Rebirth Strongest Tycoon

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Xia Yu first opened the first folder and browsed.

In addition to the basic situation of Polaris Capital, it is the operating situation of the invested company.

Genentech, Amgen, Home Depot, Abbott… all companies have the situation, and each company has financial reports for the first and second quarters, and the operating conditions are obvious at a glance.

It’s just that because most companies are developing early stage, the financial report is not eye-catching, and even has been input and output, but Xia Yu does not care, as long as the money is spent on the ground.

After browsing, the situation of Polaris Capital was updated in his mind, and overall no problems were found.

Feeling relieved, Xia Yu directly closed the first folder and put it aside, turning over the second folder.

I took a closer look and found that the first 4 pages were all directories. Looking at the serial number, there were 87 banks listed. No wonder I opened the folder and found that the files inside were so thick.

If you think about it, it has been less than 2 days since Xia Yu called Peter Lynch when he was about to come to San Francisco in New York to do this work. This is too efficient.

Praise you when you did good. Xia Yu couldn’t help but exclaimed: “Peter, your work is very efficient and you did a good job!”

Peter Lynch said with a smile: “Boss, I have been paying attention to the banking industry before. Especially in the first half of this year, the interest rate fluctuation of the banking industry reached the highest in the past ten years, so I have long been collecting information on the banking industry. See if there is an investment opportunity. After you ordered me, I just found out that these 87 banks are selected targets that have acquisition value in the western United States.”

Xia Yu suddenly understood that due to the fluctuation of the USD exchange rate and the impact of inflation, the United States 80s did indeed experience a banking crisis in the early history of the United States. The Wan Family Bank collapsed in 1000, and the core banks of Ten Major Consortiums all failed. The total number of banks has dropped sharply from more than 70000 to more than 50,000, and it took more than ten years to reach the number of more than 70000 again.

The work of collecting intelligence at this time may seem accidental, but it is inevitable.

Xia Yu said with a smile: “Anyway, you did a good job.”

Peter Lynch smiled and said no more to Xia Yu slightly nodded.

Lowering his head again, Xia Yu first browsed the catalog carefully, looking for banks that are still well-known in the later generation. According to the historical trajectory, a bank that can survive and grow more than 30 years ago is definitely the best acquisition among these banks. Object.

Not to mention, when Xia Yu turned to page 3, when she saw the name of the bank in the first row, her gaze couldn’t help but freeze.

WELLSFARGO!

Translated, it is Wells Fargo!

Later generation United States only one AAA-Rank-rated bank, once known as Wells Fargo, the first bank of the universe, has alternated with China ICBC on the throne of the first bank of the universe four times!

Although it was surpassed later, it is still one of the top 4 companies in the United States, and its market value has been around 2 100 billion USD, even close to 3 100 billion USD at high times!

The 4 major banks in the later generation of United States are **** Bank, United States Bank, Wells Fargo and Citibank Group.

Of course the **** bank is J. P. Morgan Corporation and Chase Manhattan Bank merged in 2000, and the two before the merger are now the financial core of Morgan Consortium and Rockefeller Foundation.

The later generation Bank of United States did not change its name at this time, and was still called Bank of America. It is the largest bank in United States and the second largest in the world, and is the financial core of the California Consortium.

Not to mention the Citibank Group. The core of the First Citibank Consortium is the second largest bank in United States and the third largest bank in the world.

So the only opportunity in the 4 majors in the United States is Wells Fargo.

Although there are still dozens of bank names in the catalogue, but at this time Xia Yu didn’t even bother to read it. No matter how brilliant the future is, can it be more brilliant than Wells Fargo?

Now that Peter Lynch included the information, it proves that Wells Fargo has a relatively large acquisition probability. Even if Xia Yu knows Wells Fargo should belong to the California Consortium, a sense of expectation has also risen in her heart.

With expectations, Xia Yu turned to the location of Wells Fargo according to the page number, and read it carefully.

Wells Fargo, founded in 1852, is headquartered in San Francisco…

Because I cared, Xia Yu watched it very carefully. There were ten sides of the content. After watching it for nearly 20 minutes, he had a clear concept of Wells Fargo at this time in his mind.

At this time, Wells Fargo is indeed just a mid-sized bank, and its range of activities is basically in California, and 60% is in southern California.

And the main business of Wells Fargo is very distinctive. It is a community bank. It can be said that it is dedicated to retail. The business of community banking accounts for more than 80% of Wells Fargo. Most of Wells Fargo’s savings also come from community retail investors and large companies. The cooperation is more based on loans.

