Darkstone Code-Chapter 914 - 912: Me

"Please excuse me for interrupting, Mr. Lynch, are you saying that we only invest and do nothing else?"

The questioner was a well-known mogul with personal assets exceeding twenty million Federation Sol, making him a considerably wealthy tycoon in the Federation.

He has been attending the Spring Product Convention for four years, contributing a million each year, which is a rare high-end business exchange opportunity.

Even if no contracts are reached at the Spring Product Convention, at least it can make oneself famous in the Federation.

Fame means social status and influence, which can be quickly monetized.

A poor person taking a house worth a hundred thousand to the bank for a loan might only be approved for forty to sixty thousand.

This not only avoids potential losses due to market price volatility, but the bank itself also has a profit motive.

It’s the strangest thing, banks are clearly making money like crazy, yet many people think they are "public welfare institutions" and don’t profit.

One can only say that bankers are very good at self-packaging, so good that no one realizes this point.

But if a wealthy person with social status and fame, even if they aren’t actually rich, goes to the bank with a property worth a hundred thousand for a loan.

The bank is very likely to give him a loan between sixty and eighty thousand; besides normal risk avoidance, the bank might even be willing to not make a profit.

Because collaborating with more wealthy people and providing more services to them is how the bank makes money.

The same things fetch different prices in the hands of people from different social strata, much like the glass in Lynch’s home.

His remarks immediately drew people’s attention; in fact, until this moment, there was no purely investment-oriented company in the Federation.

Most financial companies in Bupen, aside from helping some enterprises finance, go public, and earn quick money, are left with acquisitions and splits.

This is the mainstream of Bupen’s financial business right now, especially acquisition and splitting, which together form a shark pool.

Even the sniping faced by Every Moment comes from this kind of financial behavior, acquisition, and then splitting.

The acquirer takes the money and leaves, leaving debts and chaos to the original shareholders of Every Moment, perhaps even declaring bankruptcy and liquidation.

They are like real sharks, tearing the juiciest flesh from every company that can provide nourishment to satisfy themselves.

But pure investment behavior is scant; if there is any, it is driven by banks after insurance terms are reached.

Just like the problem encountered by Every Moment, when banks lend money to them, they demand interest and principal when they deem the loan risky.

If banks believe there’s no issue with the money, they convert the loan into shares, holding long-term profits.

As for other manners... none.

There are ten thousand people in Bupen with ideas, but possibly not a single one with money, which also determines that pure investment isn’t easy.

The idea proposed by Lynch was very peculiar and surprising, leading to the question: Can one truly profit from this?

Even if they had done nothing, they’ve made their first profit.

Lynch glanced at him and then looked at the others, "The return from investments alone is enough to make us money, and if there’s a suitable opportunity, we can engage in other trades." 𝑓𝑟𝑒𝘦𝓌𝑒𝑏𝑛𝑜𝘷𝑒𝘭.𝒸𝘰𝑚

At this point, someone asked, "How do we control risk? If our money ends up with someone... not so reliable, it might yield no value for us."

This is what many are most concerned about and the main reason for the absence of systematic investment companies.

There are asset management companies and all sorts of financial firms, but no investment companies, solely due to uncontrollable risk.

Having just been through The Great Depression, people have less money and less courage, making them unlikely to randomly invest in enterprises with uncertain futures, gambling on eventual success.

But Lynch believes that now is exactly the golden time for investment.

Earlier, while chatting with Mr. Truman, he mentioned that the military was interested in the radio reconnaissance array he invested in and intended to invest some money.

Though this company might not necessarily become a key development project, tens to a few hundred thousand in research funds are still substantial, not to mention that if the research succeeds, including it in military procurement orders would mean endless revenue.

Arms races and ideological competition will cause a big boom in various sectors, especially in tech fields, during this period.

All sorts of curious things may emerge, and those with dreams and genius ideas are most lacking in start-up capital.

This is the real golden era of investment, and easily backing one thing could potentially let you reap profits for a lifetime!

