The Industrial Giant Reborn
Chapter 71 Cooperation
During this period of time, Chen Zhiwen has been hoarding industrial land, but they are all old land or buildings. The Hong Kong government has not approved much new industrial land, because the industrial export is also wailing.
At this time, if a large American company invests in Hong Kong, the Hong Kong government will be very happy and will definitely give a lot of preferential treatment. Chen Zhiwen also has to choose a good location for the joint venture company, because he also has shares in it Second, after 1985, Hong Kong's industry declined rapidly, labor costs rose sharply, and with the opening up of the mainland next door, all factories had to find a way to move out, so he still had a good chance of taking down the remaining land. Yes, as long as the location is good enough and the area is large enough, even if it is industrial land, the value is very high.
After all, other people don't know the specific situation of the real estate industry in the future. It would be very risky to buy industrial land and then pay the cost of industrial transfer, but for Chen Zhiwen, there is no such thing as risk at all.
"This is the best way, and I really hope that we can cooperate happily with Mr. Chen." Buffett said with a smile. The equipment is second-hand equipment dismantled from the United States. With a construction fee, a large-scale factory was established. Berkshire Hathaway's textile factory went to Hong Kong, not only to occupy the local and Asian markets, but also to sell back to the United States and even Europe.
Of course, for Buffett, this amount of money is still nothing. It can only be said that saving the textile factory is more meaningful.
"It's a pleasant cooperation. When the foundation of the new factory is laid, Mr. Buffett can come to Hong Kong if he is free." Chen Zhiwen said with a smile.
"Okay, you can consider it." Buffett nodded, and suddenly asked: "Mr. Chen, does your Red Bull company accept investment?"
"Red Bull?" Chen Zhiwen quickly reacted, thought for a while and said, "Red Bull has only just developed the US market, and is still in a state of loss, and will not accept investment for the time being."
"I still know a little about the beverage factory. Although I don't know the manufacturing process of Red Bull, judging from the cost of the beverage formula, its cost is only a little higher than that of Coke, but considering its selling price, it is absolutely impossible in terms of profit." Look, the loss Mr. Chen mentioned should be due to the large-scale advertising investment, right?" Buffett said with a smile: "If it weren't for my favorite baseball game, there were a lot of Red Bull advertisements, I wouldn't have arranged for someone to check it out. , It is really unexpected that Red Bull is also the property of Mr. Chen."
"If Mr. Buffett likes to drink Red Bull, I will arrange for someone to deliver a box. Berkshire Hathaway's factory also needs to be shifted. Drinking Red Bull is the most suitable." Chen Zhiwen nodded and said with a smile.
In addition to the traditional way, directly sending Red Bull to large-scale factories is also one of the channels for Red Bull to expand. Before the Japanese factory tested the water, the response was good, but the Japanese market is relatively exclusive. There is also an energy drink brand in the country. Celebrity endorsement, but after entering the supermarket in Japan, the effect is not good.
In the United States, due to the large investment of resources, hundreds of thousands of dollars in advertising costs are spent on large-scale competitions, billboards around the stadium, clothes on sports stars, and buying out the supply of their post-match drinks. , so that Red Bull began to gain a certain reputation in the United States. Various supermarkets, including retail giants such as Kmart and Sears, also took the initiative to discuss cooperation. Some of the production can't keep up with the production capacity, and the second/third phase of the factory is currently under planning.
However, no matter how high the profit is, it can't stand up to this kind of advertising. From the book point of view, Red Bull is still losing money, but the brand has begun to form in the United States. As long as it persists, once it stabilizes its position in the United States, it will become a super cash cow. Coca-Cola is also entering this market, and it cannot succeed without Red Bull making a fatal mistake.
"Okay, I understand what Mr. Chen means. If one day, Red Bull needs financing, please notify me as soon as possible." Buffett said.
"No problem, I promise you." Chen Zhiwen nodded and said, it is impossible for a company with huge profits like Red Bull to be a sole proprietorship all the time. When you grow up, many capital giants will definitely want to come in to get a piece of the pie. If you don’t agree to invest, then these capitals will invest in competitors. Although Red Bull has the first-mover advantage, if the latecomers have enough funds, they can also take over the previous ones. It's gone, after all, it's not a chat tool like QQ that locks friends. Under the huge publicity, consumers can naturally change drinks with similar effects.
Not to mention the ZZ factor. Although it does not involve high-tech and national security, as long as the scale is large, it may be suppressed. Buffett in front of him is a very suitable capital. He does not represent himself, but The investors behind him, if they win him over to the front line, they win over a lot of people.
It’s just that the current Red Bull has just started, and the valuation will not be high no matter how much it is. At the same time, the scale is small now, and it will not attract too many people’s attention. There is a matter of resource shareholders.
Although it seems that the plan is not small, the scale of this investment is only a few million dollars, at least for the first time. For Chen Zhiwen and Buffett, it is a drop in the bucket. The two have discussed the general situation, specific details and laws. The situation is naturally under the responsibility of the subordinates of both parties.
After staying at the headquarters of Berkshire Hathaway for a few days, Buffett was considerate of his hospitality. He specially arranged for fellow Taoists to take a group of people to play nearby, and took Chen Zhiwen to visit a nearby textile factory.
Three days later, Chen Zhiwen left and went to New York, where the full-time staff of Citibank also reported to him the progress of the acquisition of Wal-Mart.
Since Chen Zhiwen left the United States last time, Citibank has continued to acquire Wal-Mart shares, but the situation of Wal-Mart shares is quite special. The Walton family holds more than half of the shares. Many funds or investors also hold considerable shares, which leads to very few floating stocks in the secondary stock market.
After Chen Zhiwen completed the acquisition of 5%, Wal-Mart had fewer shares flowing, which made it difficult to continue the acquisition later, because it would easily cause the stock price to rise too much.
Today, Citibank has only acquired 8.6% of the shares, and the acquisition speed is much lower than the last time.
On the evening of the 30th, I was taken by my family to climb the mountain. I wasted three hours, otherwise I could have coded two chapters.
Happy New Years everyone, there is another chapter tonight
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