Rebirth of the Financial Crisis Sweeping the World

The next day, January 11, Wang Guanxi's horseman Stephen Stano had contacted Buffett's secretary.

There will be news soon.

Wang Guanxi waited patiently.

At this moment, Berkshire Hathaway headquarters.

Buffett leaned on the boss's chair, frowning.

Now Berkshire Hathaway's stock price has plummeted to the dollar.

This is the eighth consecutive trading day that Berkshire Hathaway has fallen since it released its third-quarter profit, which fell by 77%, setting a new record for the company's largest decline in at least 23 years.

Currently, Berkshire Hathaway's stock price has fallen to its lowest point in three years. It has fallen 41% this year, which is almost the same as the S\u0026P 500 Index's 45% decline during the same period.

In the past 20 years, Berkshire Hathaway's stock price has increased in 17 years.

This year, he has spent more than 28 billion US dollars on various acquisitions and securities investments, but it seems that it is still too early to "buy the bottom".

On September 23, he purchased US$5 billion of permanent preferred shares of Goldman Sachs, with a convertible price of ordinary shares of US$115. At that time, Goldman Sachs’ stock price was still above US$125.

But the situation has changed suddenly, and Goldman Sachs' stock price has dropped to US$55.18, a plunge of nearly 55% from when he bought the shares, and it is also "out of reach" from the convertible price of ordinary shares of US$115.

On October 1, he announced that he would inject US$3 billion into the troubled General Electric and promised to purchase the latter's common stock at a price of US$22.25 per share. At that time, GE still closed at US$24.50.

However, the miracle still did not happen. GE's stock price has been falling since then, falling to US$14.45 this week, and the "stock god" was once again deeply trapped.

At the same time, some of Buffett's original heavy holdings also suffered waterloo.

American Express, one of the top ten largest holdings, has fallen 67% since September 30, and Wells Fargo, the second largest investment, has also fallen miserably this year.

Not only was he trapped, he also faced a crisis of trust.

Not only did he suffer temporary losses in stocks, but he also faced the risk of huge losses in stock index betting that Berkshire Hathaway faced!

Investors are worried about the company's $37 billion bet on stock index futures.

Buffett has now sold US$4.85 billion in contracts to protect buyers against future declines in the S\u0026P 500 and other four major global stock indexes.

Before September 30, Berkshire had written down $6.73 billion in the value of contracts sold because the S\u0026P 500 index had fallen for four consecutive quarters.

Meanwhile, credit default swaps (CDS) on Berkshire bonds have more than tripled in price in the past two months.

The higher the price of CDS, the higher the default risk of the bond.

"Oh, this past six months has been really bad!"

“I don’t know when this financial crisis will be over!”

Buffett pressed his temple.

At this time Buffett's secretary came over and gave a brief talk.

Buffett was stunned and asked: "A financial institution wants to ask us to borrow Wells Fargo stock?"

"Yes, sir," the secretary replied, "it's the boss behind Stephen Stano, chairman of Huntington Bank of Ohio!"

Buffett asked again: "How much do they want to borrow?"

Secretary: "100 million shares"

"100 million shares?" Buffett opened the stock price chart of Wells Fargo and looked at it.

A hint of contempt appeared on the corner of his mouth. After thinking for a while, he said: "Just borrow 50 million, with a monthly interest of 1.5%."

"Okay, sir" the secretary hurriedly went to do it.

Then Berkshire Hathaway lent Fund 3 50 million Wells Fargo shares.

Wang Guanxi was very satisfied.

"Now there are 100 million shares, but they are only worth US$2.2 billion. Fund Account No. 3 has US$5.8 billion, and we still need to borrow more!"

Huang Shaokai said: "BOSS, when we first shorted Wells Fargo Bank, we were blocked by the Bank of Baroda in India. They own 100 million shares of Wells Fargo Bank. We can just ask the Bank of Baroda in India to borrow it."

When Wang Guanxi heard this, he was immediately excited.

“How could I forget the enemy Bank of Baroda?”

"The bearded Anand Mahindra of the Bank of Baroda in India has recently heard that he has made a lot of money elsewhere!"

Then Wang Guanxi called Anand Mahindra of the Bank of Baroda in India.

The call was quickly connected, and Wang Guanxi said straight to the point: "Anand Mahindra, I would like to lend you the 100 million shares of Wells Fargo Bank held by the Bank of Baroda in India."

Anand Mahindra touched his beard, smiled coldly, and said, "Are you going to short Wells Fargo for the second time?"

"That's right," Wang Guanxi replied: "I asked Sandeep Batra of Industrial Trust and Investment Bank of India to borrow 50 million shares, but he didn't lend it. Now I'm asking you to borrow it!"

Anand Mahindra: "Haha, okay, let's fight again this time and buy as much as you can buy. It's only 100 million shares. I'll help you ask Industrial Trust Bank of India to borrow another 50 million shares!"

"dare?"

"I just asked you if you dare?"

Anand Mahindra recently made billions of dollars by shorting U.S. stock index futures and is now very confident.

Wang Guanxi responded: "What are you afraid of? 150 million is just 150 million shares, you can borrow it!"

"Okay!" Anand Mahindra called Sandeep Batra of Industrial Trust and Investment Bank of India directly. After some words, Sandeep Batra was also moved.

Anand Mahindra vowed: "Wells Fargo's stock price has bottomed out. Sandeep Batra, I made a lot of money this time and have no place to invest, so I plan to continue to increase my holdings in Wells Fargo. This crown Xi just hit the muzzle of my gun."

Sandeep Batra nodded: "Okay, I'll borrow it!"

Therefore, the Bank of Baroda lent 100 million shares to Fund No. 3, and the Industrial Trust and Investment Bank of India lent 50 million shares to Fund No. 3!

In this way, Wang Guanxi’s Fund No. 3 borrowed 250 million shares of Wells Fargo Bank!

These 250 million shares are worth US$5.5 billion, and the monthly interest is as high as US$82.5 million, which is a monthly interest of HK$639 million.

This time it was really too much fun.

Huang Shaokai said nervously: "BOSS, we have done too much this time. The revenue of Blackshirt Insurance Company and Blackshirt Investment Bank is not enough to pay the interest."

Zhang Dexi also said: "Yes, we really played too much this time. If we are defeated, we will be finished."

Wang Guanxi said confidently: "Why panic? The Bank of Baroda in India is nothing. That bearded Anand Mahindra has made billions of dollars in the US futures market, and he also delivers food to us."

Wu Zhankun: "BOSS, kill him this time!"

Bai Weiqiang also said: "Fuck him to death"

Wang Juehao also echoed; "Crush this Indian Asan!"

Wang Guanxi nodded: "Very good, let's wait for the US stock market to open tomorrow night!"