Faced with such a professional investor, Wang Ye has to admire that Berkshire can make continuous profits for decades, which obviously makes sense.

"However, it's still too early. Even if you can invest again after Preferred Products is started in the Chinese market." Wang Ye said embarrassedly.

"I'll tell you a story," Buffett said with a smile, then waved to the waiter to come over and get another glass of red wine.

"Sir, what do you need to have a drink?" The waiter bent down and asked Wang Ye.

"No need, thank you." Wang Ye said politely.

After the waiter left, Buffett spoke up and told a story...

"I have told this story to Berkshire's shareholders."

"We, Berkshire, have a huge investment in Coca-Cola."

"And investing in Coca-Cola is an example of how vague or clever disguised investment opportunities, as the chairman of an investment company, my reaction speed is simply incredible, but not that it is incredibly fast, but that it is incredibly slow."

"I remember the first time I drank Coca-Cola, either in 1935 or 1936, when I was either five or six."

"But I'm very sure, when I was six years old in 1936, I started buying Coca-Cola from the Buffett and his son grocery store run by our family, which is equivalent to a wholesale price of 6 bottles and 25 cents."

"Then we sell it around our house at a retail price of 5 cents per bottle. In this way, if you sell 6 bottles, you can earn 30 cents. After deducting the purchase cost of 25 cents, the gross profit is 5 cents, and the gross profit margin is 20%, which is quite high."

"When I ran around and did this high-gross-profit retail business, I fully observed that Coca-Cola is amazingly attractive to consumers and the commercial development potential of Coca-Cola products is amazing."

"After selling Coca-Cola along the street in 1936, I invested in Coca-Cola stocks in 1988. In the past 52 years, Coca-Cola products have become more and more popular and sold, sweeping the global market. I continue to notice that Coca-Cola has maintained its original extraordinary quality."

"But during these 52 years, I personally deliberately avoided Coca-Cola, and did not even buy a share of Coca-Cola stocks. Instead, I invested most of my personal assets in tram companies, windmill manufacturers, anthracite manufacturers, textile companies, shopping coupon issuing companies, and so on."

“It was not until the summer of 1988 that my brain and my eyes became connected.”

"By then, my feelings about Coca-Cola immediately became very clear and fascinated. In the 1970s, Coca-Cola development was a bit off track. In 1981, Roberto Goizueta was hired as CEO, and Coca-Cola had a new look."

"Don Keough was my neighbor across the street from Omaha. Guo Sida and Keo worked together to rethink and gather the company's development strategy for the first time, and then actively implement it."

"With the joint cooperation between the two of them, Coca-Cola is a unique product in the world, and has gained new momentum, and overseas market sales have seen explosive growth."

"Of course, we should have bought Coca-Cola stocks a few years earlier. After Guo Sida and Keo began to manage Coca-Cola in 1981, they should have bought them immediately and earned more."

"In fact, if I had figured this out in the past, when I was 6 years old and sold Coca-Cola on the street in 1936, I would have convinced my grandfather to sell the grocery store and buy all the money into Coca-Cola stocks."

"I have learned my lessons! Next time I encounter a very obvious and attractive investment opportunity, my reaction time will be greatly reduced to less than 50 years!"

...

Speaking of this, Buffett stared at Wang Ye with bright eyes: "Wang, do you understand why I have to invest in it when the Youxuan Youpin is not on the market?"

Of course Wang Ye understands that is not what Buffett has always advocated to only buy cheap stocks and only buy the correct cheap stocks.

But why? I prepared for two years to lay the foundation, and now I have the right time, place, people and people, and then I started to prepare.

And Buffett is going to invest in Youpin. Isn’t this here to pick peaches?

"Mr. Buffett, please find out one thing, that is, I only have 300 million shares in the US Shopping Network, accounting for 25%. And at Youpin Company, my shares account for more than 70%!" Wang Ye said with a smile.

The implication of his words is very obvious. If he needs to lose the benefits of Preferred Products to raise the stock price for Meigou.com, he would rather not do it.

After all, Wang Ye’s shareholding ratio in Meigou.com is not high!

How could he harm his own interests for the benefit of other shareholders?

Buffett was not panicked. He came to see Wang Ye today and dared to make such a request. Of course, he had conducted a detailed investigation in advance and was fully prepared.

