v3 Chapter 778： Buffetts helplessness (2/2)

After taking a sip of juice, Buffett suddenly looked at Xia Yu and asked.

Xia Yu raised his eyebrows, looked at him, and said: ”After the Second World War, the insurance industry market has been expanding. The peak period was in 1977. Non-life insurance direct business premiums grew the fastest, reaching 20% ​​at one time. , The premium of reinsurance business has increased by more than 25%.”

”However, after 1977, the development speed of the insurance industry began to decline rapidly. According to the current trend, it will definitely be lower next year, and there is even a high probability that it will continue until the next two years.”

Xia Yu's judgment made Buffett frown. He thought for a while and said to Xia Yu clearly: ”Then Mr. Xia, do you think the company's investment in the company needs to continue?”

Could it be that where the wind is missing?

Or Buffett's simple temptation?

Several thoughts flashed in Xia Yu's mind.

He thought for a while, considering how he would get along with each other, he simply clarified the matter in advance, and said: ”Mr. Buffett, I personally think that Berkshire Hathaway should have less investment risk with limited capital. company of.”

”Let’s tell you that, before paying attention to Berkshire Hathaway, we just wanted to buy an insurance company, but you also know that the insurance industry is mostly the core industry of major consortia, so our company paid attention to the company. , He commissioned Merrill Lynch to buy it.”

”That is to say, Berkshire Hathaway was discovered among the company's shareholders. After further understanding, I decided to buy the equity of your company.”

”You ask, has Merrill Lynch already approached you?”

Buffy nodded and said: ”Yes, Merrill Lynch has come to the company three times, but I didn't expect that you wanted to acquire the company.”

”You just said that the growth rate of the insurance industry will continue to decline, so why do you want to enter the insurance industry? Or do you look for companies that are stuck in the quagmire?”

Xia Yu smiled and said, ”It is because of the decline in the growth rate of the insurance industry that it is easier for us to enter. Isn't it easier to acquire companies at a loss?”

”As for the investment risks and losses brought about, our company does not care. We can afford the money. If the company is a healthy company and we want to acquire a wholly-owned company, the difficulty and cost will be twice as large. Higher than the current risks and losses.”

Xia Yu's remarks can be summed up in one sentence. I know the company's losses and risks, but our company is strong and doesn't care at all, as long as we can buy the company.

This kind of rich rhetoric made Buffett wonder what to say.

At this moment, he was a little mixed, and when he met someone like Xia Yu who played cards in an unreasonable way, he still took money and used capital to crush him. He didn't know what to say.

For a long time, he said with the last glimmer of hope: ”Mr. Xia, do you have to buy the company wholly?”

Xia Yu nodded and said naturally: ”Of course, only when we acquire wholly-owned assets, we can invest hundreds of millions of dollars to transform, and it will even be easier to acquire other insurance companies later. This involves Polaris Capital's long-term strategic plan in the insurance field. .”

Well, I have invested hundreds of millions of dollars in transformation at every turn, and I am also preparing for subsequent acquisitions.

Each of these moves requires a lot of dollars ~ ~ Berkshire Hathaway does not have the capital to follow.

In other words, even if Berkshire Hathaway keeps its equity, if it does not invest a large amount of capital, it will be diluted step by step.

But Berkshire Hathaway’s funds are already tight. If it gets stuck by this, then it really won’t be able to invest in accordance with his philosophy.

And Buffett has also thought about the positioning of Berkshire Hathaway. To enter the insurance industry, a core pillar is definitely needed. Now obviously the company cannot become a core pillar. Holding a little equity will become a tasteless or even a burden. .

”Well, I have to say that Polaris Capital is very strong.”

Buffett smiled helplessly, and decided to abandon the company in his heart.

Xia Yu smiled and said softly: ”It's okay, the major shareholders behind are not short of money, and the billions of dollars of funds are still taken out.”

As soon as he said this, Buffett couldn't help but smile, and envy rose in his heart.

”All right, I know what to do, we will give up the company's equity.”

”Thank you Mr. Buffett for your accomplishment.”

”If there is anything we need to help in the future, I will be happy to help.”

These words of Xia Yu made Buffett's bad mood a lot better. He smiled and said, ”Thank you, Mr. Xia.”

”No thanks, we are friends and we should help each other.”

”Yes, we are friends...”

PS: Lao Huang is a native of southern Jiangxi. He has been selling navel oranges for several years. I sincerely recruit agents for navel oranges in southern Jiangxi. Each order has a profit of at least 10 yuan. I am interested in adding my V letter. Free words)

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