Golden Spoon Investment Portfolio - Chapter 41

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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41. Why don’t the two of you pick up some stocks as well?

Manhattan, New York.
On the thirty-first floor of One New York Plaza, Landon Shore and Andrew sat facing each other across a sofa with Park Tae-hong in the middle, the expansive vista of the East River stretching beyond the floor-to-ceiling windows of the executive office.

“Here’s the corporate report on Cisco you mentioned.”

Andrew continued speaking calmly as he watched Park Tae-hong pick up and open the folder before him.

“As noted in the report, it’s a solid company with numerous major clients including the U.S. Department of Defense, Boeing, HP, and General Electric. They’ve been steadily increasing profits—last year alone they posted annual revenues of three hundred million dollars. And starting this year, they’ve begun providing internet-based systems to their clients in line with recent trends.”

Landon Shore, seated across from them, set down his teacup and asked.

“I haven’t heard much about this company. What do they do?”
“They manufacture and sell routers.”

Landon Shore furrowed his brow at the unfamiliar term, looking at Andrew.

“Routers?”
“That’s not really my field of expertise, so I don’t know all the details, but from what I understand, it’s a mechanical device that connects large servers and computers to one another.”

The noun form of router, “route,” carries the meaning of path or course.

“Network connectivity equipment… I see.”

After hearing the explanation, Park Tae-hong understood why Cisco had become the symbol of the dot-com bubble.
A company that virtually monopolized the essential network equipment during the internet craze sweeping the globe—it would have been strange if its stock price hadn’t skyrocketed.

‘It’s like selling blue jeans during the Gold Rush. This is basically the dot-com bubble version of Nvidia.’

Park Tae-hong set the report down on his lap and continued listening to Andrew.

“However, their stock price has plummeted significantly after they recently acquired Crescendo Communications for ninety-seven million dollars.”
“What’s the reason for the stock decline?”

Andrew answered Park Tae-hong’s question.

“It’s simple. They paid too much for a company with annual revenues of only ten million dollars.”
“Even with basic calculations, it would take over a decade just to recoup the acquisition cost. No wonder the stock price is falling.”

Andrew nodded in agreement with Landon Shore’s assessment.

“Cisco’s executives aren’t fools, so why would they pay such an exorbitant price to acquire Crescendo Communications?”
“According to the company’s statement, by securing Crescendo Communications’ superior network switching technology and combining it with their existing router strengths, they expect to achieve significant synergistic effects.”
“What exactly is network switching technology?”
“It’s technology that enables tasks previously possible only on mainframe computers to be performed on personal computers as well. It allows for faster speeds and the construction of superior-performance networking hubs compared to routers.”

The moment I heard this explanation, a sudden insight struck me.

“This isn’t bad news at all—it’s tremendous good news.”
“Pardon?”

Seeing the puzzled expressions on both their faces, I explained my reasoning.

“Until now, computers have been used primarily in universities and corporations.”
“That’s because the costs of operation were quite substantial.”
“But in recent years, as the distribution of affordable personal computers has increased, haven’t we seen a surge in individuals using computers in their homes?”

Andrew nodded in acknowledgment.

“Thanks to that, Dell Computer, which assembles and sells PCs, even made it onto Fortune’s list of the world’s 500 largest companies last year.”

I smiled with quiet confidence as I continued.

“What this means is that the networking market will see not only increased business-to-business transactions, but also explosive growth in services targeting ordinary consumers.”

Unlike my confident assertion, Andrew’s reaction was somewhat skeptical.

“While PC adoption is certainly increasing, telecommunications fees remain substantial. Wouldn’t it be unrealistic for ordinary households to use them universally?”
“That’s true. While costs have dropped significantly compared to before, they’re still a burden for individuals. Moreover, even if people connect to computer networks, it’s just expensive without anything particularly useful to do with it.”

