Chapter 493: Chapter 224: Borrowing Money to Buy Shares

Li Yang had been keeping an eye on the market trends, and upon discovering this bizarre situation, he managed to understand it.

What he could comprehend, Jiang Banxia could understand even better.

It seems there is indeed considerable risk, but along with risk comes opportunity.

As long as Jiang Banxia can manage through this, those institutions won’t be able to hold together for long, due to lack of profit.

Holding some small-cap stocks can’t accommodate much capital. Some large-cap stocks have too many deep-rooted chips, making institutions wary of deeply conglomerating, fearing they’ll end up paving the way for others.

Unless after conglomerating, they draw in funds from the market.

If Jiang Banxia can’t hold steady, there’s a high chance his funds will be drained, and even if he returns to the right track later, he’ll have missed the opportunity.

In this wave of market trends, Wanliu Capital’s two funds need to increase their net value by at least 1.5 times. This would account for the accumulation of the original funds and mark Wanliu Capital’s first battle.

From a capital perspective, those institutions are bound to return to blue-chip stocks eventually as they retain sufficient underlying positions.

It’s like comparing top students to average ones. 𝐟𝕣𝕖𝐞𝐰𝕖𝚋𝐧𝗼𝚟𝐞𝕝.𝗰𝐨𝐦

When exams are simple, the score gap isn’t significant.

What really widens the score gap are challenging problems.

Wanliu Capital is tackling those challenging problems now, and solving them would create a substantial gap.

A few months later, when all funds cluster around blue-chip stocks, everyone’s earnings will be similar. Creating that gap at this stage can widen one’s success.

...

Li Yang spent several days with Qi Jialiang, the general manager of Green Water Heaven and Earth, primarily exchanging business philosophies, which they summed up with: spending money logically.

Li Yang is primarily responsible for marketing.

At forty-three, Qi Jialiang has an impeccable resume, having served as a deputy general manager at Walmart for several years. Despite being at the prime age, he found no room for advancement there, leading him to resign.

That’s how it is with foreign enterprises. Talent can rise to middle management, but reaching top or senior management requires more than just talent; there’s considerable exclusion.

Li Yang offered the highest salary, and coupled with incentive bonuses, earning over ten million in a year is easily achievable, providing him with a significant income leap.

Qi Jialiang bid farewell to Li Yang, knowing he was headed to see the purchasing department manager.

Currently, the supermarket only had two employees, excluding Li Yang, who was merely overseeing things from the parent company without holding a position there.

Just a college student, really.

He took the job seriously, never imagining a million-yuan annual salary, even though over four hundred thousand was in incentives.

But he couldn’t quite understand Li Yang’s demands.

Quality requirements weren’t low, which was understandable; large supermarkets usually don’t have poor quality.

Yet according to Li Yang’s demands, price tags must include the procurement cost, and the selling price can’t exceed the cost price by more than 10%.

This is very unscientific; typically, the selling price should be at least 30% above the cost price. Only some time-sensitive produce are sold at a 10%-20% premium.

If profits are limited to 10%, it won’t cover rent, utilities, or staffing at all.

Having worked in big supermarkets, he knows these basic costs take up 10% of premium goods’ profits.

Per Li Yang’s requirements, selling everything would mean breaking even at best. Even a slight backlog of stock would result in losses for the supermarket.

If the company doesn’t make money, how can his position remain secure?

Li Yang’s requirements are under consideration, but he must also consider his future.

He feels immense satisfaction with his current job and salary but lacks confidence for the future.

He researched Li Yang and knew he was a man who wouldn’t blink at spending.

After much deliberation, he concluded there was only one possibility: Li Yang was treating this as a hobby.

Playing casually with tens of billions, bound to exit disgracefully within a year.

Is that possible? Perhaps. At least it wouldn’t cost him personal money.

Could he care less about his millions in incentives if he loses tens of billions?

With the bonuses, working a year here equates to four years elsewhere.

This calculation is based on pre-tax figures; post-tax it’s estimated to be about three years.

By any measure, it isn’t a loss.

"I knew there was no such thing as having everything both ways! My good days only last a year..."

"Next, contact Green Water Group to build the supermarket’s framework, particularly the human resources department."

"Time is tight, with the grand opening scheduled for November."

He had no qualms about the opening time; it was perfect, not long before the New Year, ideal to capitalize on holiday traffic.

But Green Water Heaven and Earth is quite large, and he isn’t certain three-plus months suffice to prepare.

The two underground floors are a given; part of it for storage, the rest mostly parking. The six floors above ground, per Li Yang’s plan, have the top floor designated for dining, requiring full in-house operation.

This alone gave him headaches.

Recruiting renowned chefs nationwide to join the dining team would be very challenging.

In comparison, merchandising shelves proved easiest; ready-made templates were available.

Entertainment and dining posed a real challenge, given the combined total exceeds hundreds of thousands of square meters with limited indoor activities.

He admired Li Yang’s grand scope—the only large supermarket in the county. He had visited Xingcheng Supermarket, with merely four floors, each around 3,000 square meters, totaling smaller than a single floor of Green Water Heaven and Earth.

In national context, Green Water Heaven and Earth isn’t the largest shopping mall, not even ranked.

But in terms of in-house operations, few compare. Its sheer size is impressive.

That alone convinced him that even if Li Yang invested billions, they would be exhausted within a year.

"That’s that, then..."

On his first official day at work, he was contemplating his next job, feeling as though he was witnessing history.