Chapter 222 Investing in Wal-Mart
“200,000 U.S. dollars?” Yang Wendong didn’t care about the money, but the normal process couldn’t make him agree immediately, so he asked: “Do you mean this store, or All your previous stores?”
“Of course all the previous stores,” said Sam Walton: “The total investment in this store is only 500,000 US dollars.”
Yang Wendong. Then asked: "Are these 16 stores rented?"
"Yes, they are all rented." Sam Walton replied: "I also know that it is very convenient to own the store, but This will consume too much money. The most important thing now is to expand the number and scale of supermarkets and then find ways to reduce costs.”
"Yes, yes." Yang Wendong nodded and said: "I am happy to invest, but I need to check the financial status of the entire Wal-Mart company in detail."
Knowing the future is one thing, but if you invest in a company , it is too unreasonable to invest directly without even checking the financial affairs.
Sam smiled and said: "Okay, I have already prepared these information."
"Then we will wait for the financial information to be reviewed before discussing the specific details of the investment?" Yang Wendong said again.
"Okay." Walton nodded and said: "The noon time is coming soon. If you don't mind, I will take you to a small restaurant nearby for a meal. The nearest big restaurant here is The hotel is a bit far away.”
"No problem, I'm free to do it." Yang Wendong naturally doesn't care if he has to eat in a big hotel. In many cases, local delicacies are even served in the countryside.
Wal-Mart started out by surrounding rural areas with cities. In the early days, due to limited funds, it could only open stores in towns, avoiding big cities with fierce competition.
Later, Walton took everyone to a nearby fried chicken restaurant with a very ordinary name called "John's Fried Chicken Restaurant".
Yang Wendong asked with a smile: "This fried chicken restaurant is very common in the United States."
"Yes, I like eating it very much." Sam said: "Eric, you Like it? ”
"I like it too. There are not many shops like this in Hong Kong." Yang Wendong nodded and said.
With the economic conditions in Hong Kong, it is unlikely that fried chicken will appear. Oil is relatively expensive. Only when the economy improves will fried chicken appear.
As for the United States, fried chicken restaurants have only been around for a few decades, and chain stores like KFC have just begun to develop.
This is because the United States itself is a major agricultural country.
……
After finishing lunch, Walton took Yang Wendong to an office above the Wal-Mart supermarket.
After pouring a cup of coffee, Walton asked: "Eric, you are from Hong Kong thousands of miles away, why do you want to invest in the retail industry in the United States?"
"You Do you know my company's products?" Yang Wendong asked.
“I know.” Walton nodded and said, “Post-it notes, sticky hooks and trolley suitcases are all very good. I also have these things in my supermarket.”
Yang Wendong said: "My products mainly rely on terminals such as supermarkets or department stores to be sold more conveniently, so I want to invest in part of the US retail industry."
Walton said in confusion: "But there are too many retail industries in the United States. I'm afraid it's not an exaggeration to describe this scale with hundreds of billions of dollars. How can you invest too much?"
Yang Wendong said : "So, I will choose some companies that I am optimistic about. As early as two years ago, I asked people to investigate the information of many retail companies in the United States."
"Then why are you optimistic about me?" Sam Wall Dun asked strangely.
These days, in order to attract investment, he takes the initiative to go to banks or investors, but today, Hong Kong capital comes to him on his own initiative, which makes him strange.
Yang Wendong said: "Actually, it's because of your previous business logic of focusing on discounts. I believe that this model will definitely make your scale bigger and bigger.
This is also in my interest, whether it is the end market of my product or the investment itself. "
"Hahaha, thank you very much. "Walton said with a smile: "As long as I have funds, I will definitely expand as quickly as possible. "
Yang Wendong nodded. He naturally believed in Walton's ability, and then said: "Sam, there is one more thing. I want to ask you to do me a favor. "
"What's the matter? Please tell me. "Walton is also quite polite to Yang Wendong, because he is the most eloquent investor he has ever received.
Yang Wendong said: "I want to build supermarkets in Hong Kong, but there is no such thing. experience, so what I want is to take a few people from your company to Hong Kong. ”
Is it difficult to run a retail supermarket? It’s not difficult. Many people want to start a business, and their first thought is to open a small store.