Because Wells Fargo has not yet been listed, the information is not easy to collect. The most representative of the data is the annual report of Wells Fargo 1979 financial report.

The annual report shows that as of December 1979, Wells Fargo’s total assets were 12 to 200 billion USD and the total loan amount was 1.4 150 million USD, of which the personal housing mortgage loan was 600 billion USD.

Although Wells Fargo’s total assets are 200 to 1.4 billion USD, it is an out-and-out mid-sized bank in United States, where the financial industry is developed. The owner’s equity of Wells Fargo is only 800 million 30 million USD.

Owner’s equity can be regarded as net assets, because in accounting, owner’s equity refers to the ownership of the company’s net assets by corporate investors. This includes the capital invested by corporate investors, as well as the capital reserve, surplus reserve and undistributed profits formed in the business activities of the company. It is the source of corporate assets, and the relationship is expressed by the formula: assets = liabilities + owner’s equity.

So don’t look at Wells Fargo’s total assets of 200 to 1.4 billion USD, but that money is the depositor, and Wells Fargo is only escrow.

In 1979, Wells Fargo’s net profit was 130 million USD.

The financial industry in the United States is currently in a recession. Among the top ten companies in the United States, none of them is a financial company. The current P/E ratio of the banking industry is around 5, which is still less than the P/E ratio of about ten times when the latter generation was stable.

According to the universal price-earnings ratio of 5 times, the market value of unlisted Wells Fargo should be 600 million 50 million USD, which is still lower than Wells Fargo’s net assets.

This sounds outrageous, but it is true now, whether it is Bank of America or Citibank, it is almost the same, and the market value is just over 10,000,000,000 USD.

The financial downturn has been dragged down by the overall environment and has a certain relationship with the global oil crisis. Currently, 5 of the top ten companies in the United States are oil companies.

Having said that, this year due to the overall environment, United States inflation is quite serious, which has led to drastic fluctuations in the federal funds rate, which has caused a series of bad results.

The spread of Wells Fargo last year was around 4.47%, but the research team of Polaris Capital, based on market conditions, calculated that the spread of Wells Fargo this year would be lower than 4%, which means that this year’s net profit will be lower than last year.

Not only that, because of the violent fluctuations in the federal funds rate, Wells Fargo has to spend more to absorb reserves from the outside world, but in response to market fluctuations, Wells Fargo’s benchmark interest rate has to be adjusted accordingly.

For example, according to the data, the preferential interest rate announced by Wells Fargo was 15%, which rose to 4% in April, but fell to 20% at the end of July, but at the end of September, with the start of the 7 Iraq War, the interest rate rose to twenty one%!

This interest rate fluctuates in real time, but the previous interest rates on loans and bonds are fixed.

Wells Fargo’s financial report last year disclosed that the average lending rate for a total of 150 600 million loans was 12.7%, of which 600 70,000,000 million 9.3 USD for bonds had the lowest interest rate of 5%, and 1.3 70,000,000 billion 2 USD for personal housing mortgage loans had the second lowest interest rate. 10.3%, and real estate development loans, etc.

Now with the increase in the federal funds rate, market bond prices have fallen, and the decline has exceeded 10%. If these bonds are cleaned up now, Wells Fargo will lose 160 million USD.

Calculating odds and ends, there are about 95 100000000 million USD in assets with maturity of more than one year in all aspects. If all are calculated according to the 10% loss of the bond, these assets are cleaned up at this time, the 95 100000000 million USD loss will be Reached 9 100000000 million 50 million USD, which exceeded the net assets of Wells Fargo 800 million 30 million USD, and Wells Fargo had to go bankrupt.

Fortunately, the maturity date of these assets is more than one year. As long as the federal funds rate is lower than 10% before the maturity date of the asset comes, Wells Fargo will not be bad luck.

Even in this case, the analysis also evaluated Wells Fargo as a fairly conservative bank and a potential stock.

From this, we can imagine how much pressure other banks with aggressive investments are facing such a harsh environment.

No wonder that over the past few years, more than 10000 nearly 20,000 banking institutions will be closed down. Even Ten Major Consortiums have consortiums that cannot save their core major banks, and they watched it fail.

At the end of the data, an analysis of the difficulty of Wells Fargo’s acquisition was also made.

Although Wells Fargo belongs to California Consortium, California Consortium does not value it. After all, it is just a mid-sized bank that has not yet left California. The proportion of equity shares belonging to California Consortium is about 40% 3, which has not reached relative control.