As for the risk issue...

Lynch pondered for a moment, "Risk can be controlled; the company will establish a dedicated assessment agency to comprehensively evaluate certain projects, and I will personally decide on major projects for investment."

"To make money, one must inherently take on some risk; there’s no such thing as a zero-risk business that guarantees profits."

"The greater the profit, the greater the risk assumed. When expected returns exceed the risk, we can invest some."

The questioning gentleman couldn’t help but blurt out, "Isn’t this exactly what speculation and speculators do?"

"No, it is completely different."

Lynch offered a firm rebuttal, "Speculation is more akin to gambling, where they aren’t sure if their input will yield good returns, much like the Gold Rush during the western expansion."

"They have no clue if there’s gold or oil beneath; they recklessly buy land like gambling and then go bankrupt."

"Perhaps they believe the estimated benefits far outweigh the input risks, yet they miscalculate the risk and return."

During the westward expansion, the Federation used the existence of gold and oil in the west to lure many Gold Diggers and capital westward. Some struck it rich overnight, enticing more to gamble aggressively.

They drew vast expanses on maps, exploring mineral resources on these lands, and most ended up with nothing.

But people’s eyes remain fixed on those few victors, and uninformed speculators blindly wager, leading ultimately to bankruptcy and even ruin.

Lynch paused briefly, "But we are different. We analyze if a project has the potential to succeed, scrutinizing its details to find the most probable successes for investment!"

"In this regard, we’ve essentially kept risk within a controllable range, without diminishing the return on our investment, making this not speculation, nor us speculators."

With a slightly scornful tone that satisfied most shareholders in the room, if Lynch intended merely a gamble, they would never agree to participate.

Hearing his words now, they realized it wasn’t a spur-of-the-moment idea, but a "premeditated" one.

While these people were still pondering, Lynch sweetened the pot.

"Aside from these, we can help our invested enterprises achieve quick and effective revenue processes."

"Here, our shareholders span nearly all industries in the Federation. With the resources we hold, even if a company is run by a dog, we could get it listed!"

"Support from within and outside the industry, as well as cross-industry support, will perpetually lower our investment risk, increasing returns on investment manifold. Perhaps an investment of tens of thousands could yield millions or even over a billion!"

"Perhaps we can’t grasp every flash of a miracle, but we can Create Miracles!"

Lynch’s words left all shareholders dramatically shaken. Just as he said, if everyone supported a company within their respective fields, the company could easily create a "miracle."

In evaluating a company’s performance, the Federation mainly looks at its profitability and cash flow, crucial elements for listing.

Yet, interestingly, these factors can be artificially manipulated.

Take, for example, a cement production company, which can be found everywhere in the Federation. Not every company makes money.

But what if everyone here mandated their companies buy cement from a particular factory? Such a semi-exclusive agreement can make investors optimistic about the cement plant.

Listing would allow them to grab a wave of capital, firms overeat, then casually find reasons to terminate the agreement, and retail investors and Bupen’s financial speculators foot the bill... There’s something to this.

Few present were foolish, instantly grasping the benefits and significance of doing so, while some viewed Lynch with hidden fear.

Observing the only one standing, a very young man.

Was this his scheme?

Or merely a decision made coincidentally after encountering robbers?

But regardless, he succeeded!

Under normal circumstances, even if Lynch cast the lure, it wouldn’t attract so many to gather here.

Everyone has their own social circle, and these circles don’t necessarily overlap with Lynch’s.

Yet, due to a hijacking incident, Lynch shamelessly took a million from them and now "returns" it in this way, gathering successful people and tycoons from various fields together.

This laid the foundation for success; with so many tycoons working together on one project, how could it possibly fail?

Even the Lord couldn’t make them fail!

Lynch placed his hands on the edge of the table, body slightly leaning forward, exuding intense aggression, as if a breeze wafted through the room.

"Most importantly, I have here..."

"And my eyes can see through the future!"