Maximize Interest, My Money Grows Infinitely
Chapter 453 - 267: Not Coming Home Tonight

Chapter 453: Chapter 267: Not Coming Home Tonight

A simple meal at the State Guesthouse marked the beginning of Chen Cheng’s journey in private equity.

And the detailed discussion after the meal was the real start of his career.

In the reception room, the air was fragrant with sandalwood, and the bookshelves were filled with various books, exuding a strong scholarly atmosphere.

Cao Bofeng and Jin Baogen sat at the head, with Chen Cheng and Chu Qin just below them.

"Xiao Chen, I am very satisfied with your performance today."

Cao Bofeng got straight to the point, "You have ideas, courage, and you are very composed, which is rare."

Chen Cheng humbly replied, "Uncle, you flatter me, I simply did my best."

"Don’t be modest,"

Cao Bofeng waved his hand, "It’s good for young people to be spirited, but you also need to understand how to grasp the direction. I agree with your choice to invest in technological innovation; it aligns with the national strategy and the trend of the times."

He paused, speaking with emphasis and concern, "But you must understand that this path is not easy to walk; the competition is fierce, and the risks are high. How do you plan to deal with it?"

Chen Cheng had a plan in mind: "I intend to take three steps. First, establish a professional investment team, recruit industry elites, and build core competitiveness;

Second, deeply study national policies, grasp industry trends, and choose potential projects for investment;

Finally, establish a comprehensive risk control system to ensure the safety of the funds."

He added, "I am aware of my lack of experience, so I will actively learn from the industry’s predecessors and continuously improve my professional abilities."

Cao Bofeng nodded, a flash of approval in his eyes, "Not bad, you’ve thought it through. But it’s easy to talk about strategy on paper; you need to practice more and accumulate experience."

He paused for a moment, then asked, "What specific views do you have on the field of technological innovation in our country?"

This was a test, and Chen Cheng was keenly aware of it.

After pondering for a moment, he organized his thoughts:

"I think the field of technological innovation in China is in a rapid development phase but also faces some challenges. On one hand, some core technologies are controlled by others, which requires us to increase our efforts in independent research and development;

On the other hand, some innovative enterprises struggle with financing and need more financial support."

He paused, "Therefore, the private fund I will establish will focus on innovative enterprises that possess core technologies and have broad market prospects, providing them with financial support to help them grow rapidly."

Cao Bofeng and Jin Baogen exchanged glances, seeing the admiration for Chen Cheng in each other’s eyes.

Jin Baogen cleared his throat and said with the same calmness as he had advised Chen Cheng in front of Wanbao Hall,

"I support your establishment of a private fund. My original plan was to reveal your identity as an independent investor after issuing the bonds, to make a clear delineation from all past matters. Establishing the private fund now is also appropriate."

"But you must remember, a private fund is not issuing bonds; you must make a role transition." He continued, "This is not a business that guarantees profits, but rather it’s a highly risky investment activity."

"Especially in the field of technological innovation, if not handled well, an investment can disappear without a trace," added Jin Baogen.

Cao Bofeng nodded in agreement, "Lao Jin is right."

He turned to Chen Cheng, his gaze sharp, "Technological innovation is fraught with peril; it’s commonly accepted that it is a risky venture. How do you plan to mitigate risks?"

Chen Cheng was not hearing the words "mitigate risks" for the first time; the previous mentions were in jest, but this time it was a genuine challenge.

He thought for a moment, then clearly replied,

"First, be meticulous and selective."

He confidently looked at the two veterans who opened the path for him, "We need to establish a professional due diligence team to conduct a comprehensive, multi-angle assessment of target enterprises, including their technical strength, market prospects, team capabilities, financial conditions, etc., to ensure that every investment project has undergone rigorous screening."

The two men nodded slightly.

Seeing this, Chen Cheng continued, "Second, diversify investments to control risks."

"I won’t put all the funds in the same project, but rather will distribute investments across multiple fields and different stages of innovative enterprises to reduce the risk brought by the failure of any single project."

"Third, engage in long-term investment, value investment."

Chen Cheng felt increasingly clear in his thoughts as he spoke, "Technological innovation is not achieved overnight; it requires time and patience. I will not pursue short-term profits, but instead, focus on the long term, selecting truly valuable enterprises for long-term investment, and grow together with the enterprises."

He paused, "Of course, I’m also clear that even with these preparations, risks will still exist. But I will do my best to keep risks within an acceptable range."

A reasoned and eloquent delivery gave Cao Jin a new impression of the young man in front of them.

Cao Bofeng smiled rarely, "Listening to your three-step strategy, it seems as though you’re formally trained?"

Jin Baogen took over the conversation, not forgetting to praise Chen Cheng, "Xiao Chen used to be a famous Quantitative Trader at Yintong."

"A Quantitative Trader at Yintong?"

Cao Bofeng was slightly surprised and re-evaluated Chen Cheng, "No wonder you put such great emphasis on risk control."

He paused, speaking with a hint of a teaching tone, "However, quantitative trading and venture investing are two different fields; your previous experience may not fully apply."

Chen Cheng humbly responded, "Uncle, you are right, quantitative trading and venture investing indeed have many differences."

"Quantitative trading focuses more on data analysis and model construction while venture investing places more emphasis on judging industry trends and enterprise value."