The Magician’s Memorial - Chapter 394
Only Krnovel
394. Counterattack (4)
There was one thing I had briefly missed.
There was a place that came to me before the astute hedge fund flew to Korea.
Not all of the forces that participated in this short selling were located in the United States, and two hedge funds located in the Korean financial hub tower also participated in the short selling.
“Chairman, the CEO of Rail Hedge Fund and the CEO of Mark Hedge Fund have come to visit.”
“Those are the places that participated in short selling, right?”
“It’s true that they are the traitors. They confessed that they participated in short selling and said they want to talk.”
“Let’s hear what they’re talking about. Ask them to come in.”
Mark and Rail.
They were the two CEOs who created a hedge fund named after themselves.
Although it was not that large on Wall Street, it was still a hedge fund that managed close to trillions of funds.
At best, the current damage is less than 10 billion won.
So is that so? It was Mark and Rail who entered the office very confidently.
“It’s been a while since I saw you. How are you?”
“Hmm, let me confess first. We made a mistake. We participated in the short selling of Hess and Taewo Trading. It was an individual mistake of an employee who went along with the movement of the short selling forces on Wall Street.”
“The Rail Fund made a similar mistake. We gave our employees a lot of power, and this is what led to this mistake.”
mistake?
You kissed like this.
There were two people who made excuses that they had participated in short selling due to individual employee mistakes, not the company’s policies.
It’s a situation where no matter how hard you hit your head, it’s not enough, but it comes out like this?
“Employee mistakes can happen at any time. You don’t have to tell me. It’s not a big deal.”
“Thank you very much for your generous understanding. We will thoroughly manage and supervise to ensure that this type of mistake does not occur again.”
“We have already changed the system to reduce employee authority and allow me to manage all projects myself.”
They were two smiling hedge fund representatives.
I can’t believe you’re already smiling. I can’t believe I don’t even know how things work.
This kind of person is sitting in the CEO position of a hedge fund, and this is what caused this problem.
“Good job. You can go now.”
“Well, I’d like to buy some of Hess’ shares at the current price. If you give me as much as $30 million, not a lot, I can liquidate my short selling.”
“We have a $20 million supply.”
“Did you leave your stocks with me?”
Losses of $30 million and $20 million.
The total amount was 60 billion won.
Of course, when borrowing stocks from a financial company, a much smaller amount would have been invested.
They wanted to liquidate their short selling immediately, even at a loss.
But why me?
It was now 60 billion won.
If Hess’s stock price rises further, the loss will change from tens of billions to hundreds of billions.
And there was no reason to sell the stocks now when I could make a profit equivalent to the changed amount.
“Wouldn’t it be better for both of us to liquidate short selling now?”
“That’s right! This could be used as a starting point for the division of the short-selling forces.”
“I have no intention of selling Hess stock right now. Why should I take the risk of helping out something that happened due to an individual employee’s mistake?”
They were two representatives whose smiles had disappeared.
They seemed to have finally realized what was going on.
“We apologize if you are offended by this incident. However, if news becomes known that we have exited the short-selling group and liquidated it, won’t other short-selling groups also withdraw?”
“There is absolutely no benefit in fighting the short-selling forces for a long time. Chairman Kim has also made quite a few gains, so wouldn’t it be better to end it now?”
You’re trying to negotiate, not apologize.
Negotiation was something that happened only when there were equal positions or something mutually beneficial.
“There is no benefit in fighting the short sellers for a long time. The $50 million worth of stocks you threw will become $500 million in a little while. If you sit still, money will come in, so why do I stop fighting the short sellers? ?”
“······Hess’s stock cannot continue to rise like it is now. It has recovered its balance now, but over time it will fall again.”
“We’ll just have to wait and see.”
“Are you really going to come out like this!”
These were hedge fund representatives who stood up and slammed their desks hard.
Do the short sellers still think they are in A’s position?
You can take this action because the losses have not snowballed yet.
“Good. But since we work in the same financial tower, I’ll give you a good opportunity. I’ll only get you three times as much. I’ll sell your stock for $150 million.”
“Are you saying you’ll get $150 million for a $50 million stock?”
“No matter how much the premium is, how can there be a case where a premium of $100 million is attached? The tail is wagging the dog!”
It was like having a tail bigger than that of a dog.
However, the $100 million premium was by no means an expensive price.
As time goes by, you won’t be able to buy it even if you pay more than 2 or 3 times more than 150 million dollars.
“If you don’t like it, there’s nothing we can do. But just remember one thing. If you get up from your seat now, this proposal will be like nothing that ever happened.”
“How are you supposed to accept such an offer? If it goes on like this, I won’t tolerate it any longer. I’ll leave the financial tower!”
There were two people who left the place.
They did not even know that the offer they had just received was a golden rope that had come down from the sky.
* * *
next day.
A boss had been waiting for me since morning.
He must have been looking at the U.S. stock market all night long, so his brain was a mess.
“Get some sleep.”
“I don’t have time to sleep. Shouldn’t the stock price rise if I buy and sell Hess stocks at the right time? So I was just looking at the charts all night trying to find the right timing.”
