The Conglomerate Family Became A Villain [EN]: Chapter 124

124. Wrapping Up 1984 (5)

Jeong Hyun-woo was thankful that Boston was on the East Coast.

‘If it were on the West Coast, it would be a hassle every time.’

By plane, Boston to New York was about 1 hour and 20 minutes.

However, if the starting point was a major West Coast city like Los Angeles, it would take a whopping 5 hours and 30 minutes to New York.

A difference of 4 hours and 10 minutes.

Calculated round trip, that’s 8 hours and 20 minutes.

For busy people like Jeong Hyun-woo, 8 hours and 20 minutes was a significant amount of time.

“Please take good care of the company.”

He entrusted the company to Robert before leaving for New York.

“It seems like this won’t be just a day or two again.”

“I’m planning to meet with JPMorgan as well.”

The Bank of America deal was bound to affect JPMorgan’s IPO [Initial Public Offering] work.

Jeong Hyun-woo planned to meet with JPMorgan as soon as the deal with Bank of America was completed.

“Robert, let me know if you need anything.”

When Sarah offered to buy souvenirs or gifts, Robert smiled gently.

“I’m the one who travels more for business.”

He was a man who traveled not only across the United States but also to Europe.

“In that case, I should be the one receiving gifts.”

At Jeong Hyun-woo’s words, Robert scratched his head.

“Let’s just not give each other anything.”

All three had become very wealthy, but they were far from extravagant.

“I’ll be back on Thursday.”

Since today was Monday, it was a 3-night, 4-day trip.

On the way to the airport, Sarah asked Jeong Hyun-woo.

“Are you thinking of investing in Japan again this time?”

“Probably.”

“You seem to like Japan quite a bit.”

“It’s not that I like it, I’m just following the returns.”

Sarah had joined the ranks of billionaires but was still driving a Ford sedan. And Jeong Hyun-woo didn’t even have a car.

“Should I invest with Charlie this time too?”

The money received from JPMorgan was tied up in a fund managed by JPMorgan.

The return rate was 4.5%, which wasn’t great considering the high-interest rate environment.

“It’s okay to make riskier investments with about half of it.”

Jeong Hyun-woo was willing to share his investments with her.

“The Republican side contacted me.”

“Did they send a thank-you card or something?”

“No, they want to have dinner.”

Jeong Hyun-woo paused and asked.

“Dinner?”

“We’re VIPs, after all.”

“Does 1 million dollars make us VIPs?”

“I think they’re hoping to continue receiving donations in the future.”

Jeong Hyun-woo knew that he couldn’t stop donating while doing business in the United States.

“It feels like they’ve got us by the short hairs.”

“We need to get something out of it too.”

“Get something out of it?”

“We’re not donating for free, are we?”

In the United States, lobbying wasn’t just vague support. Most companies supported politicians with clear intentions.

“Sarah can be sharp sometimes.”

Sarah shrugged and raised her voice.

“Sometimes? I thought I was pointing out your mistakes sharply every day.”

“You are sharp when pointing out my mistakes.”

“So, what does Charlie want to get?”

Jeong Hyun-woo answered her question.

“First, we need to listen to the family’s requests.”

“You mean arranging a meeting between the Korean government and a powerful figure in the Republican Party?”

“That’s right.”

“What’s next?”

Jeong Hyun-woo shook his head and replied.

“I haven’t thought about what’s next.”

“Then think about it while you’re on your way to New York.”

Sarah was planning to make the politicians who received donations work for their money.

‘Since capitalism means working as much as you’re paid.’

As far as she knew, there was no such thing as a free lunch in capitalism.

* * *

The first person Jeong Hyun-woo and Sarah met in New York was none other than Peter Lynch.

He introduced them to Jerry Wang, the senior manager of the Magellan Fund.

“Wang will be the manager in charge of you two and Victoria Corporation going forward.”

The Magellan Fund was growing larger every day, so Peter Lynch couldn’t handle all the VIP clients alone.

Sarah was happy to have a new manager, but she wasn’t entirely pleased because she felt like she was growing distant from Peter Lynch.

