Becoming a Russian Oligarch After Rebirth -
Chapter 1348 - 1074: Making Everyone Rich Together
Chapter 1348: Chapter 1074: Making Everyone Rich Together
How difficult it is for large funds to profit, just look at Buffett, and since 1999, his average annual return rate has basically not exceeded 10%, mostly maintaining around 8%.
Even so, he’s been revered worldwide as the "Oracle of Omaha"!
Don’t compare those with the annual returns of retail investors or small private equity funds, because small capital and huge funds are entirely different beasts—the difference is night and day.
But now, Wang Ye claimed he was going to set up an investment fund of hundreds of billions of US dollars and achieve a doubling in two years, which means an annual return rate of about 45%, or even higher.
The few present were all super rich with billions in assets, naturally they understood what this meant, that’s why they were all so shocked they stood up.
"You... Misha, you’re not joking, are you?" blurted A Bu.
Since he had cashed out and transferred most of his industries, he was also making some investments, because so much money can’t just lie in the bank earning interest, which wouldn’t even keep up with the speed at which the currency was devaluing.
But even with a combination of various investment strategies, his capital’s annual return was barely able to reach about 5%, which was already considered quite a stable profit.
Khodorkovsky and Constantin first sat down reservedly, feeling they had been somewhat improper, but they agreed with A Bu’s sentiment. Wang Ye must be joking, otherwise this would be too fantastical.
Wang Ye wasn’t joking at all. Doubling in two years was just his conservative estimate; in actual operations, the returns should be even higher!
During the Subprime Crisis later on, there were many books and reports; Wang Ye, out of curiosity, had read a few pieces of news in his previous life. What left the deepest impression on him was a fund manager from the United States named John Paulson.
It was Paulson who stood out during the major economic crisis and made a killing. It is said that in the year 2007 alone, the hedge fund he managed had an annual return of a staggering 590%!
In the following year, 2008, the annual return rate of the fund he managed also reached around 500%!
How was this merely doubling?
It was several folds increase in a single year!
Moreover, the scale of the fund controlled by Paulson was not small, amounting to more than twenty billion US dollars.
Moreover, Paulson’s understanding of future trends certainly wasn’t as clear as Wang Ye’s, so his actual operations must have been somewhat conservative, which led to returns not being maximized...
Wang Ye was now using the "answers" to find the "questions". With a clear vision of the future economic trends, if his earnings were not even comparable to those of the fund manager Paulson, that would truly be absurd.
...
"Of course I’m not joking. Let’s put it this way, based on the information I have, I predict that a very severe economic crisis may erupt in the United States between the second half of this year and next year.
Since it’s a crisis, naturally, there are opportunities in danger. So, I was thinking of taking advantage of this opportunity to make a fortune!
The United States is so wealthy, earning a few hundred billion from it shouldn’t be a big deal.
However, to avoid consequences in the future, we should persuade more allies to act together.
Grandfather, could you contact those from the European Royal Family and have them contribute some funds to invest in my fund? It’s better to make money and share the risks together, right?"
As he spoke, Wang Ye turned his head to look at Constantin and said with a smile.
After a moment of thought, Constantin nodded and said in a straightforward manner, "I trust your judgment. Since you are so confident, it means there’s a great probability of achieving the expected investment returns. An investment opportunity with such high returns is not always available, and I believe those royals would be very interested too. As for making money from the United States, their financial market is open, and we are neither breaking laws nor regulations, so what consequences could there possibly be?"
Actually, Wang Ye was just being cautious, and he was also thinking of using this opportunity to connect with those old fellows from the European Royal Family, just to expand his contacts.
After all, it’s not his own money he would be using; he would be earning the money of the United States, just a favor pushed by the current.
After completing this investment, he would have a staggering amount of cash in hand, which would allow him to do many things, such as adding funds to Wagner to expand its scale.
Or even establishing another security company to prevent Wagner from growing too dominant and any unforeseen circumstances...
He could also take advantage of the global economic crisis to buy, buy, buy those quality assets that have fallen excessively.
In any case, the tab is picked up by "Mr. America"!
As for the risk of being pursued by the United States, it’s indeed not significant; after all, in Wang Ye’s memory, although the Subprime Crisis caused heavy losses for many countries, many people and institutions made a fortune during the crisis!
Just like Paulson, who made a few hundred billion US dollars through opportunism, wasn’t he still fine and even revered as a god of investment?
These were just the small figures that surfaced; who knows how many more tycoons made even more behind the scenes.
For instance, Citibank, Goldman Sachs, and others knew they made a lot, but exactly how much is unknown to the outside world.
Khodorkovsky, of course, trusted Wang Ye even more, since there was the example of Polar Bear Investment in front of him. Initially, he had invested only a "little money" there, and now the shares of Polar Bear Investment had become his most valuable asset!
It could even be said that just the shares of Polar Bear Investment Company alone had already surpassed the total of all his other industries combined, more than enough for him to squander and waste in the second half of his life!
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