Chapter 1745: Should we increase our holdings?

Su Xinghui and Lu Xiaoya stayed in Shangjun County for two days. During these two days, Su Xinghui visited several former leaders one after another. These old leaders were all aware of the investigation he had faced in Changshan County and asked about the situation with concern. Su Xinghui gave them a general overview of the situation, omitting some of the details.

There were some details he could not tell anyone.

Afterwards, Su Xinghui and Lu Xiaoya carried some fruit and pastries to visit the elderly Hou Guangbi. Since it was the solar New Year, this also counted as paying a New Year visit to the old man. In any case, every time Su Xinghui returned to Shangjun, he would visit Elder Hou.

Although Hou Guangbi was a year older, he had lived a comfortable life in Shangjun County these past few years. Having practiced the Five Animal Frolics that Su Xinghui had taught him, his appearance actually looked much more spirited than when he had first returned to the country. Now, he could truly be described as having the white hair and youthful face of a crane-riding immortal.

Seeing Su Xinghui and his wife arrive, Hou Guangbi was very happy. He asked, "When is Xiaoya due?"

Su Xinghui said, "It's still early. Probably about seven months from now."

Hou Guangbi nodded and said, "That would be around July or August. Give me a call when the baby is born, and I'll go to Changshan to see our great-grandchild."

Su Xinghui nodded and said, "Alright, I will definitely notify you when the time comes."

After the two sat down, Su Xinghui asked, "Grandpa Hou, I heard that the first phase of the Hou Group's electronics company in Jiangcheng has been completed and put into production, right?"

Hou Guangbi nodded and said, "Yes, it started production just last month."

Su Xinghui said, "Then I must congratulate you, Grandpa Hou. The Hou Group has gained another business growth point, and the speed of future development will surely become faster and faster."

The Hou Group's domestic investment had already reached a significant amount, totaling around 500 million USD. Moreover, they were investing primarily in industries that filled domestic gaps, such as high-end appliances, electronics, luxury hotels, and IT. These industries had few domestic competitors, high profit margins, and broad market prospects, making them excellent for future development.

In fact, the Hou Group's appliance factory had already become their cash cow. Its annual sales now reached several hundred million, and with very high profit margins, the annual profit basically exceeded 100 million. The Hou Group was still expanding production scale because the factory produced high-end appliances and had already captured the largest market share for high-end appliances nationwide.

Meanwhile, the Hanhai Net founded by Hou Wenchang had become the largest portal website in the country. Thanks to the creative ideas and concepts Su Xinghui provided, Hanhai Technology had launched many popular software and internet products. Hanhai Net was currently very popular, and some time ago, venture capital firms had even approached them wanting to invest. However, the Hou Group had plenty of funds, so they did not need outside investment.

In short, after the Hou Group shifted its business focus to the domestic market, its development speed had accelerated several times over compared to when it was in France.

Hou Guangbi said, "Your vision is truly incredible. The industries you suggested we enter have all developed very well. The Hou Group being where it is today is truly something I have to thank you for!"

Su Xinghui smiled and said, "Isn't this what I should do? If we're talking about helping, you have helped me even more."

Hou Guangbi asked again, "By the way, those US stocks you told me to buy have risen sharply. In almost a year, they have nearly doubled. When do you think it's better to sell? Or, can we still increase our holdings?"

Last year, Su Xinghui had Hou Guangbi buy several US stocks like Apple and Microsoft. These stocks were in their most rapid growth phase during the 1990s. Their share prices almost only went up and never down; one could make money with their eyes closed. In this nearly one year, they had almost doubled, which was already a significant harvest. One had to know that Hou Guangbi had invested over 100 million USD into these stocks.

It could be said that the Hou Group's gains in the stock market this year were basically equivalent to all their gains in physical assets over the past few years.

Last year, after listening to Su Xinghui, Hou Guangbi invested over 100 million USD in US stocks, but he did not invest all of the group's liquid funds because the group itself needed liquidity. Furthermore, Hou Guangbi had some doubts about Su Xinghui's words, fearing that investing too much would lead to huge losses.