“I’m Sarah Hilton. This is Charlie Jeong.”

At her greeting, Jerry Wang bowed his head.

“I’m Jerry Wang, and I’ll be in charge of you two from now on.”

Jerry Wang was a Singaporean-American who graduated second in his class from the New York University MBA program. He had heard about the two from Peter Lynch before the meeting, but he couldn’t help but be surprised when he actually met them.

‘That kid is the CEO of Victoria Corporation?’

In his eyes, Jeong Hyun-woo looked like a boy who had just entered or was preparing to enter college.

Peter Lynch asked the two.

“Is it okay to talk with Wang here?”

Jeong Hyun-woo gestured that it was okay and answered the question.

“If Wang is going to be in charge of our investments in the future, he needs to know everything we’re talking about.”

He thought it was good to talk directly with Peter Lynch, but he didn’t think a dedicated manager would be bad either.

‘It’ll probably be easier to contact him.’

For him, who knew the future, what was important was not a talented investor but someone who could be his hands and feet.

Peter Lynch thanked Jeong Hyun-woo for his permission and moved on to the main topic.

“Charlie, Sarah. It’s a bit early, but I’d like to do a year-end review for 1984.”

The amount that Victoria Corporation and the two had deposited in the Magellan Fund was approximately $70 million.

With that amount, they could acquire a Major League Baseball team or an NBA basketball team.

“Peter, proceed as you wish.”

Peter Lynch nodded lightly and continued.

“Combining the deposits of you two and Victoria Corporation, as of the end of October, it comes to $71.12 million. And the overall return for this year is 27%.”

A 27% return in 10 months could be considered remarkable. However, compared to the results of Jeong Hyun-woo’s direct investments through JPMorgan, it couldn’t be considered satisfactory.

‘JPMorgan has already surpassed 40%.’

Peter Lynch handed the two a file containing the data and said.

“The return on Japanese real estate was good. Frankly, I think it might be a good idea to withdraw your money now.”

He had previously signaled to Sarah that it would be a good idea to withdraw her investment.

‘This time, he’s telling us to withdraw right in front of us.’

Sarah could tell that Peter Lynch wanted them to withdraw their investments in Japan.

“Charlie, what do you think?”

At Peter Lynch’s question, Jeong Hyun-woo examined the data in the file and replied.

“I won’t be withdrawing the money. Rather, I’m thinking of increasing my investments in real estate and the Japanese stock market a bit more.”

At his answer, Peter Lynch wiped the sweat from his forehead.

“Charlie, you’re putting more money in here?”

“I’m thinking of putting in about $500 million. Is that not possible?”

$500 million.

An astronomical amount equivalent to seven times the current investment.

Peter Lynch’s face turned pale for a moment.

“You’re investing $500 million in an overheated Japan? That’s a dangerous decision.”

In 1984, the Japanese stock market seemed overheated to anyone. Especially to those who made conservative investments like Peter Lynch, it looked like an inflated bubble.

“I think it’s fine.”

Peter Lynch turned his gaze to Sarah.

“Sarah, shouldn’t you stop Charlie?”

Sarah had no intention of stopping Jeong Hyun-woo.

“I trust Charlie.”

Peter Lynch widened his eyes at her blunt answer.

“Sarah, what am I supposed to do if even you’re like this? You have to stop Charlie.”

He thought the two were trying to make a reckless investment.

‘The Japanese stock market right now is like a beer with a huge bubble.’

The bubble in the Japanese stock market was expected to burst quickly within a year, or even six months.

“Peter. If he were the type to listen if I stopped him, he wouldn’t have invested this much in the first place.”

Since Jeong Hyun-woo couldn’t be stopped, there was no choice but to leave him alone.

Sarah was saying this to Peter Lynch.

“This is….”

It was when Peter Lynch was clicking his tongue.

Jerry Wang carefully raised his right hand.

“May I say something?”

Jeong Hyun-woo nodded and accepted his words.

“Good opinions are always welcome.”

Jerry Wang started talking while looking at Peter Lynch.

“I heard that an international agreement will be signed soon.”

