"It can be said that under normal circumstances, any ordinary supermarket, no matter how well-run it is, is unlikely to defeat supermarket giants such as Celtics or Sears with a turnover of tens of billions of dollars. The operating costs and purchasing costs are completely different. It’s the difference between heaven and earth. But after the oil crisis, everyone’s living habits have changed, and they want to buy cheaper supermarket products. They will inevitably look for new cheap supermarkets with decent quality, and they Once I found Wal-Mart, it would be difficult to change my living habits once my living habits have changed, so I invested in Wal-Mart." Chen Zhiwen said with a smile.
"Wal-Mart only has 120 supermarkets, which is still far behind Celtics or Sears." Sam Walton said with a smile.
"This is now, maybe ten years from now, Wal-Mart will become Celtic's biggest challenger." Chen Zhiwen said with a smile.
"My dream is that in 20 years, Eric, you will believe in my company more than I do." Sam laughed.
"Then just wait and see." Chen Zhiwen said nonchalantly. The turnover of Wal-Mart supermarkets is now increasing by 30-50% almost every year. Who would have thought that this increase could be sustained for decades, including even Walton now.
"Let's stop here for the future, let's talk about the present." Sam Walton paused and said, "Eric, although after Wal-Mart goes public, anyone can acquire the stock. You think Wal-Mart is very promising and you buy it." , I feel very happy, but as a company that has just been listed for a few years, our shares circulating on the stock market are only about 30%. You have acquired 10% by yourself, and it has not stopped yet. This is very bad for the secondary market. , if this continues, the stock exchange will require our company to increase shares again, which is not what I need."
"Isn't it better to increase the company's funds by increasing shares for corporate expansion?" Chen Zhiwen said with a smile.
"I don't need other funds, and I don't want our family's shares to be reduced, so I hope Eric can stop acquisitions in the secondary market. You are now considered a major shareholder of Wal-Mart. I have also investigated your background. You We also have certain capabilities. We can cooperate to make Wal-Mart better, rather than fighting for some small interests. This is good for us all." Sam Walton said with a smile, but his eyes were fixed on Chen Zhiwen face.
"No problem, cooperation is a win-win situation. This has always been my principle." Chen Zhiwen nodded in agreement without even thinking about it.
For Wal-Mart's stock, he naturally hopes to obtain more and more. The yield is too high, but everything has a balance. If too much is acquired, the Walton family as the controller will definitely not be happy. If it happens Economic conflicts would be too uneconomical.
It is actually very simple for Walton to backhand him. Their family is the controlling shareholder of Wal-Mart, and the management rights belong to them. They can conduct a targeted share increase to dilute the shares of all shareholders on the market, including Chen Zhiwen’s equity. However, Such an approach would also drain the Walton family's funds.
Taking a step back, the Walton family can also introduce other investors, which will also dilute the owner's shares. For the company's controlling family, outsiders holding shares is not a big problem. The problem lies in the concentration of external shares, and the introduction of many Investors, if everyone has less shares, their management rights will not be threatened.
Another trick is to treat the shareholder Chen Zhiwen as a stakeholder of the company, which is similar to the status of the actual controlling shareholder. From a legal perspective, because the actual controlling shareholder knows the company's future strategic development plan, the company's internal financial data and other confidential information , so the China Securities Regulatory Commission has strict restrictions on the selling and purchase of shares of their own companies by these people. Once on this list, it will be difficult to acquire shares in the secondary market on a large scale.
Of course, the Walton family will not really let outsiders become relevant parties with real power, but if there is a real stalemate, the US Securities Regulatory Commission will be happy to believe them, not a foreigner.
There are some other methods. As long as the Wall Street people have money, they have many methods. Therefore, when Walton expressed his stance, Chen Zhiwen could only stop explicit acquisitions. Even if he could secretly acquire more in the future, it would not be possible. How big will it be? After all, the circulating shares of the entire Wal-Mart supermarket are very small. Even decades later, the Walton family still controls more than half of the shares.
"Okay, from now on, I am very happy to be able to make friends like you." Sam Walton said with a smile. He was not willing to waste his own funds to compete with outsiders in the stock market for no reason, even if in the end There are no substantial benefits to winning, and if these funds are used in company operations, many new stores can be opened.
"As a friend and as a shareholder of Wal-Mart, I also have my own resources. I hope to make some contribution to the development of Wal-Mart." Chen Zhiwen said calmly.
"What aspect? I have no plans to open branches in Asia, or even in Europe. The US market is too big." Sam Walton said.
"I'm not talking about this, but about purchasing from Wal-Mart supermarkets. Asian goods are cheaper. We all know this." Chen Zhiwen said with a smile: "I have a trading company in Hong Kong that specializes in providing various goods for supermarkets. Mainly Providing various daily necessities, such as clothes, shoes and socks, bedding, snacks, hardware supplies, etc., they are all small pieces with low prices and good quality. They can also further reduce purchasing costs for Wal-Mart, or further transfer profits to consumers. Or, this is the win-win I want.”
"Purchasing goods from Asia. I have considered this issue a few years ago, but it is very difficult to operate." Sam Walton thought for a while and said: "Eric, your suggestion is very good. You are from Hong Kong. Over there You have certain network resources and you are also a shareholder of Walmart. At least in terms of cooperation, I can trust you."
"There will be no problem in terms of quality." Chen Zhiwen said.
"Is it because of Costco? I heard that you have opened five supermarkets on the East Coast." Sam Walton said.
"Yes, consumers in Los Angeles and San Francisco recognize the quality of Hong Kong products." Chen Zhiwen nodded.
In the supermarket in the United States, it is not a secret at all if someone wants to check it. No one in Hong Kong knows it because they would not think of it, otherwise they would be able to check it. But here in the United States, Walton wants to Of course you can find out.
(End of chapter)