But it is also the most difficult business in the world, precisely because anyone can enter, so if you want to be the strongest, you need to compete with too many people.
Currently, the retail of daily necessities around the world is mainly based on department stores, plus small grocery stores.
Although supermarkets have started a long time ago, they have not grown in scale because it is difficult to reduce costs.
“You want to poach my people to work in supermarkets in Hong Kong?” Walton asked in surprise.
"Yes, I came to invest in you because I am optimistic about this industry." Yang Wendong smiled and asked: "Sam, are you worried that I will become your competitor in the future?"
"Then Not really." Sam Walton shook his head and said, "Even if you invest in supermarkets in the United States, you only need to invest in supermarkets. If it doesn't open within a 3-mile radius of my existing store, I won't care.
The market is so big that there is basically no competition."
"Me neither. If you want to come to the United States and run it yourself, just invest in a company like yours," Yang Wendong nodded.
Even in the 21st century with advanced technology and smooth information, it is extremely risky for an Asian company to do business in the United States, especially in the local service industry.
In the supermarket industry in the previous life, giants from various countries would be severely acclimatized once they went to other countries.
So this industry is still mainly based on investment. You only need to run your own supermarket well within your own sphere of influence.
Sam Walton thought for a while and said: "Eric, although these supermarkets look similar, in fact they are absolutely different in different places;
Don't talk about overseas, even if It’s the United States, and the business models in different places are different.”
“I know this,” Yang Wendong said: “We will make adjustments according to the needs of local people in Hong Kong, but your retail business has changed over the years. It has been developing well, so it must have its advantages.
There is currently no such business in Hong Kong, and I am not familiar with it, so bringing a few people back from you can at least avoid many initial problems. "
Because there will be an investment relationship, it is a courtesy to inform you about poaching people, because there is no need to cause misunderstandings over such trivial matters.
"Okay, This is not a problem. Walton nodded and said, "But it's best to wait until we decide to cooperate." "
"Okay, no problem. Yang Wendong continued: "Starting tomorrow, I will invite a third party to inquire about your company's accounts. When the negotiation is completed, we will discuss the price and share ratio, how about it?" "
"Okay. Walton agreed and said, "You are free to poach people if you want. I won't interfere, but you still need to tell me who they are." ”
"Okay." Yang Wendong nodded.
In fact, the reason why we poached people from Wal-Mart is because the supermarket industry itself is currently not large in the United States, and Wal-Mart is already quite big;
The first to follow Walton Yes, in theory it is at least a little better than randomly poaching people from other companies, and you may know something about Walton's success.
After returning to the hotel, Yang Wendong read the latest American newspaper, while Bai Yushan was making tea next to him. "Take a sip." Bai Yushan brought over a cup of tea and said, "I'm learning tea ceremony recently."
"It's okay, many rich people in Hong Kong still like to drink tea." Yang Wendong took the tea cup, took a sip, and praised: "It tastes good."
"I think you are lying to me. "After Bai Yushan finished drinking it, she felt normal.
Yang Wendong said with a smile: "Just say nice things."
"Okay!" Bai Yushan smiled softly, then put down the tea cup and said: "When I was at Wal-Mart this morning, I discovered that A question."
"Tell me." Yang Wendong asked.
Bai Yushan said: "Many of the customers at this Walmart come by car, and there are many parking spaces and open spaces in front of their supermarket.
But such conditions cannot be replicated in Hong Kong. Most people Without a car, our shopping mall doesn’t have that many parking spaces.”
“That’s right.” Yang Wendong nodded and said, “So the same supermarket business needs to adapt to local conditions.
In the United States, the population density is low, car fuel is cheap, and the economy is strong, so most people rely on cars to travel.
In Hong Kong or many Asian cities, the opposite is true, so most people in Asia. Like to get together so travel costs are low
In this case, opening a supermarket is different. In the United States, it is most suitable to open in the suburbs, but in Hong Kong, it is best to open in the city center. ”
“Built in the urban area? It's quite suitable for you, since you have a lot of properties anyway. "Bai Yushan nodded and said.
Yang Wendong added: "There is also transportation. Don't forget that I am the actual controller of CMB. It is not a problem at all to coordinate the CMB route. ”
Through one-share expansion financing, Yang Wendong now controls 49.9% of CMB’s stocks, becoming the absolute controller of CMB.
