The Conglomerate Family Became A Villain [EN]: Chapter 15

Became a Billionaire Villain – Facing the Great Wave 02 –

***

“I should have bought more.”

It was Sarah who sighed with regret.

“Isn’t it enough that we didn’t lose money?”

Jung Hyun-woo was rather indifferent.

“You only invested $10,000.”

With $2 million from December sales deposited, there was plenty of investment money.

But she had only invested exactly $10,000.

“Then invest more.”

Sarah sighed deeply at Jung Hyun-woo’s gentle suggestion.

“It’s already gone up.”

The conflict between Britain and Argentina was at its peak.

“War hasn’t actually broken out yet, has it?”

If war actually broke out, they could reap even greater profits than now.

But Sarah didn’t think things would escalate that far.

“Argentina and Britain are both democracies.”

Democracies don’t fight each other. With the Cold War not yet over, Americans held this belief.

However, Jung Hyun-woo knew that war would break out soon.

“Then how about $1 million?”

Sarah waved her right hand.

“Are you making fun of me right now?”

“I don’t think Argentina will back down like this.”

“No. I have to invest in Activision this month too.”

Activision was about to go public.

“Well, Activision is more important right now.”

“If this month’s payment comes in, we can invest about $4.5 million.”

Sarah wanted to go all-in on Activision.

‘Even if it just doubles, that’s $9 million.’

If she could create a capital of $10 million, she would feel somewhat relieved.

“Sarah, what about Britain?”

“Britain?”

“It was once a country that ruled the world.”

Sarah cleared her throat lightly and said.

“Hmm, hmm. If you’re asking as an investment target, I don’t think so.”

“Why?”

“Because it’s a setting sun. Or, is it already a sun that has set?”

“Is it that bad?”

Even in the 21st century, Britain maintained its G7 [Group of Seven] status.

‘Of course, its condition wasn’t very good.’

It was similar now. It was in the ranks of the great powers, but it couldn’t be compared to superpowers like the United States or the Soviet Union.

“If you’re going to invest abroad, Germany or Japan would be better.”

Even if Germany was okay, Japan was about to collapse.

‘Japan will experience a bubble after the Plaza Accord [an agreement to depreciate the U.S. dollar relative to the Japanese yen and German Deutsche Mark].’

The large bubble burst at once, bringing Japan its lost decade [a period of economic stagnation in Japan following the collapse of the Japanese asset price bubble in the early 1990s].

‘But the Plaza Accord hasn’t even started yet.’

Perhaps now is the right time to invest in Japan.

‘There’s Intel and Microsoft too, there are so many companies to invest in.’

In his view, the current US stock market was teeming with opportunities.

“If you had to choose between Japan and Germany, which would you choose?”

For Americans, both countries were defeated nations in World War II.

“Japan.”

“Why?”

“You saw it last time. All those Japanese cars covering New York.”

Japanese car companies boasted overwhelming competitiveness during this period.

‘After the Atari shock [the video game industry crash of 1983], the American game industry will also face a Japanese invasion.’

Faced with Japan’s offensive led by Nintendo, American game companies, which had been shaken by the Atari shock, collapsed helplessly.

“Okay. After short selling, let’s invest in Japan.”

Sarah said, turning her gaze to her textbook.

“I have to return to school this summer. How about focusing on studying now?”

Recently, Jung Hyun-woo had been neglecting his studies, and his test results often fell short of expectations.

“Just wait until Zero Space 2 is released.”

Sarah couldn’t help but nod at his words.

“Okay. Just until then.”

She was Jung Hyun-woo’s tutor before she was his business partner.

A few days later.

The Falklands War broke out as Argentina invaded the British-owned Falkland Islands.

People in the free world, including the United States, were shocked.

“Another war.”

“Why are democracies fighting each other?”

“The enemy is the Soviet Union.”

“You can’t understand the way South Americans think.”

Sarah ran to Jung Hyun-woo as if flying.

“It’s, it’s war.”

Jung Hyun-woo looked at her flustered face and tapped the chair.

“Tom is downstairs. Sit down and talk.”

“Aren’t you surprised, Charlie?”

Sarah was simply amazed by his composure.

“I told you before. That war might break out.”

“I guess you did.”

Sarah couldn’t help but admire Jung Hyun-woo’s insight.

‘How can he be so calm?’

He knew one person who had the same composure as him.

‘Charlie is like Peter.’

Peter Lynch of Wall Street [a famous investor and mutual fund manager].

Sarah thought Jung Hyun-woo’s calmness was comparable to his.

“Do you regret it?”

“I didn’t invest because of Activision, so I don’t regret it.”

“Then that’s good.”

Jung Hyun-woo was relieved that the Falklands War had happened as expected.

‘The wheels of history are turning as I know them.’

If the Falklands War hadn’t happened and ended like that, he would have been more worried.

“Activision wants to talk about the copyright issue, what do you think?”

“Copyright issue?”

“It seems like they want to do a lot of things with Zero Space.”

“I guess they’re considering porting it to the PC market.”

Currently, Activision’s main focus was the home console market led by the Atari 2600.

“It would be too much to fly to San Francisco, right?”

“We went there the first time, so let’s tell them to come this time.”

“Okay. Then I’ll take care of it that way. You’re thinking of transferring the copyright, right?”

“If the price is right.”

Sarah slightly raised the end of her sentence.

“If you ask for too much, the deal might fall through.”

“I won’t be unreasonable this time either.”

The Atari shock was approaching.

