Hollywood Hunter

Simon has been paying close attention to the progress of various projects over there in China, but for the Jinshu system built around the Chinese film and television industry, his expectations are actually very low, far less than the real industries such as steel, real estate and food.

Still the same reason.

Until twenty years later, China's annual box office volume of movies is less than a lobster farming. And the situation is just too complicated on the Chinese side of the film and entertainment industry.

This is evident from the complex shareholding structure of the various subsidiaries of the planned Jinshu system.

For those that are temporarily closed to foreign investment, they can only play ball and look for a completely independent spokesman for China; for those that are not allowed to be controlled by foreign investors, such as the cinema industry, they can only enter into joint ventures, which require a complicated shareholding structure in order to avoid losing control; even if they are allowed to be fully controlled by foreign investors, they have to give up their interests to a greater or lesser extent depending on the specific situation.

In short, there around the 'Jinshu system' has been registered more than a dozen companies, large and small, basically with different shareholding structure, and the registration of a variety of, there are U.S. mainland, Cayman and other tax havens, there are in Hong Kong, there are in the mainland, and so on.

It's not a bad idea at the initial stage, but when it gets bigger in the future, it will inevitably cause some strife because of its interests, which is the main reason why Simon didn't let Daenerys Entertainment take the field.

In the future, if it does cause strife, then let yourself be bullied.

After all, the Westeros system is already strong enough in all other walks of life in China, and it's more likely to introduce attention to the film and television entertainment industry, which has been 'bullied' just enough to ease the imbalance of some people, and also to make the layout of other aspects of the Westeros system more secure.

Simon Westeros is a good friend of the Chinese people, so you can't do too much isn't it.

"A 50 square kilometer area is not as exaggerated as Orlando's 120 square kilometers, but according to the photos that came back from there, that area is still very beautiful. But, my dear, even if this project is barely built, are you sure you can operate it successfully? I don't mean the spending potential, but, the business environment over there in China."

Malibu, Dume Point Manor.

In the early morning dining room, Janet is chatting with Simon about the same recent interest in Jinshu Film and Television City.

It's Saturday, October 12.

Simon reached out to help Melbourne, who was sitting next to him, fix his napkin before he said to Janet on the other side, "I certainly understand that the situation over there in China is very serious because of the people, and I also know what problems this project will encounter in the future, so this project, the Qin Palace, is just a test run."

Jennifer, who had to take care of the four little ones across the street, said at this point, "It's okay to lose a $23 million investment. It's just that without those subsequent plans, it's hard to create an industrial scale for the Qin Palace alone."

"It depends," Simon shrugged his shoulders and said, "Actually, I'm more interested in the private plot of land we got for building an estate by the Taihu Lake, and yesterday I also asked the Levison Group side to consider developing another villa area by the Taihu Lake, in short, as long as we finalize these real estate projects, the results won't be too Poor."

Jennifer looked up at her own man who had a passion for real estate, "The real estate industry in China seems to be in bad shape?"

"It's all temporary, China's commercial housing reform has been going on and with the rapid economic growth, it's almost inevitable that the real estate industry will boom."

Janet, who was leaning against Simon's side, shifted her fork at the news, "Is that why you're planning to get that mega-villa project in Beijing?"

"Yeah."

Janet skimmed slightly, "I've also read the information, that project, 50 hectares in area, with a land cost discount of only $17 million, is indeed advantageous. But, this project is still mired in the mud, even if China's real estate industry recovers in a few years, really sell to cash, I don't know how long it will take, I think you should know the time cost of it, even if 1 year to earn 10%, compound interest discount is much higher than 10 years to earn double.

Simon smiled, "I had someone investigate, China may restrict the development of villa projects in the next few years, and when that happens, the value of this property, you know, again in the Chinese capital, will increase very quickly."

Jennifer wondered, "Why would the Chinese government want to restrict the development of villa projects?"

"This, ah, is nominally to protect farmland, but in reality, I think it should still be the most fundamentally democratic element."

Janet got curious too, "What do you mean?"

Simon thought about it and said, "In simple terms, let's say that in ancient China, there were strict hierarchical limits on the amount of food and clothing that different classes could eat and wear, the size of the house that the emperor could live in, the size of the nobles' mansions, and the specifications of the commoners' homes all had very clear rules, and once the limits were exceeded, in the worst case, even the entire family would suffer a murder. "

Janet blinked her big eyes, "What does this have to do with villa development?"

Simon shook his cutlery, "I've made myself clear."

Jennifer on the other hand paused and tried, "You mean, um ...... that, some people, some people think, are not worthy of a villa?"

Simon denied in all seriousness, "No, I told you, to protect the acreage."

Janet gave her man a blank look, "What a hypocrite."

