Buffett is still a young man under the age of 23. He has just graduated with a master's degree more than a year ago. Although he is a very powerful genius, he is not worthy of being befriended by Saint Jose personally.
Now we only need to let Thain make acquaintance, and then when he sets up the company, he will make a sure-profit investment. The most important thing now is to formalize the development of Sequoia Investment.
Since San Jose came to the United States, the development speed of Sequoia Investment has accelerated, but this mainly relies on San Jose's guidance. It will definitely not work like this.
After coming to Wall Street in New York, San Jose planned to truly expand the power of Sequoia Investment and completely formalize Sequoia Investment.
Lower Manhattan is home to more than half of the 200 major companies in the United States, such as General Electric, U.S. Steel, and American Telephone and Telegraph.
In addition to Wall Street, his scope actually includes Snowtree Street, Broad Street, Nassau Street, William Street, Exchange Square Street, and Lower Broadway Street.
Merrill Lynch came into his sight. Ten years ago, it would have been a good merger target. For Sequoia Investments, which had sufficient funds, Merrill Lynch developed rapidly after World War II, but it was on the eve of becoming stronger. , it is very suitable to take advantage of the opportunity.
But Charles Merrill believed that there were unlimited business opportunities in serving the wider public beyond traditional Wall Street clients. By the time of Merrill Lynch's 10th anniversary in 1950, it had become the largest brokerage firm in the world. Last year Merrill Lynch's The total income exceeds 60 million US dollars, and the profit is about 10 million US dollars. In front of her, Sequoia Investment is like a younger brother.
Even for the current San Jose, Merrill Lynch's scale and profits are similar to those of Sequoia, so neither acquisition nor merger is cost-effective.
Because there was a surge in performance at the end of the year, and the profits of Sequoia Investment + Blackstone Investment exceeded an astonishing 20 million US dollars, of course this cannot be put on the stage, and it has almost reached the level of the top 5 on Wall Street, and there is still about 30 million more The US dollar profits were spread across different new companies, and the funds were spread across hundreds or thousands of accounts.
One of the largest profits recently came from DuPont, which is the flagship company of the DuPont consortium. They hold a large amount of money in General Motors, but the stock market value is much lower than General Motors. At that time, a company named Graham Being long DuPont and short General Motors, St. Jose simply liquidated more than half of General Motors and switched to DuPont, making a total of 7 million US dollars.
Of course, St. Jose will continue to invest in General Motors. The current stock price of General Motors is 30 US dollars per share, and in the foreseeable future, it will be at least 60 US dollars per share. In such a business that is sure to make money without losing money, the more the better.
At the beginning of 1953, there were a total of 1,532 stocks on the New York Stock Exchange. It was not easy to select some companies suitable for investment, so he tried to invest in some large and predictable companies, such as IBM, Coca-Cola, Sears Department Store, etc.
Even if he has the memory of future generations, he cannot guarantee that those small companies will grow into large companies. Everything is subject to change.
Now Saint-Jesse intends to find a real helmsman for Sequoia and build a real team. This is also the reality that forces him to get rid of a low profile, unless he does not want to continue to make money.
Morgan and Goldman Sachs are regular armies of Wall Street with a long history and strong roots. Sequoia is an upstart. If Sequoia cannot properly sort out its investment, Sequoia will soon completely fail in the cruel financial market.
Compared with the old Wall Street investment banks Morgan and Goldman Sachs, which were born as early as the 1860s, Merrill Lynch and Salomon Brothers can be regarded as rising stars. Merrill Lynch started from securities distribution and is headquartered outside Wall Street. It is now in a difficult stage.
There are also securities investment companies such as Salomon Brothers and Bryce & Company.
Now San Jose can make money by exploiting loopholes through some small means, but Sequoia cannot continue to make money in the increasingly formal U.S. securities market and then invest in Argentina.
After the Great Depression in 1929, the U.S. stock market began to enter an important period of standardized development. Starting in 1933, it entered a relatively stable recovery period. It was not until 1954 that the average stock price returned to the 1929 high.
In 1933, the United States abolished the gold standard and promulgated the Securities Act and the Glass-Steagall Act. In 1934, the United States promulgated the Securities Exchange Act. In the same year, the United States Securities and Exchange Commission was established based on this law. In 1940, The United States promulgated the Investment Company Act and the Investment Advisers Act.
At this point, after more than a hundred years of self-evolution, the U.S. capital market has seen the emergence of laws on securities issuance, trading and investment funds for the first time, and has also established regulatory agencies for the first time. This series of institutional construction has formed the basic framework for the supervision of the modern financial system. , also laid the foundation for the development of the U.S. financial market in the following decades.