Landon Shore agreed with Andrew’s point and offered a similar perspective.
In this pioneering era, when not even a proper web browser existed, let alone online games, their skepticism was perhaps a natural reaction.

“That may be true for now, but things will change dramatically in the future. I believe Cisco’s executives understand this too, and they’re acquiring companies with the necessary technology in anticipation of PC proliferation.”

The two men, still unaware of the internet’s tremendous impact, failed to grasp just how significant this development was despite hearing the explanation.
Since no amount of explanation would resonate with them at this moment, I brushed past it and asked a question.

“So what’s Cisco’s stock price at right now?”

Andrew responded to my gaze.

“It’s been holding in the $20 range per share, but has fallen to $10.88.”
“It’s been cut nearly in half.”
“Yes. The market capitalization has also shrunk significantly to $3.1 billion.”

As expected, since the dot-com bubble hadn’t fully formed yet, the market capitalization wasn’t particularly large.

“What’s the shareholder composition?”
“After the founding couple sold off all their shares two years ago due to conflicts with management and left, institutional investors now own more than half of the company’s stock.”

When I checked the shareholder composition table attached to the report, I could see that without a dominant major shareholder, five or six institutional investors held the shares fairly evenly distributed.

“There was money set aside separately from the NCR share sale proceeds, remember?”

Landon Shore turned slightly to look at me and responded.

“Yes. As you instructed, I set aside $100 million and transferred it to your personal account.”
“Use that to purchase Cisco stock.”

Landon Shore’s eyes widened as he asked back.

“All $100 million, sir?”
“That’s right.”
“I understand you view Cisco favorably, but isn’t that still too much money to invest all at once?”
“I share that concern. If we proceed as you say, you’d become the third-largest shareholder immediately.”

At the current stock price, $100 million could purchase over 3% of Cisco’s shares.
That would make me the third-largest shareholder, behind the institutional investors holding 5% and 4% respectively.

Unlike the two men’s concerns, I sighed with genuine regret.

“If I had my way, I’d buy even more stock and become the largest shareholder, but unfortunately I can’t.”

Despite receiving this advice, rather than reducing the purchase amount, I was actually doubling down, and the two men couldn’t hide their bewilderment.

“If we rush the purchases, the average cost will spike. Let’s take our time and accumulate the shares gradually. Of course, we shouldn’t drag it out too long either.”

Seeing that I had already made up my mind, Andrew exchanged glances with Landon Shore before responding with resignation.

“Understood.”

Leaning back in my chair, I spoke to the two of them at a leisurely pace.

“This company has tremendous growth potential ahead. Why don’t you two pick up some shares as well?”
“Ah, yes.”

Landon Shore laughed awkwardly and dodged the question, while Andrew merely said he would think about it.

‘I really can’t figure this out.’

Andrew, shaking his head inwardly, suddenly found himself wondering if Cisco might actually grow significantly.
The confidence radiating from me had planted a seed of doubt in his mind.
But Andrew quickly dismissed it as an absurd fantasy.

‘No way. If we’re going to invest in IT, we might as well buy Dell Computer instead.’

Unable to imagine the massive dot-com bubble that would soon sweep through the market, Andrew’s conventional wisdom told him that Dell Computer, which was experiencing rapid growth from the expanding PC market, had far brighter prospects than Cisco.

* * *

Time passed, and May arrived with brilliant sunshine.
Beneath a cloudless sky, the Harvard University Campus was ablaze with vibrant flowers in full bloom.
The expansive lawns bathed in gentle sunlight, framed by stately brick buildings, overflowed with families and friends gathered to celebrate the graduation ceremony.
Graduates dressed in long black academic robes and caps stood in formation, listening intently to the congratulatory address delivered by the President of Harvard University on the stage.

“Esteemed faculty and proud graduates!
Today marks a momentous occasion as you successfully complete your studies at Harvard University and graduate.
I offer my sincere congratulations on your dedication and achievements throughout these years.
Over the past several years, you have gained much from this institution… As I wish you fortune in your future, I earnestly hope that each of you will realize the dreams and goals you hold dear.
Once again, I sincerely congratulate you on your graduation!”

