My Age of Investment

   Chapter 715

  “As of yesterday’s close, Lixia Fund held 21 companies’ stocks in the US and Hong Kong stock markets, with a total market value of US$1.415 billion.”

   Liu Hai smiled and pressed the PPT controller in his hand, and a form immediately appeared on the large electronic screen in the conference room.

  Through this table, you can clearly see the detailed positions of Lixia Fund, including the market value of each stock, the proportion of total equity, and so on.

   4 million shares of Apple, holding a market value of 266 million US dollars, accounting for 0.68% of the total share capital;

   630,600 shares of Google, holding a market value of 238 million US dollars, accounting for 0.23% of the total share capital;

   43.68 million shares of Penguin, with a market value of 764.4 million Hong Kong dollars, equivalent to 98.56 million U.S. dollars, accounting for 2.6% of the total share capital;

  1.2 million shares of Baidu, holding a market value of US$92.04 million, accounting for 3.4% of the total share capital;

  3 million shares of Amazon, holding a market value of 85.53 million US dollars, accounting for 0.6% of the total share capital;

  2 million shares of Netflix, holding a market value of 40.76 million US dollars, accounting for 3.16% of the total share capital;

  ……

The position of the top six major stocks accounted for more than half of all stock positions held by the fund, reaching 820 million US dollars, and the other nearly 600 million US dollars were scattered among the other 15 stocks, including Nvidia, Salesforce, MasterCard and so on.

  In order to take care of Ricky, who did not understand Chinese, Liu Hai began to introduce Xia Jingxing to each stock in English.

   "Apple, we have started to build positions in May last year, with a holding cost of US$45.62 per share, and a total profit of more than US$80 million. It is our largest holding stock."

   Liu Hai looked at Xia Jingxing with admiration in his eyes.

  After Lixia Fund made a lot of money from investing in China's concept stocks last year, Xia Jingxing instructed him to liquidate all the positions and smash all the profits into US technology stocks.

  At first, he was a little unwilling, because the Chinese concept stocks were really fragrant.

  Netease has risen dozens of times a year, Shanda and Sina are also going up in a rolling manner, and Baidu’s stocks are even more reluctant to sell, and a share is hard to find...

  Under such a good situation, the boss actually chose to take a profit and exit, to buy US technology stocks with the same stock price as the snail climb, which made him very puzzled.

   But this year, the situation has reversed, and Xia Jingxing’s foresight has been fully verified.

  Sina, Netease, Sohu, Shanda and other previous big bull stocks have completely stopped rising. Many hedge funds that invested in China's concept stocks have encountered substantial retracements, and only Lixia Fund has succeeded in keeping the fruits of victory.

  At the same time, Lixia Fund has caught up with this round of rise in US technology stocks.

  Among them, the biggest increase is Google, which has risen four times.

  At first, they only invested 30 million US dollars in Google. Last year, they gradually increased the proportion of their positions, but the profit has not yet been reflected.

  To be honest, he is a little bit trying to cash in part of his profits, because Google’s market value has hovered around hundreds of billions of dollars. It looks like it has reached the top and can’t climb for the time being.

  Xia Jingxing watched the trend of Apple's stock price released by Liu Hai. From May last year to August of this year, Apple's stock price fluctuated a little.

  At this time, Lixia Fund did not choose to cash in part of the profit in time, mainly because he simply could not remember Apple’s stock price trend in a certain year and month.

  After the beginning of this year, Apple’s stock price has fallen all the way, from more than 80 US dollars to 50 US dollars, which is close to half.

  In this process, they did not choose to sell, but chose to continue to increase their positions.

  Added to add, it has become the largest holding stock, accounting for nearly 20% of the position of Lixia Fund.

  In general, the investment in Apple still made money. The absolute value of the floating profit on the book is as high as 80 million US dollars, but the investment cost has reached 180 million US dollars. The return rate is not high, less than 50%.

  This result is totally incomparable with the return rate of several times in the past.

   Even if the stock price of Google has risen pretty well, its stock price reached more than US$400 last year, but it has fallen back to more than US$300 this year, making the fund not only make no money, but also give up a lot of profits.

  The worst thing is Amazon. Since the investment, it has been falling and falling. It has not made any money, and has lost a lot.

  "We started building a position on Amazon in March this year, with a holding cost of $35.53 per share. Now Amazon's stock price is $28.51 and a loss of $21 million."

  Listening to Liu Hai’s report, Xia Jingxing scratched his head, and it was also his instruction to build a position in Amazon.