‘I don’t need to be greedy in the game industry anymore.’

He also had to return to high school this year.

The Jung family was on his mind, but he didn’t have the time to worry about them right now.

***

“Is $2 million a good price for transferring the copyright of Zero Space?”

Jung Hyun-woo nodded.

“Let’s do that.”

Robert smiled.

“Developer royalties will continue to be paid.”

Since the copyright was the right to sell, it was natural that royalties, which were no different from copyright, would continue to be paid.

“When is Activision’s IPO date?”

A slight shadow fell over Robert’s face.

“There’s been a bit of a problem.”

“Yes?”

“There are various stories coming out from the securities company.”

IPO postponement.

This was unexpected.

Sarah, who was listening from the side, thought it was not something to be taken lightly.

“Wasn’t it this summer?”

“As I said, a little problem has occurred.”

Activision’s IPO was Victoria Fund’s first major investment.

“How much is it delayed?”

“I don’t think I can tell you the exact timing right now.”

The moment Sarah’s eyebrows rose, Jung Hyun-woo said.

“Sarah, today is the day to talk about copyright, so don’t push Robert any further.”

Robert quickly escaped as Jung Hyun-woo opened a way out.

“Sarah, I’ll let you know as soon as there are any changes regarding the IPO.”

Sarah nodded as if she couldn’t help it.

“Okay.”

After Robert left.

Sarah sighed deeply.

“Haa… It’s not easy.”

Jung Hyun-woo sipped his milkshake and turned his gaze out the window.

“If investing were easy, everyone would make money.”

“You old man!”

Jung Hyun-woo turned to Sarah and widened his eyes.

“Pardon?”

“How can you be more calm than me?”

“I can’t help it if I’m born with this kind of personality.”

“Have you always been like this?”

He hadn’t always been like this.

He could only be calm because he knew the future.

“Let’s give up on the all-in.”

Since the IPO had been postponed indefinitely, they couldn’t wait any longer.

Sarah nodded in agreement.

“Okay.”

“Let’s go short selling.”

“Are you sure it’s okay?”

“It’s okay. It’s not against Peter’s principles either.”

Sarah paused and asked.

“It’s not against Peter’s principles?”

Jung Hyun-woo put down his straw and replied.

“Invest in what you know. The field we’re investing in is the field we know best.”

Although it was short selling, they were investing in the game industry, which they knew best.

“That’s true too.”

“How much money do we have right now?”

“With this copyright deal and the arcade royalties, it’ll be about $6 million.”

“We said we’d divide it by four, right?”

Sarah nodded.

“We decided to do that.”

“Then let’s short sell only $2 million first.”

“You’re dividing it by three, not four?”

“Because there will be royalties coming in in the future.”

Jung Hyun-woo had planned the investment, taking into account the royalties that would be coming in in the future.

‘At least 2 to 3 million dollars will come in.’

This expectation was possible because Zero Space 2 was scheduled to be released.

“Okay. Then I’ll short sell only $2 million for now. But have you decided exactly which company to short sell?”

He had said he would short sell the game industry, but he had never said which company he would short sell.

“$1 million for Atari and Sarah will decide how to distribute the remaining $1 million.”

He leaves the details to Sarah.

This was Jung Hyun-woo’s strategy.

Sarah nodded at his words.

“Okay. I’ll distribute the rest to about 10 companies.”

She said it was a diversified investment, but she was short selling the stocks of those companies.

“How much profit would we make from short selling if the stock price was cut in half?”

Short selling is not selling stocks as much as you have money, but selling stocks borrowed from a securities company with the investment as collateral.

Therefore, with $2 million, you could sell $5 million or more worth of stock.

“If you do it safely, it’ll be 5 times, and if you do it a little risky, it’ll be about 10 times.”

5 times and 10 times.

The latter would certainly be more risky.

‘What should I do?’

He couldn’t make a decision right away. While he was hesitating, Sarah spoke first.

“Since it’s a diversified investment, let’s go for 10 times.”

She meant that since they had reduced the risk with a diversified investment, there was no need to manage the risk any further here.

Jung Hyun-woo agreed with her opinion.

“Okay. Then let’s go for 10 times.”

June 11, 1982.

Sarah Hilton was about to execute Victoria Fund’s first short sale.

But surprisingly, Atari was not a listed company.

It was an American game company founded by an American, but it had not gone public on the stock exchange.

“You can’t short sell Atari?”

The securities company employee looked at her with a pathetic look.

“Who on earth would short sell Atari?”

“I would.”

“Atari is one of the best companies right now. Even their sales meetings are held in the most luxurious hotels in Monte Carlo.”

The securities company employee was skeptical of short selling itself. But Sarah didn’t give up.

“Then I’ll short sell the company that owns Atari.”

“Warner Group?”

As of 1982, Atari was owned by Warner Group. Thanks to this, Warner Group’s stock price enjoyed a super boom, rising 3,000% in 6 years.

“Yes, I’ll short sell $10 million worth of Warner Group stock.”

“You’re crazy.”

It was rare for a securities company employee to call a customer crazy.

“Even if I’m crazy, I’ll short sell it.”

The securities company employee handed over the Warner Group short selling documents, confirming and reconfirming her intentions.

Sarah answered Yes every time.

“Warner Group’s stock is rising every day. If you short sell now, you could lose all your collateral.”

“I’m the one investing, so it’s okay.”

The securities company employee not only sighed deeply but also shook his head.

But he couldn’t change her mind.

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