The Conglomerate Family Became A Villain [EN]: Chapter 190

Michigan.

An old man was casting his fishing rod in a small river that flowed into Lake Michigan.

“Have you caught much?”

The question came from a middle-aged gentleman in a sharp suit.

The old man replied without turning. “What does it matter if I catch a lot or not?”

Fishing is about savoring time, not accumulating fish. He seemed to live by those words.

“Since you’re out here fishing, wouldn’t it be better to catch a good haul?”

The old man clicked his tongue. “Tsk, always so greedy.”

“Please, let’s call it ambition, not greed.”

The old man’s gaze remained fixed on the river’s current. “Does calling it ambition change the underlying greed?”

“I wonder.”

The middle-aged gentleman kept to the riverbank, careful not to wet his shoes.

“Abandon your greed.”

The middle-aged gentleman frowned. “A man without desire is simply lazy.”

He firmly believed that greed and desire were the engines that drove progress.

“But greed and desire also lead people into delusion.”

The middle-aged gentleman countered, “Isn’t human wisdom meant to pierce through delusion?”

“Do you possess such wisdom?”

The middle-aged gentleman sighed, offering no direct answer.

“Hoo… Neil, you’ve become quite the philosopher.”

The old man with the fishing rod was none other than Neil Hamilton, the former head of JP Morgan Investment Bank.

“Leaving Wall Street has opened my eyes to new perspectives.”

He had dedicated his life to Wall Street. However, after the Victoria Corporation incident, he retired from JP Morgan and left that world behind.

“I also grew weary of the suffocating concrete jungle.”

Neil Hamilton nodded. “I see. You left Wall Street relatively early, didn’t you?”

The middle-aged gentleman raised his right hand. “You can invest effectively even without being on Wall Street.”

The master of value investing, Warren Buffett, kept his headquarters in Omaha, far from Wall Street’s frenzy.

Like Buffett, he was finding opportunities beyond the established financial center.

Neil Hamilton inquired, “Kin, what brings you here to see me? Someone as busy as you must have a significant reason to visit a retired old man.”

The middle-aged gentleman was Kin Shevchenko, the CEO of Terra.

“I met Damon recently.”

Neil Hamilton, still watching the river, asked, “Big Damon? Or Little Damon?”

Big Damon referred to Ein Damon, the IMF’s [International Monetary Fund] First Deputy Managing Director, while Little Damon was Damon Ferman, a powerful figure at Terra.

“I met Ein.”

Neil Hamilton’s brow furrowed. “If you had to consult Ein, things must be quite troubled.”

Kin Shevchenko frowned. “Neil, it seems you’ve heard the rumors.”

Neil Hamilton slowly shook his head. “Rumors? I haven’t heard any.”

Kin Shevchenko frowned. “Neil, are you saying you’ve been completely isolated since you retired?”

Neil Hamilton took the fishing rod off its stand and removed his cowboy hat.

“I haven’t been isolating myself; I’m simply enjoying nature.”

“Anyway, as you suggested, things aren’t going smoothly. But Ein told me a rather strange story.”

Neil Hamilton remained facing the river. “A strange story?”

“He recommended a ridiculous company and an even more ridiculous person.”

Neil Hamilton’s brow unfurrowed. “Hahaha, is it that friend again?”

He understood why Kin Shevchenko had come.

‘It’s about Charlie.’

The person he had in mind was Jung Hyun-woo.

“Neil, you seem to know why I’m here.”

Neil Hamilton nodded slowly. “That’s right.”

“Who do you think it is?”

Neil Hamilton countered, “Isn’t it because of Charlie Jung?”

Kin Shevchenko’s forehead creased. “That’s right. Ein recommended him, calling him a genius with the potential to reshape the future…”

Neil Hamilton listened, then looked up at the clear blue sky.

The autumn sky in the Northern Hemisphere was often a brilliant blue.

The Michigan sky was no exception.

“I can’t say if he’s a genius who can change the future. However, he’s certainly no ordinary person.”

Kin Shevchenko wanted to understand the reality of Jung Hyun-woo’s abilities.

“You’re saying Charlie Jung has extraordinary talent. Can you quantify that extraordinariness?”

Quantify his extraordinariness.

It was a question befitting a financier.

Neil Hamilton paused, considering his response. “It’s not easy to put a number on it. But you know, I believe he’s more capable than the people you have working under you.”

The fund managers and traders at Terra were mostly Ivy League [prestigious universities in the US] graduates. If Jung Hyun-woo surpassed them, his talent was undeniable.

‘If Neil acknowledges him, he must be truly exceptional.’

