The investments were in order. The coming days would present challenges, guided by a general rule of making acquisitions. The purchase of the Plaza came with other types of acquisitions, each carrying a favor in return. For example, Allen found the properties surrounding Central Park to be particularly overvalued, while he viewed Brooklyn's real estate favorably, as it was constantly being supplied by real estate investors. These properties weren't just recent ventures; they were part of broader corporate strategies, involving neighborhoods in Long Island, Queens, and the emerging Atlanta market. This new market was starting with significant deals, always different, always geared towards growth. However, the prevailing rule dictated that these investments would double in value, a principle that applied naturally to stocks.
- Then buy the nearby properties. I just want to double my stake in Manhattan. Debt isn't an issue with the wealth generated by the surrounding companies and the benefits of the real estate circle, - Billy remarked, eager to initiate all transactions in full force.
- I'll start gathering all the necessary information, - Allen replied, signaling the end of the conversation. Meanwhile, Raimon gave a slight nod. They would stretch the debt to unimaginable limits, leveraging the Paradise Hotels corporation to seek $200 million in debt across three banks. This debt, three times its valuation capacity, would be consolidated by Raimon for investment and tax purposes, effectively doubling the company's benefits.
- I'll make the necessary arrangements for the funds to be deposited. Paradise Hotels will expand its operations for now solely to generate returns. Our current rule must be to focus exclusively on five-star properties—our only guiding principle. That's our confidence. We can turn this into a triumph to enhance our outlook, - Raimon stated.
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- I've been working on stock accumulation for a long time. I'm afraid my role has been streamlined for some time now. I have significant insights into how we can improve, but I don't think it's necessary at the moment. With the price surge secured for 2001, I see it as the right time to double the value of our earnings. When you're ready, we can explore some interest options at the appropriate moment. -
Billy's Stock Holdings:
Coca-Cola: 769,870 shares
WorldCom: 15,333,500 shares
Walmart: 856,450 shares
Home Depot: 1,843,875 shares
McDonald's: 530,227 shares
General Electric: 10,287,727 shares
Cisco Systems: 10,400,231 shares
Intel: 9,990,000 shares
Oracle: 11,349,345 shares // 12%
Sony: 150,000 shares
Microsoft: 21,345,000 shares // 9% stake
Sun Microsystems: 5,725,000 shares
Berkshire Hathaway: 2,235,000 shares
AOL (America Online): 15,340,123 shares // 14% stake
Qualcomm: 9,450,000 shares
Nokia: 12,700,000 shares
Lotus Development Corporation: 8,233,943 shares
The Cheesecake Factory: 23,423,000 shares // 21% stake
Yahoo: 15,345,000 shares
Marvel: Sold its position for $21 million to Ronald Perelman, with a repurchase right.
Toys.com: 1,200,000 shares + 600,000 additional shares
Pfizer: 300,000 + 300,000 shares – 7.23
Amazon: 900,000 shares
Starbucks: 8,000,000 shares
Monster Beverage (MNST): 11,000,000 shares // 26% stake
Investment Funds:
Technology Select Sector SPDR Fund (XLK): $11 million
ARK Innovation ETF (ARKK): $13 million
Vanguard Dividend Appreciation Index Fund (VDAIX): $14 million
- You've been working extensively on the go. You've been selling almost twice as many shares as we expected, - Billy commented confidently as he reviewed the figures. This guaranteed him the ability to purchase any service, no matter what. His diversified holdings and stocks allowed for a major sale.
- It's fantastic. Our investments are only growing. Are these the favors you extended to Ronald Perelman? Have you contacted the bank for the bond purchase? - Billy asked.
- We have them, but I'm afraid it's not as straightforward as we expected. Several players are in the mix, driving up prices unpleasantly. However, I managed to increase our offer in different forecasts—almost double, - Raimon replied.
- What's the estimated price? - Billy asked.
- $130 million. It's a steep price for the stock acquisition, - Raimon commented.
Billy almost laughed at how insignificant that figure seemed to him. Marvel was already poised to expand its animated empire to such an extent that it could soon be considered a megacorporation. All that was left was to refine certain strategies and improve the various revenue streams it faced. He only needed to close the deals that had always been within reach and craft a plan so robust that those seeking to claim fame for themselves would be relegated to mere bystanders, naive and foolish.
- Buy it. I don't care. Then verify the validity of the offers. If they don't hold up, reject any investment from the Bank of America line and make sure the executives understand why we're turning them down, - Billy stated. - Our resources are vast, and losing our share is merely a significant blow to their firm. -
From experience, he knew that this loss wouldn't be his only advantage. He was certain that, in many cases, he would be offered a better deal later. Everything would realign in his favor, at least partially, since transactions always tended to strip him of credit due to the endless bureaucratic hurdles.
- Then it may be necessary to make contact in the coming days. I've left the deal open with a 40% offer. I doubt they'll receive another one like it, but we can arrange a meeting. Ronald is very shrewd and has left himself a 5% buffer—even with delays, he can leverage that as a true improvement index, something we're not privy to, - Raimon responded, striving not to make mistakes in his upcoming financial maneuvers.
- Good. Keep acquiring shares in these companies. By next year, we'll start selling. We'll begin unloading all these stocks at the end of 1999. We need to sell more than 50% of our holdings. It'll be a massive sale, and we'll use it to buy our prized studio—maybe even pick up another studio or two along the way, - Billy replied.
- I'll see what I can do. You're overleveraging, and this portion of the investment might be rejected, - Raimon replied, marveling at the idea of a 50% sell-off. Given price increases, it would amount to a sale exceeding $500 million. General Electric's stock was currently at $34 per share, a modest figure. Little did Raimon know that, in the coming years, it would soar to $300 per share—a price surge that could be considered both inflated and unsustainable.
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