stjorthotic Chapter 326 Mr. Potter is the guiding North Star
Chapter 326 Mr. Potter is the guiding North Star
Chapter 326 Mr. Potter is the guiding North Star
Larry returned to his Dakota apartment and checked the Tesla Joint Fund, cash register, fan, and other related matters with Matthew. After confirming everything was correct, Matthew was now aligned with his tasks and prepared to dedicate the next few days to completing them.
After Larry and Matthew returned to their room, Larry stood alone on the balcony, smoked two cigars, and pondered for a long time.
The most crucial thing now is to find out who is targeting me. This is different from Senator Adams in Boston, who, although targeting me, was actually after Kennedy.
But those who play the game in the New York Stock Exchange are different; they target themselves and are well-versed in stock market trading.
This is a potential rival, and I also need to guard against him sabotaging me.
Unfortunately, Mr. Dunbar is not here, and Matthew also has his own things to do—he also needs to be careful about his personal safety.
Larry subconsciously touched his suit jacket. He hadn't carried a gun in a long time, ever since his handgun was confiscated by the NYPD.
It seems I need to get the gun back, and also find some suitable helpers.
The Rostan Gang—this could be an opportunity, but it could also be a huge hidden danger! No rush, we must take it slow.
This is New York, and ultimately, money talks.
The next day was Saturday, June 11th.
Larry arrived early in his carriage to visit Mr. Porter at Paine Weber Securities Company.
When Mr. Potter saw him arrive, he raised an eyebrow, smiled, and said, "Long time no see. Your trip to Rochester lasted quite a while—"
"Yes, Mr. Porter, thankfully those thorny issues are all sorted out—if I had a choice, I would definitely stay in New York and not go anywhere else," Larry said with a smile.
"That won't do. Making money is more important; it'd be better to handle some business out of town. Oh, by the way, I also have some fund-related matters to discuss with you—"
Mr. Porter invited Larry back to his office and then explained to Larry in detail the investments made by the Partners Fund since its inception, including the investment in two new projects.
Afterwards, Mr. Porter produced $4600 in cash, saying he had already rented out all four floors of Larry's property. This was all the rent he could currently collect.
Larry listened to Mr. Potter explain these things, but his eyes kept glancing at the clock on the wall. It was almost 10 o'clock, and the market was about to open.
Mr. Porter could tell that Larry was a little distracted. When it was 8 minutes to 10 o'clock, he waved his hand and said, "Look at you, all your mind is on the quotation sheet, isn't it? Go on, go on—"
Larry gave an apologetic smile, and as soon as he stood up, he asked, "Mr. Porter, could you please ask the trader to get me the recent price charts for American Tobacco over the past few months? I need them very much."
"American tobacco? Oh, okay." Mr. Porter glanced at him, a sudden smile creeping onto his lips. "Good heavens, you haven't got your eye on James Duke again, have you?"
"Who? Who is Duke?" Larry asked, startled.
"The real boss of American Tobacco Company, James Duke, was the one who ruthlessly acquired other small tobacco companies, eventually forming the American Tobacco Union trust and making it American Tobacco," Mr. Porter replied.
Larry suddenly became very interested in this man named Duke, and stopped checking the stock price of American Tobacco, sitting back down on the sofa.
"Mr. Potter, could you describe this person to me?"
Mr. Porter raised an eyebrow. "You're asking me about James Duke? Oh, he's not a businessman, he's the Napoleon of the Industrial Age."
Mr. Porter removed his gold-rimmed glasses, gently wiped them with a velvet cloth, and then said, "In 1890, he used $15 million to crush ten tobacco mills into one giant. He also facilitated the company's IPO. Today, the American Tobacco Company has a market value of approximately $25 million and controls more than 70% of the tobacco business in the United States—"
Mr. Porter put his clean glasses back on his nose and continued, “Cigars, chewing tobacco, loose cigarettes. All these businesses are in his hands. His office is at 111 Broadway in New York, but his soul is always in the tobacco fields of North Carolina, where he personally oversees the humidity of the tobacco leaves during fermentation every week by train.”
Larry frowned slightly, thinking to himself that someone of Duke's stature was someone he simply couldn't afford to offend right now.