Jeong Hyun-woo smiled faintly at his words.

“Are you talking about a new trade agreement between the United States and Japan, or Germany?”

“Mr. Jeong has heard about it too.”

“Isn’t that a rumor that’s been circulating on Wall Street since the beginning of the year, or even earlier?”

“It’s not just a rumor.”

Of course, Jeong Hyun-woo also knew that this was not just a rumor but a fact.

‘Diplomatic officials from various countries are moving quickly.’

All those movements were heading towards the Plaza Accord [a 1985 agreement among the G5 nations to depreciate the U.S. dollar relative to the Japanese yen and German mark].

Jerry Wang continued to speak.

“If that agreement is signed, the Japanese and German stock markets will plummet.”

Since it was an agreement for the benefit of the United States, the US stock market would rise sharply at the same time as the agreement, and the Japanese and German stock markets would fall sharply.

Most Wall Street investors were thinking the same way as Jerry Wang.

Jeong Hyun-woo smiled after hearing his words.

“Is that really the case?”

Jerry Wang raised his eyebrows and asked back.

“Does Mr. Jeong think the agreement will fall apart?”

If the agreement stalled or fell through, Jeong Hyun-woo’s bet could pay off.

Jeong Hyun-woo put his hands together and replied.

“Since the rumor has already spread so widely, the agreement will be signed. But that agreement alone will not be enough to curb Japan’s momentum.”

Peter Lynch intervened between the two.

“Charlie, do you think that because Japan’s competitiveness is so outstanding, an agreement that imposes additional tariffs will not be effective?”

Jeong Hyun-woo raised his right hand diagonally at his question.

“Peter, wouldn’t it make more sense to think that way?”

Peter Lynch let out a low groan at his answer.

“Ugh.”

As of 1984, the competitiveness of Japanese products was formidable. Looking at the streets of New York, they were filled with advertisements for Japanese products.

‘Japanese products are not competitive simply because they are cheap.’

Japanese electronics and automobiles had superior quality and features compared to those of the United States.

‘Even if the price goes up by about 10% from now on, consumers will choose Japanese products over American products.’

But what if the additional tariff goes up to 20% or 30%?

In that case, American consumers would have no choice but to choose American or other country’s products.

‘Then the key is the content of the agreement.’

Peter Lynch turned his gaze to Sarah and asked.

“Sarah, can we talk for a moment?”

That meant there was something to talk about alone.

Sarah didn’t answer right away and turned her gaze to Jeong Hyun-woo. It was an act of asking for his permission.

Jeong Hyun-woo responded to her gaze with a gentle smile.

“Go ahead.”

He was unusually gentle today.

“Charlie, I’ll be back in a bit.”

Peter Lynch and Sarah left the conference room and stood in the hallway leading to the lounge.

“Sarah, let me ask you just one thing.”

The moment they stood in the hallway, Sarah realized that it wouldn’t be a long conversation.

There was no way they would have a long conversation in the hallway.

“Is it related to investment?”

“Yes.”

“Go ahead.”

“Has Charlie met with any well-informed sources recently?”

Sarah realized that Peter Lynch was suspicious of Jeong Hyun-woo’s investment.

‘Peter thinks Jeong Hyun-woo knows the details of the agreement that will be signed and is investing based on that.’

She shook her head.

“No. He has met with some famous people a few times, but he probably hasn’t met anyone related to the agreement.”

“Are you sure?”

“If Charlie knew the details of the agreement, he would have already told me.”

Peter Lynch nodded slowly at her answer.

“I see.”

If he hadn’t heard about the details of the agreement from someone, it meant he was relying on his gut feeling.

‘Is he proceeding with the investment based on the calculation that Japan will not unilaterally succumb to the United States?’

If so, it made sense.

“Charlie probably thinks that this agreement will not damage Japan.”

Sarah agreed with his opinion.

“That’s right. I think he thinks that even if it does, it won’t be decisive.”

Peter Lynch sighed deeply when the two agreed.

“Hoo…. If Charlie’s bet succeeds, Wall Street will be in great turmoil.”

