??127: Chapter 87 The Ga of Capital (Part Two) (4000 words)
127: Chapter 87 The Ga of Capital (Part Two) (4000 words)
Lionel raised his hand to the servant standing beside him, and soon a docunt was brought before his eyes.
He placed the docunt on the coffee table and introduced it to Arthur with a smile, “Mr.
Hastings, it’s quite a coincidence, if you are planning to invest in more stable sovereign bonds, then you could catch this wave.”
“Are sovereign bond investnts very stable?” Great Dumas leaned on the sofa and asked, “As far as I know, among the public debts issued by South Arican countries, only Brazilian bonds are still paying interest normally, right?”
Lionel smiled and extended his hand to Great Dumas, saying, “So this gentleman has had experience with public debt investnt?
That’s not a field just anyone can enter into.
But looking at you, you don’t seem familiar to , you must not have managed this in London before, right?
May I be so bold as to ask for your venerable na?”
Great Dumas shook his hand and replied, “People from Rothschild indeed have a keen eye.
Indeed, I have had investnts in that area, and I even opened an account at the Rothschild bank, although you might have frozen my account by now.
After all, I am now a fugitive wanted by the French governnt, my na is Alexander Dumas, a pleasure to et you.”
When Lionel heard this na, he could not help but open his mouth slightly in surprise, but he quickly recovered.
He laughed and patted his forehead, “I should have realized, Mr.
Dumas, when I was traveling in France previously, I accompanied my uncle to the theater to see your play ‘Henry III and His Courts,’ and the historical play ‘Christina,’ they were quite spectacular scripts.
I heard from my uncle at the ti that you made nearly a hundred thousand Francs from that play, positioning you as one of the foremost figures among French dramatists.”
Great Dumas was comfortably flattered by Lionel’s complint, and he nodded proudly, “Those were just minor works I scribbled down, you flatter
greatly.”
However, Lionel quickly turned the topic back to Arthur with a smile.
“I knew it, Mr.
Hastings’ friend could not be just anyone.
Outstanding individuals always attract each other, and at Rothschild, we not only invest in wealth but are also very willing to invest in outstanding individuals, both in the present and the future.
Mr.
Hastings, I won’t hide it from you.
Sovereign bonds from South Arica are indeed unreliable, but Rothschild has recently been authorized by the Treasury to issue a relatively small amount of British public debt for the governnt.
I can reveal a little information to you, it’s a batch of urban developnt bonds with a total value of ??200,000, with a ten-year term and an annual interest rate expected to be around 3.15%.
If you are looking to invest in stable assets, I can reserve ??1,000 worth of these bonds for you privately.
In this way, for the next ten years, you could expect to earn an investnt inco of ??31.5 each year.
In the current environnt, although the return rate is not particularly high, it is safe and stable.”
Arthur nodded slightly upon hearing this and then asked, “What about investing in real estate?”
Lionel opened the docunt in front of him, revealing all the information on it to Arthur without reservation.
It was a summary of sales and rental price trends for properties managed by the London Housing Investnt Consulting Company.
As Arthur reviewed the pages, Rothschild patiently explained the contents to him.
“As you can see, property prices in London have always been quite stable.
Apart from a few popular areas that have seen rapid increases, most areas have maintained an average annual growth trend of 1% to 2%, and the annual rental yield after purchasing a property fluctuates around 4.8%.
After deducting your costs for maintenance, taxes, and other expenses, the rough return rate should be around 3.5%.
This return is indeed higher than British public bonds, but it requires a bit of your ti and energy to manage.
Of course, if you find managing these properties too ti-consuming, you can entrust our company to operate them on your behalf.
However, we would charge a service fee in that case.
All things considered, the profit from property investnt might be similar to buying public bonds; its advantage over the new public bonds may just be bringing the owner so intangible inco, such as voting rights.”
Arthur nodded slightly, Lionel had not deceived him and, to gain his trust, had even not hesitated to lay bare the comrcial secrets that other estate agencies coveted right in front of him.
But he also understood the aning behind the other’s actions; there’s no such thing as a free lunch, so things don’t need to be spoken too clearly— a simple gesture can make both sides understand each other’s intentions.
Arthur slowly closed the docunt in front of him, looking at the smiling Lionel, he realized that from now on, he would be riding on the Rothschild yacht floating on the Thas River, just like Duke Wellington and the others.
He then asked, “What about the stock market?”
Lionel raised an eyebrow, instead of talking about stocks imdiately, he asked with a smile, “You’re well-inford, so you must know that the railway industry is very hot right now, correct?”
Arthur nodded, “Of course, they say the last thirty years have belonged to the canal industry, and the next thirty will belong to the railway industry.”
“Listening is certainly an important reference, but I have even more important data here.”
Lionel smiled and opened another docunt on the side, “Look here, in 1821, Great Britain’s first railway company was officially approved for establishnt, but it was not until 1824 that we had a second railway company.
However, look at this, since 1824, the number of approved railway companies has been rising sharply.”
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