Golden Spoon Investment Portfolio - Chapter 427

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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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427. Thanks to that, I can acquire these precious masterpieces at a fraction of their true value.

January 16, 1998.
Seok-won sat by the window of his private Gulfstream IV jet, speaking with Porter, the head of his Japan branch.

[We’ve finalized the contract to acquire all the bonds from the bulk sale at 114.82 billion yen. Publicly, we’ll announce it with an additional 1 billion yen added to the figure.]

Leaning back against the plush seat, I allowed a satisfied smile to cross my face.

“Well done. Once the contract is finalized, contact Mitsubishi immediately to proceed with the Rockefeller Center acquisition, and propose converting bond investments into equity stakes at Speed Retailing.”
[Understood. Oh, and Yasuda Fire and Marine Insurance has reached out—they’re willing to sell the paintings.]
“Excellent timing.”

This was exactly the news I’d been waiting for, and I couldn’t help but smile broadly as I held the phone to my ear.
From the late 1980s through the early 1990s, during the bubble economy when money flowed endlessly and Japanese corporations spent lavishly, they purchased not only real estate worldwide—like Rockefeller Center—but also famous masterpieces at exorbitant prices.

‘It was so severe that global art prices skyrocketed dramatically during the bubble period because of Japan.’

One of those pieces was Van Gogh’s Sunflowers, owned by Yasuda Fire and Marine Insurance.
Vincent van Gogh’s paintings of sunflowers in vases—only six remained in existence, and each featured a different number of blooms.
Among the various works, Yasuda Fire and Marine Insurance possessed the one with fifteen sunflowers.
But when the bubble that seemed it would never burst finally collapsed, the value plummeted along with the real estate that had soared endlessly.
As Japan’s economy fell into recession, the famous paintings that had been recklessly purchased during the bubble era became liabilities, flooding the market as inventory.
I seized the opportunity and instructed Porter to acquire what were called “bubble paintings”—masterpieces like Van Gogh’s Sunflowers.

‘This is a chance to sweep up world-class masterpieces of high collection value at bargain prices. I can’t pass this up.’

Such globally renowned masterpieces were nearly impossible to acquire unless the owner was willing to sell, making this a truly rare opportunity.
Suppressing my inner amusement, I focused on what Porter was saying next.

[They’re asking 4.2 billion yen. What should we do?]
“That’s 200 million yen more than the price I suggested.”
[Yes, it is.]

I gazed out the round cabin window as a large passenger aircraft slowly moved toward the Runway, and spoke.

“Still, it’s cheaper than the price you paid when you won the bid at Christie’s in London ten years ago.”
[At that time, including the commission, you purchased it for approximately 5.8 billion yen, so you’ve lost 1.6 billion yen.]
“It’s remarkable that a Van Gogh painting is selling below its purchase price. This could never happen unless the Japanese bubble burst and masterpieces owned by Japanese companies and wealthy collectors flooded the market all at once.”
[That’s absolutely right. With hundreds of paintings and ceramics now on the market, no matter how famous the artist, when supply overwhelms demand, prices inevitably fall.]

The real problem was that many corporations and private collectors had pledged the paintings and artworks they’d purchased as collateral to financial institutions and drawn funds against them.
The situation was so dire that specialized financial products called painting-backed loans, which dealt exclusively in works by famous artists, had even emerged.
When the bubble collapsed, those paintings and artworks that had been pledged as collateral saw their values plummet alongside real estate, transforming into non-performing loans.

“Though they’re treated as headaches now, if we purchase them and let them sit for a few years, they’ll recover their original value.”
[I share that view. However, the problem is that Japanese companies and banks don’t have the luxury of waiting patiently for that recovery.]

Seok-won smiled deeply.

“Which is precisely why we can acquire these precious masterpieces at bargain prices.”
[That’s certainly true.]
“Let’s acquire the painting for 4.2 billion yen as they’re asking.”

4.2 billion yen amounted to 33.6 million dollars—a substantial sum.
However, the Eldorado Fund’s Japan branch held assets well exceeding tens of billions of dollars, so spending that amount barely made a dent.
Porter, the branch director, responded with equal indifference, fully aware of this.

[Yes, understood.]

Seok-won lifted the glass of Underberg sitting on the table and swirled it gently.
Taking a sip of the cold whisky as ice clinked inside the glass, Seok-won asked again.

“What’s the status on acquiring the mirror painted by Picasso and Salvador Dalí’s Port Lligat with the Madonna?”
[We’re negotiating price with the owners. Both are in urgent need of cash, so we should reach an agreement within two or three days.]

Seok-won nodded slightly and spoke.

“What matters is acquiring the paintings. Unless the demands are unreasonable, just finalize the contracts.”
[Understood.]
“And don’t forget to continue searching and snapping up any other decent works that come on the market.”
[Yes, I will.]

After exchanging a few more words and ending the call, Seok-won was about to set down his phone when the bell rang as if on cue.
Seok-won checked the number displayed on the screen and immediately pressed the button to answer.

“In a few hours, we’ll be meeting in person anyway. Is there something urgent that made you call?”

