v3 Chapter 775： Buffett's astonishment

Tiger Fund, Bridgewater Fund and Polaris Capital are all in action. Xia Yu is not doing nothing, but heading into the New York Stock Exchange, continuing to study stocks, hoping to discover one or even several future super gold stocks.

"Under the leadership of CEO Byrne, the cost of insurance claims in the first quarter fell by 5% year-on-year. It is expected to get out of the quagmire..."

On the New York Stock Exchange, Xia Yu sat in a chair, flipping through today's edition of The Wall Street Journal. In a corner of the secondary page, a piece of news caught his attention.

"The company? It turned out to be this company? Has it begun to get out of the quagmire now?"

Xia Yu's eyes condensed, and he looked down.

After reading it for a long time, he closed his eyes and pondered, thinking about everything about the company.

Then he opened his eyes and quickly got up and looked for all the news about the company, especially the shareholder information.

The New York Stock Exchange is the best place to collect information. The New York Stock Exchange itself saves the information of each listed company and makes it public.

So it didn't take long for Xia Yu to collect the company's information. Looking at the shareholder information on it, a light flashed in his eyes, and he said in his heart.

I saw that on the list of major shareholders, in the position of the second largest shareholder, there stood a company that was famous in the future, Berkshire Hathaway.

The shareholding ratio is 27.3%!

Soon after, he collected information from Berkshire Hathaway again, trying to make a more accurate judgment.

The next morning, he collected all the information from the two companies. He sat in his office, contemplating his eyebrows.

Needless to say, Berkshire Hathaway, Warren Buffett’s company, has a market value of more than US$500 billion in future generations, and is among the top five in the world. It is a proper financial empire.

But now, Berkshire Hathaway has not changed, just a company with a market value of 270 million US dollars.

Last year, Berkshire Hathaway’s operating profit was only $34 million.

But this profit is already the highest profit ever from Berkshire Hathaway.

It is precisely because of the explosive profit last year that the market value of Berkshire Hathaway has increased by 110% throughout the year.

In other words, at the beginning of last year, the market value of Berkshire Hathaway was more than $100 million.

However, even today's market value of 270 million US dollars is quite low. Thinking about the market value of more than 500 billion US dollars in later generations, the gap has reached nearly two thousand times!

More importantly, the shares of Berkshire Hathaway have not been split until later generations, and the potential value of each share is now super amazing.

Considering the future generation of Berkshire Hathaway’s stock price of more than 300,000 US dollars per share, Xia Yu could not help but feel a lot of emotion when compared to the current share price of several hundred US dollars.

Of course, Xia Yu, who has the memory of later generations, is very clear that the high market value of Berkshire Hathaway is due to Warren Buffett’s super-smart investment, and it is Berkshire Hathaway who invests in annexed companies. A key step in the transformation of the company.

The later Berkshire Hathaway was a giant in the insurance industry in the United States and the world, and the foundation of all this came from the company.

Speaking of this, I have to mention the company's brilliant history.

The full name of this company is the Government Employees Insurance Company. It was founded in the 1940s and mainly engaged in the auto insurance business for government employees. After Graham's brilliant management, the Government Employees Insurance Company developed rapidly and became a government employee insurance company in more than ten years. The fifth largest auto insurance company in the United States, with its market value exceeding one billion US dollars at one time!

Only in 1976, Graham had already left the company and ceased to serve as the chairman of the board, and died that year. The company's management made a series of errors in the assessment of insurance claims costs, which caused the company's claims to be costly. Increased, the company fell into a loss and almost went bankrupt.

At this time, Warren Buffett took action and began to intervene in buying the company's stock from the market.

Although Berkshire Hathaway is hunting the bottom, the dead camel is bigger than the horse. After all, the company was once the top auto insurance company in the United States. Even if the company is on the verge of bankruptcy due to a sudden management error, it cannot conceal its glory. Past and deep heritage.

In 1976, Berkshire Hathaway had a market value of less than 100 million U.S. dollars, but its investment capital was even less. Where can a company with a market value of several hundred million worth?

Therefore, only ants eat meat, bit by bit, and in the past four years, they have increased their holdings step by step to 27.3% of the equity!

And still further increase in holdings.

Warren Buffett will keep an eye on the company and cannot get rid of Graham.

Warren Buffett is a student of Graham, and Graham is a well-known securities analyst in the United States. When Buffett was a student, he adored Graham fanatically. He would go as long as it was Graham's stocks. investment.

In the 1950s, Warren Buffett visited Graham in the company and talked to him for four hours. Finally, he bought the company’s stock for $10,000 and made 50% in the following year. It's all sold.

Of course, Warren Buffett is eligible to visit Graham because of his congressman’s father. It’s just that, Buffett’s rise of autobiography rarely talks about it, and the media rarely publicize it. Most people only know how to drink. Chicken soup, how can one know the inevitable factor of Buffett's success?

When other children are just playing games, Buffett follows his father on Wall Street and receives elite education. The starting point is much higher than that of ordinary people, and he can also use his father's contacts when he grows up.

Having said that, now that the company’s ZTE person, Byrne, has taken up his post, it is a foregone conclusion that the company will emerge from the quagmire.

In later generations, the company once became the second largest auto insurance company in the United States, Optimus Prime of Berkshire Hathaway.

Now Berkshire Hathaway only holds 27.3% of the equity, which is still low, but it is definitely increasing its holdings and will hold 5% until 1995. Eleven shares.

Subsequently, it spent US$2.3 billion to acquire the remaining 49% of the equity and complete the privatization.

Such a huge potential insurance company made Xia Yu tempted.

Of course, Berkshire Hathaway also tempted him.

If you buy the shares of Berkshire Hathaway now and become the major shareholder, you can fully enjoy the blessings brought by the acquisition But after thinking about it carefully, Xia Yu Still decided to take the company over.

It's rare to encounter such an insurance company that has not yet risen, and has obviously been abandoned by a large consortium.

He needs a strong financial pillar in the United States, banks, securities companies, and insurance companies, of course.

As for the absence of the company, will Berkshire Hathaway fail to rise?

Xia Yu is not worried about this. The key to the rise of Berkshire Hathaway lies in the ability of Warren Buffett. As long as he remains the chairman of the board, Berkshire Hathaway will It will definitely rise.

It's just that the road to rise will definitely be different from the previous life, and the height of rise will also be different.

After making up his mind, Xia Yu acted immediately and transferred some people to form two acquisition teams, and began to absorb Berkshire Hathaway and the company's stock.

At the same time, he also gave Peter Lynch time to go to Merrill Lynch.

The reason why I came to Merrill Lynch is that Merrill Lynch holds a 12% stake in the company, but it downgraded the company’s rating, which is obviously not optimistic.

So as long as the price is in place, Merrill Lynch is absolutely happy to sell its 12% stake to Polaris Capital.

And Merrill Lynch is a giant on Wall Street, letting it come forward to acquire and privatize the company, the success rate is very high.

Taking into account the business of entrusted acquisition, Merrill Lynch readily sold its equity to Polaris Capital at a premium of only 10%!

The company is the equity that Warren Buffett has been staring at, and he naturally attaches great importance to it.

When Merrill Lynch asked for a door-to-door acquisition, he was immediately stunned, and a strong sense of urgency rose in his heart.

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