“So what are the results?”
“Hess’ stock price rose by more than 10% in just one day!”
It was faster than expected.
After climbing non-stop for several days, it was time to slow down.
However, perhaps thanks to President Han’s ability, Hess’ stock price rose by 10% in one day.
“I didn’t know that CEO Han’s abilities were so outstanding. I would be satisfied with about 5%, but he raised it twice as much.”
“Actually, I didn’t do much. I threw in the stock for timing and tried to buy it at a higher price. But the moment I threw in the stock, it was all sold out in less than a second.”
“Someone is waiting for Hess’ stock to be released. Someone?”
A president takes a moment to pause.
And then a completely unexpected name came out of his mouth.
“We bought it all from Berkshire.”
“What about Berkshire? Are you saying Warren Buffett bought it all?”
“That’s right. The hidden big player was Warren Buffett. Berkshire bought more stocks than Dimon’s fintech bank and Quantum Fund.”
It was completely unexpected.
Although most financial companies made profits through short selling.
Warren Buffett’s Berkshire maintained an investment approach that distanced itself from short selling.
That’s why I was taken aback when I heard that the person who bought Hess’ stock was Warren Buffett.
“Did you find out for what purpose it was purchased?”
“I tried to get information through several channels, but I couldn’t find it.”
“What percentage of the shares have you purchased?”
“At best, it is more than 6%. Fintech banks and quantum funds are competing, so if there were no competitors for 6%, they would have been willing to buy up all 15% of the shares released on the market.”
Warren’s thoughts mattered.
It doesn’t matter if you bought stocks to support me.
If the positions were opposite, both parties could have been in trouble.
“We need to talk. It hasn’t been long since you returned from America, but it looks like you’re going there again.”
“If you are thinking of going to the United States to meet Warren Buffett, I don’t think you need to. A few days later, I received a call that Warren Buffett was visiting Korea.”
Berkshire’s Korean branch was located in the financial tower.
Since President Han manages the financial tower, he was able to obtain this information faster than anyone else.
“Until Warren comes to Korea, unwind Hess’ stock just a little bit. It’s important to know what he’s thinking.”
“Okay, I’ll start pacing.”
“And please make an appointment with the American ambassador next week. I need to talk to him after I meet Warren.”
“I’ll schedule it right away.”
* * *
A week later.
Hess’s stock rose steadily by 3-4% per day.
Even though the quantity we sold was small, it was a stock that was receiving so much attention in the market that demand was high and we were able to continue the upward trend.
And Berkshire also continued to buy Hess’ stock.
Warren Buffett arrived in Korea when the stake exceeded 7%.
The first place he visited was the financial tower, and I personally guided him to the Berkshire Korean branch and then brought him to the office.
“Do you like the Berkshire Korean branch? We have placed you in the best position.”
“I’m working in a much better environment than the headquarters. Thank you for your consideration. Hehehe.”
Warren Buffett with a friendly smile.
He seemed to be in such a good mood that he smiled even brighter as he drank carbonated cola.
“If you don’t mind, I just want to ask you one thing.”
“Any questions from Chairman Kim are always welcome.”
“I heard that Berkshire is purchasing Hess stock. May I ask why you are interested in Hess?”
I asked the question very carefully.
Fortunately, Warren Buffett still smiled and answered.
“Is there any reason? There is an opportunity to buy a highly valuable company at a low price, so there is no reason not to buy it.”
“Are you valuing oil companies highly in this era of low oil prices?”
“How long will the era of low oil prices last? When they fall, they rise, and the oil industry can still grow further.”
Value investing.
Warren Buffett did not buy stocks for any other purpose, but only because of the value of oil companies.
What he said didn’t sound like a lie.
Even before the regression, Warren had shown similar investment methods.
Even when oil prices fell further than they are now, he continued to buy stocks of oil companies, and he once made a big profit when oil prices rose again.
“I was a little worried that they might have bought stocks to support or keep me in check.”
“Hehe, that doesn’t happen. And why am I keeping Chairman Kim in check? I did it if I supported him. Of course, this purchase of Hess stocks had nothing to do with Chairman Kim, I just invested based on the value of the company.”
Warren was looking at me favorably.
So, I made a suggestion for him.
“Then, could you please hand over the shares you currently own to me again? I will purchase them at a premium compared to now. Oil prices are rising slightly right now, but it will not be long before they fall again.”
“I don’t make short-term investments. Even if oil prices fall in the future, if you look at it in the long run, oil prices will rise significantly again someday. I can wait until then.”
As expected, Warren had a great eye.
That’s probably why he’s called a wise man.
“Then, would you be willing to lease Berkshire’s shares? If you lend us just three years, we will increase the value by more than five times and return it to you.”
“Looks like you’re about to do something very interesting.”
“We want to hold an event that is not easily seen in the stock market. To do that, we need Berkshire’s shares.”
Warren Buffett was not originally included in this operation.
However, Berkshire had purchased some of Hess’s stock, so they had to join hands.
Of course, there were no major problems in carrying out the operation without joining hands, but if Berkshire was brought in as an ally, a more dramatic situation could have been created.
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