Clap, clap, clap! Clap, clap, clap!

The graduates applauded passionately, though the speech had been mercifully brief.
As the university president descended from the stage, the master of ceremonies returned to guide the proceedings forward.

“Now, we shall begin conferring diplomas.”

A band positioned at the side of the stage played celebratory music as graduates, called forward in order by the master of ceremonies, filed onto the stage one by one to receive their diplomas from the dean.
The assembled families watched with expressions brimming with emotion—among them, Park Tae-hong and his wife, who had flown in from Korea.
When I was called and ascended the stage in cap and gown, Jo Deok-rye grasped her husband’s arm beside her and shook it gently.

“Honey! It’s our Seok-won’s turn!”
“I see it.”

Park Tae-hong, standing with stern composure, replied somewhat curtly, yet his face was suffused with a warm smile.

“Listen, Manager Choo. You’re getting good shots, aren’t you?”

Park Tae-hong turned his head toward Choo Se-young, who had accompanied him.

“Yes, Chairman!”

Choo Se-young, holding a Leica film camera and continuously pressing the shutter, responded immediately.

“Good, good. All we’ll have left are photographs, so don’t miss a single moment.”
“Understood!”

With his hairline slightly receding, Choo Se-young renewed his determination at the chairman’s command and pressed the shutter relentlessly, unwilling to miss a single frame.
Though he had already used two rolls of film, ten more unused rolls remained in the bag slung over his shoulder, so Choo Se-young applied himself with full dedication to capturing every moment.

“Congratulations.”

The dean, extending a bouquet along with the diploma in its cylindrical case, offered his hand first and shook mine as he spoke.

“Thank you.”

I descended the stage with my diploma in hand, my face radiant with joy.
This was my first university diploma across both my past and present lives, and I could not conceal the profound satisfaction and happiness it brought me.
As I struggled to suppress the corners of my mouth from rising further, unable to contain my smile.
Roy, also wearing his cap and gown, lightly tapped my shoulder from behind and spoke.

“That doesn’t suit you at all. Where did that sentimental expression come from?”

I turned to look at Roy, my expression growing wistful.

“I thought it would be rough, but we managed to graduate together after all.”
“Ah, don’t even mention it. Do you have any idea how much I suffered trying to patch up those grade gaps? I’m telling you, I barely had time to breathe—I was scrambling like crazy.”

Roy shuddered at the mere thought of it.

“That’s why I told you to stay on top of things from the start.”
“Tch. Whatever. Anyway, cramming is just my nature.”

Watching him pull off miracles when everything seemed lost was, in its own way, a skill.

“Either way, it’s really over now. You said you’re heading to California?”
“Yeah. I’ve got a confirmed job offer at Sun Microsystems.”
“Better late than never—congratulations. With your abilities, you’ll do great there.”

I extended one hand, and Roy grinned mischievously before clasping it firmly.

“Thanks. Let’s stay in touch even after graduation, okay? A roommate bond isn’t something you find every day.”
“Of course.”

Then, as if remembering something, I spoke up.

“You didn’t forget that favor I asked you about last time, did you?”
“Oh, that? Don’t worry. I’ll contact you right away if anything comes up.”
“I’m counting on you.”

Shortly after, the graduation ceremony concluded as I and my classmates all tossed our caps high into the sky in unison.

“Wooooo!”
“Finally free!”
“We’re graduates!”

The cheering graduates enjoyed the celebration on Campus with their families who had come to see them, taking photos together. I was no exception.

“Alright, I’m taking the shot. Look this way, please. One, two, three!”

Director Choo Se-young, who had prepared meticulously for this day, had even set up a tripod and threw himself into the work with the passion of a professional photographer.
As the camera shutter clicked, Park Tae-hong, standing on one side with his wife and their youngest son in academic robes between them, gazed at his boy who looked particularly radiant today and spoke.