As I spoke with a smile, I heard the familiar voice of Landon Shore through the phone.

[I kept getting no answer, so I wondered if you’d already left.]
“I was on a call with Porter.”
[I see.]
“But is there really something urgent?”
[John Phillips has agreed to accept our investment proposal.]

The moment I heard the news, I straightened up in my seat with visible delight.

“That’s excellent news.”
[CEO Phillips heard that the boss is heading to California and wants to meet directly to sign the contract. What would you like to do?]
“Since I’m heading there anyway, and once we invest, we’ll be in the same boat, so it wouldn’t be a bad idea to build a relationship this time.”
[Then I’ll take that as your approval and arrange the appointment.]
“Go ahead.”

I nodded readily.

“Oh, and you’ve finished negotiations with Qualcomm, right?”
[Of course. We’ve agreed to acquire all shares held by the founders for 800 million dollars, including a control premium.]
“I was prepared to go all the way to a shareholder showdown, but unlike their initial aggressive stance, they surrendered surprisingly easily.”
[When we aggressively accumulated shares and applied strong pressure, it must have been difficult for them to hold out.]

I agreed with Landon Shore’s assessment.

“True. With over 30% of shares already purchased and numerous friendly stakes secured, they would have struggled to maintain control even in a shareholder battle.”
[Exactly. Moreover, when they posted a 400 million dollar loss last year and entered consecutive deficits, shareholder dissatisfaction with management grew significantly, which had considerable impact.]
“That would be the case.”

At this point, Qualcomm was engaged not only in telecommunications technology development and CDMA chipset production, but also in equipment manufacturing and mobile base station operations.
With Korea becoming the first country in the world to commercialize CDMA-based mobile communication services, revenue from licensing fees and chipset sales was growing rapidly, but the other business divisions were stagnating, causing continuous accumulated losses overall.

‘It was probably around this time that they began restructuring other businesses and focusing on licensing royalties through technology development and chipset sales.’

The stock price, which had been rising on the announcement of CDMA commercialization, had plummeted as disappointed investors dumped shares due to poor performance.

‘But I’m probably the only one who knows this is the last chance to buy Qualcomm stock cheaply before it grows into an IT giant that monopolizes the telecommunications chip sector.’

The reason I was taking a private jet to the United States was to completely finalize the acquisition of Qualcomm, which would become the goose that laid golden eggs.
After overcoming numerous obstacles and successfully commercializing CDMA with Korea’s assistance, I had only taken a single step forward.
There remained many treacherous paths ahead before I could ascend to the position of absolute dominance in communication chips.

‘I’ve invested considerable capital to acquire Qualcomm, and I cannot allow the direction to go awry and produce results below expectations.’

Since I already knew exactly which technological trajectory Qualcomm had followed to grow and establish its monopolistic position in communication chips, I needed to ensure it followed that same path.
Dismissing the brief contemplation, I spoke to Landon Shore.

“Let’s discuss the rest of the details in person once we arrive in San Diego.”
[Understood. I hope you have a comfortable flight.]

Setting the phone down on the table, Seok-won murmured to himself.

“It’s worked out perfectly that I can now set foot in Start.com after Qualcomm.”

Start.com, founded by John Phillips in September last year, was a search advertising company that pioneered and realized the idea of displaying advertisements matching users’ search results on portal sites and charging advertisers a fixed amount per click.
It was a venture company that played a decisive role in proving that portal sites could survive the dot-com bubble collapse without disappearing and generate enormous profits, demonstrating that money could be made on the internet.

“Moreover, in a few years, Yahoo will acquire this company for a massive 1.63 billion dollars.”

Originally, Google would launch a similar form of search advertising, causing Start.com’s valuation to plummet from its peak, but now that I was investing in Start.com, the situation would not unfold identically.

“I’ll make it so they can’t easily circumvent the patents, so this time whoever acquires it will have to pay an extremely high price.”

Seok-won let out a low chuckle and brought the rocks glass to his lips.
At that moment, Bella, the stewardess on the private jet, approached.

“We’ll be taking off shortly. Would you please fasten your seatbelt?”

Seok-won gave a small nod and found the seatbelt, clicking the buckle into place.
Seeing this, Bella smiled slightly.
VIPs who typically flew on private jets often had difficult temperaments, but Seok-won was an exemplary employer who readily followed instructions and never cast sinister glances.
He did have a tendency to concentrate excessively on work to the point where one might wonder if he were a workaholic, but perhaps that degree of dedication was natural for a successful man.

“I’ll clear away your glass.”

Bella said this as she picked up the rocks glass sitting on the table.
Shortly after, the private jet, moving slowly, came to a halt at the end of the Runway and waited for takeoff clearance.
As I pushed the throttle to maximum, the two engines mounted on the aircraft’s tail roared with a deep, guttural sound—a rumbling that resembled a predator’s fierce cry before pouncing forward.
The jet then began hurtling down the long, extended Runway at tremendous speed.
Turning my head to gaze out the windscreen, the black asphalt surface streamed past in a blur, flowing backward like water.
And moments later, as a slight sensation of weightlessness washed over me, the massive private jet thrust off the Runway and surged powerfully into the sky.

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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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