He is Already a Tycoon at a Young Age! - Chapter 14
Only Krnovel
#014
“That means, for every 0 in investment returns, we give you an additional 1%. When a return of 10 billion is generated, the investment manager will receive a bonus of 300 million, but when the return of 100 billion is generated, the bonus will not be 3 billion, but 4 billion. Of course, it’s not 3% per individual. Since it’s a team, it’s the bonus rate paid to the entire team.”
“···There’s even a consolation money clause. That’s surprising.”
There is no guarantee that all investments will be 100% successful.
So, this is a clause that was added in a groundbreaking way.
“Even if you complete a perfect analysis after gathering investment-related information and intelligence and invest, you cannot guarantee 100% investment success, so this is the provision. If there is no investment profit after the settlement, you will be paid a severance pay of 10 million won regardless of your annual salary. Of course, if you receive the severance pay after three or more settlements, it can be defined as your lack of investment ability, and I lack the ability to analyze talent.”
Everyone nodded to what I said.
“Lastly, the most important clause is the confidentiality clause, which states that the amount of penalty for leaking confidential information will be significant.”
“ah!”
“This is too much… isn’t it?”
“You are so surprised.”
“I think 300% of the salary, bonus, and severance pay is too harsh.”
When Han Jun-ho spoke to me, Team Leader Lee Seo-jin and Park Jong-seo had already signed the contract.
“It’s not harsh. You just have to keep it a secret. It’s the easiest and the hardest, and if you personally invest with the information you have, you’ll be charged a penalty. That won’t happen, but if that happens, the person who breaks the contract will have to deal with Samjung Group, not me.”
“Yes, I understand.”
The two people who had not signed finally signed the contract.
“Now that you have signed, you can all resign from Samjeong Securities.”
“Did you say you resigned?”
Team leader Lee Seo-jin, who pursues safety, asked me.
“Yes, of course you should quit. I am making investments while establishing my own investment corporation. So, the people I scouted should cut all ties with Samjung Securities, no, Samjung Group. As you confirmed in the contract, I will pay you twice the salary you received from Samjung Group.”
“That’s true. Yes, I understand.”
Four of the most capable investment managers at Samjung Group are leaving the company.
“Sir, I would like to resign in a week.”
“A week later?”
Han Jun-ho asked me and smiled.
‘Han Jun-ho, that guy is a piece of shit.’
And they looked at each other with a look in their eyes that told them exactly what they had to do at Samjung Securities for a week.
I was going to say something else anyway.
“It seems like Manager Han Jun-ho thinks the same as I do. Samjung Securities belongs to my grandfather, the chairman of Samjung Group. I want you to bring all the analysis and data accumulated at Samjung Securities.”
Everyone except Han Jun-ho looks dumbfounded at what I say.
“There may be trouble.”
Team leader Lee Seo-jin stepped forward.
“I’ll take responsibility for that. The reason conglomerates are great is because they’ve built up their business infrastructure over the past several decades. That’s why you can bring Samjung Securities’ investor profile information, investment status, and even an analysis of investor tendencies.”
Only Han Jun-ho nodded to my words. I said this to lighten the mood a bit.
“Hey, do you think the grandfather would sue his grandson just because I stole some information? So you don’t have to worry.”
Only then did everyone nod their heads.
I looked at them and laughed.
‘It’s just beginning.’
When the investment starts, it will be huge.
* * *
A week later, an investment office set up in a luxury apartment.
Starting on March 27, 1990, Japan implemented an investment shackle called the aggregate lending system.
Two years have passed since then.
The Japanese government’s goal was to curb skyrocketing real estate prices by imposing lending restrictions, but this was precisely the signal that Japan’s bubble economy was about to burst.
“Sir, as I expected, the Nikkei index continues to fall.”
“The plunge in Japanese real estate prices is also serious, isn’t it?”
“Yes, that’s right. Along with that, Japanese bond prices are also plummeting. Since the introduction of the total loan system, the Nikkei 225 index has never risen from its base date.”
I nodded while listening to Han Jun-ho.
“Still, there are signs that the Japanese economy will slightly pick up this year, right?”
“Yes, that’s true. So the Japanese business community seems relieved, but I think it’s just a temporary effect. However, Japanese domestic investors and foreign investors seem to think that the Nikkei index will not fall any further. And according to the analysis data from Samjung Securities, the Nikkei index is expected to rise from this year.”