Wall Street investors were betting against Jeong Hyun-woo.

“It’s not a fight that both sides can win.”

Peter Lynch held out his right hand and said.

“Let’s go back.”

The two headed back to the conference room.

In the meantime, while Sarah and Peter Lynch were away, Jeong Hyun-woo and Jerry Wang were talking about the Soviet Union’s invasion of Afghanistan.

Of course, Jeong Hyun-woo started this conversation.

“Afghanistan is likely to be a misstep for the Soviet Union.”

Jeong Hyun-woo asked at Jerry Wang’s words.

“Is it because the Soviet Union is struggling in the mountainous terrain?”

“That’s also true, and it’s also because they are spending huge amounts of war expenses.”

Jeong Hyun-woo had seen a documentary about the US withdrawal from Afghanistan, which stated that the Soviet Union’s invasion of Afghanistan was not the direct cause of the Soviet Union’s collapse.

He asked to confirm.

“Huge war expenses?”

Jerry Wang replied in a confident voice.

“Just like the United States did in Vietnam, the Soviet Union is also spending huge war expenses in Afghanistan.”

Many people living in the present and future knew this about the Soviet Union’s invasion of Afghanistan.

However, this was not true.

The money the Soviet Union spent in Afghanistan was about 2.5% of its defense budget.

In other words, the Soviet Union did not collapse due to the failure of the invasion of Afghanistan.

‘The collapse of the Soviet Union was due to the crumbling economy that couldn’t afford to mobilize a large-scale army for the invasion of Afghanistan.’

And what dealt a fatal blow to this collapsed economy was the Chernobyl [a catastrophic nuclear accident that occurred in 1986] nuclear power plant accident.

This caused a shock that was incomparable to the invasion of Afghanistan.

After the collapse of the Soviet Union, Gorbachev, the last General Secretary of the Soviet Union, later conducted an interview stating that Chernobyl had brought down the Soviet Union.

“If the Soviet Union is spending huge war expenses… it might be possible to invest using that.”

Jerry Wang widened his eyes after hearing Jeong Hyun-woo’s words.

“Are you talking about investing using the war?”

Jeong Hyun-woo raised his right index finger and replied.

“The Mujahideen [guerrilla fighters in Islamic countries, especially those fighting against non-Muslim forces] are not fighting with their fists, are they?”

Invest in the side that supplies weapons to the Mujahideen.

Jerry Wang couldn’t help but click his tongue inwardly.

‘Is it possible to be reckless because he’s young?’

He thought that Jeong Hyun-woo was dreaming of an investment that had far surpassed the common sense of investment.

“Considering that, the performance of defense companies is not very good.”

“Isn’t that because they’re not giving American weapons as they are?”

“If they’re not giving American weapons….”

Jeong Hyun-woo lowered his raised index finger and said.

“They’re probably buying old weapons from the Third World and supplying them to the Mujahideen.”

“If the US support is proceeding that way, there is no company to invest in.”

Jeong Hyun-woo clicked his tongue as if he was disappointed.

“It seems like there’s no Tucker to invest in, a weapons dealer.”

‘Tucker’ was an abbreviation needed for stock trading, a coded abbreviation of a long company name.

“Mr. Jeong, that’s a bit much.”

He crossed the line.

The moment he thought this, Peter Lynch and Sarah returned.

“Now, shall we continue the investment story?”

Jeong Hyun-woo’s gaze moved from the highlands of Afghanistan to the forest of buildings in New York.

“Where were we?”

Jerry Wang answered his question.

“Before you two left, we were talking about the international agreement.”

Peter Lynch said as he sat down.

“I shared some opinions with Sarah on that.”

Jeong Hyun-woo asked him.

“So, did you come to a conclusion?”

Peter Lynch nodded and replied.

“The conclusion is that it is not easy to predict the outcome of the agreement.”

His one word embarrassed Jerry Wang.

‘You can’t predict the outcome of the agreement? Wasn’t the agreement favorable to the United States?’

Peter Lynch’s answer was a subtle acceptance of Jeong Hyun-woo’s opinion.