Others can’t do anything to him if they join forces. However, he kept the promise he made to Huang Yaonan and gave the Huang family full responsibility
Bai Yushan asked in surprise: "Have you thought about this day for a long time?"
"That's right." Yang Wendong said: "I knew early on that China and Pakistan would play a great role and can cooperate with my services. Industry."
"That's right." Bai Yushan nodded and said, "Then we will wait for the results of the financial review."
Yang Wendong said: "Well, It will be over soon, in a few days. Wal-Mart is not big now. "
In fact, even if the other party's accounts are very poor now, he will only be happier, so that he can be more comfortable here. Advantage in sub-investment.
Bai Yushan asked again: "Have you considered other supermarkets? This is the only one?"
"Consider other ones in the future." Yang Wendong paused and said.
Theoretically, there are several other good supermarkets, but he only knows the name of the supermarket and the founder's information, but has no idea at all.
You can only wait until they have reached a certain scale and Lin Youjing's people have compiled the information and sent it to Yang Wendong before they are discovered, and then you can consider whether to invest.
"Yes." Bai Yushan said again: "I heard there is a circus performance here tonight. Let's go and see it tonight."
"Okay." Yang Wendong agreed.
Investment is very important, but enjoying life is the same.
Life, after all, only lasts for more than 30,000 days.
……
After staying in the town for 5 days, the third party and the international financial team who followed from Hong Kong audited Wal-Mart’s existing 15 supermarkets.
Yang Wendong came to Walton's office again and said: "Sam, I think you also know the evaluation of Wal-Mart by third-party companies. They believe that your 15 supermarkets are only worth US$700,000."
"No, I don't agree." Walton shook his head and said: "This is because of last year's economic crisis, which made many people afraid to spend money, but the economic crisis will always pass."
Yang Wendong said : “The economic crisis will indeed pass. Yes, but during this period, when I buy stocks of listed companies, it is the current value, not the future value.
Any investment is made now, you can't say it will be worth 3 million US dollars in the future. Is it worth so much?”
“Eric, you are right,” Sam Walton said, “However, I still firmly believe that my business is worth more as long as it survives this period. Just time.”
"If you have confidence, I like it very much." Yang Wendong added: "At a price of one million US dollars, I can agree, but I want 15% of the shares. Sam, what do you think?"
"150,000 U.S. dollars?" Sam frowned: "I don't need that much money."
Yang Wendong shook his head and said, "No, you do, although you have 15 companies. Supermarkets, but the first 14 are small-scale, and there is only one such Wal-Mart supermarket.
If you want to reduce costs by expanding your scale, you need more Wal-Mart supermarkets. Only in this way can you succeed."
Sam Walton said: "That makes sense, but if that's the case, wouldn't $150,000 be enough?"
Yang Wendong added: "I can lend you an additional amount of money. As for the amount, we can renegotiate, but three to four hundred thousand dollars is not a problem."
In the past two years, Changxing Industrial's products have been exported to the United States. , and also had a lot of US dollars. These funds were not completely transferred back to Hong Kong, but were placed in overseas tax avoidance accounts. The purpose was also to invest in high-quality overseas companies when there was a need.
With the future known, the investment income of some future companies in their infancy will be higher than that of buildings in Central, such as Wal-Mart.
"Borrow money alone? What about mortgage and interest?" Sam asked.
Yang Wendong said: "The interest rate is the same as that of a normal bank in the United States. How about using the stocks in your hand as a mortgage?"
"Okay, I need to think about it." Sam hesitated.
Taking the money will indeed allow him to develop rapidly, but if the economy does not recover and the debt becomes excessive, he may lose the management rights of the company.
Yang Wendong added: "I am a Hong Konger and it is unlikely that I will run a large local service company in the United States, so no matter how many shares I hold in the future, I will not compete with you for corporate management rights. "
This is a promise, and it is also a reality. Even if Walton gives him Wal-Mart for free and he finds professional managers to manage it, it is estimated that even if he survives successfully in the end, it will only be a performance. Very mediocre.
The most important thing is Sam Walton.
After listening, Sam nodded and said: "Okay, if there is no problem, I think it would be a good idea to cooperate like this."
......
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(End of this chapter)