“Studying abroad must have been difficult. You’ve worked hard.”
“It’s all thanks to both of you for your support.”

Jo Deok-rye gazed at her son with pride and squeezed his hand firmly.

“You’ve truly grown up now.”

Park Tae-hong, who would normally have said something at such a moment, remained silent today as his wife appeared ready to shed tears at any moment.

“Young man.”

A familiar voice called out and approached.
It was Professor Frank, dressed in doctoral robes with velvet trimming on both panels and three horizontal velvet bars decorating the sleeves.
As if he had been waiting for all the photographs to be taken, he extended his hand with a gentle smile crinkling his eyes.

“Congratulations on your graduation.”
“Thank you.”

Since he was a mentor worthy of respect, I grasped his hand immediately and replied in English.

“Are you returning to Korea right away?”
“I still have some matters to settle, so I plan to stay a few more days before departing.”
“I see.”

Professor Frank gazed at me with reluctant eyes.

“You’re the kind of talent who could make a significant mark in academia if we worked together. Are you certain you won’t consider pursuing graduate studies?”
“I apologize.”

It was a question asked on the chance he might reconsider, but the answer was as expected.

“Well, I suppose it can’t be helped. In any case, even if we don’t see each other at the university, let’s stay in touch regularly.”
“That would be an honor for me.”
“And regarding the paper we co-authored this time—we’ll finalize it around year-end and make a formal announcement.”
“I’m certain it will yield excellent results.”
“I think so too.”

Professor Frank smiled with confident assurance, his expression radiating certainty.
Park Tae-hong, seated beside him, interjected smoothly and posed a question.

“Seok-won. Who is this gentleman?”
“He’s a professor at our university. He’s also a Nobel Prize laureate in Economics.”
“What! A Nobel Prize winner?”
“Yes.”

Park Tae-hong’s expression shifted to one of pleasant surprise.
Professor Frank, having grasped the gist of their exchange, regarded Park Tae-hong and his wife with a benevolent smile and spoke.

“Are these your parents?”
“Yes, they are.”

Professor Frank extended his courtesies first, offering a proper greeting to Park Tae-hong.

“A pleasure to meet you. I’m Philip Frank.”

Park Tae-hong promptly responded in English and shook his hand.

“So you’re the professor. I apologize for the delayed introduction.”
“Ha ha, not at all. You must feel quite assured having such an outstanding son.”

As Professor Frank glanced sideways at Seok-won, Park Tae-hong’s lips naturally curved upward.

“I’ve taught many students throughout my career, but among them, he stands out as a truly exceptional talent. I’ve encouraged him to pursue graduate studies, hoping to keep such a promising mind close by, yet unfortunately his resolve lies elsewhere. He possesses the caliber to become a great pillar of academia, and I must confess I harbor lingering regrets about this missed opportunity.”

Professor Frank lavished praise with unmistakable sincerity etched across his face.
Even as he spoke, he continued stealing glances at Seok-won’s expression, as though he would gladly kidnap him on the spot if the young man agreed to pursue graduate studies.
Park Tae-hong, his mouth stretched ear to ear, burst into hearty laughter.

“Ha ha ha! You’re far too kind.”
“Not at all. I would seize Seok-won this very moment if I could, but his convictions are simply too resolute.”

Witnessing this renowned scholar, a Nobel laureate no less, openly covet his youngest son, Park Tae-hong could scarcely conceal his pride and delight.
As Seok-won grew flustered by such blatant praise, Professor Frank winked at him with a knowing smile, deliberately excluding Park Tae-hong from the gesture.
After decades in academia, he had learned intimately what parents most longed to hear.
Of course, more than half of what Professor Frank had just said came from genuine conviction.
Seok-won, scratching the back of his head, stood before his parents—who were on the verge of being swept away by the professor’s praise—wearing an awkward smile, feigning ignorance.

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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