Son Zhengyi came to the end of the Internet.
01
SoftBank "left" Ali?
"I said for 6 minutes, and Son gave me $35 million. I didn't expect the money to come so easily, he didn't think I wasn't here to ask him for it. ”
Every time the name Son Zhengyi was mentioned, Chinese naturally associated him with Ali.
In 1999, son and Ma met for the first time, and Son decided to invest in Alibaba, with an investment of $35 million.
Since then, Son Zhengyi has invested a total of $82 million in Alibaba, and by the time of Alibaba's IPO in 2014, it had a market value of up to $78 billion, up more than 1,000 times, becoming the biggest winner of Alibaba's listing.
If Ali and Jack Ma are Maxima, then Son Zhengyi and SoftBank are their biggest Bole.
It's just that now this Bole is going to sell the Maxima for money.
Previously, an announcement by Alibaba caught the attention of the market:
1 billion new ADS registered.
As soon as the news came out, Alibaba's Hong Kong stocks plunged more than 5%. As for the reason, it is a big deal to register 1 billion new ADS.
When Alibaba conducted its IPO in the United States in 2014, it registered about 2 billion ADS (American Depositary Receipts). Alibaba's current total share capital is 2,711 million ADS.
What does it mean to apply to the SEC for registration for an additional 1 billion ADS now?
That equates to 1 billion non-tradable shares on the shelves of the U.S. market, ready to be sold at any time.
For a while, market rumors were rife, and Citi speculated that it might mean that SoftBank was planning to sell Alibaba shares. You know, SoftBank still holds 5.39 billion ordinary shares of Alibaba, equivalent to 24.8% of the shares.
This time, Ali registered 1 billion previously unregistered depositary receipts, and SoftBank Group may intend to sell some of its shares.
02
From richest man to "first loser"
However, in fact, it is not the first time that Son Zhengyi and SoftBank have sold Ali's shares.
Son initially invested $20 million in Alibaba, and according to his own claim, he made a total of $150 billion in Alibaba's investment, and he did not sell a single share in the process.
But since 2020, when SoftBank first began selling Ali shares, Alibaba has become a cash cow for SoftBank and Son Zhengyi.
Once you don't have any money in your hand, come and take two sips.
During April and May 2020, SoftBank Group cashed out $11.5 billion by selling Alibaba shares through prepaid forward contracts with banks.
This is the first time SoftBank has sold Ali stock. Of course, this is just the beginning.
In the first half of 2020 alone, SoftBank sold Ali stocks to cash out $13.7 billion, cashing out nearly 100 billion yuan!
Therefore, many people say that Sun Zhengyi has a unique vision, sees that Ali is going to have an accident early on, and began to arrange selling stocks early, which is ready to completely abandon Ali's bag.
But is this really the case?
The problem may not be with Ali, but with SoftBank itself.
In 2019, the weakness of SoftBank Group was revealed, with the largest loss in history. SoftBank, once hailed as one of the myths of the investment world, lost 1.35 trillion yen a year, totaling $12.5 billion. That's SoftBank's biggest loss since going public in 1994 and its first annual net loss in 15 years.
It can only be said that the myth of the investment community is the most undeserved, and it may fall from the altar to the stinky ditch overnight.
However, the epidemic in 2020 saved SoftBank, the global flood, and the soaring prices of fixed assets and equity assets made SoftBank return a wave of blood - net profit in the third quarter of 2020 rose 20 times.
Unfortunately, everything is just a return to the light, until last year, SoftBank released a performance report in the third quarter, and the net loss in a single quarter was 397.9 billion yen. (About RMB 35.4 billion)
This is equivalent to Sun Zhengyi waking up every morning and losing 400 million yuan as soon as his eyes are opened. If an ordinary person's monthly salary can reach 10,000, then the 1-day loss of SoftBank Group requires an ordinary person with a monthly salary of more than 10,000 yuan to work for about 3333 years to fully repay.
As Son zhengyi said at the performance meeting, SoftBank is in the midst of a snowstorm, and now it seems that this snowstorm is far from over, and it is becoming more and more powerful.
Because SoftBank's problems are much more than losses.
SoftBank Group's liabilities in 2021 reached a staggering 1.1 trillion yuan, with an asset-liability ratio of more than 50%, and even if he sold all of His Ali shares, he would not be able to pay off the debt.
From "Buffett of the East" to today's stretch, perhaps SoftBank is the starting point of the "bubble of the century".
03
Is it Buffett or Isoroku Yamamoto?
If not to mention that Japan is really a country full of "talents", in just a few decades, it has produced two of the world's most famous gamblers.
One is Yamamoto Isoroku. He dragged the entire Empire of Japan into a gamble of the century, sneaking into Pearl Harbor, and finally lost his bottoms.
The other is Son Zhengyi. There are always people who say that he is the Buffett of the East, but in fact, he is not like Buffett, more like Isoroku Yamamoto, who is essentially a gambler.
There is an unspoken rule in the investment world that everyone tacitly accepts: eggs should not be placed in one basket.
But Son Zhengyi just dared to put all the eggs in one basket, and the result was overturned.
All his myths come from one that he dared to keep all the time in Internet technology.
Before investing in Ali, Son succeeded by investing in Yahoo. When the Dot-com bubble peaked in 2000, Yahoo's market capitalization exceeded $100 billion, and with 33% of Yahoo's stake, Son surpassed Bill Gates and became the world's richest man for 3 days.
However, as the dot-com bubble burst, Son's net worth fell by 99%.
Then Son Zhengyi came to China and bought Ma Yun's body for tens of millions of dollars.
Then I invested in Internet companies such as Sina, NetEase, and Ctrip, and then invested in Internet unicorn companies such as Didi Chuxing, Uber, and ZhongAn Insurance.
Shanda Network, 8848, Dangdang, UTStarcom, Renren Network he also voted.
The number of companies that continue to raise capital and invest is snowballing, with more than 1,000 in 2019.
At this time, the entire Field of Internet Technology in China, from cutting-edge technology to life entertainment, all novelties, SoftBank's investment is covered.
Since 1999, Son's investment assets have grown from $11 billion to $175 billion, an increase of 15 times, achieving an annualized return of up to 44%.
And the stock god Buffett is only 21% annualized. If you take ten years as the deadline, Son's wealth will grow 6 times faster than Buffett.
You are not so much a miracle as You say that China's economy is a miracle, thousands of kilometers apart, and you have created a figure with an investment record even better than Buffett.
However, the "golden decade" of the Chinese Internet has exhausted all of Son Zhengyi's luck.
This time, Son Zhengyi came to the "end" of China's Internet.
China's Internet companies have peaked in increments and have been beaten up everywhere under strong supervision. The Americans are constantly making trouble and want to delist all Chinese-listed enterprises.
Son zhengyi is back in the era when the internet bubble burst. His net worth fell by 99% that year, what will be the end of this time? I'm afraid no one knows now.
It's just that there is a saying that is true: out of the mix, sooner or later to pay back.