In addition to Wells Fargo, California Consortium has more than a dozen financial institutions. Among them, Bank of America, Western Bank, Peace and Security Bank of America, Wells Fargo Bank and Crocker National Bank, etc., which one is better than Wells Fargo Big?

Not to mention multinational banks such as Bank of America and interstate regional banks such as Western Banks, but in the San Francisco area, Wells Fargo is inferior to Wells Fargo Bank and Crocker National Bank.

Therefore, the analysis stated that California Consortium does not value Wells Fargo. Faced with the current downturn in the banking industry and the huge risk of interest rate fluctuations, California Consortium is definitely worried about adding background to banks to resist risks.

But the California Consortium has too many banks, and because of their strength, there is also huge pressure.

Therefore, as long as the bid is appropriate, California Consortium will not refuse to sell Wells Fargo’s equity shares.

However, the analysis also said that although Wells Fargo is a mid-sized bank, its investment is conservative and its ability to withstand pressure is relatively stronger. California Consortium also knows a certain potential. If it wants to acquire, it does not rule out Wells Fargo Board of Directors lion’s big mouth. Suspect, a conservative estimate, the purchase price should be more than 1 billion USD.

The number of 1 billion USD not only didn’t make Xia Yu entangled, he was sighed in relief, and he was very happy.

There is no doubt that the analysis department of Polaris Capital underestimated the potential of Wells Fargo. Had Xia Yu not been a reincarnator, he would have made similar judgments.

In his thoughts, California Consortium’s assessment of Wells Fargo will be similar to that in this information. This is a great opportunity.

According to the situation of the later generation, it is undoubtedly quite wise for Wells Fargo to focus on the development of community banks at this time, and the development model is excellent.

As long as we can stick to this model to develop, we will still become the top big bank in United States.

If it is acquired at this time, then the Polaris consortium will establish a foothold in the Heaven Supporting Pillar in the United States, and it will not be confused with the California Consortium’s Bank of America meet force with force, not to mention that he will add a golden finger to Wells Fargo. Aura, the speed of development will be quite amazing.

Therefore, Xia Yu did not hesitate and stopped reading the information of other banks, and directly passed the information to Peter Lynch. When the latter looked towards the information, Xia Yu solemnly said: “Peter, the most important The mission of this Wells Fargo, you must do your best to acquire it.”

“Don’t say it is 1 billion USD, even if it is 1.5 billion or even 2 billion USD, it doesn’t matter, I only have one to complete, and I will acquire it wholly!”

“Polaris Capital and all companies under it need it!”

Peter Lynch flashed a flash of lightning in his mind, and at the same time he understood the purpose of Boss Xia Yu instantly.

Boss This is planning to take Wells Fargo as the center and attract all companies under Polaris Capital to form a consortium!

He only felt that the blood was flowing faster, unable to bear looked towards Xia Yu and asked: “Boss, do you want to build a consortium?”

Peter Lynch saw through his purpose at once, but Xia Yu was not surprised.

Peter Lynch has been in consortium stand in great numbers on Wall Street for many years. He must have done a lot of research on consortium, and it seems normal.

In the United States of consortium, it is normal and common for large and small companies and family newspapers to set up consortium, so Xia Yu did not hide it, nodded said: “Yes, I have this idea, so you understand Have you acquired the importance of Wells Fargo?”

Although I don’t know why Boss had a look at Wells Fargo, Peter Lynch didn’t ask. He was uplifted and outrageously nodded and said, “I understand, Boss, don’t worry, I will definitely acquire Wells Fargo.”

Xia Yu nodded, because she cares, she warned repeatedly against Peter Lynch: “Peter, now that the oil crisis is breaking out, it has a very bad impact on the financial industry. Must seize the opportunity and strive to remove Wells Fargo by the end of this year. It doesn’t matter if the price is high when the acquisition is completed. Of course, if you can keep the price down, I won’t be stingy with bonuses at the end of the year.

Peter Lynch solemnly replied: “Boss, I won’t let you down.”

After that, Peter Lynch hurriedly left the office to build the Wells Fargo acquisition team.

Xia Yu stayed at the company until about 1:1, and received a notice from the employee. He immediately called Li Wuming downstairs to go back.

The person he was waiting for had already arrived, and it was time to go back.

PS: Due to work reasons, I can only code words late at night. Please forgive me. 4200 words in this chapter