Billionaire Li Ka shing's Invesmtent Strategy

investing

#1

I found this article on Li Ka Shign - it explains his very basic investment strategy…

Whenever he starts a major development, he usually forms a jopint venture with a landowner, promising a share of the profits that will yield more than when the owner did the sale outright. He raises the capital buying selling the apartments before he builds them and collecting down payments…

When Li Ka Shing launches the project, he normally looks around for buyers:

‘‘Whenever he has a big project, K.S. calls up friends and offers them a batch of apartments at a good price. Their purchases help launch the project, the price goes up, and they later sell for a nice profit. It’s a winning situation for everybody.’’

Lee concentrates on five core activities when he is investing:

Property, container terminals, retailing, telecommunications and energy…

He has a reputation for holding absolutely enormous piles of cash…In 1992, he was holding 10-15$ of his $3 billion investments in cash. An impressive number doubt!

‘‘I don’t like to waste people’s time. If I don’t find an offer attractive, I tell them directly why I turned it down.’’

Much like Buffett, he sticks to things he knows and ignores everything else.

He puts his success down to two things:

• Mountains of cash

• A rich network of relationships

‘‘I don’t worry about opportunities. What I’m looking for are the best ones.’’

http://archive.fortune.com/magazines/fortune/fortune_archive/1992/07/13/76627/index.htm

Pretty inspiring guy, no doubt. I find him pretty fascinating!


#2

One thing that is so interesting about those strategies and values is the similarities to Warren Buffett - it’s almost as if he’s a Chinese version of Buffett…you have;

• Margin of safety

• Circle of competance

• Incredibly decision maker

• Choosing which investments to make

• Cash hoards

• Being “greedy when others are fearful and fearful when others are greedy”

When you do the comparisons, it’s almost as if they’re the same person…

One major difference is Ka Shing’s willingness to embrace new technologies by focusing on deals with other ventures…