5 minutes to undeRstand equity investment 1
There is a saying in financial circles that people can’t be rich without having equity.
There is also a prediction that the future billionaires are all from equity investments!
Thus, the equity investment is the most profitable investment model in China today.
In other words, if you have found a potential business to invest in, and then it will be easier to make money than to breathe.
Fact speaks louder than words; let’s take a look at a few examples.
On January 15, 1999, 18 young people with dreams foundedAlibaba.
In 2014, Alibaba listed in the United States. The market value was more than $ 200 billion, which was close to the total market value of ICBC.
At that time, the eight people have already become billionaires.Starting from the value of 500,000 yuan to the market value of 200 billion dollars, its market value increased by more than 2million times.
Masayoshi Son, the chairman of Softbank Group, is by virtue of the little-known Alibaba equity investment to become Japan’s new richest man.
Let’s look at another case. There were only seven computers when Ma Huateng founded Tencent in 1998, and after a year of hard work, he finally got his first investment.
Richard Li, the chairman of Hong Kong PCCW, invested $1.1 million in Tencent for 20% of the company’s share in 2000.
Richard sold the 20% share he held for Tencent to a South African company called Milad International Holdings Group in June, 2000 with price of $ 12.6 million. With an investment of $1.1 million, it made a profit of $11.5 million in less than a year, and the equity value increased by more than 10 times.
But it proved that Mr. Li underestimated the growth potential of Tencent. Since 2014, Tencent listed in Hong Kong, the share price kept rising. In 2015, Tencent market value has reached 1.4 trillion Hong Kong dollars, Milad International Holding Group earned more than 40 billion US dollars through such equity investment in a decade.