Simon shrugged again, "Anyway, getting this project, even if we don't sell it, just holding it in our hands and waiting for the value to increase, it's actually a very good deal. Seriously, we're not short of money, and I really don't plan to sell it in the short term."

According to the information that Simon got, the Rose Garden villa area in Changping District, which covers 800 acres of land, plans to develop about 800 sets of villas as well. If it could be taken down, counting debt settlement and subsequent development, the total investment would not exceed RMB 1 billion. And 800 sets of villas, held to a decade or two later, the average price can easily reach 20 million, the entire value is 16 billion.

Up to 16 times the appreciation.

Although according to the 20-year calculation, from 1 billion to 16 billion, the average compound annual return rate is only 15%, but after all, the volume is placed here, this return is already considerable. Most companies or individuals, when the asset size of 1 billion above the level, because of volume factors, are very difficult in the same time will their assets more than 10 times.

For example, a golden hair real estate developers, the eighties inherited as much as $1 billion in assets, the results of two or three decades later, personal assets but only $ 4.5 billion, but also frequently did not pick up the media serious water adulteration and so on. Taking into account inflation and other factors, in fact, but rather shrunk a lot. After all, a few billion dollars in the eighties can become the richest man in the United States, thirty years later, the assets of the richest man in the United States has reached hundreds of billions of dollars level.

Jennifer heard Simon say that and joked, "Well, it can't be built and then vacant, can it?"

Janet gave a 'naive' look at Jennifer, "It's not easy, just arrange for a whole bunch of women to live in there, geez, a whole villa block of them."

Simon nodded, "Good idea."

Then he got an elbow in the back from Janet, and a blank stare from Jennifer.

Simon matched the pained expression.

In fact, we all know that the property is not for sale, but it can be rented out, and the profit for a decade or two is quite substantial.

In short, whether it is the Rose Garden in Changping District, or the golf club at the foot of the Fragrant Hill, or the high-end condominiums along the Huangpu River in Shanghai, or even the real estate being planned by the Taihu Lake in Suzhou, Simon actually has a plan to keep it in his hands as much as possible after the investment.

The main reason is that the Westeros system has too much cash at the moment.

Just investing in basic financial products such as government bonds can barely withstand inflation, compared to investing in China's real estate, especially in popular areas, then the longer the next holding time, the higher the value, the average yield after ten or twenty years will not be lower than most of the current hot industries.

By the way, including the buyout real estate arrangement for the movie theaters under the Jinshu Cinemas line, Simon is likewise considering the same.

The planned Jinshu cinemas are located in the heart of China's prime cities, and to take the properties where these cinemas are located now would seem unwise to many, but only Simon knows that this investment will inevitably lead to a significant increase in value in the future, as well as finding a place for the large sums of money owned by the Westeros system.

The truth is that too much money can be a very frustrating thing, especially when the volume is large enough.

It's like the Warren Buffett of proto-time.

At one point Berkshire Hathaway held hundreds of billions of dollars in cash that simply had nowhere to go, and it just so happened that some old man was one of those stingy types who didn't pay dividends to his shareholders, so it was a pretty big first annoyance in the eyes of Buffett, who was looking for compound interest and the fear of inflation.

Simon, now, has begun to face this problem.

The money is truly unspendable.

This is not the moaning of the super-rich, but the truth.

The weekend after the weekend, the new week, the day of October 17, proved it again when the Danielle Entertainment Group officially released its full-year financial results for fiscal 1995.

From October 1995 to September 1996, Daenerys Entertainment Group's total revenue reached $36.1 billion, still maintaining a 31% annual revenue growth rate, significantly exceeding Wall Street's previous average annual growth rate forecast of 25% to 28%. After all, the revenue volume exceeded $30 billion that year, and can still maintain growth of more than 30%, this is absolutely rare thing.

However, Daenerys Entertainment Group did just that.

Not only that, Daenerys Entertainment Group's annual profit also hit another record high of $5.27 billion, up 40.5% year-on-year, and its net profit margin also rose to 14.7% from 13.4% last year.

The results, which have left all the other major Hollywood studios in the dust, are not due to any one aspect of Daenerys Entertainment's business, but rather to the fact that the media and entertainment mega-giant, which spans movies, TV, music, games, comics, theme parks and more, is making headway in all areas of its business.

The market capitalization of Daenerys Entertainment Group surpassed a staggering $450 billion during the release of the Forbes America's 400 richest people list in August.

With the release of its full-year earnings report on Thursday, October 17, Daenerys Entertainment shares surged 3.7 percent that day, surpassing the $500 billion mark in one fell swoop and closing the day with a market capitalization of $503.4 billion, making it the second company in the world to surpass $500 billion in market capitalization after Ygritte.

A CNN financial reporter on his Facebook page that day commented on Danielle's entertainment market capitalization, using only one phrase: irrational.

