Chapter 477 - NBA Season Begins 1 (1/2)
With this great appreciation Matthew regretted not having thought about investing more money than he had saved in the bank when Jake suggested this, Matthew actually thought about selling his shares and did not think about investing more.
But now he realized that he had missed an excellent business opportunity, he should have trusted Jake who saved his company from bankruptcy to become the leading company in the digital camera market.
Jake did not know that Matthew thought that way, in fact, he understood well what Matthew thought before, Jake was so confident that the shares would appreciate because he came from the future, otherwise he would never invest almost all of his money in Cisco shares.
And Matthew had been right to invest the money back in the company, now the future of Matthew's company was guaranteed for many years by selling digital cameras and cameras to a cell phone company.
Matthew received in profit share much more than the total value of his company and he would continue to receive a lot of profit because he continued to reinvest profits in the company again.
This camera would be the last one they could sell for so much profit, the next ones would have to be much lower in order to keep having so many sales, even so, Matthew had a profit margin of 60 percent and could be reduced to just 20 percent cent and greatly lower the cost of the camera.
This digital camera that was being sold cost 440 dollars, and it sold for 1100 dollars, Matthew could sell for 660 dollars and still earn 220 dollars and the camera would have a value that competing companies could not compete and still earn profits.
Jake really admired Matthew and knew that Matthew just needed help to be one of the most successful men in the world, today if Matthew's equity was calculated he would be 15th among the richest men in the world.
After all, Matthew's total fortune was over 11 billion dollars, that was because he still had 78 percent of his company and had 2.5 billion invested in shares and had gained almost 5 billion in profit share from his own company. always having reinvested in the company.
Jake knew that Matthew was much richer than him and would be even more so when Jake sold the shares in 2000, but in the future, Jake knew that the richest in the world would be him because he intended to invest in 3 of the 4 largest technology companies in the world.
”Jake, I confess that I didn't trust your investment vision very much and that's why I refused to invest more in the Cisco company, but I realized that I was wrong and I could have gained many billions to trust you more.”
”It doesn't matter, Matthew, I understand why you did this and I confess I would do the same if I were you, the important thing is that your company has managed to grow and will continue to grow.”
”Yes, that is important, Jake, because now I am going to try to correct my mistake and invest almost all the money I earned with the company in shares of the company Cisco, and you will take care of that money for me.”
Jake, Oliver, and Joseph were shocked to hear this, at a time when the market was most uncertain and no one knew when the stock market bubble would burst and it was hard to believe that someone as conservative as Matthew would risk everything.
”Dad, I don't think it's a good idea to do that, I know you trust Jake and I do too, but we're talking about the stock exchange and not Jake, you can lose everything.”
”Oliver is right, Matthew, it is very risky for you to invest all that money, even because it will be difficult to sell all the shares in a short time if you have so many shares.”
”I trust you, Jake, I know you invested all the money you earned in the Cisco company, and you are not sure of earning that money again if the company you invested in goes bankrupt, so I will trust you.”
”I am going to invest 4 billion dollars in shares of the company Cisco, even so, I will still have money saved and it is impossible for me to lose all that money, at most I will lose a few million dollars.”
Jake did the calculations quickly and realized that Matthew would probably have 6 percent of the company if he invested that $ 4 billion now if it were that much Jake could sell before the stock devalued.
Oliver and Joseph tried to convince Matthew but failed and Jake tried just a little before accepting this challenge if Oliver and Joseph knew that Jake had come from the future they would not be so concerned.
Jake would receive more money with his profit share and if everything went well Matthew would make it into the top 5 on the list of the richest men in the world, so they agreed to this investment, and Jake went back to his house.
He had to wait because the next day he would talk to Clara at lunch, after knowing how much he would receive from Clara's company profit share he would set up a meeting to send Emily to invest Matthew's money and his as well.
Clara's company had made 50 million dollars in profit in 1997, it was very much thinking that the company had made many investments in the whole year and was starting to make new agreements to sell even more in 1998.