My absurd experiences in North America over the years

The autumn of 2011 is destined to be recorded in the annals of global finance, and at least in the annals of gold.

As the "Arab Spring" continues to unfold, the turmoil in North Africa and the Middle East is like an invisible giant hand, tightly gripping the throat of the global supply chain.

Driven by panic, gold, a traditional safe-haven asset, experienced an epic surge.

Before Li Fu had finished dealing with MGM's affairs, he received a call from Lina, who told him that gold had reached its highest level in history.

He turned on his computer and trading software, and the huge electronic screen in the office began to flash dazzling candlestick charts.

To be honest, Li Fu didn't know many details about the trend of gold, but his judgment of the international situation was much more accurate than in his previous life.

After all, the environments they are in are different, and the levels of information they come into contact with are vastly different.

Libya's dictator Muammar Gaddafi was completely defeated by the US military at the end of last month, and the capital Tripoli has been taken over by the opposition. Britain, France and the United States all recognize the opposition government.

This means the situation in Libya has completely reversed; all that remains is to capture Gaddafi.

Li Fu remembers clearly that Gaddafi was captured not long after his defeat. One account says he was shot in the head and died while trying to break out, while another says he died from his injuries after being captured.

But in either case, Gaddafi is about to ascend to heaven, and the war will end soon.

Then, the massive Arab Spring will gradually subside, meaning that the gold price peak in September will remain a historical high for a long time.

The joint fund bought gold twice in the previous two years, with an initial capital of US$2 million and a leverage of 5 times, and completed the purchase in batches at an average price of US$882 per ounce.

After making profits and receiving dividends in the foreign exchange market last year, he further increased his position with a principal of $500 million, leveraged three times, at an average price of $1096 per ounce.

The original plan was to hold the shares until the end of this year as annual dividends.

However, given that the war premium that supported the surge in gold prices is rapidly fading with the fall of Gaddafi's regime, this is a concern.

Without new geopolitical conflicts to support it, gold prices will inevitably fall sharply, and the cost of continuing to hold positions will surge.

A significant amount of profit is expected to be given back by the end of the year.

"Close all positions!" Li Fu instructed Lina.

Lina paused for a moment, "Should we close out the base position of two hundred million dollars as well?"

This portion was originally planned to be held long-term.

Currently at a historical high, the outlook looks very promising, especially since she is unaware that the geopolitical conflicts in the Middle East are about to come to an end.

So you think it's too conservative?

"Sell it all, distribute half as dividends, and reinvest the rest in the stock market," Li Fu had already planned.

He only does what he is certain of.

Technology stocks are the trump card for the US stock market for the next decade or so.

Although the joint fund already held shares in technology companies such as Nvidia, Apple and Amazon, and had even increased its holdings during that period.

However, there are still many highly anticipated products that have not yet been purchased.

If we include Tesla, which is already listed, there are still many high-quality stocks.

"Okay, I'm closing all positions now," Lina immediately gave the liquidation order to all traders.

She had an almost blind trust in her boss's judgment.

A few minutes later, the results of these transactions were compiled and sent to Li Fu's email address.

底仓

Increase: (1920 - 882) / 882 ≈ 117.7%

Leveraged return: 117.7% × 5 = 588.5%

Profit: $2 million × 588.5% = $11.77 billion

加仓

Increase: (1920 - 1096) / 1096 ≈ 75.2%

Leveraged return: 75.2% × 3 = 225.6%

Profit: 5 million × 225.6% = approximately US$11.28 billion

After deducting funding costs and transaction slippage, the joint fund has made a total profit of $23 billion in gold over the past two years.

Without the huge profits from the foreign exchange market last year, the 23 billion would indeed have been met with great jubilation.

However, after experiencing huge profits more than once, the long-time employees of Forrest Capital were simply excited, nothing more.

Only a few new employees jumped up and cheered.

Huge profits sometimes mean high bonuses, which is common practice in financial companies. At the very least, the bonuses will be higher than their monthly salary.

Moreover, Forrest Capital has long been known for its penchant for giving employees bonuses that exceed industry standards.

The new employee certainly deserves to be celebrated.

However, they immediately noticed that the veteran employees were acting as if these newcomers were completely naive and inexperienced.

It's as if they're saying, "You're so happy about such a small amount of money. If you saw something big, you'd jump for joy."

"According to our previous standards," Li Fu began assigning tasks to Lina, "we will allocate $11.5 billion, after deducting fund management fees, as this year's annual dividend, and distribute it in full to our LPs (limited partners)."

"Okay," Lina said, already very familiar with these matters. "If we leave the remaining $11.5 billion in the account to continue investing in the stock market, you should have a target by now, right?"

Based on her understanding of Li Fu, she knew that Li Fu must have already made a plan in mind before changing his decision to hold a core position.

"I only have a very broad target, mainly mainstream technology companies, such as Microsoft, Google, Tesla, Netflix and AMD. You can do some research first," Li Fu did not make a decision immediately.

To be honest, Lina really knows her boss very well.

However, her boss is not omnipotent or all-knowing.

In his previous life, Li Fu did not work in finance. He only knew that the wave of technology stocks was the future trend of the US stock market, and that the next ten years or so would be the era of mobile internet and cloud computing.

Therefore, he decided to invest all of this money in tech stocks that are expected to continue to rise in the future.

But he really wasn't sure how to allocate the funds.

"Okay, I'll inform the research team now to produce a detailed report on building positions in tech stocks this week," Lina said without needing any further instructions from Li Fu.

She's the perfect work assistant.

After Li Fu returned from China, her work became much easier.

However, as his business empire expands, he remains extremely busy lately.

The marketing campaign for MGM's big project, "Skyfall," has entered its final stage and is about to be released.

Meanwhile, with the release date of The Hobbit 1 drawing ever closer, the promotional campaign needs to be launched in advance.

Film promotion is practically equivalent to throwing money away, and as an investor in MGM, they are bound to review the promotion plan and allocate funds.

At the same time, the logistics hub of the Great Lakes Rust Belt also requires his signature on many documents.

And then there's CP (Content Provider). He's been having a blast for the past six months. In about a year, "The Countryside's Elegy" has already sold 500 million copies.

He held book signings everywhere, singing the lament of rural people, but most of these signings turned into political rallies.

In almost every state he visited, when he got excited, he would say that he would definitely bring Forrest Capital to invest in the future and improve the local situation.

This is practically treating Li Fu like God, making a wish.

…………

Ps.

Brothers, I've revised the first chapter. What do you guys think of the change? If it's not good, I'll change it back.