Chapter 98: The Epiphany

  Mike handed the empty wine glass to the waiter and said to Ju An, "Now do you have any new investment ideas? It's not a good idea to put tens of millions of dollars in the bank."

  "Wait, I haven't paid my taxes yet, and besides, the ranch's operation still needs to set aside some money for emergency use. All this money, I'm not planning to invest elsewhere, it's all for emergency purposes."

  "Easy, when do you figure your spread will start showing a profit?" Miles asked, grinning at Gideon.

  After thinking about it, his own pasture basically doesn't need to spend anything, just this good grass can fully meet the nutritional needs of the cows, and there is no need to add corn or other feed to guarantee the nutrition of the cows. Jiu'an saved money in case of unexpected situations, so that he would have an emergency fund, and not be caught off guard. This is also a habit of Chinese people, who like to save money. Even though Jiu'an had splurged once, this habit was still deeply ingrained in his blood.

  "After some thought, he said: 'I estimate that the tax revenue for January will be close to 200 million, and the ranch spent 430 million. There should still be over 300 million left, probably a bit less, but there should still be more than 20-30 million.'"

  Miles asked: "Can you be certain that your ranch will show a profit in three years? How much do you estimate?"

  "Profit is a certainty, I've never doubted that," said Ju An. With the pearls, it's like having a genetic optimization tool - just put any young animal in and it'll be upgraded. Later, when we release the cows from space to breed with our own herd, the quality of beef will skyrocket. And as long as there's water in the pearls, even if a severe drought hits the entire world, Ju An's pasture won't be affected - the grass will still grow lushly.

  As for floods, Ha! New York would probably be underwater by now. Let me calculate... assuming no unexpected events, which means not introducing new cows to the pasture for two years, then after three years, the pasture will have over 10,000 cows. The young bulls can basically mature in three years and be sold in two batches, generating nearly $3-4 million in revenue. If the space cow breeds are even more powerful, the income will be even higher.

  "I estimate we can have an income of around 30-40 million," said Ju An.

  "Miles then asked: 'How many cows do you have now and how are you planning your ranch?'"

  "Right now, there are only over 4,000 heads of cattle, mostly cows. Next year, several thousand calves will be born one after another, and by the year after next, we can approach nearly 10,000 heads."

  "And how many head of cattle do you estimate that pasture will carry?" Miles asked.

  "More than 50,000 mu of land can raise at least 600,000 to 700,000 cattle," Ju An said after some thought.

  "Then your investment isn't just a bit conservative, it's wasted. Have you noticed that even if you wait three years, your ranch can only have over 10,000 cows? So the space for the remaining 50,000 or so cows is wasted for two years."

  Miles analyzed and said: "If I were you, I would use the ranch as collateral to borrow a five-year loan of 200-300 million. Use it to continue buying mother cows and expand the number of cows on the ranch to 30,000. According to your calculations, in a few years, the number of cows on your ranch will at least reach 50,000, most of which are young and healthy mother cows. At the same time, I would also hire more people, so that my ranch's efficiency can be increased by one to several times. In this way, your income in a few years will be at least over 100 million. You still have two years before you need to repay the loan, and five years later, you will easily pay off the loan. Moreover, your ranch has tens of thousands of cows that completely belong to you. If you follow your original plan, the most your ranch can have in five years is only 20,000 cows. How many mother cows would there be? And I wouldn't need to use my own money from the bank on the ranch, but instead invest it in new projects that I think are promising. This way, by expanding with the help of the bank, although the bank earns interest, I can earn more and faster."

  "Tens of thousands of cattle, if I have to manage them, it will drive me crazy!" Ju An said with a bit of anxiety. It seemed that his leisurely days were coming to an end, and for someone who wanted to live a carefree life like Ju An, this was really a matter of life and death.

  Mike shook his head and said to Ju An, "If I were to do it, I would set up a company for my ranch, hire a professional accounting firm to manage my accounts, and as long as the accounts are clear and transparent, plus find someone suitable to take care of the ranch, then I can let go and only need to spend a little time each month to seriously review the ranch's accounts. You don't have to be so busy. What is capitalism? You need to have capital before you can think about such abstract things. You haven't learned how to use the capital in your hands to maximize your hedonism. You're still at the stage of being content with small wealth, and you don't understand what true American-style capitalism is." Mike said with a smile.

