CH41 - Cisco

Manhattan, New York.

On the 31st floor of the One New York Plaza building, Seok-won sat on a sofa with Landon and Andrew seated across from him, the expansive view of the East River visible through the large glass windows behind him.

"Here's the company report on Cisco that you requested," Andrew said calmly as Seok-won picked up the file in front of him and began to flip through it.

"As noted in the report, it's a solid company with major clients like the U.S. Department of Defense, Boeing, HP, and General Electric. Last year alone, they generated $300 million in annual revenue, steadily increasing their profits. Starting this year, they've begun offering internet-based systems to their customers, aligning with recent trends."

Landon set his teacup down and asked, "It's not a company I've heard much about—what do they do exactly?"

"They manufacture and sell routers," Andrew replied.

Landon furrowed his brows at the unfamiliar term and looked at Andrew. "Routers?"

"It's not my area of expertise, but as the name suggests, these devices connect large servers and computers," Andrew explained.

The noun form of "router" comes from "route," meaning a path or course.

"A network connection device… I see," Landon nodded.

Listening to the explanation, Seok-won began to understand why Cisco became a symbol of the dot-com bubble. As the internet frenzy swept the world, Cisco dominated the essential networking equipment market, making their stock price surge inevitable.

'A company selling jeans during the gold rush. This is basically the Nvidia of the dot-com bubble,' Seok-won thought as he placed the report on his lap and continued to listen to Andrew.

"But recently, after acquiring Crescendo Communications for $97 million, their stock price plummeted," Andrew said.

"Why did the stock drop?" Seok-won asked.

"It's simple," Andrew replied. "People believe they overpaid for a company with only $10 million in annual revenue."

Landon nodded in agreement. "It would take over ten years to recover the acquisition cost, so no wonder the stock dropped."

Andrew nodded, indicating he shared the same opinion.

"Cisco's management isn't foolish. Why did they pay such a high price to acquire Crescendo Communications?" Seok-won asked.

"The company stated that by acquiring Crescendo Communications' advanced network switching technology, they expect significant synergy when combined with their existing strength in routers."

"What exactly is network switching technology?" Seok-won inquired.

"It enables tasks previously only possible on large computers to be done on personal computers, creating a faster and more efficient networking hub than routers," Andrew explained.

The moment Seok-won heard the explanation, he knew.

"This isn't a setback—it's a huge opportunity."

"Excuse me?" Both Landon and Andrew looked at him with puzzled expressions, prompting Seok-won to explain.

"Up until now, computers have mostly been used in universities and companies."

"That's true, mainly because they were expensive to use," Landon agreed.

"But in recent years, the increasing affordability of personal computers has led to more people using them at home," Seok-won continued.

Andrew nodded. "That's why Dell, which assembles and sells PCs, made it into the Fortune 500 last year."

With a smile, Seok-won said, "Going forward, the networking market will not only see growth in business transactions but also explosive growth in services targeting individual consumers."

While Seok-won was confident, Andrew remained skeptical.

"PC usage is increasing, but communication costs are still high. It's difficult to imagine widespread use in homes," Andrew said.

"Exactly. Even though costs have decreased, it's still a burden for individuals. Moreover, even if you connect to a computer network, there's not much you can do with it—there aren't many services available," Landon added, sharing a similar view.

At this time, online gaming was unheard of, and there weren't even proper web browsers, so their reaction was understandable.

"It may be like that now, but things will change significantly in the future. I believe Cisco's management also foresaw this and acquired the necessary technology to align with the growth of PC adoption."

However, Andrew and Landon, who were not yet aware of the internet's enormous potential, couldn't fully grasp how big of an opportunity this was, despite Seok-won's explanation.

Knowing that it wouldn't resonate with them right now, Seok-won casually asked, "So, what's Cisco's current stock price?"

Andrew responded to his gaze. "It was hovering around $20 per share but has dropped to $10.88."

"It's been nearly halved," Seok-won remarked.

"Yes. Their market cap has also shrunk significantly to $3.1 billion."

As expected, since the dot-com bubble hadn't fully formed yet, the market cap wasn't very large.

"You set aside part of the proceeds from the NCR stock sale, correct?" Seok-won asked, glancing at Landon.

"Yes, I set aside $100 million and transferred it to your personal account as instructed," Landon confirmed.

"Use that to buy Cisco stock," Seok-won instructed.

Landon's eyes widened as he asked, "All $100 million?"

"Yes."

"I understand you're optimistic about Cisco, but isn't that too large an investment at once?"