  After Liu Hai led the team to investigate, it is not recommended to buy at this time.

   And he was worried that he would miss the opportunity to buy the bottom of Amazon. If it was too late to wait for the stock price to take off completely, he insisted on Liu Hai to execute the buy order.

   Originally, his opinion was to buy 200 million U.S. dollars. After Liu Hai dissuaded him, he changed to buy about 100 million U.S. dollars. Otherwise, the loss might be 40-50 million U.S. dollars.

After this incident, Xia Jingxing also found that he can rely on less and less things to rely on in stocks, unless it is the 2008 subprime mortgage crisis, a major financial event that is particularly clearly remembered, otherwise, short-term investment judgments at other times are still It's not necessarily comparable to professionals.

After Liu Hai introduced the situation of the previous heavy stocks, he finally talked about Netflix.

  For this investment, Liu Hai is very incomprehensible.

  "Netflix" is composed of two words, net (network) and "flicks" (movie), so some people translate the company name as "网飞".

   Liu Hai said: “Although Netflix’s name is connected to the Internet, its actual business still has a traditional side. People rent CDs through its website...

  Now that Hulu Video is born, it has also reached a copyright cooperation with the five Hollywood giants. People will not need to rent CDs through the Internet in the future. Through the Internet, they can watch any movies and TV series they want at home, and even watch variety shows and sports events.

  On the day you announced the launch of Hulu Video, Netflix’s stock price plummeted by more than 10%. The impact on them can be seen.

  So far, we have still made a small loss on this investment.

  If Hulu video develops, Netflix will be the first to fall. "

  Xia Jingxing nodded first, then shook his head again.

  "Your point of view is very correct, but there is one thing that is too shallow."

   Liu Hai smiled, did not say anything, knowing that the boss has something to follow.

  Xia Jingxing continued: “Netflix is ​​the first company to launch online rental video discs. The founding team still has a certain level of knowledge about the Internet and how to solve the industry’s pain points.

  At that time, the largest DVD leasing company in the United States was Blockbuster, which had 9,000 stores and 60,000 employees across the United States.

  In the face of such a big enemy, they were able to pull that small website into a listed company, and it became profitable, and the ability was definitely above the level. "

   Liu Hai nodded lightly, this is indeed nothing wrong.

   Netflix was established in 1997 and went public in 2002. Its profitability is getting better year after year. Now its market value has reached more than one billion U.S. dollars.

  In any case, this is a successful and inspirational entrepreneurial case.

  Xia Jingxing knows how good Netflix is ​​at transformation, and the founder’s vision is also very forward-looking.

  "Let's talk about their products. In 2000, Netflix developed a film library system that can intelligently recommend movies according to members' preferences.

  In this year, Netflix organized an algorithm competition around the world in order to improve its intelligent recommendation system. Winners who can optimize their system will receive a prize of 1 million US dollars from Netflix.

  Such a big bonus has attracted technology experts from all over the world to join in the fun.

  What reflects behind this is Netflix's emphasis on technology and user experience.

  In the face of such a company, Hulu Video is the first step, but it is not necessarily a sure victory. "

  Xia Jingxing was slumped. In his previous life, Hulu Video was established first, and it was backed by giants such as News Corporation and NBC Universal. What happened was that he was overtaken by Netflix.

  Can this kind of company be simple?

   Liu Hai nodded, "That’s true, you said that. I remembered a few interesting things that I discovered when I was investigating Netflix some time ago.

  In 2000, Netflix tried to send movies to home terminals via the Internet, but due to bandwidth limitations at that time, it would take 16 hours and US$10 to download a normal movie, so it failed.

  Since then, Netflix even developed a set-top box with network transmission function, which was eventually cut off by the founder, Reid Hasyans. "

  Xia Jingxing nodded, this brother’s plan was also used by Chen Tianqiao.

  Just limited by the current technology, the cost is too high, or the user experience is too poor, these plans have never been successful.

   "Jingxing, you said that the founding team of Netflix has such a sense of innovation and crisis, will they have secretly developed streaming media services?"

   Liu Hai’s words reminded Xia Jingxing that this may be quite big.

  The potential threat of Hulu video to Netflix, it is impossible for Hastings to fail to see it.

  "Regardless of it, if they launch a streaming service, they can buy more Netflix stocks depending on the situation. Anyway, we have less than 7% of Hulu Video. Maybe Netflix won this victory."

  While speaking, Xia Jingxing laughed himself, he bet on both sides, how could he not lose, when the time comes, Lei Shidong's grandchildren will be mad at him.

  (End of this chapter)