“The data I have acquired is just for reference, and I will trust Mr. Han Jun-ho’s judgment. What are you going to do now?”
“As I told you at the beginning, I don’t think the Nikkei index will recover in 10 years. So I think we should invest in derivatives related to the further decline of the Nikkei index.”
“Derivatives?”
“Yes, everyone is currently filled with anticipation that the Japanese economy is recovering. That’s why the number of investors investing in the Nikkei index is increasing. In fact, Japanese people and Japanese investors have made huge profits simply by investing so far. So they have a vague expectation that the Japanese economy will recover and enter a boom period again.”
“That may be true.”
“Since the index and all the parts have been down for two years already, you would think that it can’t go down any further. So I’m going to invest in the opposite direction. Of course, you have to approve it.”
“Yes, I will trust Mr. Han Jun-ho’s judgment. Invest in derivative products related to the decline in the Nikkei index. First, set the maturity to six months. Invest 20 billion.”
“20 billion?”
Han Jun-ho was surprised.
“Why, aren’t you confident?”
“That’s not it.”
“If there really is an opportunity, you have to push for it.”
“Sir, no matter how accurate my analysis is, it is just my personal analysis. What if I invest 20 billion won in derivatives and it fails…?”
“Only ten million won in consolation money will be given out.”
At my words, Han Jun-ho made an expression that made me wonder if he had no concept of money because he was the fourth generation of a conglomerate.
“Do you think that because I’m the fourth generation of a conglomerate, I have no concept of money?”
“Oh, no.”
“Or do you think I approved such a bold investment because I have a place to return to? The person I’ve seen, Han Jun-ho, is an honest person, so tell me.”
“Yes, I thought about that too. The director has somewhere to go, but the investment team isn’t there.”
“I won’t fail. Trust me, trust me, trust Mr. Han Jun-ho.”
“Yes, I understand.”
“Go ahead and do it. If you invest 20 billion in that derivative, what do you think your expected return will be in six months?”
“If the Nikkei index continues to fall like this, I expect a return of 2,500%. The reason for the high return is that I am investing in the Japanese Nikkei index, which mostly rises. Perhaps in the eyes of other investors, your investment will look like something out of the ordinary.”
“Everyone will laugh inwardly. But I will be the one laughing last.”
“Of course. I am confident.”
“Go ahead.”
When I discussed investment with Han Jun-ho, Director Park didn’t say anything.
‘I’ll advise you later.’
But I know the future.
And the fact that the Japanese economy is not experiencing a lost decade, but a lost 30 years.
‘The Nikkei index has hit its highest point since then!’
It never goes up.
So investing now is not a bold investment, it’s a smart investment.
‘What if I had invested a few years ago?’
2,500% returns?
I would never have been satisfied with that.
* * *
The Nikkei index hit a record high.
It fell 10% in one day. Japan was in a state of panic.
“Sir, as I reported yesterday, we have invested all 30 billion in short selling the British pound.”
Fleet Road reported to me.
“The UK has joined the EPM, a transitional body for the creation of a single currency within Europe?”
“Yes, accordingly, the British pound should be pegged to move within 6% above or below the German mark.”
“What if I fall over?”
“Obviously the Bank of England should intervene immediately. That’s why they’ve raised rates 10 times now. This is a real opportunity.”
“I took that opportunity yesterday through a Singapore investment firm.”
“Yes.”
He invested all the money in the account that his grandfather had given to Mr. Park Seon into short selling the pound.
“30 billion won’t have much of an impact on the pound’s decline, right?”
“That’s true, but there’s no way the big hedge funds wouldn’t have detected what I was analyzing.”
“I guess so.”
“I am confident that large hedge funds, including those in the US, will be bears who show off their skills for you.”
“If we wait, the answer to this will come out.”
“Yes, it will.”
After investing, it’s time to wait.
‘Investment in Nikkei index decline derivatives also requires a 6-month wait.’
Short sellers of the British pound will also have to wait patiently.
“Mr. Ham Dae-gil.”
“Yes, sir.”
“Isn’t Britain’s economy stronger than Germany’s?”
“Yes, if the British government continues to raise interest rates like this, inflation will occur and unemployment will rise to over 10%.”
“If that happens, the UK composite stock index will also crash.”
Shorting the pound is just watching the big hedge funds perform their tricks like bears for their circus.
“That will happen.”
“Then, invest 20 billion of the funds you directly manage in the decline of the UK composite stock index.”
“Index investing?”
Episode 15