Chapter 1125： Big brother's idea

? In 2000, Berkshire Hathaway acquired a majority stake in Berkshire Hathaway Energy, the US Central Energy Company to which hoservices belonged at the time, and formally blew the clarion call to enter the real estate brokerage field. 35xs

At first, in many investment projects, Mr. Ba did not pay much attention to this acquisition, but in the past few years, the number of real estate brokerage companies has gradually increased, and sales have repeatedly reached new highs. So far, hoservices has grown to be the second in the United States. Big real estate agency

According to the information received by Yang Cheng, hoservices are not greedy for their second child. They are still running on the highway and are trying to acquire the third largest real estate company in the industry, onganfoster, the 12th-ranked houihanrence and gorianison. Once the integration is completed, hoservices will increase. There are more than 12,000 real estate agents, raising the total to 40,000.

In terms of real estate sales in the United States, hoservices is already close to the leading position, and bilateral sales exceeding US$100 billion in one fell swoop is not a problem at all.

In addition to this real estate brokerage company, Berkshire Hathaway's nhos company is also one of the largest housing construction companies in the United States. Last year, it built more than 40,000 houses and occupies 5 of the new home construction market in the United States. Buffett also plans to acquire more Such companies.

In addition to residential real estate, Buffett has also invested in commercial real estate. As early as the early 1990s, Buffett bought the commercial real estate in Manhattan. The return on this investment was as high as 35, and the return after 5 years reached 150.

In addition, Mr. Ba also invested in two real estate investment funds, both of which are peers of Yuanshan Capital. In fact, Mr. Ba also invested in Yuanshan Capital, but only got 12 shares, and even the board of directors did not enter. , But the annual return of Yuanshan Capital has long allowed the old bus to recover the investment cost, and the total return has exceeded 30.

Looking at the completion of Berkshire's deployment in the US real estate industry, it is now logical to seek overseas breakthroughs.

Price was silent for almost 10 minutes, and Yang Cheng was thinking about the news from Berkshire. After analysis and sorting, a clear investment line appeared in his mind. The more he thought about it, the more frightened he became. His influence in the real estate industry in the United States has grown to this point unknowingly, like a slap in the face, dare to be complacent because of the success of Yuanshan Capital in the industry?

At this time, a deep sigh pulled Yang Cheng's thoughts back.

The panini eggs on the plate were cold, Yang Cheng didn't touch it anymore, took a sip of coffee and looked at Price, "What are you thinking?"

Price shook his head, "That's not a smoke bomb."

When answering the question, Yang Cheng took a moment to react. Price was answering a question 10 minutes ago. This reflection arc is too long, right?

"Jason, how much do you know about kayapap"

Yang Cheng made a recall. If he remembers correctly, Kayapap is the first intermediary company specializing in high-end real estate in London. Is this the goal of Price's trip?

Looking at Price in confusion, with a look, Price knew that Yang Cheng didn't know much, at most he knew the name. "Kayapap's office is located in the most central location in London, and its services include Mayfair and Hyde Park. , Regent’s Park, Kings Cross, Paddington and London’s West End and many other core and expensive locations.

Berkshire has been discussing cooperation matters with the other party since November last year. The purpose of this trip to the UK is to determine the final content of the agreement. If nothing else, the agreement will be formally signed soon. Hoservices will open a branch in the UK. kayapap operates in cooperation and continues to seek expansion in London through acquisitions and joint ventures"

Yang Cheng didn't know what to say. Berkshire moved too fast and didn't give himself a chance to intervene at all, but it was right to think about it, and he was unwilling to share it with others. 35xs

He said, "London is one of the most important international business centers in Europe and even the world. The real estate here is very attractive to investors from all over the world. It has always been the first choice for American real estate companies to go overseas. Berkshire The investment strategy is as clear as always."

After saying this, Yang Cheng sighed in his heart: As expected of Buffett, the investment pattern is far beyond ordinary people. When someone else enters the British real estate industry at this time, I am afraid that the first thing they will look at should be real estate or commercial real estate, and Buffett directly Controlled the sales terminal and solved the problem of unsalable real estate from the root cause.

The intermediary company is only responsible for selling and not covering, and the financial pressure is not great. As long as the sales are better, look for opportunities to go public and make a lot of money, and even the profits will come back.

However, this kind of investment model is really hard for ordinary people to learn. First of all, they have already achieved the second largest real estate agency in the United States. They have considerable experience in real estate agency operations. Therefore, there is no lack of experience in entering the UK real estate brokerage industry. problem.

