Chapter 1793 Condoms and Hospitals
Many people don’t know the name of the British SSL Group, but when it comes to the famous Durex, most people know it. This company is the parent company of Durex, and Japan’s Okamoto Corporation is also a company in the same industry.
The Durex brand was born in 1929 and its name comes from a combination of three English words: Durability, Reliability, Excellence. After seventy years of development, this brand has become synonymous with excellent quality.
The products cover more than 130 countries around the world, and occupy a leading position in more than 30 markets around the world, accounting for more than 22% of the global market share of 4 billion condoms per year.
The British SSL Group has long been more than just producing condoms, but its product line covers other fields. If it is included in the charitable foundation at the same time as Okamoto Corporation, then Han Xuan will control nearly half of the market.
This sentence sounds a bit strange, but the share of these two companies is indeed high. Although the profits it can bring are not too high every year, it can be achieved by its stable profits and is suitable for charitable foundations at this stage.
In addition to avoiding taxes, Han Xuan established this charitable fund, and also to spread eggs in several baskets so that the family can continue. In this way, it is necessary to acquire old-fashioned companies that maintain value.
Today's Han family is definitely an extremely terrifying existence in the eyes of many organizations and individuals. In addition to their own strength, the high growth potential of it is also terrifying!
Because Han Xuan held huge amounts of funds that were enough to disrupt a country, he could invest in almost any industry he wanted to invest in. In the future, those industries would continue to generate profits and then acquire new companies.
It's like a snowball rolling down from the top of the mountain. After reaching a certain speed, it gets faster and bigger. In fact, the snowball effect has now been reflected. The industries involved in the Han family are increasing, and the speed is very fast!
The old man just announced his attempt to acquire FedEx and Federal Post. Han Xuan has quickly taken over Time Warner Group, and his grandmother is also trying to join hands with well-known companies including Chanel and Hermes.
Now the Han family has a lot of money, so much that the whole world is looking up to. It is definitely a wise choice to exchange cash for high-quality corporate assets with greater growth potential. What makes people most desperate is that even after acquiring so many industries, the Han family's debt ratio remains at an extremely low level!
It is almost only about fifteen%, mainly the old man's industry. The debt ratio of Han Xuan's enterprise is less than four percent.
Don’t think this is healthy. In fact, it is not. The debt ratio of American companies is generally around 40% to 60%, and they borrow money to exchange for more development space.
This is also the terrible thing about the Han family. Judging from the scale of those high-quality assets, if no bank will refuse their request for a loan, the reason for rejection may only be...there is no money to lend them.
If Han Xuan was willing, he could get hundreds of billions of loan funds at any time, but his profits were continuous, so he could hardly use loans, stock cash out, Viagra, cosmetics, ranch, Blueberry Group and other companies could bring him sufficient cash.
Unlike compound interest investments that are similar to "rogues" who do not pay dividends all year round, few listed companies in the United States do not participate in dividend distribution, except for Internet companies with special circumstances. It is not that they do not want to pay dividends, but that they cannot make money.
The most famous compound interest investment company is Buffett's Berkshire Hathaway. People say that buying stocks is worse than buying indexes, and buying indexes is worse than buying Berkshire Hathaway's stocks. Until this year, this company that did not pay dividends to the company was indeed called a "legend". The stock price is now as high as 56,000 US dollars.
The reason why before this year was that the stock god Buffett fell sharply in Blueberry Group, causing the stock price to fall by about one-sixth. He also called Han Xuan to complain that his decision to not touch technology stocks before was obviously correct.
When he joined forces to acquire ABC TV, Mr. Han bought 30,000 shares of Berkshire Hathaway, spending nearly one billion dollars. Even though this time it fell a lot, he still made money so far.
The main purpose of American investors entering the stock market is to pay dividends. Since the dividends obtained by investors holding stocks are generally slightly higher than the bank's interest returns, the more the stock market falls, the more investors buy it.
Strangely, American people do not like savings very much. In addition to spending money generously and not having too much deposit, it also has a lot to do with the dividends exceeding interest on stock investment. Stock investment has become another form of savings in their own way.
It is similar to the Chinese investing in real estate, which has created a hot securities trading market, and the losses at the time of the stock market crash have become more serious. This Internet bubble crisis has caused a large number of middle- and high-class families in the United States to be "eliminated".
Wealth flowed into the pockets of the giants, and some of them evaporated out of thin air. Most of the investors who entered the Internet industry in the later stage made money.
