BXBX NOVEL Chapter 849 - Private Equity Fund (PEF) Company (4) – Part 2
Chapter 849: Private Equity Fund (PEF) Company (4) – Part 2
Jae-Sik Moon said, “That’s right. When we bought those five condos, we took out a mortgage loan of 330 million won, and we have paid for the loan interest with the rent that we are getting by renting them out. It’s a successful investment, I would say. I’m thinking of raising the rent for those five condos around next Spring, so we could actually make money even after we pay for the loan interest.”
“Hmm, really?
“So, you are getting rent payments from those five condos, and the price of those five condos keeps increasing. You are making good money, President Goo. Congratulations.”
“I should have purchased 100 of them, not just 5. Some professional landlords in Korea own several hundreds of real properties. I read a newspaper the other day about an old man in his 60s who owns 300 real properties in Gwangju City.”
“Wow, 300 real properties? My dad has never had his own home before. In Korea, real properties are unfairly distributed— the rich have a lot and the poor have none.”
Gun-Ho thought for a second of purchasing maybe 2,000 condos in China as an investment, and then he decided not to.
‘I have so many businesses and investments ongoing in Korea. That should be enough for now.’
It was early November.
Gun-Ho received a call from CEO Geun-Soo Son at Daewoo The O’vill Plus that was located next to the Gangnam Station.
“It’s Geun-Soo Son from SH Investment Partners, sir. The company is now registered, and it is filed with the Financial Services Commission as well. We have our business license too.”
“Well done.”
“And, I just verified the 3 billion won in our business bank account, that was sent by Ms. Seung-Hee Park.”
“Mr. CEO Son, I want you to open a stock account under the company’s name with the Gangnam Stock Brokerage Firm. I will stop by there around lunchtime today.”
“Our office is on the 6th floor. The office number is 6XX, sir.”
“Okay.”
Gun-Ho received a call from Jong-Suk Park.
“Bro? I just came back from my trip to India.”
“Really? Welcome back. How was your trip?”
“I left one of my employees there, who accompanied me during the trip. He is now an employee of Dyeon Korea, instead of GH Machines. I terminated his employment with GH Machines, and let Dyeon Korea hire him.”
“Good. I guess you need to hire someone to fill up his position, huh?”
“Yeah, I’ve already posted a job opening. I’m going to hire several more workers, not just one. Since we are expanding our business to include the work of Miura Machines, we need more people who will be handling new machines from them and all. Oh, I hired someone for the trading work. He already started working with us.”
“I remember that you told me about Assistant Manager Seo’s little brother. Did you hire him for the position?”
“Right. He is smart. He is doing very well.”
“Is that right?”
“And I sent our plant manager to Dyeon China. They said that they didn’t want someone from Korea to stay there taking a permanent position, so I sent our plant manager to train workers there.”
“I wonder if that will work.”
“Our plant manager used to work at a factory in Suzhou City before. According to him, the workers there are working fine.”
“Really? That’s good then.”
“Bro, you are not coming to my office?”
“I will be there maybe tomorrow.”
Around lunchtime that day, Gun-Ho visited Daewoo The O’vill Plus next to the Gangnam Station. When he arrived there, the branch manager of the stock brokerage firm was in the office. It was an unexpected encounter.
The branch manager greeted Gun-Ho when he saw him coming into the office, “Haha, Mr. President Goo. Congratulations on your new private equity fund company.”
“Thank you for stopping by. Oh, you brought an orchid plant. Thank you.”
There was an orchid plant on the round table that would be used by visitors to the office mostly. A congratulatory message was written on a ribbon that was hanging on the plant.
Gun-Ho looked around the office. There were three desks and chairs, and each desk has a computer on it. One computer monitor was huge. It seemed that it would be used to observe movements of the stock market. A bookshelf and a clothing hanger rack were placed as well.
The branch manager asked, “Sir, you said that we won’t try to bring investors, right?”
“Correct. We won’t do that because we don’t want to take any responsibilities for the investors who we bring in.”
“I guess that will make Mr. Geun-Soo Son’s job much easier.”
Gun-Ho said to the branch manager, “Are you going to buy us lunch? Since I’m a VIP client to your stock brokerage company.”
“Of course, sir. Whenever I get a chance to have lunch with you, it will be on me. Please let’s go out to have lunch.”
“Last time, you bought me lunch at Le Meridien Hotel. I will buy you lunch today. Oh, you know what? Mr. CEO Son, we have our funds of 3 billion won in our business bank account, don’t we? Mr. CEO Son, you should pay for our lunch today with SH Investment Partners’ business credit card.”
“Yes, sir.”
The branch manager of the stock brokerage company in Gangnam smiled and said, “Well, I guess I’m in a client position today. Haha.”
The three men walked out of the office-tel, and they headed to a Korean restaurant that specialized in an octopus stew dish, for lunch.
While having lunch, Gun-Ho said, “Mr. CEO Son, did we create a stock account with Gangnam Stock Brokerage Company with our company’s name?”
“Yes, we did, sir.”
“You have been trading stocks a lot, haven’t you?”
“Yes, I have, sir.”
The branch manager who was sitting next to CEO Son said, “CEO Son is an experienced day trader. He was once an active member of a stock trading club, but since he has a limited fund to play with, he couldn’t make enough money. Haha.”
“Hmm, really?”
The branch manager continued, “Mr. President Goo, I’ve noticed that Dyeon Korea’s stock price dropped a little bit. It was around 5,600 won per share when I checked last time this morning.”
“It sounds about right.”
“Are you interested in creating a stock trading club on your own? If we bring in 50 members to the club, we will have enough power to the price of Dyeon Korea’s stock. It would be helpful for you, sir. You don’t have to expose yourself, but CEO Son can manage the club.”
“No, I’m not interested in it. I would have to worry about the members of the club, so they don’t lose their money but make money. Otherwise, the club wouldn’t last for long, would it?”
“If the club members leave, we can bring in new members. We can maintain a certain number of club members even though they are not always the same people.”
“Well, still, I’m not interested in it. I want to make an investment with more stability and safety, such as long-term bonds and stocks.”
“Maybe that’s better. As a matter of fact, several hundred small individual investors can’t defeat a stock trading club that is composed of only several tens of investors. And that sorts of clubs can’t defeat one big player in the stock market. That’s how the stock market works, doesn’t it? There is a saying in the stock market— Jak Cheon Seong Bool Yeo Hak Il Seong.”
“Jak Cheon Seong Bool Yeo Hak Il Seong?”
“It means that the sound of a thousand sparrows cannot be louder than the big sound of one crane. In other words, even though a thousand small investors busily work to trade stocks in an effort to make money, if they encounter one big player in the stock market, they can’t win. Haha.”
“Hmm, that’s an interesting way to put it.”