Feng Yu had nothing to do with the pensation and the Japanese panies no longer demand Tai Hua Supermarket Corporation to apologize to them. All the Japanese panies in China were keeping a low profile.
It was going to be New Year’s Day soon, and it was time for another Tai Hua Supermarket shopping cards frenzy. But Feng Yu did not remain in Beijing. Instead, he flew over to Hong Kong.
“Nephew Feng, after this round of beating, is their share prices at rock bottom? Will the rebound happen soon?” Fu Rongqi asked.
Feng Yu shook his head. “It’s not time yet. Those panies only accepted to pay the pensations and agreed to the fine. I heard there is still shocking news that was not announced yet. After the news is announced, their share prices will drop further.”
Fu Rongqi frowned. There’s more shocking news? This should be interesting. Feng Yu is close to the top Chinese officials and should be able to get insider information.
“Sony-Columbia Pictures will be releasing a blockbuster movie this Christmas. I had asked my men to spread rumors that this movie sucks. The moviegoers will avoid this movie, and the ticket sales will not be high. Lesser cinemas will be screening this movie, and their movie-related merchandise sales will drop. Even their VCDs for this movie will not sell. Sony’s share prices in the US will drop further.” Fu Rongqi was smiling like a cunning fox. He does not need to spend much to press a pany’s share prices down. Sometimes, a rumor was sufficient.
“Let’s stick to our plan. I will be mainly acquiring those chemical panies’ shares, and you will acquire those electronics shares. I believe that in January, those panies will take some measures to save their panies’ shares, and the share prices will rise slowly. We will be able to make high profits then!”
In less than a week, those panies’ share prices fell by almost 50%. It was still falling now, but the drop was not as drastic as earlier the week. But after the pensation was announced and those panies sold their factories in China, their shares will drop again.
All these large multinational enterprises’ shares will definitely rebound after their share prices crashed. The rebound will be strong. Also, it’s the end of the year, and after the financial reports were released, these panies will take the opportunity to announce their future plans and profits forecast.
The key shareholders will also announce they will be increasing their stakes in the panies to boost the confidence of the investors. Their shares will surely recover from the crash. Now, Feng Yu and Fu Rongqi only need to predict when will the share prices hit rock bottom!
……
Buffett was sitting in his office, looking at his puter. This Japanese panies saga was an excellent opportunity for him.
Warren Buffet had lots of investments, and he invested the most in the financial market, especially shares. He had invested in Washington Post, Coca Cola, General Dynamics, etc. and made high profits from these panies.
Although Buffett also owns an industrial factory, dealing in textile manufacturing, but the profits from this factory was a small part of his ine. Most of his money came from his shares.
His formula for investing was very simple. He looks for “cheap” shares to buy and then wait for the share prices to rise. But he did not explain what he meant by cheap.
The dividends and the returns from the sales of his shares gave him high profits.
Basically, whenever Buffett acquires large amounts of the shares of a pany, that pany share prices will shoot up. His strategy for investing is long term investment. He was in no hurry to sell even if the share prices plunged after he bought it. This was because he believes that the shares will rebound soon and he will have high returns.
Since he started his pany, his pany’s value had increased by almost 400 times! No one could pare to Buffett’s foresight in investing.
There was a strange phenomenon. People start to follow whatever Buffett invest, and this creates a short term increase in that particular pany’s share prices.
Warren Buffett had bee an indicator of the stock market!
Now, Warren Buffett had set his sights on those Japanese panies. Those panies that were kicked out of China.
Buffett realized that the output of many factories in China was not very high and was not a significant proportion of the panies’ total production. When those panies withdraw their management staffs from those factories in China, they will surely think of other ways to increase their panies’ profits and the pany’s share prices will inevitably rise again.
Although the pany’s brand will be affected in the short-term, in the long run, Buffett felt those panies will be able to recover. These panies have a strong technological background and do not have any cash flow problems. Also, the Japanese Government will think of ways to help those panies. After all, the Japanese Government cannot afford these panies to fail.
Warren Buffett had also researched on these panies. Some of them were doing quite well and had high returns for this year. It was not normal for their share prices to plunge so suddenly. When these panies announced their annual profits, the investors will regain confidence in these panies, and the share prices will bounce back.
Warren Buffett was considering which pany’s shares should he acquire. There were too many choices. He wanted to look for a pany that is stable and have good returns.
There was one more important factor. If another big player were investing in the same pany, the share prices would rise faster.
……
“The pensation amount was agreed upon. Although it was still not announced yet, the rough estimation was a significant amount!” Fu Rongqi’s assistant exclaimed.
“Most importantly, those panies had withdrawn out from the Chinese market, and their factories in China were sold to other Japanese panies. The selling prices are undisclosed, but from the looks on their faces, the prices should not be high. Japan had played its cards well this time. They had shown their sincerity and did not suffer any heavy losses. Japanese panies are still making money in China.” He Zhaoji was impressed at how Japan handled this situation. The Japanese Government did not suffer any losses. The ones that suffered losses were those panies.
“When this news is release, those panies shares will drop again.”
“That’s right. But it would be best if their share prices plunged. It’s such a dilemma. On the one hand, I wish for their share prices to bounce back as soon as possible for us to make profits. On the other hand, I hope those panies will go bankrupt.” Someone said and laughed.
Hahaha…… The rest of the staffs are laughing while staring at their puter monitors. There were monitoring the stock market closely.
Feng Yu and Fu Rongqi were also starting at their puters, and both stood up at the same time suddenly. A few stock brokers also stood up, and everyone said at the same time. “The prices are almost rock bottom. Prepare to buy in!”
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