San Jose still has about a year to plan for the stock market, and it already has enough money.
December 30, 1952
St. Jose met Anna at the manor residence. She was wearing a white shirt and a pair of tight old jeans, which was quite charming.
St. Jose had to admit that she was indeed stunningly beautiful, which always easily aroused St. Jose's criminal desires.
In the words of later generations, it is a feeling of purity and desire.
Anna's face was a little pale and she was a little thinner, but her complexion was still exceptionally beautiful.
The whole body looks charming.
Anna, who had been promoted to deputy director of a Sequoia retail department, murmured:
"Mr. Tom, it's been a long time no see."
She suddenly kissed Saint Jose on the cheek, and then the two looked at each other for a long time.
"Anna, you are getting more and more beautiful."
Saint Jose said with praise,
"Thank you for the compliment, Mr. Tom."
She could not help but hug Saint Jose tightly.
The two discussed some things about Sequoia Investment and made some interesting remarks.
Ana held his hand and followed him up to the fifth floor. When he walked to a room on the top floor, he opened the door.
You can see the beautiful scenery in the distance here,
With the afterglow of the setting sun, the two of them saw the winter snow scene outside the window. On the opposite hillside, villas were dotted everywhere, reaching to the edge of the city.
In the distance, on the skyline across the harbor, above the coastal embankment and bell tower, the endless snow-white mountains outline a strange and charming curve under the fiery red sky.
“The scenery of the North is covered in ice and snow for thousands of miles.
Looking inside and outside the Great Wall, there is nothing but vastness; the river up and down suddenly stops flowing.
The silver snake dances in the mountains, and the original wax figure wants to compete with God.
On a sunny day, it is particularly charming to see the red clothes and plain clothes.
There are so many beauties in the country that it attracts countless heroes to bow down..."
Saint Jose couldn't help but think of this poem in his heart, but it was a pity that there was no Great Wall here, only some dams and levees and some mountains with unknown names.
Some of these undulating peaks are drum-shaped, some are pointed and protruding, and some are like hooks. Finally, there is a pyramid-shaped mountain, which stretches straight into the sea from top to bottom.
Behind the gray mountains, the blood-red sunset glowed with golden light, dazzling people's eyes.
Facing the majestic scene of the setting sun, Saint Jose was fascinated and couldn't help himself.
He rarely goes to the top floor alone. This floor is too high. He usually only studies and reads in the bedroom on the second floor.
"Mr. Tom, this is Taineward Mountain. I didn't expect that your side is an excellent viewing platform."
St. Jose could not think of any good words except that poem, so he could only say, "Ah! Yes, this scenery is so beautiful! It is simply a masterpiece of God, but it is a bit cold here."
After watching for more than ten minutes, Saint Jose felt a little bored. The two went downstairs and stayed in the room on the third floor all afternoon. Saint Jose did not see Anna off until the evening.
"Anna, I will take you to a dance tomorrow night, and I will take you to buy a dress tomorrow morning."
"As you wish, Mr. Tom."
The two said goodbye.
Early the next morning,
After dawn, the first thing he did was to shave, because shaving in the morning was a habit he developed after coming to the United States.
For many people, first impression is very important, especially for those with political ambitions, a good image is essential.
Most of the students at Harvard University are the second generation and the third generation of the rich. St. Hesse has also become much more refined, with custom-made suits.
In addition to his handsome appearance, he was often very popular with girls. There were even many girls pursuing him in women's colleges, but he refused because he prioritized his studies, and instead gained a greater reputation.
St. Hesse drove to the door of Anna's house and soon saw Anna again. Her face was flushed today.
The two of them bought suitable evening clothes at a high-end store in Boston and prepared to attend a small banquet organized by Harvard tonight.
night,
Prince Manor, St. Jose drove Anna with her.
"Professor Pukins, Happy New Year, this is my female companion Anna."
"Tom, you too, have fun tonight."
"And Anna too."
St. Hesse briefly exchanged greetings with Professor Pukins.
"Tom, I wish you a happy new year."
Saint Jose was very popular at the banquet, and most of the attendees were some of the most famous students of the law department, as well as teachers.
In recent months, San Jose has become quite familiar with them, and they even have many good friends.
"Thank you."
Anna looked at Saint Jose from the side and thought he was really handsome and charming.
At this moment, Anna seemed to see the ripe and attractive fruit on the tree, and she wished she could have a full meal right away. However, her reason told her that although the fruit was good, it could only be tasted after eating fruit snacks, so Still restrained.
