Chapter 221: Meeting the Future Richest Man in America
Hong Kong, Kai Tak Airport:
Yang Wendong, Bai Yushan, along with a team of bodyguards and assistants, arrived directly at the tarmac where they would board their plane.
In this era, private jets were nearly nonexistent. However, the wealthiest individuals already had access to exclusive air travel. Many major airlines partnered with tycoons to lease planes on a per-trip or time-based model.
This time, Yang Wendong had chartered a Boeing 737 from Pan Am, making things more convenient. After all, squeezing onto a crowded commercial flight with his entire entourage would have been exhausting and a waste of time.
Near the plane, two charming twin sisters stood chatting. Yang Wendong walked over and smiled, "The plane is about to leave. Yujie, if you can't bear to be apart from your sister, why not come to the U.S. with us? The whole trip is on me."
"I'd love to, but I have to compete," Bai Yujie said with a pout.
Bai Yushan explained, "Yujie is going to participate in a sprint tournament. Several Southeast Asian universities are also coming to Hong Kong for it."
"Impressive," Yang Wendong genuinely praised.
Success in life didn't only come from politics or business. Excellence in athletics, the arts, philosophy, or especially the sciences could be just as admirable—if not more so.
Bai Yujie then asked, "Isn't the plane yours? Can't we take off whenever we want?"
"The plane may be mine, but the airport isn't," Yang Wendong replied, exasperated. "You think I can do whatever I want, huh?"
"Oh, right." Bai Yujie nodded in realization.
Bai Yushan smiled, "Let's go. We can't delay takeoff."
"Mm." The two sisters exchanged a few more words before parting ways. Once onboard, everyone settled into their respective seats.
Most of the staff were discreet and disappeared into the cabin. Only Yang Wendong and Bai Yushan remained seated in the central section.
"These seats take up so much space," Yang Wendong said while sipping juice. "You know, with a setup like this, we could turn this whole area into a private room."
Bai Yushan took her drink and laughed. "What for? So you can sleep while flying?"
"Exactly! Wouldn't that be great?" Yang Wendong shrugged. "Flying from Hong Kong to the U.S. or Europe takes more than twenty hours. For people who travel frequently, having a proper room would be amazing."
"You have a point," Bai Yushan nodded. "But airlines lease these planes out for commercial use too. Right now, the cabin can be converted back easily. If we built rooms, it'd be too costly to switch back. Economically, it's not viable."
"Right," Yang Wendong smiled. "Which is why you need your own plane to do that."
"Your own plane? Are you planning to buy one?" Bai Yushan asked, surprised.
Yang Wendong shook his head. "Not yet. Maybe in a few years."
Right now, his assets were still in the early growth phase. Spending millions on a private jet wasn't cost-effective—especially since most of his business was still centered around Hong Kong and the surrounding regions. International travel was infrequent.
But in a few years, if things went according to plan, his assets would grow exponentially, and his international operations would require more travel. At that point, a private jet would become a necessity.
Moreover, the United States was destined to become one of his main markets. Investing there would mean profits—and profits reinvested into American industry could bring tax benefits.
Bai Yushan thought for a moment. "I know some large Japanese corporations that bought Boeing aircraft for business use. If you do it, you'll probably be the first person in Hong Kong to own one. Even the taipans at Jardine's don't have that luxury."
"Haha, Jardine's only acts like royalty in Hong Kong. Once they step outside the city, they're nobodies," Yang Wendong chuckled.
He was deeply envious of the valuable assets Jardine Matheson held in Hong Kong. But those were the results of a century of wealth accumulation and collusion with colonial power.
Outside of Hong Kong, where real operational skill was required, Jardine's failed miserably. By the 1980s, their overseas investments were a burden on the entire group.
Bai Yushan pondered for a moment. "That's true. These British conglomerates in Hong Kong succeeded mostly due to monopolies and family legacies—not like the Chinese, who built everything themselves."
"Exactly," Yang Wendong nodded. "If the colonial government had been fair, Chinese capital would've overtaken the British long ago."
In 1961, many British firms in Hong Kong were going public. Those that hadn't would soon follow. Their real motive was to profit from the retail investors in Hong Kong.
This included Jardine, Wharf, Hongkong Electric, and Hutchison. Though Yang Wendong wasn't yet in a position to challenge them, give it ten years—and he would be ready.