Mr. Porter continued, "Duke never talks about brands, only about acquisitions. He thinks cigarettes are for poor people, crude, short-lived, and not worth mentioning. But obviously, Duke doesn't want anyone else to get their hands on this stuff—he wants scale, monopoly, control that leaves his competitors with nothing."
Larry was silent for a moment, then asked, "What's this person's personality like?"
"Him? Oh, he's a very formidable man—he's not greedy for money or power, his office has no paintings, no carpet, just an iron table, an inkpad, and a stack of his rivals' bankruptcy notices—he's 45, still unmarried, doesn't drink, and doesn't like socializing; aside from going to church every Sunday, he spends the rest of his time scheming for his tobacco empire—" Mr. Potter rattled off a long string of words, glancing at the wall clock, and asked with a smile, "Aren't you going to check the price list tapes? You're just listening to me ramble on—"
Larry's expression turned grave. After a moment's thought, he recounted to Mr. Porter in detail how his American tobacco stocks had almost been liquidated by a market manipulator.
As Mr. Potter listened to Larry's account, his expression grew colder and his brows furrowed deeper.
"How could that be? Larry, have you offended someone?" Mr. Potter asked solemnly.
"No, I've always respected your instructions and never stepped forward—especially when it comes to stocks, which is a small account I keep at Reading," Larry replied earnestly.
Mr. Porter nodded, then frowned. "Are you suspecting James Duke was behind it? He's a ruthless guy, that's true, but only when it comes to business. He's not a mob boss, after all—"
Larry waved his hand in denial. "No, Mr. Porter. I think my adversary is someone else, but to be honest, I've always been very interested in the tobacco business, and now I plan to use my stake in American Tobacco to find out who's watching me. Meanwhile—"
As Larry spoke, his expression became more serious. "I'm also considering whether American tobacco is a worthwhile, long-term investment—"
Mr. Porter nodded slightly, his face still serious. He thought for a moment and said, "American Tobacco is not Bausch & Lomb—as far as I know, this company is quite profitable, but Duke is holding back the financial statements from being released."
Duke has a lot of tricks up his sleeve. If you want to enter the cigarette market, he'll pretend to be interested, get you to invest all your savings, and once you've built your factory and established distribution channels, he'll buy up all your raw materials overnight—and then get the railroads to refuse to transport your goods—this isn't a conspiracy, it's his daily routine.
Larry nodded and said, "I'm not trying to compete with him—I just want to invest in American tobacco for the long term."
"That might not be a good choice either. Duke is hiding profits and doesn't want to share dividends. He wants to expand his distribution channels in Europe, the Middle East, and Asia."
After Mr. Porter finished speaking, he thought for a moment and continued, "So don't go through his door, go around him. If he grows tobacco in the South, you go to Europe to find the formula; if he controls the market in New York, you go to Boston to set up your own warehouse—"
He despises cigarettes, so you turn cigarettes into a gentleman's badge. That's how you'll expand your tobacco business.
Larry felt a little strange, as if Mr. Porter had already concluded that he didn't want to invest in American tobacco stock, but rather wanted to transition into the tobacco business.
He kept telling himself how to bypass him to do tobacco business.
"Mr. Potter, what do you think about this?" Larry asked directly.
Mr. Potter straightened his back and said seriously, "If you really want to go into the cigarette business, then go for it. A while ago, when Old K was in New York, we had a meal and a long talk—"
He told me that cigarettes are the most profitable item in your convenience store business. I predict that this will become a very lucrative business in the future—even surpassing cigars and pipes.
Larry's eyes widened involuntarily. He had to admit, Mr. Potter's insight was quite remarkable. He only knew that cigarettes would become so popular because of the advantages of being reborn—
Mr. Porter, surprisingly, sensed this trend just as well, thanks to his business acumen.
"But sir, didn't you just say he was invincible?" Larry asked.
Mr. Potter smiled slightly, his eyebrows relaxing. "No one is invincible, as long as you don't play by his rules."
Larry pondered for a moment, then nodded heavily. "Mr. Potter, I will seriously consider your suggestion."
If I really wanted to start a cigarette business, would you be willing to invest?
