kong stock market will be closed. Everyone should go home and get some rest. See you on Monday."

As everyone left one after another, Wen Zhiyu was the last to leave. She turned back to look at Lu Chenzhou, as if she wanted to say something.

But in the end, he simply nodded and gently closed the door.

Only Lu Chenzhou, Zhang Yixing, Yang Cheng, and Xia Yaozong remained in the room.

Xia Yaozong shut down his computer and leaned back in his chair: "Shen Zhou, there's something I need to tell you."

"What?"

Xia Yaozong's voice was very low: "This afternoon, many people inquired about your holdings through margin trading channels. They weren't from Zhao Xianglong's side, but from other people."

Yang Cheng frowned: "Others? What do you mean?"

Xia Yaozong shook his head: "It's not clear yet, but those people aren't asking how much you bought, they're asking what you bought."

The room fell silent for a moment.

Zhang Yixing chimed in, "My team leader was asking the same question. He usually only asks about A-shares and never touches Hong Kong stocks, but he made an exception today."

Yang Cheng was silent for a moment: "Could it be a coincidence?"

Xia Yaozong was very certain: "No, this afternoon, more than a dozen groups of people came to inquire about my financing channels."

There are people from Hong Kong, people from mainland China, and people from overseas.

All three of them looked at Lu Chenzhou at the same time.

Lu Chenzhou's expression didn't change much. He walked to the window and looked at the gradually thinning traffic below.

His voice was calm: "Let them investigate. My reason for buying BYD is no secret."

Yang Cheng hesitated for a moment: "Shen Zhou, I have a question for you."

"ask."

"BYD's stock price plummeted from 77 to 8 yuan, a drop of nearly 90%. Everyone called it a junk stock, so why did you dare to buy it?"

Lu Chenzhou turned to look at him: "Do you think, ten years from now, the cars on the street will be powered by gasoline or electricity?"

Yang Cheng was taken aback.

Lu Chenzhou continued, "Oil is a non-renewable resource. When there is unrest in the Middle East, oil prices rise."

When an American sneezes, drivers all over the world have to pay more.

These days won't last forever.

He paused, then looked out the window at the sky: "Electric vehicles are inevitable."

Zhang Yixing frowned: "But electric vehicles are not selling at all right now."

In 2008, oil prices plummeted from $147 to $60, and the Big Three automakers in the US were on the verge of bankruptcy. Who would buy an electric car?

Lu Chenzhou's voice was calm: "Just because it's not selling now doesn't mean it won't sell in the future."

Back in 2000, nobody thought cell phones could take pictures.

Back in 2003, nobody thought online shopping would succeed.

When something new comes out, most people don't believe it.

By the time everyone believes it, the price will be much higher.

Xia Yaozong seemed thoughtful: "So you're betting that electric cars will become widespread?"

Lu Chenzhou shook his head: "It's not a gamble, it's that I've seen things clearly."

Global oil reserves are dwindling, and the problem of carbon emissions is becoming increasingly serious.

We can't keep watching oil prices be strangled by others.

Electric vehicles are a strategic direction.

He turned around, took out a copy of BYD's 2008 semi-annual report from his bag, and turned to a certain page:

"Look here, BYD's electric cars are already running in Shenzhen."

The world's first commercially available electric vehicle fleet.

It's not a concept car, not a lab prototype; it's a car that's actually running on the road.

Zhang Yixing leaned over for a look: "You mean those electric taxis?"

Lu Chenzhou nodded: "Yes, the quantity is not large, but it is a breakthrough from 0 to 1."

Going from 0 to 1 is the hardest.

Going from 1 to 100 is just a matter of time.

The room remained silent for a long time.

Yang Cheng spoke, his voice a little hoarse: "Chen Zhou, are you saying you bought BYD not because of its financial reports, but because you think electric vehicles are the future?"

Lu Chenzhou replied, "Look at the financial report too. BYD is priced at 8 yuan, with a PE ratio of 10 and a PB ratio of 1.5. It also has 50 billion yuan in cash on hand."

Even if electric vehicles don't sell well for the time being, this valuation won't fall too much.

But if you believe electric vehicles are the future, then this price is practically free.

He added, "The market is now pricing BYD in the view that 'electric vehicles will never sell.'"

I think this judgment is wrong.

Mispricing is an opportunity.

Xia Yaozong leaned back in his chair and took a deep breath: "Chen Zhou, if these words get out, a lot of people will criticize you. Who believes in electric cars these days?"

Lu Chenzhou smiled and said nonchalantly, "I know, so now is the opportunity."

Once everyone believes it, you won't be able to buy it for 8 yuan anymore.

Zhang Yixing stared at his profile and suddenly remembered a question.

"Shen Zhou, when did you start believing in electric cars?"

Lu Chenzhou didn't answer; he simply looked out the window: "Do you know when the First Industrial Revolution was?"

The three people looked at each other and shook their heads.

In 1765, Watt improved the steam engine.

Since then, the world has changed.

Horse-drawn carriages became trains, and sailboats became ships.

Every era has a source of energy that drives the world.

In the 18th century it was coal, in the 19th century it was oil, and in the 20th century it was electricity.

What about the 21st century?

He didn't continue.

But everyone understood what he meant.

Yang Cheng remained silent for a long time before saying, "Shen Zhou, are you betting on an entire era?"

Lu Chenzhou shook his head: "It's not a gamble, it's a belief."

The difference between gambling and believing is...

Gamblers don't look at the fundamentals, while those who believe do understand the fundamentals before placing their bets.

He looked out the window, the afterglow of the setting sun falling on his face.

"BYD isn't dreaming; their electric cars are actually on the road."

They are the only ones in the world who have done it so far.

For that reason alone, 8 yuan isn't expensive.