"Yeah," Bai Yushan looked at him. "At your current rate of growth, Dong-ge, you'll surpass Jardine in ten years."
"Ten years? Maybe," Yang Wendong chuckled. "Just staying in Hong Kong makes it tough. But if we expand internationally, it becomes much easier."
"Overseas? You mean the supermarket you're looking at in the U.S.?"
Yang Wendong nodded. "Yes."
Compared to Walmart, Jardine wasn't even worthy of comparison. Even the combined might of the major British conglomerates and the Four Great Families couldn't match Walmart's global scale.
With annual sales in the hundreds of billions of U.S. dollars, Walmart orders alone supported millions of jobs. Its presence impacted global supply chains on a massive scale.
"A supermarket…" Bai Yushan thought seriously about the implications.
"You'll see when we get to the U.S.," Yang Wendong said with a smile. "For now, get some rest. Once night falls, we'll sleep a bit."
"Okay… But can you move your hand a little?" Bai Yushan asked, teasing.
"Nope," Yang Wendong replied cheekily.
...
25 hours later, Little Rock, Arkansas
The plane touched down in the capital city of Arkansas.
Changxing Industrial's U.S. operations director, Lin Youtin, personally greeted them. "Mr. Yang Wendong, now that you've landed, I suggest you get some rest at the hotel. Tomorrow, I'll brief you in detail on the situation with Sam Walton."
"Sounds good," Yang Wendong nodded.
This trip had one main objective: meet Sam Walton, and ideally invest. Everything else—including a review of Changxing's U.S. sales—was secondary.
...
The Next Day
After a full night's rest, Yang Wendong was sharp and refreshed. He sat in a private room in the hotel's café with Lin Youtin, while Bai Yushan poured drinks for the two men.
Lin Youtin pulled out a folder. "Mr. Yang Wendong, this contains all of Sam Walton's entrepreneurial data. I sent you the earlier reports already—this includes updates from the past two months."
"Mm. Just tell me what financial issues Walton is facing," Yang Wendong said, skimming the folder.
The documents themselves weren't that important. Walton's past didn't matter. What mattered was the opportunity to invest now.
As early as last year, Yang Wendong had received information about Walton and had read up on the founding of what would become America's wealthiest family. Now, he just needed a reason to make his move.
As early as 1945, Sam Walton cobbled together $25,000 to open a Ben Franklin franchise store in Newport, Arkansas, marking the beginning of his retail career.
However, franchise models tend to heavily favor the brand owners. Inventory sourcing and pricing are controlled by the franchisors, and franchisees often scrape by on thin margins—or even operate at a loss.
To break free from that dependency, Sam Walton began sourcing products himself. But rather than selling them at standard retail prices to boost his profits, he passed those savings on to his customers, using low prices and discounts to grab their attention.
This "small profit, high volume" business philosophy may seem ordinary in the 21st century, but it was extremely rare at the time.
Walton's realization was like discovering a new continent. After breaking away from the franchise model, he launched his own independent retail business.
Over the next 15 years, by 1960, he had opened 15 of his own discount stores. And in July of this year, the first official Walmart store finally opened.
Back at the café in Little Rock, Lin Youtin, the director of Changxing Industrial's U.S. operations, explained to Yang Wendong, "Mr. Yang Wendong, you're aware of the U.S. economic crisis that broke out in October 1960, right?"
"Yes," Yang Wendong nodded.
In his previous life, anyone who had studied modern economic history would know about the oil crises, the subprime mortgage meltdown, and the dot-com bubble. But even before the 1970s, the United States had experienced several economic contractions.
This particular recession stemmed from America's post–World War II status as the world's sole industrial powerhouse. Its production capacity had been pushed to the limit. But by the late 1950s, Europe, Japan, and parts of Asia had rebuilt their manufacturing sectors. The resulting overcapacity triggered a domestic downturn.
Lin Youtin continued, "In the past few years, Walton has been operating heavily in debt. As long as business was steady, he could maintain balance. But with the recession, and interest rates rising, things got rough."
"I see. How did your initial contact go with him?" Yang Wendong asked.
Lin Youtin smiled. "Pretty well. I met him under the pretense of being an investor from Asia looking to fund American businesses. He knows I represent capital seeking investment opportunities."
"Good. Set up a meeting—I want to meet Walton in person," Yang Wendong said.
