Chapter 4: Leeks are for cutting, and wool is for plucking
Just as Buffett said, 1860 was the eve of the rise of Argentina. The so-called rise was entirely due to the animal husbandry in the Pampas, which made Argentina the most important exporter of livestock products in the world.
However, it was only the eve of its rise. After all, as a South American country, Argentina lacked not only capital but also labor. Its true rise would have to wait for another ten or twenty years.
Of course, Argentina's economy is also prosperous now. After all, the Pampas is the most fertile land in the world, and the export of various agricultural products such as wool and wheat has prospered the country's economy.
This futures exchange is also a symbol of its economic prosperity.
" So, investing in wool must make money now?"
wool?
Buffett looked at Zhu Xianhai in surprise.
Buffett thought it was just a coincidence, he said.
"Investing in wool futures will definitely make money, but definitely not now. Generally speaking, we will buy wool futures in the winter and in the spring, and speculate on the wool production this year based on the winter weather conditions. If the production is high, the price of wool will naturally fall sharply. If the production is low, its price will naturally be very high."
Well... that is the simplest futures trading.
Zhu Xianhai asked.
"So do you think the current wool price is high or low?"
"This winter, the sheep breeding situation on various farms is very good, and there are tens of millions of sheep in Argentina. One thing is certain, this year's sheep wool supply must be very large, so its price has been falling in the past few months, even less than 60% of last year..."
Looking at Buffett who was talking big, Zhu Xianhai just nodded silently. No wonder the news of the Mapuche invasion could cause a car accident.
The war or invasion must have affected the supply of sheep wool, which directly led to a surge in the price of sheep wool. These people must have suffered huge losses.
"I bought more stocks half a month ago."
Just like that...you dare to go all in just because of this judgment!
Buffett...it's a shame to have such an auspicious name!
What is a mascot?
This guy is clearly the leek.
If you don't try to be a leek, it would be a waste of your talent!
Damn, it's people like you who are so self-righteous.
"I see. If I buy sheep wool futures now and the price goes up , won't I be able to make a lot of money?"
Doesn't this guy understand what I'm saying?
Buffett's expression froze.
"What did you say?"
“I have 300 pesos here, can I open an account?”
"Huh? Open an account? Of course you can. You only need 100 pesos to invest in futures."
Buffett hesitated and tried again.
“Are you planning to invest in futures?”
"Yes."
To be honest, Zhu Xianhai really knew nothing about futures. After all, both stock trading and futures trading required money, and he just... had no money.
Besides, it was futures in 1860.
But one thing is certain: soon, all futures will explode, and within an hour, news of war will spread.
Zhu Xianhai didn't know who the Mapuche people were, but he was sure that this matter was definitely not simple.
It is not known whether the so-called "invasion" is a real "invasion".
Maybe, it is just a means for the bookmakers to make money.
Judging from the information revealed by Buffett, this year's market conditions and his judgment as the "King of Leeks" absolutely conform to the basic principle of leeks being harvested.
All the news points to a "sharp drop in wool prices", and these leeks are betting their money on it.
Isn’t this the time to reap the rewards?
The fate of leeks...is to be cut.
Of course, wool is also for plucking! We are here today to plucking wool.
"I'm a foreigner, is there any problem opening an account?"
Zhu Xianhai's question made Buffett laugh.
"I'm a foreigner too. How many people in Argentina are natives? Okay, let's go open an account!"
In this way, under the guidance of the King of Leeks, Zhu Xianhai opened an account without any documents or other proof. In fact, in Argentina at that time, there were no documents to provide. Immigrants entering the country only registered their names at the customs, and this was specifically for those entering and leaving the official ports. In fact, there were many unlicensed ship owners who transported immigrants for free and then sold the immigrants' contracts to farmers. I don't know how many new immigrants with nothing came to this new continent in this way and became settlers, tenants and agricultural workers.
Passports and green cards no longer exist these days.
This made Zhu Xianhai breathe a sigh of relief. You know, he was originally worried about his identity.
After paying a one-peso account opening fee and depositing his entire fortune of 299 pesos, Zhu Xianhai finally became a retail investor in the futures market, or a nineteenth-century leek.
Leeks are often the fate of retail investors.
Looking at the freshly issued account opening certificate, Zhu Xianhai asked.
“Is this a credit account?”
When opening the account, Buffett specifically asked him to open a credit account.
"Of course, with it, you won't miss some opportunities. After all, sometimes we have to prepare in advance."
Buffett said, showing his eight teeth.
"Remember what I said? If ordinary people want to change their fate, they need to go all in, but there are not always opportunities to go all in. But after making an accurate judgment, you must seize the opportunity, just like me. Ten years ago, I came here with a hundred pesos and started my life journey with a five-fold authorization from my credit account..."
Zhu Xianhai asked when Buffett was talking big and wanted to tell the story of the glorious journey of leeks.
"If I want to buy futures now, how should I buy it?"
"Buy now?"
Buffett was stunned and asked.
"What futures are you going to buy? Now is a good time to buy wheat..."
"wool."
What!
In an instant, Buffett was dumbfounded. He looked at this guy as if he was a fool.
"Um... Sir, do you think this through? There is no profit at all if you buy wool futures at this time. The price has already fallen to a low enough level. Is it impossible for it to fall further?"
Buffett's tone seemed a little anxious. God knows, the reason why he came to get close to this guy is nothing more than to rely on him to get close to Major Bellucci, who is a big shot in Buenos Aires. A big shot among Italians.
"You will lose everything!"
"It's okay. Didn't you say that life is all about daring to go all in? After all, going all in is a kind of wisdom!"
Zhu Xianhai looked determined not to listen to advice, which left Buffett speechless.
This guy is really crazy!
"299 pesos, all wool futures, buy up..."
He really went all in!
And it’s still buying high…wait, what did he say?
While Buffett was dumbfounded, he heard that Zhu Xianhai had overdrawn his credit account again.
Twice the authorization.
598 pesos!