Mr. Porter laughed. "If you really do that, I personally won't invest, but the Partners Progress Fund will take a large stake in your New Tobacco Company—"
Larry smiled too. "Alright, Mr. Potter, it's a deal."
"Remember! This should be started early and planned gradually, because your real trump card against American tobacco is—convenience stores!" Mr. Porter said solemnly.
Upon hearing this, Larry's pupils dilated in shock; he finally understood Mr. Potter's good intentions.
Compared to the tobacco business, Mr. Porter values his convenience store chain business much more—after discussing it with Mr. K, he has decided that the chain stores are the core of all his future businesses.
Therefore, the tobacco business serves as a reminder and also as evidence of a retail empire.
Mr. Potter was practically his guiding North Star.
"I understand! I know! I get it, Mr. Potter!" Larry nodded heavily, a barely suppressed smile on his face.
Mr. Porter nodded, smiling, and said, "Go ahead, go check your stocks. Whether you want to invest in American Tobacco or not, I'll have a trader send you the latest stock price movements in a bit—"
Larry thought for a moment, then smiled. "Mr. Porter, this afternoon after the brokerage office is empty, I'll show you some magic—my latest invention in the stock market!"
"Oh? What is it? Why are you being so mysterious? Are you going to reveal all your trading secrets?" Mr. Potter was intrigued.
"You'll find out later! Remember to give the employees a day off if you're free this afternoon. This is my secret," Larry replied with a smile, then turned and walked towards the office door.
As he reached the door, Mr. Potter suddenly called out to him, "Larry! Wait—"
Larry, gripping the doorknob, turned to Mr. Potter and asked with a puzzled look, "—Is there anything else?"
Mr. Potter said solemnly, "Be careful, it's best to have a few helpers with you. Also, who exactly is targeting you? I will seriously investigate—"
So, Mr. Potter stopped himself for this reason—
Larry felt a warm glow inside.
Larry spent the entire morning compiling data on the performance of American tobacco since its market launch.
After its IPO this year, the stock price hovered below two dollars for a long time. A surge occurred in early March, reaching a high of four and a half dollars.
However, the stock price subsequently fell, and during the decline, the individual continued to buy a total of 24 shares.
American Tobacco's stock is a quarter-share stock, meaning that buying four shares is equivalent to buying one common share.
If Mr. Porter is right, the current total market value of this stock is approximately $2500 million.
This morning, its price was already $2.2 per share.
So, by doing a simple reverse calculation, the total number of American Tobacco shares is approximately 1136 million.
I hold 24 shares, which represents more than 2% of the total shares.
Of course, the total market value of $2500 million mentioned by Mr. Porter is just a rough figure, but holding 2% of the shares should not be a problem.
Moreover, American Tobacco Company is a small trust that integrates other small tobacco companies, so its shareholding structure may be relatively dispersed.
Even though I only own 2% of the shares, I could still become one of the company's major shareholders.
Larry's initial plan was to make a long-term investment in this stock and buy more when prices dip.
Of course, if he could wait for the opportunity—he wouldn't mind giving those who plotted against him a shocking lesson—
No rush! In the meantime, I really need to investigate how to do the tobacco business.
Furthermore, since Mr. Potter is so optimistic about it, the convenience store business should also speed up.
Accelerate the opening of new branches and expansion into new regions, build a robust warehousing and logistics network, and create a retail empire that can influence the fate of American tobacco products!
Okay, once Old K finishes dealing with the land, let him focus all his attention on the convenience store.
At noon, Matthew finished his business at United Industries in Manhattan and returned to the sales department to meet Larry.
However, before he could report to Larry, Larry hurriedly said, "Matthew, do you know that striped grid paper? It's the kind factories use to draw design drafts. Do they sell it in New York?"
Matthew didn't know why he thought of this, but after thinking for a moment, he said, "Yes, that kind of grid paper is also called 'logarithmic coordinate paper.' It can be used for drawing and is often used in mathematics and engineering."
"Alright! Go and buy some for me, the larger the better, I have important things to do."
"What are you going to do with the coordinate paper?" Matthew asked curiously.
Larry gave a mysterious smile. "I'm going to find the person secretly working against me by analyzing the daily stock price movements of American Tobacco."