"I agree. If you do as you say, you'll become the third-largest shareholder immediately," Andrew added.

At the current stock price, $100 million could buy over 3% of Cisco's shares, making Seok-won the third-largest shareholder after two institutional investors holding 5% and 4% stakes, respectively.

Despite the concerns from the two men, Seok-won sighed with genuine regret.

"I'd like to buy more stock and become the largest shareholder, but unfortunately, I can't."

Both men were taken aback by his reaction, even more so by his desire to increase the purchase amount rather than reduce it.

"Buy the shares gradually to avoid driving up the average price too much. But don't take too long either," Seok-won advised, indicating his firm decision.

Andrew exchanged a glance with Landon before reluctantly agreeing. "Understood."

Leaning back in his chair, Seok-won looked at the two men and said casually, "It's a company with great growth potential. Why don't you guys buy some shares too?"

"Uh, sure," Landon replied with an awkward smile, and Andrew only said he would think about it.

'He's truly unpredictable,' Andrew thought as he shook his head internally. For a moment, he wondered if Cisco might actually grow significantly.

With Seok-won so confidently backing the company, a small part of him couldn't help but consider the possibility. But Andrew quickly dismissed it as a far-fetched dream.

'There's no way. If I'm going to invest in IT, I'd rather buy Dell stock.'

Andrew, like many others, couldn't fathom the dot-com bubble that was about to sweep in, and from his perspective, Dell, which was rapidly growing due to the expansion of PC adoption, seemed to have a much brighter future than Cisco.

***

Time passed, and it was now a sunny May day.

With not a cloud in the sky, the Harvard University campus was in full bloom, with colorful flowers everywhere. The historic brick buildings and the expansive lawns bathed in soft sunlight were filled with families and friends gathered to celebrate graduation.

Graduates in long black gowns and caps stood in rows, listening intently to the Harvard University President's congratulatory speech on the stage.

"Esteemed faculty, and our proud graduates! Today is a momentous day as you successfully complete your studies at our esteemed Harvard University. I sincerely congratulate you on your hard work and achievements. Over the past years, you have learned much here… I wish you all the best as you pursue your dreams and goals in the future. Once again, congratulations on your graduation!"

The speech was short, and the graduates responded with enthusiastic applause. The President stepped down from the stage, and the emcee returned to proceed with the next part of the ceremony.

"Now, we will begin the awarding of diplomas."

As the band played celebratory music to liven up the atmosphere, the graduates lined up and took turns ascending the stage to receive their diplomas from the dean.

Among the families watching with emotional expressions were Chairman Park Tae-hong and his wife, who had flown in from Korea.

When Seok-won, dressed in his gown and cap, was called to the stage, Mrs. Jo Deok-rye grabbed her husband's arm and shook it excitedly.

"Honey, it's Seok-won's turn!"

"I'm watching too," Chairman Park replied, a bit gruffly, but his face was lit up with a proud smile.

"Mr. Chu, are you getting good pictures?" Chairman Park asked, turning to Secretary Chu, who was with them.

"Yes, sir!" Secretary Chu, who was snapping away with his Leica film camera, responded immediately.

"Good, good. The photos are what we'll have left, so don't miss a thing," Chairman Park urged.

"Understood!"

Secretary Chu, whose forehead was slightly balding, tightened his focus and continued to take pictures with even more enthusiasm, determined not to miss a single moment. He had already used up two rolls of film, but with ten more rolls ready in the bag slung over his shoulder, he was fully committed to capturing every memory.

"Congratulations," the dean said as he handed Seok-won his diploma along with a bouquet of flowers, offering his hand for a handshake.

"Thank you," Seok-won replied, smiling broadly as he took the diploma and descended from the stage.

This was the first college diploma he had ever received in both his previous and current lives, so he couldn't help but feel proud and happy.

As he struggled to contain the smile that kept spreading across his face, a familiar figure, Roy, also in a cap and gown, lightly tapped him on the shoulder from behind.

"What's with that sentimental expression? It doesn't suit you," Roy teased.

Turning to look at Roy, Seok-won grinned, his eyes glistening with emotion.

"I didn't think it would be possible, but we're graduating together after all."

"Don't even get me started. You know how much I struggled to make up for those missing credits, right? I practically lived and breathed studying," Roy complained, shuddering at the memory.

"That's why you should've kept up with your work."

"Whatever, I'm a last-minute type of guy, and that's just how I work," Roy shrugged.

As annoying as it was, he had a knack for pulling through at the last minute, no matter how dire the situation seemed.

