With a market value of more than $2 trillion, that's the competition for top tech giants. A few days ago, Microsoft surpassed Apple in market value and became the most valuable technology company on the planet.
Whenever Microsoft's stock price keeps rising, stories are often told.
In 1995, an asset management company known as Cascading Investments was quietly established. This asset management company has been growing for more than 20 years. It fully owns the Ritz Carlton Hotel, and nearly half of the four seasonal hotels, and is also the agricultural area equivalent to Hong Kong's land area and the largest agricultural land owner in the United States. Today, the private asset management company has total assets of more than $700 billion.
At the same time, the yield of cascade investment in the capital market is also the first time. Led by a team of professionals, in the first 10 years of its existence, the compound annual return on equity investments exceeded the average return of 6% of the constituent stocks of the S&P500 index in the same period, and 20 years after its establishment, the compound annual return was also 11%. From 1996 to 2019, the combined annual average of Warren Buffett's Berkshire stock price was 10.76 percent. The return on capital of this asset management company is no less than that of the god of shares.
Interestingly, the entrepreneurs behind cascading investments, black hole holders with $7 billion in total assets, U.S. stock gods and largest farmland owners with more than 20 years of compound annual returns, are the world's richest man Bill Gates.
Just by looking at these numbers, Bill Gates' cascade investment results are quite amazing. But, I'm going to tell you, your money Bill Gates invested in Cascade, and he came from Microsoft?
When Microsoft first made public, Bill Gates accounted for about 45% of Microsoft's shares, but now it's only 1.37%.
If he hadn't sold Microsoft stock and started cascading investments, the stocks would have been worth more than $50 trillion.
This story can draw different conclusions from several angles, but the most undeniable conclusion is that the most mundane investment opportunities in the world.
If you go back to 2000, you'll choose to invest in Coca-Cola, Google, or Apple.
In addition, how to use multiple perspectives to illustrate how consumer goods companies have a permanent foundation how to make Coca-Cola not fail for centuries and how to create social value.
Of course, I don't think high-sugar carbonated drinks bring more value to society than Google and Apple, but Coca-Cola is one of the largest commercial companies in the world and won't affect me. But even such investment opportunities are mundane compared to the return on investment of top technology companies.
In today's VC community, the same words continue.
Yields are absolutely correct
We are long-term patient investors. We have invested in crypto assets for more than 5 years. We haven't sold any of these investments and are always planning a dont.
(As an investor, we are long-term and patient.) We've been investing in crypto for over five years)
This was written by A16Z, who set up an emerging fund specifically for the crypto industry in 2018. This is a venture capital institution that has absolute popularity in the field of Internet technology. Investment areas include top apps like Instagram and Oculus VR. It was also one of the first institutions to officially invest in the crypto space, setting up the $35 billion Scale and Crypto Phase II Fund in the United States.
Coinbase, a crypto securities trading platform that once caused a stir in the Internet industry on U.S. stocks, is one of A16Z's investment areas. As the first trading platform documented in the industry's NASDAQ, Coinbase plays an important role.
A16Z first participated in Coinbase's investment at a purchase price of $1 per share in 2013. Subsequently, it participated in the financing of Round C and then Round E. In addition, A16Z also bought Shares of Coinbase from Union Square Ventures several times from the website, buying 3.52 million shares for about $87 million.
According to CoinBase's list, A16Z holds coin shares worth about $77 billion and are in full circulation. Public records show that A16Z sold more than 6 million coin shares on May 21 and May 24, earning about $1.4 billion in cash. A16Z's official website shows that the export of Coinbase investments has been completed. And, that could mean A16Z sold that stock.
Of course, we can't calculate the total cost of buying and the range of sales for A16Z, however, according to public data, the net profit of A16Z investment in Coinbase will exceed $7 billion.
The $7 billion crypto industry may not be afraid. Over the past few years, A16Z has announced 38 investments to Cryptofield on its official website. According to public information, Rhythmic Blocks has completed a summary of these projects, which have completed a total U.S. funding of $2,551.2 billion in a round (excluding undisclosed numbers) in which A16Z participates.
This means that only the investment income of coinbase A16Z is enough to cover all investment costs on Crypto.
At present, the Bitcoin price has broken through a new high price, and the evaluation of all projects is on the rise. In the password field, issuing funds is more common than equity financing. Crypto engineering is mainly sold to investment institutions through the issuance of tokens, and the token income is better than the stock income. Coinbase is the only crypto investment outlet publicly available to A16Z.
In September 2018, the A16Z purchased the US1500 mm MKR. Today, the market value of this investment is around 1040% return, or about $17.1 billion. It is worth mentioning that this transaction comes from a public purchase in the secondary market, not an initial investment. If A16Z leads the OpenSea rounds A and B of the NFFT trading platform and today's average trading volume exceeds the US$50 million, then the average daily net profit exceeds US$2525 million, and the annual net profit of OpenSea is more than the US $400 million. Now, while OpenSea has no plans to issue tokens and utilities, from a profitability perspective, A16Z's yield on that investment ratio will not be lower than Coinbase's. Now, the Dapper Institute and A16Z, the team with the strongest brand power in the NFC space, have also invested in 6 rounds, and now the evaluation is as high as $75 billion. You suspect these returns are exaggerated, but if you bought Bitcoin in April 2019, there would be a 16.5x return today.
In venture capital firms, yields are absolutely correct.
A week ago, Sega Capital, the chief investment arm, announced that it would abandon the traditional 10-year cycle theory of venture capital firms and rename it the World Championships Fund. Sequoia said: "We want to have a permanent impact on the world like those great founders in the world, not just for 10 years." ”。
There is another, more important detail hidden behind Secoa's story, but there are a few who will pay attention to it. While announcing its abandonment of the 10-year cycle theory as an investment backing, Sikaul has been used by the SEC to transition to a registered investment advisor (RIA), making investments more flexible and allowing more money to be applied to crypto, necessities, and other areas.
This means that Scoia is starting to use more money as a world-class venture capital firm that was once criticized as useless innovation. The consumption of so-called "shops" and "tea", after being fiercely pursued by top investment institutions, consumer goods are considered to be assets that bring huge returns. A bowl of noodles and a cup of black tea