"Wang, I know all of you said this, but you must also know that Youpin has the current foundation. If you want to be the only one in the Chinese market, it is okay to be the only one who can dominate in the Chinese market. However, for such a company with great potential, do you only plan to do it in the Chinese market? Do you need to go abroad, go to the Asia-Pacific region, and the European and American markets?"

Buffett and Wang Ye are both smart people, and they can understand each other without having to say a lot of things.

In fact, before Buffett came, there was a discussion within Berkshire. Some members of the board of directors asked, why is Buffett so optimistic about a company like Youpin, which has not officially debuted yet?

If you choose the clothing industry, then there are too many better choices around the world, such as those luxury brands, such as fast fashion ZARA, HM, Uniqlo, etc.

Buffett's answer left everyone speechless, that is, the clothing industry belongs to the textile industry in the final analysis, and the leading design can be surpassed, but the basic industry of the industry is the decisive factor.

Now it seems that these foreign brands and fast fashion brands are in the spotlight, but in the long run, truly great clothing companies will surely be born in China.

Because there are cheap raw materials and cheap labor!

These two factors are the most basic elements of the textile industry and will play a decisive factor in future competition.

As for those luxury brands, after all, they are still too niche and cannot be too high in sales anyway.

What can really make the scale bigger must be the positioning of affordable clothing brands, that is, the preferred high-quality products!

Wang Ye has been trying his best for two years and has proved himself in the clothing industry, even the cosmetics industry and the Internet industry.

Then, once the sword of Youpin is unsheathed, it will definitely kill all competitors, at least in the Chinese market.

...

No one can refute Buffett's analysis because it is indeed the truth.

Although there seems to be no decent clothing brand in China over the years, a huge market and deep heritage will sooner or later a truly world-class clothing company will appear.

Perhaps, Wang Ye’s preferred product is that company.

However, if Chinese companies want to go abroad, it is not enough to have product advantages alone. Buffett obviously knows this.

It is because of this that he dared to propose to invest in Youpin.

Wang Ye also understood this. He was nervously thinking whether it was worth it to cooperate with Buffett's Berkshire.

This is another transaction that trades interests for help. Wang Ye is not disgusted with such a transaction. He only sees whether it is worth it!

If you can gain greater benefits by paying a small part of your profit, why not do it? Wang Ye has no habit of eating alone.

When doing business, of course, it is better to have more and more partners and fewer competitors.

After thinking for a while, Wang Ye said, "I can agree to Berkshire's investment in Youpin, but the shareholding ratio cannot exceed 10%, and there must be a reasonable valuation of Youpin!"

When Buffett heard this, he shook his head repeatedly: "No, Wang, you are too stingy! 10% is too small, we Berkshire will have to invest at least 30% of the shares."

Obviously, one is asking for a price all over the place, and the other is counter-offering on the spot.

As for the company's valuation, this issue is not a big problem, because the investment of Youpin's real money, besides Wangye's 5 billion cash, the clothing production base is discounted by 5 billion yuan.

The total investment is only 10 billion yuan, so what can you do if you increase the valuation?

The focus of their attention now is how much shares they should give to Berkshire, that is, how much share of the benefits Wang Ye is planning to give to the capital party represented by Buffett!

Although this matter involves a lot, it does not require too many people to participate.

Buffett, as the soul of Berkshire, also made a notice to shareholders at the board of directors, and of course he has the right to make a decision on the spot.

Wang Ye is not only the major shareholder and chairman of Huashang International, but also the major individual shareholder of Youpin. Of course, he also has the right to directly decide whether to accept investment and how many shares to sell.

In the end, the two made a concession and agreed to Berkshire's 20% stake.

As for the valuation of Youpin, Buffett was not too stingy and said casually: "Youpin, in my opinion, is worth 20 billion now, of which 10 billion is the preliminary investment, and the other 10 billion is because you are leading this company!"

Who says that foreigners are straightforward and can't flatter, this is obviously flattering Wang Ye?

Of course, Wang Ye also accepted it calmly. If Buffett had not had great influence and connections in the Western financial industry, if someone else had invested in the valuation would have been more than 20 billion yuan.
Chapter completed!