Even if he couldn't invest, it would be worthwhile just to meet Sam Walton—a rare, truly self-made billionaire. Unlike Warren Buffett or Bill Gates, whose first pots of gold came through family backing, Walton built his empire from nothing.
"Right away. I'll make arrangements," Lin Youtin promised.
...
Three Days Later, Rogers, Arkansas — Walmart Store
Lin Youtin brought Yang Wendong, Bai Yushan, and several others to the town of Rogers, home of the very first Walmart.
"Mr. Yang Wendong, this is Sam Walton's Walmart store. It's considered a fairly large discount store," Lin Youtin said.
Yang Wendong looked at the single-story structure. The front bore a white sign with seven bold letters: Wal-Mart. Below it were slogans like "Discount Store," "Everyday Low Prices," and "Satisfaction Guaranteed."
He asked, "Does this Walmart have a second location?"
"No," Lin Youtin replied. "As far as I know, Sam mortgaged his house just to open this one."
"A true burn-the-boats entrepreneur," Yang Wendong nodded. That was how real businesses were born—by staking everything.
For every successful entrepreneur, there were ten or even dozens who went bankrupt. It was only the wealthy second-generation heirs who could afford to fail over and over again.
That's why genuine rags-to-riches stories were so rare.
Pointing to a small group of white men near the entrance, Lin Youtin added, "Mr. Yang Wendong, that group over there includes Walton himself. He's waiting for us."
"Alright, let's go," Yang Wendong said.
The group approached, and after brief introductions, Yang Wendong met the future richest man in America—Sam Walton. By the 1990s, Walton's net worth would exceed $5 billion. Even into the 21st century, his family would still outpace Silicon Valley's elite.
"Mr. Walton, it's a pleasure to meet you," Yang Wendong said with a warm handshake.
"Please, just call me Sam," Walton said with a smile.
"Then you can call me Eric," Yang Wendong replied.
Westerners were often on a first-name basis—it created familiarity. Even within families, uncles and nephews often dropped titles and used names directly.
Sam chuckled. "Come on in, everyone. Let me show you how Walmart works."
As a potential investor, the most important thing was understanding the business model.
The group followed Walton through the store as he explained his discount-retail philosophy. They toured the aisles, examining layout, stock, and pricing.
When the tour was done, Yang Wendong asked, "Sam, discount stores like yours do exist elsewhere in the U.S. As an investor, I have to ask—what makes you different? What's your advantage?"
Discount retailers were nothing new. Just like Costco wasn't the first membership store. Yet both Walmart and Costco went on to dominate their sectors.
As an investor, Yang Wendong needed to ask the standard questions—but truthfully, he was also curious. What had made Walton succeed where others failed?
Sam explained, "Yes, there are many discount stores. I've visited a bunch. But most aren't truly discount-focused. They use a few cheap items to lure customers in, but keep most prices high for profit.
Walmart is different. We apply true across-the-board discounts. I enforce a strict cap on profit margins—our gross margin can't exceed 40%. If transport costs get too high, we find a new supplier."
"Forty percent?" Yang Wendong nodded. "So you keep margins that low?"
In modern retail, a 40% margin would be considered exceptional. But in this era, given the lack of logistics, storage, and information systems, it was actually not high at all.
Sam replied, "Yes, it's a low-margin model. But our foot traffic is high. Once people visit, they're drawn in by the prices. They come back—and bring their friends.
As our sales volume grows, we can negotiate better prices from suppliers."
"Smart. Very good model," Yang Wendong nodded. That philosophy was cutting-edge for its time.
Sam continued, "But the limitation is this: no matter how successful one store is, its buying power is still too low. Once we open ten, twenty, even fifty stores—transport and procurement costs drop drastically.
That will let us lower prices even more, making Walmart an unstoppable force."
"Impressive," Yang Wendong said. "Most people, when they lower costs, think of boosting profits. You think of lowering customer prices instead."
Sam smiled. "Profits matter, of course. But if I can maintain low margins, I'll draw customers away from every other retailer. And eventually, this market will give me stable returns."
"Well said. So how much investment are you seeking?" Yang Wendong asked, getting to the point.
This kind of thinking had already been validated by numerous future success stories—like Coca-Cola, which used low prices to dominate its market.
"$200,000," Sam said. "I can offer you a 10% stake in Walmart. What do you say?"
Thank you for the support, friends. If you want to read more chapters in advance, go to my Patreon.
Read 40 Chapters In Advance: patreon.com/johanssen10