Secondly, the current situation in the UK is turbulent. Seeing that Brexit negotiations are about to be held, once the bad news is implemented, I am afraid that in the last 12 years, the UK real estate market will experience a cold winter. Buyers are waiting and lowering bids. Sellers feel that now that Can't sell at a good price, just cover it and don't sell it. When the two parties don't want to sell, the real estate transaction volume has also fallen sharply.

What does this mean

This means that real estate agents who rely on commissions for buying and selling houses have no money to make.

Without sales, profits will decrease, and the decrease in profits will directly lead to the shrinkage of the real estate agency’s valuation.

Especially Kayapap, they mainly take care of high-end properties in the best areas of London. These areas are affected by Brexit, and the impact of transaction volume is much greater than other rigid demand areas.

Buffett chose to enter the market at this time. It is estimated that the purchase price can cut down the other party's psychological price a lot, and it is even possible to cut it in half. After all, the other party's life in the past two years must be difficult.

Taking advantage of the Brexit process, Buffett can be regarded as a bargain, and the price of cabbage bargained in the British real estate agency industry.

Once he has complete control of the intermediary, he has the right to speak in buying and selling, which can help him understand the London real estate market better, and pave the way for subsequent entry into real estate development and even commercial real estate investment.

Moreover, in a big city like London, housing prices cannot go down forever, even if the United Kingdom is truly separated from Europe, this is also an important reason why Buffett dares to make a big move. He is optimistic about the future trend of the British housing market.

Regardless of Brexit or not, the British authorities cannot sit back and watch the social chaos and calm down one day. When everything stabilizes, the real estate transaction volume will inevitably rise. After all, the buyers and sellers who were not able to deal with it some time ago will Can't help but meet my own needs.

As long as the trading needs of these people still exist, after the market picks up, they will definitely trade frantically. This is beyond doubt.

Once these transactions begin to pick up, the income of real estate agencies will also rise sharply, and the company's valuation will soar.

In fact, no matter whether house prices rise or fall, people always buy and sell houses. As long as there is a transaction, the real estate agency industry is profitable, more or less. In other words, even if the British economy is really affected by Brexit, It has been sluggish, and the real estate agency industry will not be eliminated. This investment will not lose too much, and it will be recovered sooner or later.

Yuanshan Capital didn't even think about this kind of trading thinking. Yang Cheng didn't know what expression to make except for a wry smile. No matter what, the boss is the boss. Anyway, he is a stock god, admitting that he is inferior to others, it seems that there is no shame.

Since the skills are not as good as others, then pull down your face and drink soup behind the boss’ ass. This is not plagiarism.

London, as the world's financial center, attracts rich people, elites and students from all over the world every year. A stable economy and a steady stream of influx of people are the fundamental driving force for the booming real estate market in a region. This is also London. The charm of the real estate market lies.

Businessmen all over the world are the same. Wherever there is money to be made, wherever it is safe, put the money wherever it is.

Everyone thinks that the **** of stocks only loves stocks, and the old man is interested in any business that can bring stable returns, and he really loves real estate.

Fortunately, Yang Cheng realized that it was not too late, and it was time to get on the bus to eat leftovers. The rice was not cold yet, and you could still taste the original taste.

Price suggested Berkshire is willing to cooperate with any sincere friend, and a sincere and powerful partner is what we urgently need.

I have a small idea here, I don't know if you are willing to accept it. "

Regardless of what the other party said, it's better to show your attitude first, Yang Cheng said quickly, "Of course, as long as it is beneficial to me, even if I make less money, it doesn't matter. I think it is learning experience behind Berkshire. "

Price did not take the polite remarks seriously. Nowadays, no one in the United States knows that Yang Cheng is a typical representative of the new generation of little foxes. Is there a credibility in what the fox said?

"We learned before contacting Kayapap that they had contacted Qatar and the UAE consortium to try to cooperate in the high-end residential market in Cape Town."

Yang Cheng didn’t understand too much, "What does it mean to develop Kayapap by myself"

Price shook his head, "No, it is developed by a cooperative consortium, and kayaapap is bound to sell, but the consortium from the Middle East is not satisfied with the conditions they offered, so the cooperation has not been achieved, if you are interested in Jason...

I know that Yuanshan Capital recently started several projects in London and Liverpool at the same time, and it definitely has the ability to develop high-end housing in London. "

Yang Cheng frowned slightly, "I never doubted the strength of Yuanshan Capital, but with all due respect, I have not been able to see the benefits from this cooperation. When the real estate is developed, it is bound to expand the sales area and cover the potential as much as possible. Clients, the faster and more real estates are sold, the developers will be able to withdraw funds as soon as possible, and only bind an intermediary to be responsible for the sales. I am afraid it will be difficult to meet the needs of the developers. I believe that the Middle East consortium saw this and refused to cooperate. "