At a time when new technologies are raging, it seems that the market has lost its mind when the market value of a media and entertainment company that shouldn't be so popular reaches such a high level. Only, when analyzing all aspects of Daenerys Entertainment's business, one is forced to admit that the series of core companies in the Westeros system, instead, is Daenerys Entertainment, which is among the most well-established companies.

Other than that, based on the $503.4 billion market cap that closed that afternoon, Daenerys Entertainment stock was actually trading at a P/E of only 96 times earnings.

A P/E of 96 times may not seem like the right word to use, but compared to the large number of companies with P/Es of hundreds of times on the Nasdaq, Daenerys Entertainment's bubble is actually very low.

In addition, although all aspects of Daenerys Entertainment's business, be it movies, TV, music or games, have been a cut above their peers, they have not lost their rapid growth.

Simon, on the other hand, still holds 78.3% of the shares of Daenerys Entertainment Group, a company he has owned since 1995.

Therefore, not to mention the value of Daenerys Entertainment stock itself, not to mention the profits generated by all the other companies in the huge Westeros system, just Daenerys Entertainment, a year of more than $4 billion in dividends, just personal expenses, Simon would need to squander an average of $11 million a day to spend all of it.

Simon is not in the habit of throwing money around without considering the returns, so it would take a huge team to find a way to justify $4 billion in sensible investments that have the potential to increase in value.

And that's just Daenerys Entertainment.

If the profitability of all the companies in the entire Westeros system were to be unleashed without regard to tax avoidance or reinvestment, the dividends going to the Westerosi family alone would amount to a couple of billion dollars a year, and that's just at this stage, and that number will only get bigger in the future.

Even if Simon's life is extravagant by comparison, his personal expenses will ultimately be a tiny fraction.

Malibu, Daenerys Studios.

The day after the release of the financial report, ending a meeting involving a group of executives, and waiting for the others to leave, Nancy Brill, the small female president who was left behind by Simon, couldn't help but quip, "Have you been distressed about having too much money to spend lately?"

Simon was sitting in the center of one side of the wide conference table, looking over a file of Diablo's sales data for the month of its launch, and smelling that he probably understood it was some little gossip the woman had gotten from her private conversation with the two Jennies, smiled and asked rhetorically, "Do you have any good ideas?"

Nancy moved across the side of the conference table to sit directly across from Simon and shook her head, "I can't help it. It seems to me that as the Matthew advantage that the Westeros system possesses becomes more pronounced, the similar distress you'll face in the future will become more severe, and, I think, a very dangerous tendency."

"Huh?"

"It's obvious," Nancy said, "that you have too much. Even if everything is legitimate, the problem is that you have too much, so much that it scares a lot of people, so much that the imbalance in the lower classes is only going to grow."

Simon stopped moving and asked with a smile, "So, what do you think the outcome will be?"

Nancy leaned forward a little petite and shook her head again, "I don't know, and apparently you don't either, because there has never been a precedent for this in human history, not to mention that this is still one of the most civilized stages of human history that we've been in for thousands of years, and the chances of your personal property being violently taken are almost non-existent, but some sort of danger is real, so I can't figure it out."

Simon, with a smile still on his lips, said, "Obviously, you've got it."

Nancy wondered, "What?"

"Violence," said Simon, "There is nothing new under the sun, and thousands of years of history on this planet, no matter what type of turnover, is ultimately because of violence. And, it seems to me, the more so-called civilizations are actually more fragile and more easily destroyed by barbarism."

It dawned slightly on Nancy, "It seems that you've definitely considered these issues more than once."

"And of course, I've taken a lot of substantial action."

Nancy thought sideways and asked, "Since you are certain that civilization will surely be destroyed by barbarism, do you think you will be able to escape this fate?"

"Why not?" Simon retorted, the smile on his face slightly reduced, his temperament turning sharp: "I never said I intended to be on the side of 'civilization'."

Nancy cringed a bit at Simon's sudden shift in a certain demeanor, reacted and couldn't resist the tit-for-tat, "Boss, if you turn to barbarism and use violence, wouldn't that be like giving away the excuse to target you directly?"

"I turn to savagery, but not necessarily the use of violence," Simon reined in, an easy smile once again on his lips, "Little Nancy, in my mind, savagery and violence are two concepts, and often times, savagery that is not violent in the slightest is far more destructive than violence. "

Nancy, hearing a certain 'little Nancy' called, became more and more combative, searching for the root of the problem: "I don't believe it, like what?"

"Like ah ......" Simon deliberately dragged his voice, thinking about what he was doing in France, thought it would be better not to tell the French chick, sold it a little, and waited for the increasingly expectant Nancy's eyes to widen slightly before he said slowly. "...... doesn't tell you."