Although the Hou Group was involved in the financial industry, it did not have much exposure to the US stock market. Moreover, stocks like Apple and Microsoft were not traditional industries, and Hou Guangbi did not know much about them. After all, he was an old man over seventy, so it was normal for him not to understand new industries.

While Su Xinghui had previously demonstrated extraordinary economic vision, he had always grown up domestically and had little contact with foreign stock markets. It was equally normal for Hou Guangbi to have some doubts. In fact, the fact that he was willing to invest over 100 million USD in these US stocks based on Su Xinghui's words showed he already trusted Su Xinghui very much.

The returns these US stocks gave the Hou Group made Hou Guangbi very happy, which made him trust Su Xinghui's vision even more. That was why he wanted to specifically ask for Su Xinghui's opinion today.

Su Xinghui pondered and said, "These stocks have had excellent growth potential over the past few years. I think you can still increase your holdings now."

The stocks Su Xinghui had the Hou Group buy were all IT industry companies like Apple and Microsoft. Their growth potential was unquestionable; the mid-to-late 1990s was their fastest growth period.

Especially Microsoft; due to the successive releases of operating systems like WIN95 and WIN98, their stock price was literally skyrocketing. In 1999, their market capitalization once set a record for the highest market value of a single company in human history, reaching over 600 billion USD.

It was just that after that, due to antitrust investigations, Microsoft's stock price suffered a heavy blow. Otherwise, with that momentum, their market capitalization might have reached the terrifying figure of over a trillion USD.

Su Xinghui having Hou Guangbi increase his holdings in these stocks was basically risk-free. Compared to the massive market capitalization of these stocks, the few hundred million USD he invested was negligible and would not cause any major impact on the share price. At the very least, they would continue to receive generous returns over the next few years.

This could be considered hitching a ride on these companies. However, Su Xinghui had a vision that transcended the era by more than twenty years; it would be a waste not to take such a ride.

It was a pity that Google had not yet been founded, let alone gone public. Otherwise, catching the express train of Google's initial public offering would have allowed them to multiply their invested capital several or even over ten times overnight.

Hou Guangbi nodded and said, "Alright, since you say I can increase my holdings, then I will."

Su Xinghui accompanied Hou Guangbi for a while longer, and the two had a meal at the Hou residence before taking their leave.

Watching their retreating figures, Hou Guangbi felt deeply moved. This was truly a peerless genius. It was a great stroke of luck for the Hou family to have met him. It was a pity that he refused when he wanted to give him shares, so he could only help him with all his might in other areas.

On January 4th, after the New Year holiday ended, Su Xinghui and Lu Xiaoya returned to Changshan County together. Lu Xiaoya had rested for over a month and returned to her work post.

As soon as he returned to Changshan County, Su Xinghui had Zhu Tie notify Li Shuqin, telling her that Lu Xiaoya was back and that she should return to work.

Upon receiving the notification from Zhu Tie, Li Shuqin was very happy. She hadn't been in contact with Su Xinghui and his wife for long, but the couple had been very good to her, and she had developed feelings for them.

Moreover, she hadn't worked for a month, yet Su Xinghui had still paid her a month's salary. This made her feel guilty. She eagerly looked forward to going to work, taking good care of Lu Xiaoya, and repaying the kindness she owed the couple.

Upon receiving the notification, Li Shuqin happily went to the Su residence and resumed her work. She actually always had the keys to the Su residence, but since Lu Xiaoya hadn't been home for the past month, she hadn't come over.

At noon that day, after getting off work, Su Xinghui and Lu Xiaoya returned home. Li Shuqin had already prepared the meal. Lu Xiaoya said happily, "Auntie Li, you're here! That's great, I haven't eaten your cooking for a long time!"

Li Shuqin smiled and said, "Xiaoya, do you like eating Auntie's cooking?"

Lu Xiaoya said, "Of course I do."