"Well, whatever the case, it's really over now. You're heading to California, right?" Seok-won asked.

"Yeah. I landed a job at Sun Microsystems."

"Congratulations, albeit a bit late. With your skills, I'm sure you'll do great there," Seok-won said, extending his hand.

Roy, grinning mischievously, grabbed his hand and shook it firmly. "Thanks. Let's keep in touch even after graduation. Being roommates counts for something, right?"

"Of course," Seok-won agreed.

Then, as if remembering something, he added, "You didn't forget what I asked you, right?"

"Oh, that? Don't worry, I'll get in touch if anything comes up."

"I'm counting on you."

A little later, as Seok-won and his peers all tossed their caps high into the air, the graduation ceremony came to a close.

"Yay!"

"We're free at last!"

"We did it!"

The graduates cheered and celebrated with their families on the campus, taking pictures and enjoying the festivities. Seok-won was no exception.

"Alright, everyone look this way. One, two, three!" Chief Chu, who had come prepared for the occasion, even set up a tripod, channeling his inner professional photographer.

With the sound of the shutter clicking, Seok-won, standing in the middle with his parents on either side of him, turned to see Chairman Park, who seemed even prouder of his youngest son today.

"It couldn't have been easy studying abroad. You did well," Chairman Park said.

"It's all thanks to you two for supporting me," Seok-won replied, grasping Mrs. Jo's hand, who looked at him with a proud expression.

"You've really grown up now," she said, her eyes brimming with tears. Chairman Park, who usually would've commented, remained silent today.

"Seok-won."

Just then, a familiar voice called out to him. Professor Frank, wearing his doctoral robe adorned with velvet panels and three horizontal velvet bars on the sleeves, approached.

The professor, who had been waiting patiently until the photos were taken, offered his hand with a warm smile.

"Congratulations on your graduation."

"Thank you," Seok-won replied in English, shaking hands with his respected mentor.

"Are you heading back home right away?"

"I have some things to wrap up, so I'll stay for a few more days before leaving."

"I see," Professor Frank said, looking at him with regretful eyes.

"You're a talented individual who could make a significant impact in academia if we worked together. It's truly a shame. Are you sure you don't want to reconsider going to graduate school?"

"I'm sorry," Seok-won replied, knowing the professor was only asking again out of hope.

Professor Frank sighed, "Ah, I understand. In that case, let's stay in touch even if we can't see each other at school anymore."

"I would be honored."

"Oh, and our paper should be finalized and published by the end of the year," Professor Frank added.

"I'm sure it will yield excellent results."

"I think so too," Professor Frank said with a confident smile.

At that moment, Chairman Park, who had been observing, interjected, "Seok-won, who is this gentleman?"

"He's one of my professors. He's also a Nobel laureate in economics."

"What! A Nobel Prize winner?"

"Yes."

Chairman Park's eyes widened in shock.

Realizing what had just transpired, Professor Frank turned to Chairman Park and his wife with a kind expression. "Are you his parents?"

"Yes, we are," Chairman Park replied.

Professor Frank immediately offered his greetings to Chairman Park. "It's a pleasure to meet you. I'm Philip Frank."

Chairman Park quickly responded in English, shaking hands with him. "I apologize for the late introduction, Professor."

"No need to apologize. You must be very proud of your son," Professor Frank said, glancing at Seok-won as he spoke, causing Chairman Park's smile to widen even more.

"I've taught many students over the years, but Seok-won stands out as an exceptional talent. I wanted him to stay and pursue graduate studies, but he's very firm in his decision. It's a pity because he has the potential to become a leading figure in academia, and I can't help but feel regretful."

Professor Frank's voice was filled with genuine admiration as he praised Seok-won, while also keeping an eye on his expression, hoping for a change of heart.

Chairman Park, witnessing this renowned scholar openly expressing his desire to keep his youngest son in academia, couldn't hide his pride and joy.

As Professor Frank continued to shower praise on him, Seok-won, who felt a bit embarrassed by the attention, saw his parents on the verge of being swayed and simply stood there, pretending not to notice, with a slightly awkward smile.

TL/n - 

In 1992, Cisco Systems was well-known for its innovative networking hardware, including routers that were becoming essential for businesses and internet service providers. During this time, Cisco was solidifying its position as a leader in the burgeoning networking market, offering products like the Cisco 2500 series routers. These devices were designed for various networking needs, supporting multiple protocols and enabling connectivity between different networks.

The growth of the internet and the demand for reliable networking solutions significantly boosted Cisco's sales and reputation, setting the stage for its future expansion.