[Chapter 189: The Microsoft Stock Accumulation Strategy]
[T/N: Current discussion is between Linton and his investment team, which should have been part of the last chapter.]
No wonder Microsoft's stock took such a hit. The market was bright and they hold an absolute monopoly; it was truly invincible.
Yet, it was a surprise move by the Bill Gates family office that stunned the market, deliberately creating a massive negative impact and causing the stock price to plunge. But it provided a prime opportunity for them to buy.
"Any other thoughts?" Linton asked.
Everyone shook their heads.
"I'll share mine then. First, the personal computer market is steadily expanding with enormous potential -- everyone agrees on that, right?"
"Absolutely," everyone responded.
"Second, Microsoft's operating system dominates the market completely -- no question about that?"
Everyone nodded in agreement.
"Third, the OS is different from other software or products. It's essential for computers and irreplaceable. Agreed?"
Still, everyone nodded.
"And no one has heard of a new tool that could replace computers altogether, right?"
"No chance."
Everyone dismissed the idea.
"So, given all this, who still thinks Microsoft lacks a bright future?"
"What about Bill Gates reducing his shares?" Winnie hesitated.
"The company's fundamentals and future outlook matter most. Share sales by major shareholders don't always have huge impacts. Besides, his holdings were extremely high. Check the market; among companies valued over $2 billion, how many have individual major shareholders owning more than 30%?"
"Hardly any," they all admitted after some thought.
"Exactly. So, his selling likely isn't because he's losing faith but to diversify risk, which makes sense."
"So you're saying we ignore it and keep the status quo?"
"No, we should seize this rare chance. Let's contact Larson from the Gates family office and acquire 2% of shares from him. As long as these don't hit the public market, the stock price will rebound quickly. I believe he's under immense pressure now, so if we help him, the transfer price should be a bit below market value."
"We already hold a lot of Microsoft stock. Would buying more be too risky?" Henry cautiously asked.
"Not really. Honestly, I've been planning to increase our holdings this year anyway. This situation just lowers our cost."
"How much shall we buy?"
"My plan is for Skycrest Capital and the Charity Foundation to each add one percentage."
"Is that too much?" Winnie asked worriedly.
"A bit, but this is the last and best opportunity. I don't want to miss it."
"Do we have that much cash?"
"We don't have cash, but plenty of stock. Henry, check how much we can get by pledging our stocks for loans. Is it enough for both to add one percent? If not, we can ask the film company for some help."
After crunching the numbers, Henry reported approximately.
"Enough. Excluding already pledged shares, Skycrest Capital can get at least $300 million in loans, and the Charity Foundation at least $250 million. Plus, the foundation has nearly $40 million in cash."
"Good. Henry and Richard, you'll represent the Charity Foundation and Skycrest Capital. Jointly approach Larson from the Gates family office to negotiate the share purchase, aiming to lower the price as much as possible."
"What's the floor price?"
"Let's start with a $23 billion market cap as the base, then aim lower."
"Okay. We'll start tomorrow," Henry and Richard agreed.
"Also, I'll be overseas promoting a movie for over ten days starting tomorrow. To avoid disrupting the purchase, I'll sign and authorize the stock pledge documents to Winnie for safekeeping. Keep me updated daily by phone. Once done, if I'm still away, I'll notify Winnie to handle the bank loan process with the authorization and stock certificates to finish the acquisition quickly."
"Don't worry, I'll take good care of it," Winnie promised solemnly, feeling trusted.
"And everything we discussed today stays strictly confidential," he warned.
...
After settling the Microsoft stock increase plan, it was nearly noon. Yet Linton didn't invite Goodman, Henry, or Richard to lunch.
When it was just him and Winnie left, she shed her serious investor image and turned into a smitten woman, throwing herself into his arms.
"Darling, I've missed you so much. You haven't visited in ages."
"Sweetheart, I miss you too. Whenever I can, I come by."
"Sounds good, but you're free this afternoon, right?"
"My afternoon work is to be with you."
"Now that's better. What about lunch?"
"How about the Hilton?"
"Are there many women at your estate?"
"A few."
"Forget it. Why don't we eat at my place? You haven't been to my new house yet."
"Sure. Do you have food there?"
"Don't worry. I've called the housekeeper. Danny, Carter, and Meena will come too."
"Let them join. Good for them to get familiar with the place."
...
Thanks to a $3 million contribution from him, Winnie bought a detached villa in the affluent Palm Springs community on the Beverly Hills hillside, just 15 minutes from his estate.
The gated community was upscale with low housing density and beautiful landscaping. The villa was large -- 0.7 acres with over 3,000 square feet over three floors plus a basement. It featured a luxurious outdoor pool, basketball and tennis courts. The purchase cost $2.6 million.
The remaining $400,000 was spent on interior furnishings and decoration. The basement included a 1,000-square-foot gym and an equally sized dance studio. A live-in housekeeper managed meals and daily needs, while other house services were available through the community.
Two female bodyguards and the housekeeper lived on the first floor. The second floor had six guest rooms and a reception room. The third floor had two rooms -- a smaller 600-square-foot study for Winnie, and a 2,000-square-foot master bedroom with a 500-square-foot walk-in closet and bathroom, plus a 500-square-foot terrace.
Despite its size, the master bedroom was cozy, with two large photos on the wall above the bed -- one of him, one of Winnie. Not a couple's photo, but placed side by side, revealing Winnie's feelings clearly.
...
"Darling, even when you're not here, seeing your photos makes me feel secure," Winnie shyly said as he looked at the pictures.
"Baby, you could live at the estate," Linton said softly, pulling her close.
"But there are too many women there. I don't mind you having others, but I can't join you and them in all your escapades."
"That's okay. Just be yourself."
Linton always showed her a special, tolerant side.
"But my love for you isn't any less than theirs."
"I know. You're the most special person in my heart."
"Really? Darling, I love you so much," she said, moved, and kissed him.
"Baby, I love you too."
"Darling, love me."
"Aren't we eating first?"
"First, let me have you."
Sweet, joyful music started playing...
*****
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