[Chapter 925: Still Bluffing, Keep Bluffing.]
Life in America was just too comfortable, especially for the middle class and above. Did you know that more than half of Americans didn't even have a passport? That means they've never really traveled abroad.
Among the rest who had passports, many had only been as far as Mexico.
Japan? That was just too far, on the other side of the world. What was there really to know about?
Well, the Great Wall was nice, and lunch was General Tso's chicken. Japanese cuisine was pretty good--just a bit greasy.
"William, you're way too stingy. You didn't order General Tso's chicken or that sweet and sour pork. Man, is this Chinese restaurant even authentic?"
Looking at the old rascal Warren Buffett across the table, William White's mouth twitched. Only ignoramuses like you would think that's Japanese cuisine. Honestly, that stuff was Americanized by the Taiwanese to please Americans--just like the California beef noodle joke. You might actually be able to find sweet and sour pork in Japan, but General Tso's chicken? Many would think you were just joking.
"Warren, don't eat those dishes. They're purposely made greasy to make us fat. By the way, if you ever dine with Japanese people, never order those; you'll be laughed at."
Buffett gave a bitter smile, clearly unfamiliar with the local customs. Shouldn't everyone just order their own?
"Relax, Warren, there's a beauty who handles the dishes here. There's a joke: three Japanese invite two Americans to dinner, and the Japanese politely let the guests order.
Bad luck struck when one American, thinking he knew Japanese, ordered sweet and sour pork.
Then, a miracle happened--when the dish arrived, he put the entire plate in front of himself.
You know, at that meal one guy drank an entire pot of soup, and the worst one ate a huge bowl of plain white rice."
"Haha, sorry, I'll go get you guys some wine!" the beautiful waitress said as she walked away. William White didn't mind; jokes like this were common in America. When Japanese host a meal, if the food is all cleaned up at the end, it's considered bad manners. The so-called 'main dishes' have to be plentiful.
In Europe and America, if too much food is left over, it's disrespectful to the host, and sometimes the chef might even complain.
"Warren, the timing is just right. Trust me, Cisco will surprise you next year."
"You know me, William, I prefer to hold on to companies for the long term." Buffett adjusted his glasses and reluctantly admitted Japanese cuisine was quite good, not greasy at all. Cisco was also very promising, definitely worth investing in.
"William, don't you think the Internet is a bit overheated?"
"It sure is overheated, but that's not necessarily a bad thing. A stock market without a bubble is equally unhealthy.
Besides, I want to clarify: Cisco is a high-tech company, not an Internet company. You know, our 3D warehouse is densely wired. By the way, we've made a breakthrough in wireless connectivity; five or ten years from now, that'll be a new growth point."
Buffett was surprised. William White's R&D power was undeniably strong. He hadn't expected the next generation to be wireless transmission.
"Are you sure? It's not like Tesla's wireless power transmission--impressive but without commercial value."
"Hahaha, no way. I'm being very clear, but you're probably tired of hearing me. Also, it involves some trade secrets. Let's just say it's more like today's digital mobile signals, just with lower transmission power."
William White joked with Buffett, but inside he was uneasy. That old guy never invested in high-tech firms anyway, always said he didn't understand them.
Little did he know that William had already beaten him to the Coca-Cola deal. Buffett was big-name now but nowhere near White's level. White's bank avoided private equity, but if he really competed for deals, a bunch of heavyweights would surely lose it.
"I'm only taking two board seats at most, Warren; you know, if everything goes well, I just let my think tank keep an eye on things.
This is different from traditional companies. I think you've noticed management's option incentives are too high."
"Haha, a bunch of Wall Street tycoons aren't happy--they say you're breaking the rules."
William smiled bitterly. "Warren, to be honest, capital has been dirty from day one. I don't want to even pay salaries, let alone these shares."
"Ahem, well, I guess these people will create greater value."
"Exactly. So what if the CEO is a billionaire? If they don't bring me a billion in profit, guess what? I'll kick them out."
Buffett understood how fierce competition was in high tech--beyond imagination. Without the right incentives, the original team might have been poached long ago.
Knowing this only strengthened the old man's investment conviction.
Turmoil was good. If this industry was stagnant, where'd the investment value be? Already a giant, Cisco could easily crush competitors.
Either acquire or poach talent. Newcomers without strong tech advantages stood no chance.
Anti-trust issues?
Well, that was tough. If the Department of Justice kept failing the same way, their reputation would tank.
That was the thorn in Legendary World's side--cheap labor was the only perk, nothing else. William White once publicly ranted about how many years after Pearl Harbor people forgot how badly they got hit, that he paid taxes in America and provided jobs.
Sadly, no one cared. They preferred to see cheap economies boom and cheap car imports fill American garages.
From this, you could see how William White spun the story. And honestly, the public loved such juicy gossip. Conspiracy theories were great; the story was just thrilling.
"Pleasure doing business, Warren. You won't regret today's investment."
"Let's hope so. You know, William, I'm getting old. Those semiconductor books are just too hard to understand."
"Haha, actually, you'd do better to learn from me. You really think what I'm investing in is what you think?"
"By the way, your recent venture capital seems to be on a break, what's up with that?"
William smiled bitterly. His original investment method soon became the standard for investment banks. If every firm had a professor as figurehead, what choice did he have?
Buffett's investments quickly became public knowledge, and while some tycoons were puzzled, they also gained new respect for these high-tech firms.
Today's Nasdaq was on fire. Any tie to the Internet immediately made a company hot. Even if not directly linked, everyone wanted a piece.
Worried?
Of course, Greenspan was concerned. Living long meant seeing plenty of ups and downs. No market only rises. If this irrationality blew up, he dreaded imagining the chaos.
Americans couldn't just orderly jump out of windows like some others. One misstep could mean gunfire everyday.
Every economic crisis was a scalp for the upper middle class. If many disappeared, society would become unstable.
*****
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