[Chapter 491: The Right Way to Use $18 Billion]
The Health Products company's account held a staggering $17.8 billion in cash, even after deducting the $160 million about to be paid for procurement and security equipment. The amount of cash on hand was simply enormous, and Linton wasn't about to let it just sit idly in the bank.
After an exhilarating and wild morning, in the afternoon, his girlfriends all headed out to attend to their own commitments, leaving only Winnie behind with him.
"Winnie, yesterday the White House transferred the entire $18 billion this year's procurement payment for the vitality pills. I'm planning to allocate $17 billion for investments. Do you have any suggestions?"
"Wait, they were that generous to you? Paying the entire annual fee in one lump sum?" Winnie could hardly believe what she heard.
"Don't be surprised. The money's here now. I can't just let it sit in the bank earning interest."
"You're putting $17 billion into investments, leaving only $800 million in the account. Is that enough for the health company's daily operations?"
"More than enough. Besides, after the official launch of the pills on May 6, the cash flow in the account will surge rapidly. We'll likely increase the investment fund even further."
"At the end of last month, we got $2.5 billion from charitable donations. The last $500 million arrived just recently. These funds have mainly been used to purchase stocks in the target companies we previously researched on the secondary market. There's still about $100 million left unallocated."
"How's the stock sell-off at Netscape going?"
"Pretty well. About a third of the shares have been offloaded without impacting the stock price -- it's even risen slightly. The $700 million cashed out has been reinvested in other stocks. Are we really planning to sell off everything?"
"Yeah, sell it all. Their product line is too narrow, and the market's overheated. The real issue is Microsoft. Once their new browser hits shelves and is bundled with other software, Netscape won't stand a chance."
"Alright. Counting that $2.5 billion, our charitable fund's investment portfolio now exceeds $10 billion, all concentrated in computer, telecommunications, and internet sectors. Are you sure you want me to manage the entire $17 billion?"
"No. The health company is my personal holding, not part of the charitable foundation, so it's not appropriate to put it under the charity's investment office. Instead, you should form a separate investment team dedicated to the health company's portfolio, independent from your current team. The new team's office can be on the same 15th floor since there's plenty of room."
"That sounds doable. I'll get that set up soon. But do you have specific directions on where to invest? Stay in the same sectors -- computer, telecom, internet?"
"Set up the team first. For the first $17 billion, follow your previous research and invest entirely in those three sectors. But don't lock yourself into those industries. The new team should have no restrictions apart from those three. Consider traditional sectors like defense, oil, energy, chemicals, logistics, and trade. Also, emerging industries such as new materials and technologies -- anywhere globally, not just America. Our health company's profits will only grow from here. It's best to diversify into leading companies worldwide across various industries."
"Dear, you're absolutely right. Only by doing this can we become a true top-tier conglomerate, building a legacy to last generations. Muah..."
"Baby, great minds think alike."
"Alright, I'll do my best. But investing $17 billion strictly into computer, telecom, and internet stocks will take quite some time."
"There is no rush. We've completed the initial capital build-up phase. Now is the time to stabilize, thoroughly research our targets before moving in. Meanwhile, for companies we've already researched -- Microsoft, Cisco, Intel, Oracle, AMD, Nokia, Motorola, Compaq, HP, Dell, AOL -- all with immense potential, we can quietly keep buying shares on the secondary market."
"Sounds good. By the way, Yahoo is planning to go public on April 12. As major shareholders, they sent you an invite. Interested in ringing the opening bell at the Nasdaq in New York?"
"I'll pass. You can represent us there. How's their stock offering looking?"
"Very promising. They're issuing 5 million shares, about 20% of the company, originally priced at $20 per share, aiming to raise $100 million. But after the Victoria's Secret Angel Fashion Show and your recent scandal, traffic to Yahoo spiked so much that their servers crashed four times in a row.
Each server crash pushed the share price up significantly. The final offering price has been set at $40 per share, doubling the funds raised to $200 million. Their market capitalization after going public will be $1 billion.
The roadshow has started, and per your earlier instructions, I informed Richard to have Skycrest Capital invest $50 million to buy 5% of shares. Along with Mangrove Capital's planned 16% post-IPO stake, we now control 21% of Yahoo."
"The server crashes were all tied to us, yet Jerry Yang hasn't given us a single bonus." Linton joked.
"Don't get cocky. Considering Yahoo's scale, even if they gave you a bonus, you probably wouldn't care." Winnie laughed in return.
"That's true. But it's okay; our investments grow alongside."
"By the way, honey, the two Gulfstream V jets we ordered will arrive next month. Then you can fly anywhere in the world without worrying about range."
"That's great. Once they arrive, I'll leave my current jet at home for everyone to share, and put the other plane under the film company's use for their promotional tours. With the health company flush with cash, why don't you place a bulk order with Gulfstream for one jet per person? About 20 jets."
"Isn't that excessive waste?"
"No worries. We have the money, everyone has their own careers and lots of travel. Since our estate is far from Los Angeles, having planes is just more convenient. Plus, these purchases can reduce taxes, but we might need to expand the farm's airstrip."
"You're too good to us, darling. Muah..." Winnie's eyes shined with happiness as she leaned in and planted a tender kiss. "Love me..."
The study soon filled with her sweet, joyful voice singing softly...
...
That evening at dinner, Linton announced to all the women that he was buying each of them a brand new Gulfstream private jet. They would even get to decide the interior decor themselves.
The ladies erupted in cheers. Dinner was immediately forgotten as the night's lively party kicked off.
From the first floor to the third, the dining room, gym, screening room, study, master bedroom, and garden -- all were alive with scenes of playful drama and enchanting performances.
One beautiful song after another echoed through the estate...
*****
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