"What I always say--
'We are always only thirty days away from bankruptcy'--many people have quoted it.
But you're the first person who doesn't think of it as a motto to be cool.
You said this is me turning fear into daily life. How did you come up with this angle?"
"Because I've done the same thing.
At that time I took over Henglong--
A real estate company that was torn to pieces by the interests of Major Shareholder--as you probably know, my father and his associates.
There is only enough cash on hand to last a few months.
The first thing I do when I wake up every morning is not to look at the stock price, but to look at the cash balance of Henglong.
It doesn't feel like running a company, it feels like guarding a patient in the ICU with tubes all over his body.
Later, Henglong came back to life, but he couldn't change the habit of looking at numbers every morning.
You said on the Financial Report telephone conference that you say that sentence in front of the mirror every morning, and others think you are acting.
I know you are not. A person who has guarded patients in the ICU will not show life and death to others."
Huang Renxun slowly raised his hand on the corner of the table and paused in mid-air for a moment.
Then he landed on Zhao Chen's shoulder and patted it twice.
He is very powerful. He is a person who has been carrying the mantra "We are only thirty days away from bankruptcy" for more than 20 years.
The relief when I finally don't have to explain that this sentence is not a performance.
He let go of his hand and leaned against the edge of the whiteboard again, crossing his arms in front of his chest.
"I originally planned to say thank you to you today.
You increased our holdings during Nvidia's most difficult time. But I don't want to say thank you now.
I want to tell you something else. Nvidia is at an inflection point right now.
The demand for AI training and inference is expanding from Internet giants to traditional industries.
In the next few years, the penetration rate of AI in every industry, including manufacturing, medical care, energy, and finance, will accelerate.
This would require orders of magnitude more computing power than today.
Nvidia must implement long-term strategies more firmly and cannot be led by quarterly performance fluctuations and Wall Street expectations.
To reach that goal, Nvidia needs a group of shareholders who will not run away in the worst case scenario."
Zhao Chen turned the Henglong Research Institute manual to the pages with quarterly review records and pushed it in front of Huang Renxun.
Those dense verification marks are arranged in neat columns on the paper page, and each row is marked with the date, core variable tracking data and Model adjustment instructions.
"This is what I want to say to you face to face.
Era Vanguard's position on Nvidia,
From the time we opened the position to the present, we have experienced the bursting of the cryptocurrency bubble, global public health incidents, and multiple meltdowns in US Stocks, and we have not sold a single share.
After Henglong Capital verified the same set of core variables with independent Model this year, he also bought Nvidia stock.
We are not short-term investors and do not pursue short-term gains.
Do not interfere in business decisions and do not seek Board of Directors Seat.
No matter how the stock price fluctuates, the logic of holding positions remains unchanged.
These quarterly review records prove one thing -
Henglong System's judgment on Nvidia does not rely on one person's intuition, but relies on independent research on public data.
Every quarter in the future, we will use the same method to re-verify the core variables of Nvidia.
The logic remains unchanged and the position remains unchanged. If the logic changes, Investment Decision Committee will re-evaluate."
Huang Renxun put the marker back into the whiteboard slot, turned around and looked at Zhao Chen head-on.
His eyes, which have been immersed in the ocean of GPU transistors for more than 20 years, no longer have a sense of stripping when looking at prototype test data, but a deeper confirmation.
"I have seen too many shareholders come to congratulate me when the stock price rises, and threaten to reduce their holdings when the stock price falls.
You were the first person to come to me when the stock price was still at the bottom and tell me that the logic remains unchanged.
I've been waiting for this sentence for a long time. It's not for myself - it's for Nvidia.
In order for this company to move at the pace it should move, instead of being led by Wall Street's quarterly expectations.
You just said that you studied all the public information you could find, from my speeches to Q&A calls.
But what you said to me while sitting here today proves that what you are studying is not Nvidia but Financial Report--
What you are studying is why the company Nvidia exists."
He took the title page of the manual in front of Zhao Chen and tapped it lightly with his finger.
"They are worth more than any investment bank report.
You are telling me in your own way why I should invest for the long term."
After Huang Renxun said those words, Meeting Room was quiet for a long time.
After the two of them dug out something that had been in their hearts for a long time,
It takes a moment for the silence to spread in the air.
After a moment of silence.
Huang Renxun turned around, walked to a small refrigerator in the corner of Meeting Room, opened the door, and took out two bottles of water from inside.
Put one bottle in front of Zhao Chen, unscrew the cap of one bottle and take a long sip.
Then instead of returning to the whiteboard, he walked to the other side of the conference table, pulled out a chair and sat down.
This action shortened the distance between the two people from several meters in front of the whiteboard to less than an arm's length.
"November 16, 2018.
That day Nvidia issued Q3 Financial Report. After the market opened, the stock price fell from more than 200 US Dollar to less than 170.
The first batch of Nvidia stocks you bought entered the market after that day."
Zhao Chen didn't answer, he just unscrewed the mineral water bottle in front of him and took a sip.
"Then the stock price continued to fall.
By mid-to-late December, SoftBank announced the liquidation of all Nvidia shares, and the stock price hit 120.
Goldman Sachs removed us from the convinced list, analysts admitted that they were 'obviously wrong',
Citigroup cut the target price from 300 to 180, and Bank of America cut it to 165.
Wall Street Everyone is running outside."
Huang Renxun put the water bottle on the table and slowly turned his fingers on the bottle cap.
"At that time, I didn't know who Era Vanguard was, I didn't know who you were, let alone those words you wrote in Manhattan's hotel.
I only know one thing - there is an offshore fund that I have never heard of.
When everyone is selling, keep buying.
Buy one hundred and four from one hundred six, buy one hundred and two from one hundred four.
I have read every transaction record."
Zhao Chen's fingers stopped on the Zisha Pot cover.
"How much did you buy at that location?"
"Finally bought 9.99. It was only the last share away from the SEC's 10% red line."
Zhao Chen put Zisha Pot on the table, and the bottom of the pot hit the wooden table with a slight muffled sound.
"Once it exceeds 10%, 13D declaration, Section 16 Insider identity, Short-Swing Profit Recapture Provision--
So, we only bought critical positions at that time."
"Nine-nine-nine."
Huang Renxun repeated the number and suddenly laughed,
"Then you crossed ten percent. And then you crossed even more.
But when you first opened a position, you stuck yourself at nine point ninety-nine.
Are you also worried that I don't know who you are?
I would be nervous to see a mysterious fund suddenly hold more than 10% of the shares."
"That's part of the reason.
Another part of the reason is that Lin Shicheng told me that after it exceeds 10%, all Wall Street will watch every transaction of mine in real time."
"So you stop there, get all the compliance preparations done, and then go ahead and buy."