While the chef was grilling steaks on the grill, the housekeepers served the appetizers.
Warren smiled broadly.
“I’m receiving quite the warm welcome today.”
The awkward atmosphere was brief.
We enjoyed our meal and talked comfortably. He actively asked questions about OTK Company.
He was particularly curious about Taek-gyu.
OTK Company became known in the financial world after the L6 incident. While later investments are relatively well-known, not much is known about prior events.
The fact that we decided to split the initial investment evenly isn’t mentioned anywhere.
Warren was surprised to hear this.
“So you originally agreed to split the profits, but you gave up your share of 200 million dollars?”
Taek-gyu said it as if showing off.
“I helped Jin-hoo a bit.”
Then, as Taek-gyu mentioned that he took 3 percent of his share to include Hyun-joo sister, Warren was genuinely impressed.
“Now I see, there really was an exceptional investor.”
It’s true.
If it weren’t for Taek-gyu, there wouldn’t be an OTK Company today.
Investment doesn’t always require direct involvement. Trusting someone skilled at investing with your money is also a form of investment.
In fact, those who entrusted money to Warren Buffett long ago made incredible profits.
Warren kept asking questions during the meal, and Taek-gyu diligently shared our investment experiences. Of course, he left out parts regarding Oracle.
“……”
Is this ‘Lunch with Warren Buffett’ or ‘Lunch with Oh taek-gyu’?
Warren joked.
“I never thought Ronald would be elected. I really dislike that guy.”
Ronald is a president from a real estate tycoon background.
Because of this, they have met a few times in the past, but it is known that their relationship is not very good.
Anyway, Warren Buffett is a typical supporter of the Democratic Party.
He strongly opposed Ronald’s tax cuts, arguing instead that corporate and income taxes should be raised so the wealthy pay more.
In response, Ronald ridiculed Buffett on Twitter, saying that Berkshire Hathaway is a company that employs all sorts of tricks to pay less tax.
It is true that there are criticisms of this double standard.
However, Berkshire Hathaway’s tax avoidance operates strictly within legal frameworks. As long as the methods are legal, nothing can really be said about it.
It is natural for companies to seek maximum profit within an established system. The government must create and control the system to ensure that growth and distribution can occur smoothly.
Throughout our meal, Warren consumed Coke like water.
How many glasses has that been already?
I’ve heard the rumors, but he really loves Coke. Seeing him like this makes me think that fast food and Coke being unhealthy is all nonsense.
After all, Winston Churchill smoked heavily but lived to 90. Jiang Qing, who enjoyed alcohol, cigarettes, and drugs, lived past 100.
Looking at this, it seems like people who are meant to live long just do.
We toasted with Coke.
Warren smiled and said, “Did you know that a Soviet general loved Coca-Cola so much that he secretly drank clear cola to avoid being seen?”
“Clear cola?”
If cola is clear, isn’t it just soda?
Thinking this, Taek-gyu said, “You mean Zhukov?”
“Ha ha, that’s right.”
Zhukov, who played a significant role as a Soviet commander during the Russian Civil War and World War II, was said to love cola. However, cola is a drink of capitalist American imperialists.
Concerned about being purged by Stalin, he requested transparent cola disguised as vodka.
Taekgyu shrugged his shoulders.
“Heh, that’s a famous story among military enthusiasts.”
“…….”
Not being a military enthusiast, Warren didn’t know.
Warren asked Taekgyu joyfully, “So, is it true that Fanta, one of the Coca-Cola brands, was created because of the war?”
“Of course. Is there anyone who doesn’t know that?”
Isn’t it more likely that there are more people who don’t know?
The two chatted extensively about Coca-Cola. Eventually, they even discussed Santa Claus costumes.
At first, Taekgyu’s awkwardness about creating the gathering worried me, but I never expected them to hit it off so well!
In the harmonious atmosphere, Hyun-joo suddenly asked a question she had been pondering.
“If there are several attractive investment targets, which one should I choose?”
Warren answered her.
“It’s difficult to excel at everything. I would first consider ‘where not to invest’ rather than ‘where to invest.'”
“What is the principle to avoid losses?”
“Recognizing the point at which you can no longer generate profits. And when you realize that, you must stop. Most people fail to stop not because they don’t know that point, but because they know it and still take one more step forward.”
Once the conversation started, it seemed it would never end. Warren shared various pieces of advice along with his experiences.
“Managing money well is even harder than making money. When money accumulates, it gains power in itself. If misused, it can cause significant damage to many people.”
If a fortune is merely tens or hundreds of billions, one can use it as they wish. However, when it exceeds tens of trillions, the situation changes.
How that money is spent can create huge waves in society and the economy.
“Once, there was an event where a charity sent shoes to children in Africa. What do you think happened?”
“The barefoot children must have gotten shoes.”
Upon Taek-gyu’s answer, he nodded.
“But there was a large shoe factory in that country. The shoes from that factory were of poor quality and expensive. Ultimately, the factory went bankrupt. The bank that lent them money suffered significant losses, and all the workers became unemployed. They got a pair of shoes for free, though.”
To develop the economy, investment is necessary, and investment requires capital.
However, developing countries lack capital and have low-quality labor. Thus, in the early stages of economic development, they can only focus on labor-intensive light industries.
Only by gathering initial capital can they move toward large-scale investments in heavy and chemical industries later. However, during this time, financial conditions remain poor, forcing support for specific companies.