Kin Shevchenko emphasized, “You’re saying Charlie Jung is a genuine genius.”

“Genius? I never said that.”

“Only geniuses can outperform Terra’s elite.”

A smile touched Neil Hamilton’s lips.

“Hahaha, how long will you be fooled by the ‘elite’ label?”

He considered a college degree merely an indicator of diligence.

‘The truly valuable individuals might be found elsewhere.’

Kin Shevchenko stated firmly, “I’m not fooled.”

“Oh, you’re not fooled?”

“I simply utilize them.”

Neil Hamilton chuckled. “Hoo hoo, so you’re trying to exploit even a genius. It won’t be easy. I learned that the hard way.”

Kin Shevchenko turned. “Neil, if it’s not easy, isn’t it worth the challenge?”

Neil Hamilton listened to the receding footsteps and muttered to himself, “Is he being underestimated because of his black hair and eyes?”

What if Jung Hyun-woo were a typical WASP [White Anglo-Saxon Protestant] elite instead of Asian?

Would he receive a fairer evaluation?

Neil Hamilton picked up his fishing rod again.

“Being underestimated is simply fate, after all.”

He believed everything was in God’s hands.

* * *

October 21st.

Victoria Corporation’s stock price surpassed $15, reaching $15.50.

“Victoria Corporation’s market capitalization has once again exceeded $30 billion!”

As Victoria Corporation’s market capitalization soared past $30 billion, Jung Hyun-woo’s personal assets exceeded $20 billion.

“It’s simply astonishing.”

The Victoria Fund, as presented by Sarah, was a trending topic on economic news channels.

“Tom, what do you believe is the most significant factor driving Victoria Corporation’s breakthrough to $15?”

A panelist with a receding hairline placed a chart on the table. “I believe the primary driver of Victoria Corporation’s stock price is, without a doubt, its performance, which has far exceeded expectations.”

The host nodded. “So, exceptional performance is fueling the stock price increase. I see.” He turned to a middle-aged woman in a light green blouse.

“Jessica, do you agree with Tom’s assessment?”

Jessica Corbin, a veteran panelist with 11 years of experience at an economics and current affairs magazine, replied, “No, I don’t agree.”

The host raised his eyebrows. “Jessica, are you disagreeing with the notion that the stock price rose due to strong performance?”

“Many people anticipated strong performance from Victoria Corporation.”

“But wasn’t this earnings announcement beyond even those expectations?”

Jessica Corbin countered, “If the results merely matched expectations, Victoria Corporation’s stock price would have declined, contrary to what we’re seeing now.”

She argued that the stock price was sustained because the results significantly exceeded expectations.

“Jessica, what factors, then, are influencing this stock price increase?”

“I believe it’s the Victoria Fund.”

“The Victoria Fund?”

“The investment returns announced by Victoria Corporation this time surpassed those of the Magellan Fund and the Vanguard Fund.”

The host pressed, “You’re saying that high returns are driving the current stock price.”

Jessica Corbin nodded. “What if the Victoria Fund maintains this rate of return and enters Wall Street? Wouldn’t it become a company with a market capitalization beyond our current comprehension?”

She boldly presented a target stock price of $24 for Victoria Corporation.

The host raised his eyebrows. “Good heavens! At $24, the market capitalization would reach $48 billion.”

A market capitalization of $48 billion would rival JP Morgan or Bank of America, establishing Victoria Corporation as one of America’s leading conglomerates.

“Tom, do you agree with Jessica’s opinion?”

Tom Perrin, the first panelist, shook his head. “No, I don’t agree.”

The host said with a serious expression, “Oh, Tom seems to have a different perspective.”

“I’m skeptical of the Victoria Fund.”

“If you’re skeptical, are you suggesting it won’t succeed?”

Tom Perrin shrugged. “I don’t believe Victoria Corporation’s investment performance this year will continue next year.”

He argued that Victoria Corporation and Jung Hyun-woo’s investment success was temporary.

“Then, what is Tom’s target stock price for Victoria Corporation?”

“I believe Victoria Corporation’s fair stock price is around $18.”

Even $18 was significantly higher than the current price.

Despite varying degrees of optimism, most economic TV panelists, investment experts, and fund managers predicted further increases in Victoria Corporation’s stock price.

Victoria Corporation and Jung Hyun-woo seemed unstoppable.

Meanwhile, in Boston, at Victoria Corporation headquarters, Jung Hyun-woo looked exhausted.

Sarah stood before him with her arms crossed.

“So, you’re proposing to expand the Victoria Fund even further?”

Jung Hyun-woo, leaning against the table, replied, “I had a flash of inspiration on the flight back.”

