"Of course!"

"Although we always tease each other in private that our products are not tacos at all, but the brand is all about tacos, and they are also competitors. It is impossible for me not to understand it!"

Carter nodded in affirmation. At this point, he still couldn't understand what Peter Lynch wanted to express...

"Then you should also know that in 1978, Bell was fully acquired by the Kangtai Business Department of PepsiCo Group and completed its privatization and delisting from the Pacific Stock Exchange, right?"

"uh-huh!"

Carter continued to nod...

"I still remember when I was chatting with you last summer, I said that after I took over the Magellan Fund in 1976, the first step I did was to clean up the fund assets. I cleared out the securities assets left by the previous manager that I thought were inappropriate.

Then buy the stocks I like..."

When Peter Lynch said this, the smile on his face became thicker and thicker. Even the dimples at the corners of his mouth quietly appeared:

“One of the first batch of stocks I purchased at that time was bell!”

Hiss~

Good guy?!

"So, Bell's stock is also the first pot of gold for your Magellan Fund, right? I mean, the new Magellan Fund!"

Purchased in 1976, privatized and delisted in 1978... the time was short enough!

And when a listed company delists, as long as it is not forced to delist due to operational problems or policy and regulatory issues. On the eve of voluntary delisting, the stock price will often experience a rise based on the original normal stock price.

"The Romance of Fairy Wood"

Because PepsiCo acquired bell, the purpose is to expand its business scope and operate in multiple tracks. For bell, which is bound to be won, Pepsi’s main funds entered the stock market. On the individual stock market of bell, there will immediately be a situation where buying orders are higher than selling orders. When the demand is

When the supply exceeds supply, it is inevitable that the stock price will rise.

At this point in time, as long as Peter Lynch can control the volume a little, the Magellan Fund can make a lot of money with just this last short-term rise!

"It's hard to say that it's impossible to talk about it, but buying Bell's stock is indeed an investment decision that I remember vividly and am very satisfied with."

Smiling lightly and leaning on the back of the seat, Peter Lynch continued to tell about his past:

"At that time, people generally didn't have much interest in such small catering companies. Most retail investors preferred to focus on industry leaders or those behemoth companies, such as att and so on..."

"But it's different for us institutional investors. Magellan needs results! Stocks of mature, stable companies are meaningless to me. Even if there is a slight fluctuation, I will face a lot of losses.

Even though I know very well that it is difficult for the stock of this kind of company to plummet. But when the amount of funds is large, even if it is a 1% drop, the actual loss will be a lot!"

"But after my observation and research, I found that for small catering companies like Bell, once their brand is established and they have a relatively complete logistics supply system, their expansion costs are almost zero. No, it should be said,

In their expansion stage, not only do they not have to spend any money, but they can also generate income!”

"The marginal cost is pitifully low! Under the franchise model, their expansion speed will definitely exceed everyone's imagination! And as a catering industry that directly faces end consumers, the cash flow is also sufficient. Usually we don't need to worry about it.

There will be problems with the capital chain breaking, which means that the ability to resist risks is very strong."

"At that time, Bell's influence was mainly concentrated in California and the West Coast. In New York and Boston, it didn't have much influence, and there weren't many institutions holding their stocks, so I ended up..."

"With this lesson learned, now there is another one! Tell me, how can I not be excited? Especially, your ht now seems not as big as bell, but your foundation is much stronger than it was before.

!It’s still in the PE period, so if you join now, the benefits I can get will far exceed bell!”

"That's right! Not only what Mr. Lynch just said, I also have one more thing to add."

As soon as Peter Lynch finished speaking, Smith beside him quickly said:

"The lessons learned from bell not only make us institutions more optimistic about its future, but I believe the market is the same! Will the investors who have missed out on bell now let go of ht, which has more beautiful qualifications and only owes a share of capital to take off?"

"Absolutely not! So I won't talk about the obvious profits and income of making the market for ht. The potential increase in influence is what I value most! We at Fidelity make it. The more high-quality stocks we represent, the more high-quality stocks we represent.

The greater the influence in the market! This potential benefit..."

"It's just like a writer who writes a book! The foundation of a work with good results, in addition to the direct economic benefits brought by this book. After his fame becomes famous, he will get more benefits from the next book, and the next book after that.

Good reward! As long as the quality of the later ones doesn’t let down the reputation and ruin the reputation, he will probably continue to write one book after another, getting better and better..."

Carter understood the meaning expressed by the two men and their respective interests.

For Peter Lynch, what he values ​​​​is himself, or the economic returns that the Magellan Fund can obtain from investing in ht. If calculated according to the model, a return rate of 1300% is enough to satisfy all investors of the Magellan Fund.

!

And this 1300% rate of return is still a short-term rate of return. If a few more years pass, then...

As for Smith, he is actually more interested in the market effect brought about by underwriting ht stocks. He is trying to complete the transformation from an unknown ordinary market maker who can hardly represent any good stocks to a slightly famous one by underwriting ht stocks.

transformation!

After this transformation is completed, not only can significant returns be obtained in terms of sales, such as institutional stock recommendation, but in future work, it will also be easier to attract some high-quality companies to hand over their IPO business...

The better the performance of the stocks that flow to the market through Fidelity, the stronger their appeal in the secondary market and their credibility in the hearts of shareholders! And if they are strong here, they can feed back to the primary market, making Fidelity a better company.

We are the preferred partner for many companies that want to go public.

The opportunity for a virtuous cycle to form is just around the corner!

"That's right! When it comes to business negotiations, we shouldn't be so direct with you. This is tantamount to exposing our Fidelity background to you!"

Smiling and patting Carter on the shoulder, Peter Lynch then raised his finger and pointed at the leftovers that had not yet been removed from the dining table:

"But this is not a formal A-round financing meeting after all. In addition, as you just said. You are our big customer of Fidelity. You value the good cooperative relationship with Fidelity, and so do we!"

"And I know you better than Goldman Sachs and others. I believe that our cooperation will not only be in the past, let alone now, we will have a broader future! So..."

"So! How much valuation does Fidelity give?"
Chapter completed!