When the New Year's bell rang in New York, St. Jose welcomed the first New Year abroad in Boston. St. Jose and Anna drove back to the manor. After night fell, the transparent night covered the road like a veil. Vast wilderness on both sides.
Saint Jose and Anna cuddled tightly together, watching this beautiful spring day disappear silently. [space]
The two had another wonderful night.
The next morning, St. Jose lit a cigarette and walked toward the window.
"Cruise, can I invite you to my house?"
Anna's names for Saint Jose became more intimate.
"I'm afraid it won't work in these two days. I have to prepare Sequoia's development plan for the new year."
Saint Jose refused and said that the two of them just had a casual marriage, and it was better to forget about meeting their parents.
"All right."
Anna felt very disappointed and felt that she was Cinderella and was a bit too high.
Sanjesé comforted Ana, but did not agree to what she proposed. He might return to Argentina in a month or two.
After asking the security guard to drive Anna away, he continued to prepare. For him, it was important to formalize Sequoia now.
…
San Jose has screened a new group of creative employees,
He modeled himself on Merrill Lynch and established the Sequoia Training School to recruit potential employees. One of the newcomers named John Gutfreund caught his attention. After many rounds of testing, St. Jose signed this employee at a high price.
And the construction of all aspects of the company system is completely in line with formalization, but this is far from enough. Investment companies such as Merrill Lynch and Salomon have basically four to five thousand employees.
Sequoia Securities has less than 1,000 employees, so he needs more talents. He personally formulated various interview materials and recruited a large number of talented employees.
This was still not enough, so he focused on some relatively mature but not too large securities companies for negotiations and acquisitions.
Thain negotiated with several formalized but relatively suitable-sized securities companies and achieved certain results, and the negotiations were quickly successful.
Sequoia was soon on the faster train track.
San Jose also referred to some "The Wolf of Wall Street" and military management methods to allow Thain to take charge of the expanded Sequoia Investment. This is very important. A good company system can at least ensure that Sequoia can continue to grow in the future. for several years, normal and sustained development continues.
Obviously there is no problem with St. Jose's idea. With the support of St. Jose, Thain has attracted a large number of general partners. At present, large securities firms in the United States basically adopt the partnership model.
…
After this merger and acquisition, Sequoia Investment Company officially changed its name to Sequoia Investment Bank.
Fidelity Investment Group was founded in 1946 by Edward C. Johnson II and is headquartered in Boston, USA.
It is one of the few investment companies set up in Boston, and it is also the target of St. Hesse Alliance. In 1952, the size of Fidelity Capital was less than 10 million US dollars, but the John family behind it was also a family with great influence in Boston.
Saint Jose asked Thain to take action and planned to form an alliance with the John family.
This is a new and important plan. It needs several allies in the United States, and Fidelity Investments, headquartered in Boston, is a good partner. Fidelity is not too big, and even acquisitions are no problem. Compared with Merrill Lynch For these large investment brokers, Fidelity is very suitable.
The initial commitment of this investment company was to work harder and smarter every day to help small investors achieve their goals.
This is exactly what Merrill Lynch advocates. What Merrill Lynch does is very important to the revival of Wall Street.
Now that Americans have gone through the Great Depression, they are more willing to save than to invest. The current savings rate of Americans is several times higher than that of later generations.
Americans were frightened by the 2029 stock market crash, so now securities companies are desperately trying to put money into the pockets of the American people and educate the American people to make long-term investments.
…
The following scrapped manuscript cannot be finished today. I will refresh it later.
…
At this moment, Anna seemed to see a ripe and attractive fruit on the tree, and she wished she could have a full meal right away. However, her reason told her that although this fruit was good, it could only be tasted after eating fruit snacks, so Still restrained.
When the New Year's bell rang in New York, St. Jose welcomed the first New Year abroad in Boston. St. Jose and Anna drove back to the manor. After night fell, the transparent night covered the road like a veil. Vast wilderness on both sides.
Saint Jose and Anna cuddled tightly together, watching this beautiful spring day disappear silently. [space]
The two had another wonderful night.
The next morning, St. Jose lit a cigarette and walked toward the window.
"Cruise, can I invite you to my house?"
Anna's names for Saint Jose became more intimate.
"I'm afraid it won't work in these two days. I have to prepare Sequoia's development plan for the new year."
Saint Jose refused and said that the two of them just had a casual marriage, and it was better to forget about meeting their parents.
steal fragrance
