Of course, some might question this. After all, Western Wild Horse Fund still has a considerable amount of capital remaining in the stock market. If all investors chose to redeem their shares, the $10.8 billion that Western Wild Horse Fund had managed to cash out would be reduced to $2.7 billion. How could they have $6.1 billion in cash unless they also sold their remaining Apple stocks?
However, those who raised this question quickly realized that some people would indeed choose to redeem their profits and receive this incredible return.
But more people would likely opt to use their principal along with the profits to purchase shares in the second round of the fund. They wouldn't demand the same astronomical returns as the first round, but as long as they could achieve over 100% profit, their wealth would double again.
And didn't you see that Western Wild Horse Fund had also rapidly opened its second round of funding, increasing the total fund size to $20 billion, enough to absorb all the funds from the first round?
Of course, some smart and rational people would also realize that the first round is the first round, and the second round is the second round. One cannot assume that the second round will also yield over 100% returns just because of the huge profits from the first round. There is actually very little connection between the two.
Furthermore, the operations of the investment manager, Little Swift, seemed more like luck than exceptional skill. It's possible that the second round might even result in losses.
Yes, this line of thinking is perfectly correct. After all, unless one truly encounters geniuses like Soros or Buffett,
Or a穿越者 (chuānyuèzhě - time traveler) like Boss Huang, the second round of the fund is more likely to lose money. This has a probability of over 90%.
In the eyes of the wise, Western Wild Horse Fund's early settlement was likely because the behind-the-scenes boss was worried about the instability of these returns, fearing that Little Swift's luck would run out and he would lose a significant portion of the profits after another four months.
So, they decided to make a decisive withdrawal at this visible peak, securing the $6.1 billion in management fees. From then on, the $20 billion for the second round of the fund would be the investors' own responsibility, with no connection to the fund company's bosses.
And with the astonishing returns of the first round, the second round of $20 billion would likely sell out completely. At that point, Western Wild Horse Fund would still hold a colossal $20 billion, capable of stirring up waves in the stock market, but without bearing the risk of losses from the first round. Moreover, the $6.1 billion in management fees would have already been secured.
This is truly a brilliant strategy, one that is exceptionally intelligent. Which genius devised this strategy, executing it so decisively? The boss of Western Wild Horse Fund Company is probably a true Soros and Buffett reborn. Truly remarkable.
"Of course, when I saw the announcement yesterday, I couldn't believe it. I thought Mr. Little Swift giving me $30,000 would be more than enough, but he actually gave me $100,000! Praise the great Little Swift, he is our god!" After saying this, the African American's inherent dancing genes kicked in, and he began to dance right in front of the reporters. He danced for a full ten minutes before collapsing from exhaustion. An employee rushed to his aid, called a taxi, and sent him home.
Hours later, this dance, broadcast on the evening news, exploded across America.
Although this dance was spontaneously performed by the old Black man without any formal training, it was precisely this spontaneity that gave it an extraordinary, almost magical quality. It led to countless imitators and eventually even formed a unique dance genre, having a profound impact on the development of American art.
It's a pity that Americans don't have the tradition of four-character idioms. Otherwise, just like Fan Jin's success in the imperial examinations in China, America would have a new idiom like "ti jin kuang wu" (提金狂舞 - carrying gold and dancing wildly).
Why "carrying gold and dancing wildly"?
Because when the Black man was dancing, he was holding $100,000 in cash. Disbelieving banks, he had requested that the company pay him in cash rather than directly depositing it into his bank account.
Western Wild Horse Company happily obliged on the spot.
"My God, this must be my punishment! Why did I only buy a mere $1,000 last year!" Seeing this, several people queuing behind the old Black man lamented.
Although they too were inspired by Little Swift's story and had come to buy Western Wild Horse Fund's products to support him, they weren't foolish. They thought Little Swift might just be a flash in the pan, so they made a symbolic purchase of $1,000 for support, ensuring they wouldn't lose much if it went south.
Now, seeing him leave with $100,000, dancing wildly with joy, these people who had only bought $1,000 felt their current holdings suddenly felt less appealing.
Even though their $1,000 had become $4,400, which was equivalent to over 30,000 Renminbi in China – a considerable sum – it was utterly insignificant compared to the true fortune of $100,000.
"Damn it, I'm not queuing here anymore!" With this thought, one of the Black men in line broke away from the redemption queue and moved to the reinvestment queue about 50 meters away, intending to put his $4,400 back into the second round of Western Wild Horse Fund.
Take a gamble, and a bicycle can become a motorcycle.
Unfortunately, this time, only reinvestments from the first round were accepted. Otherwise, they would have withdrawn all their household savings.
Oh, it seems the average savings for Americans is only $300, so it doesn't really matter.