  I've been listening to this, and suddenly I want to slap my thigh. Dammit, why didn't I think of that? It's just a matter of hiring more people, anyway it's not like I'm busy myself, and who cares about pinching pennies? Earning money while living a relaxed and comfortable life, this kind of life is tailor-made for me! Both earning money and not having to worry too much, gotta do it, gotta make it big.

  When you're settled, there's a feeling of sudden enlightenment. This guy is too conservative, staring at his own little plot of land in the bank, his vision is really narrow-minded. According to the original calculation method, even if he wants to buy a private plane, he'll have to wait ten years to afford it. But according to Miles' calculation method, this guy can get one in just six years.

  Just as he was about to breathe a sigh of relief, Miles added: "If you decide on the loan and are willing to use the ranch as collateral, First National will definitely be willing to provide it."

  Looking at Miles' smiling face, Ju An smiled and said: "You're on your way to Rich Country Bank to be a lobbyist."

  Mike chuckled and said, "I thought you'd spend at least half of this money within two months on the ranch, but it turns out you're more conservative than I thought. No way, money needs to circulate to generate profits, what's the point of just sitting in an account? You borrowed from that bank anyway, I support you no matter which bank you borrow from. If you can borrow from Rich Country Bank, I can also do a favor for you. However, I want to remind you that it's better to buy cows next spring. Although the price is slightly lower now, the price will be higher in the spring, but the cost of winter feed is not cheap, you need to consider this carefully, don't say I didn't warn you."

  After careful consideration, Ju An nodded and said: "Listening to your analysis, I really have the intention to expand my ranch's cattle herd to tens of thousands. As for which bank to loan from, I'll discuss it when I get back, after all, we need to find a suitable one." It's better to take action early, go back and start preparing as soon as possible, taking advantage of the current good pasture conditions, hurry up and hire more people to prepare dry hay for winter. Ju An was still unsure whether the grass in his space would turn completely yellow in winter when moved outside, so he had to stockpile a large amount of dry hay while it was still available.

  Miles smiled and said: "That's it. Whoever's money is earned, as for where to borrow from, you're free to do so, anyway we just mention it to you."

  "Does your family's business have dealings with Fuguo?"

  Miles smiled and nodded, "Our family's business is basically all with Wells Fargo, after all, this is California, Wells' headquarters. But don't get me wrong, we're not trying to get you to take out a loan from Wells. Our family's influence on Wells is negligible, because our family didn't start gaining traction until our grandfather's time and wasn't strong enough to have an impact on Wells Bank. Your assets are benign, if you use the ranch as collateral, the risk for the bank is extremely low, it would be easy to get a loan of 20-30 million."

  "Alright," said Ju An with a nod. "I'll go back and discuss it with the others, see how much we need to borrow, and also figure out how many people we need to hire for the ranch."

  "Actually, you don't need to rush. I still suggest that you buy it tomorrow in the spring when the grass starts to sprout. It's more cost-effective on the market, of course, you're the boss, you make the decision."

  Just as the three of them were talking, Jasmine and the other two girls came back. Jasmine, with a happy expression, linked her arm with Ju An's and said to him: "Just now, Juliet and the others introduced me to several directors, chatted for a few minutes, and also left their phone numbers."

  Miles smiled and said, "After a while, when the winery's high-end wine is released, you and An can also come over. At that time, you will be able to meet some of Hollywood's big directors and stars."

  After hearing that, Jasmine became even happier and said to Ju An: "Then let's participate too!" Seeing Ju An nodding, the smile on Jasmine's face grew even brighter.

  "Will it be this kind of promotional event format at that time?"

  "Actually, it's just like a party plus a small auction. The wine that will be served is at least 20 years old, all from the best wineries, and of course, not cheap. I heard there are even several bottles of over 100-year-old cellar wine for sale this time. Many people have the habit of collecting good red wine, including some big directors and stars, so the guests invited to that gathering are basically either rich or noble. It's going to be a much more dazzling scene than this party."

  Miles asked at the interface: "An, when are you going back? It just so happens that I also have something to do in Helena this time. Shall we go together?"

  "Then when are you planning to book your flights? We'll book ours at the same time."

  Miles smiled and said: "If you don't have anything particularly busy, I'd be happy to take you to experience American life."