Chapter 1257 – Undervalued
The next evening, Steve returned to New York. Although he did not find out much about Feng Yu and other Chinese Billionaires, he learned something important. Feng Yu has admitted he has become the World’s Richest Man. The next issue of <Forbes> should be a hit with the readers!
At the same time, Hu Ran is also working hard. This issue of <Wind and Rain Business Magazine> will include <Forbes> billionaire list, and <Forbes> will be publishing the Chinese Billionaires data, including the interview with Zhong Qingxian.
Time passes quickly, and the latest issue of <Wind and Rain Business Magazine> is released. Many people noticed <Forbes> Asia’s Top Billionaire, Feng Yu, finally has a valuation of his assets. His net worth is worth 60 billion USD!
Before that, <Wind and Rain Business Magazine> have either leave out Feng Yu or put question marks on his net worth. This is the first time Feng Yu’s net worth is revealed.
Many people are shocked when they see it. Some media or overseas magazines had investigated Feng Yu’s net worth and they knew Feng Yu is wealthy. But they had never expected his net worth is so high. Even if his net worth is not in USD and RMB, he is still China’s top billionaire!
The ones who do not know about Feng Yu’s actual wealth were stunned by the figure and the words behind his name. ‘World’s Richest Man!’
Feng Yu has become World’s Richest Man? The World’s Richest Man is a Chinese!?
This piece of news was noticed by the top Leaders. Some of them frowned and felt individuals should not have such high wealth, and some felt Feng Yu had made his wealth with his capability. The Government should promote him and let the foreigners know China is no longer the close-up country they know. The Chinese Government will not confiscate individual’s wealth.
China is still trying to attract foreign investors as they need external funds to develop. Feng Yu can be considered a good example. If the Government uses Feng Yu’s title well, it can attract more foreign investors, and China’s economy can develop faster.
The top leaders discussed and decided they will speak to Feng Yu first, hoping he will contribute more to China.
……
<Forbes> latest issue is out with the updated World’s Richest Man’s list. The first place is not Bill Gates anymore, and Feng Yu had replaced him with a net worth of 60 billion USD!
It stated this amount is estimated, and many people are unhappy. Why are Feng Yu’s assets valued so high? He is also not in charge of any major companies.
Bill Gates owns Microsoft and is now in second place. Are the figures accurate?
The readers flip to an article on Feng Yu at the back of the magazine. The article stated Feng Yu’s net worth is mainly from two holding companies. One of them is registered in China, Shanghai, and the other is registered in the Virgin Islands.
Feng Yu is the controlling shareholder of these two companies, and his proportion is not disclosed. One of these two holding companies is estimated to be worth 40 billion USD. The other is valued to be around 30 billion USD. This means <Forbes> had estimated Feng Yu to own 75% shares of these two companies.
These two companies’ values are not as high as the Fortune 500 corporations. Even after the market crash, these companies are worth more than a hundred billion. Even Microsoft’s market value is more than 300 billion USD.
But what was shocking is the proportion of Feng Yu’s shares in these two companies, and only a handful of these two companies’ subsidiaries are listed.
From last year’s evaluation, these two companies’ profits are more than 20%. In the past two years, most major companies are losing money. Bill Gates, Warren Buffet, etc., had all lose money, but Feng Yu continued to make high profits.
The bigger a company, the lower the percentage profits are. But because of the bigger base, the profit is not low. A 100 billion USD company with 5% profits is equivalent to 5 billion USD profits. But a company that’s worth 10 billion with 20% profits is only 2 billion.
Bill Gates is staring at the <Forbes> magazine in his office. He did not subscribe to the magazine, but someone will bring the latest issues to his office. This is one of his special privileges as one of the World’s Top Billionaires.
Paul Allen entered Bill Gates’ office and threw a copy of <Forbes> magazine on the table. “Bill, how can Feng have net assets of more than 60 billion USD?! Steve must have miscalculated!”
Bill Gates placed his <Forbes> magazine on the table and look at Paul Allen. “Which part of his assets do you think is miscalculated?”
Paul Allen is dumbfounded. He does not believe this is true, but he doesn’t know which part is wrong. He had read about Feng Yu’s assets valuation, and there’s nothing wrong with it.
The <Forbes> magazine had gotten this figure by analyzing the taxes and from other sources. Of course, they cannot determine the taxes Feng Yu paid in China, and most of them are only estimations.
Bill Gates looked at Paul Allen in his eyes and said. “I discovered some problems with his net worth.”
Paul Allen is happy. Bill Gates has found problems with this figure.
“What’s the problem? Tell me.”
“I think Steve had undervalued Feng Yu’s net worth!”
The smile on Paul Allen’s face disappeared. What does this mean? Undervalued?! That means Bill thinks Feng Yu’s real net worth should be over 60 billion USD?!