Consequently, countries that rapidly develop their economies inevitably experience monopolies by a few companies and issues of wealth disparity.
Even the key industries and advanced sectors that Korea boasts, such as automobiles and semiconductors, were fundamentally supported by the foreign currency earned by workers in past wig factories and clothing factories.
But what if basic necessities are provided for free to that country?
If done improperly, it could hinder that nation’s industrial development. Then, that country would remain a developing nation, dependent on aid.
“A path wrapped in goodwill can lead to hell. Of course, the opposite can also be true.”
Good intentions can lead to bad outcomes, while bad intentions can yield good results.
Especially in developing countries, where information is not transparently disclosed, NGOs can meddle, and politicians and bureaucrats can embezzle funds frequently.
“Thus, in recent times, the methods of giving have changed significantly. Instead of just giving money, we build social infrastructure like roads, schools, and hospitals, transfer technology, or create jobs to help with self-sufficiency.”
Ellie responded with a surprised expression.
“Donating isn’t easy either.”
Fortunately, the chaebols in our country don’t have to worry about this. Because they all pass it on to their children.
Upon hearing my words, Taek-gyu said one thing:
“Instead, don’t they just think about ways to evade inheritance tax?”
***
After the meal, I had a private conversation with Warren Buffett in the second-floor study.
“I’ve been intrigued by OTK Company’s investments for a while. I’ve never seen such an extreme investment approach before.”
Just as each Go player has their own style, investors also have their unique approaches. Consequently, the target, duration, and methods of investment vary.
However, I have indeed oscillated between short and long positions in my investments. This happened because I moved according to foresight, but it must seem curious to others why I invest that way.
“To be honest, I thought it wouldn’t last long.”
I smiled. I had heard similar comments when I met Chase Southwell some time ago.
Warren Buffett had received numerous questions about OTK Company and me from the media, and each time he generally responded negatively.
He believed my investment method was too aggressive and reckless, susceptible to small variables and minor mistakes.
“That thought persisted even after Brexit. But recently, my perspective has changed.”
“Why is that?”
“The risk comes from not knowing what you are doing. If you, CEO Kang, knew exactly what you were doing and proceeded accordingly, it wouldn’t have been a risky investment. But if you asked me to do the same, I definitely couldn’t.”
I forced a smile.
If it weren’t for my ability of foresight, I wouldn’t have been able to approach it that way.
Investing doesn’t guarantee success. Trials and failures are inevitable.
The prospect of earning astronomical profits in an instant also means the potential to lose everything in a heartbeat.
At first glance, it may appear dazzling and impressive, but a single misstep can lead to a plunge off a thousand-foot cliff. Therefore, currently, even hedge funds tend to avoid such investment styles.
“I have a question to ask you, CEO Kang.”
“What is it?”
Warren Buffett looked at me and inquired.
“What do you think investment is?”
I answered as thoughts came to my mind.
“It’s about making money.”
“If you have enough money, why do you continue to invest?”
I couldn’t respond immediately.
Initially, it was an opportunity I started without much thought due to Taek-gyu’s suggestion.
I had a chance to earn money and continued to seize it. In the process, my assets grew endlessly, to the point of influencing the world economy.
I had already earned enough money to last a lifetime.
So why do I keep investing?
The biggest reason might be my bad relationship with Eunsung Motors. Because of them, my house was ruined, and my father passed away.
At one time, I lived as if I had forgotten, but now I feel I have the power to confront them. Perhaps I could even bring down Eunsung Motors.
I wouldn’t say I lack the desire for more wealth and fame.
Now my every word attracts the attention of the media and the political/business world, and celebrities want to meet me. If I hadn’t invested, I wouldn’t be having lunch with Warren Buffett at my home.
Perhaps I could leave my name in history as a great investor like Peter Lynch, Benjamin Graham, John Templeton, George Soros, Jim Rogers, Carl Icahn, and Warren Buffett, who sits in front of me.
But…
Is that really everything?
I looked at Warren Buffett’s face.
Most wealthy people live in nice houses, drive luxury cars, and wear designer clothes. But he has lived in a $30,000 house (now worth only $500,000) for decades, and he has been driving the same car for over ten years. His clothes are also very ordinary.
Looking at his appearance, no one would think he is rich.
What does money mean to him?
“Do you know the answer?”
He smiled gently.
“Of course. But I can’t tell you. That’s the answer I’ve found. You will have to find your own answer, CEO Kang.”
***
We all headed to OTK Company.
Employees gathered in the company auditorium warmly welcomed Warren Buffett. One employee even had a picket sign.
It turned out to be Jeong Gi-hong, the head of the PR team.
Warren greeted each of the over 50 employees individually. He then gave a short lecture lasting about 20 minutes, focusing more on his life than on investment. There was also a Q&A session where employees could directly ask Warren Buffett questions and hear his answers. Afterward, Warren took photos with the employees and provided autographs.
He is scheduled to meet Chairman Im Jin-yong tomorrow morning before heading to Bali for a vacation. His wife is said to have arrived in Bali earlier.
We exchanged farewells.
Warren held my hand and said,
“I really had a great time today. When will you come visit us at Edens? The Berkshire Hathaway employees also want to meet CEO Kang Jin-hoo.”
I nodded in response.
“I will come anytime if you invite me.”