Sarah’s voice sharpened. “Then you should have mentioned it then. Why bring it up now?”

Jung Hyun-woo sighed. “Hah… Sarah was asleep.”

Sarah scratched her head, embarrassed. “W, was I?”

“I believe the Victoria Fund should become a direct investment company, not an indirect one.”

Sarah understood his meaning. “So, instead of investing in various funds or securities companies, you want to invest directly in companies or real estate?”

“That’s right.”

“Are you doing this to avoid paying commissions to securities companies?”

Jung Hyun-woo shook his head. “No.”

Sarah tilted her head. “Then?”

“To make more diverse investments.”

“More diverse investments?”

Jung Hyun-woo raised and lowered his right hand. “The value of the dollar is declining.”

“That’s true.”

“What will happen to assets other than the dollar?”

Sarah paused to gather her thoughts. “Hmm, wouldn’t the current account improve as the prices of imported goods rise in the United States?”

She referred to the rationale behind the Plaza Accord [agreement among major economies to depreciate the US dollar in 1985].

“I considered the opposite perspective.”

Sarah raised her eyebrows. “The opposite? Are you suggesting American goods will become cheaper, boosting exports?”

Jung Hyun-woo smiled and shook his head. “Not just that, but wouldn’t everything in America seem attractive to foreign investors?”

“Everything in America looks attractive?”

Sarah frowned. “What do you mean?”

Jung Hyun-woo pointed to the floor. “I’m referring to real estate here in America. Wouldn’t it seem cheap to German and Japanese investors?”

Years of high interest rates had dampened the US real estate market.

“Ummm, with lower prices and a weak dollar, you’re saying it would feel even cheaper to foreign investors?”

“That’s right.”

Sarah realized Jung Hyun-woo’s plan. “You want to sell American real estate to Japanese or German investors.”

“I thought it would be beneficial to establish an international real estate agency or something similar.”

Sarah crossed her arms. “I’m against it.”

Jung Hyun-woo paused. “Why are you against it?”

Sarah raised three fingers, then folded one. “First, you have too many ongoing ventures.”

Victoria Corporation’s primary focus was real-time stock price services, but it also had numerous other businesses.

There was the game division collaborating with Nintendo, and G Shop, with its nationwide sales network.

Additionally, it had recently expanded into network security.

Victoria Security, for network security, was proudly listed in Victoria Corporation’s 1986 business portfolio.

“What’s the second reason?”

Sarah folded her second finger. “The second reason is the lack of direct fund management expertise. Indirect management, such as investing in securities companies, can be handled by Charlie, me, or Anne, but direct field investments require an expert with extensive experience.”

Jung Hyun-woo had considered this. “Can’t we recruit an expert?”

“Who are you going to recruit? You’re not considering Peter, are you?”

Peter Lynch’s Magellan Fund was gaining recognition on Wall Street for its exceptional returns.

“How could I recruit Peter?”

“Then?”

“I have someone in mind.”

Sarah frowned. “I can’t approve it unless you tell me who you’re thinking of.”

Jung Hyun-woo calmly revealed the name. “What about Mr. Pears?”

John Pears.

Sarah shook her head. “Impossible.”

“Impossible?”

“Mr. Pears is a fund manager at JP Morgan. He’s well-compensated and respected. How can a fledgling fund like ours recruit someone like that?”

Jung Hyun-woo countered, “Wouldn’t it be possible if we offered a higher salary?”

“Charlie, are you going to compete on salary? You’d have to pay several times more than JP Morgan. Is that feasible?”

Jung Hyun-woo looked as if he had swallowed something bitter. “Um, that might be difficult.”

He wanted to hear the third reason. “What’s the last, third reason?”

Sarah folded all her fingers. “The last reason is that we’re already making enough profit.”

“Are you saying our current earnings are sufficient?”

“The cost of recruiting new talent and building a system will be substantial. It’s more profitable to pay a small commission for indirect investment than to incur significant costs for direct investment.”

Sarah believed direct investment in the Victoria Fund was inefficient.

“Um, then I’ll seek direct feedback from Mr. Pears.”

Jung Hyun-woo seemed unwilling to abandon the idea of direct investment.

“Hah… Charlie.”

Sarah knew that Jung Hyun-woo rarely gave up once he made up his mind.

‘Sometimes he gives up quickly, but most of the time, it’s like this.’

She didn’t try to dissuade him further. “Then go to New York this weekend.”

Jung Hyun-woo asked brightly, “Sarah, are you allowing me to do it?”

“No, because you’ll abandon the idea after hearing Mr. Pears’ perspective.”

Sarah expected John Pears to talk Jung Hyun-woo out of it.