The gradual development of the dividend system in the US stock market and the process of increasing the dividend ratio are also the process of the attractiveness of stock market investment gradually stronger than bank savings. Cash dividends are the main dividend payment method for listed American companies.
The proportion of cash dividends of listed American companies to the company's net income was about 30 to 40% in the 1970s, and by the 1980s, it increased to 40 to 50%. After the 1990s, 50 to 70% of the after-tax profits of many listed American companies would be used to pay dividends.
Most listed companies distribute dividends to investors quarterly, and some listed companies sometimes have "extra" or "special" dividends. This type of dividend is generally targeted and the dividend level is extremely high.
In other words, Han Xuan, who holds many stocks, does not only have book wealth. Every quarter, he will spend a lot of extra money and flow into the family office Star Investment and Charity Foundation, as well as the headquarters of Xueshan Group. There are not many assets that actually enter Han Xuan's personal account, and the personal income means a large amount of taxes.
Now, he has almost no place to spend money, just in the name of the company.
There is no family in the world that can acquire large enterprises as they like the Han family. This is related to Mr. Han and Han Xuan insist on mastering absolute controlling rights, knowing that they can bring benefits to themselves. Now other investment institutions no longer forcefully demand the right to speak. After all, interests are the factors driving their investment.
Thinking of his grandson acquiring those companies, Guo Muzhou couldn't help but smile and said, "You will have another nickname, the King of Condoms, which is pretty good."
Rolling his eyes to his grandfather, Han Xuan said speechlessly: "I am just worried about such a scandal, so I didn't make a decision. In fact, this industry is really good. As long as humans continue to reproduce, there is no need to worry about the company's products not being sold. Considering the growing world population, the market will only grow bigger and bigger.
They have investigated that these two companies still have a lot of room to explore their products, and some markets have not yet been covered, or the market share is not high.
Our family has not yet entered the daily consumer goods industry. Although the price of things is not high and the demand is astonishingly large, you can tell by looking at the scale of Procter & Gamble.”
Guo Muzhou said, "Since it is profitable, what else should I consider? Your Xueshan Pharmaceutical even sells Viagra, and is you worried that others will look at you with strange eyes?"
If you think about it carefully, this is true. Han Xuan couldn't help but laugh and cry: "In this way, every time they use those products, they will think of me, and maybe they can also increase my popularity."
After nodding, Guo Muzhou smiled and said, "That's interesting.
Your grandfather has a wide range of sales channels and does not have to worry about sales. I think as long as it is a product that can be sold in a convenience store, you don’t have to worry about anything.
Their market value is not high, right? And the stock price has stabilized. I suggest you buy them, it is best to directly control the market and form a large enterprise."
“…Why do I always feel like you are waiting to see me jokes?
Well, I will contact them to see if there is a good acquisition opportunity next year. The company's debt ratio is too low. In recent years, I plan to acquire several large companies with potential."
"I don't deny it."
Guo Muzhou smiled strangely and continued to say to Han Xuan: "At this scale, part of the loan financing can be used for development, which can actually accelerate the expansion.
The premise is to find a suitable investment field, otherwise you will just pay the profits to those banks in vain, and you will also have to withstand the risk of investment falling into a loss situation.
Have you thought about what industry to invest in? Tell me what it is and I will help you think about it."
"I've almost had an idea."
Han Xuan nodded and said when he looked at his grandfather: "People are born, old, sick and dead, and they cannot live without hospitals and drugs during this period. Modern society uses a large amount of pesticides and fertilizers, and the various pollutions in the city have increased work pressure. I think there is a very development market in the pharmaceutical and medical fields.
I fell in love with HCA Group, which has more than 90 chain hospitals in fifteen states in the United States, as well as shares in companies such as Wyeth, Merck, Germany Bayer, Switzerland Novartis. I do not intend to participate in the specific management of this part of the business, but just want to get some of their shares.
If possible, it is also a good choice to build a large chain hospital company. I am the one who makes medicine myself and know how terrible their profits are."
"I know a shareholder of Wyeth. Pharmaceuticals is not as simple as you think. It is common for a long cycle of developing a new drug, with a large investment, and hundreds of millions of dollars in the end, but nothing was developed."
"It is because I know this that I diversified my investment. In fact, the best time to invest in them before the economy recovered a few years ago, but I had no money at that time." Han Xuan shrugged helplessly.
Chapter completed!