Li Ka-shing is how winter After
■ Lang (blog) spread of the global financial Nike Air Presto Mens storm, the Hong Kong economy into a severe winter, most of the investors’ pockets are shrinking more than half, even the Chinese richest man Li Ka-shing holding company stock, the market value has shrunk dramatically thousands HK $ million. But even so, Li Ka-shing is still said he’s confident in the company’s business. So what Li’s confidence comes from where? face of the financial crisis, what his ‘winter strategy’ is it? I think his handling Methods worthy of our domestic entrepreneurs to learn. First, he immediately stopped all investment in Hutchison Whampoa, not investment and low debt ratio, only 20% of what is more important is? He has accumulated a lot of cash in the hands. I figured I had about $ 22 billion in cash, so that $ 22 billion of which around 70 percent is retained by the form of cash, while 30% is retained by treasury bonds, so very fluidity. Why did he do it ? prepare for the Great Depression, which is his current business strategy shing highly concerned about cash flow, prestigious, he often said that:… ‘a company if there is a profit to be bankrupt, but a company’s cash flow is positive number of words, it is not easy to collapse. ‘In the face of the global financial crisis, Li Ka-shing once again followed the’ cash is king ‘investment philosophy. Beginning last year, Li Ka-shing generous reduction in the capital stock in the hands of the return of funds On at least ten billion dollars; In early 2008, Li Ka-shing’s company many times sell their property and real estate; in November this year, the first villa project in Beijing Li Ka-shing invested ‘reputation of the world’, but also the implementation of ‘one price’ 5.7% off the lowest sale. And this several times cut like sale, Li Ka-shing has consistently adhered to the ‘prudent’ investment, cash is king concept at work. So in addition to emphasis on cash, Li Ka-shing What unique investment approach? We also see that the core business of Li Ka-shing’s Hutchison Whampoa has several aspects, one is the port, and then there is a real estate and hotels, as well as retail energy and telecommunications. Li Ka-shing of this investment, I’ve done more in-depth research, he This investment is very interesting, so much business, he is not a simple diversification. We also have a lot of business in the mainland do diversification, the results of it, a complete failure. So why do many mainland entrepreneurs to diversify not, but he can do? Because of his investments across several sectors, there are very complementary. complementary to what? Is two industries, I’m so bad you, hello my bad, just to offset, such as the two sectors Latest Nike Air Force 1 Mens White Black Shoes in terms of words, One of the industry, so it profits trend, ups and downs, it must be used with a second industry first industry profit trend are complementary phenomenon. That is, when the first trade is good, the second one the industry’s most Good is bad. When bad times industry first, the second best in the industry is good then bad can offset each other, and making the final cash flow to stabilize. This is his highest strategic guidelines. And we Many 2015 Latest Nike Shoes entrepreneurs in the Mainland is not that level, they did not do complement each other, many of them are due to investment interest. better than good together, along with bad to worse, the collapse of a hit bad times together. I get to do a data Li Ka-shing analysis, I found him through this complementarity between the industry, reducing the risk 10 times in the 70-storey Cheung Kong Centre conference room, and placed a wooden statue of Li Ka-shing donated portraits of others. The Chinese old accountant to dress Mr. hands hold a jade of this scale, but because of fear of being broken, Li Ka city jade scales away altogether, leaving only the portraits. This reflects the details of another example of Li Ka-shing is always aware of the risk of a person Li Ka-shing said: Percentage of cash flow and corporate debt is that he has always been part of the most attention, and the control of the company debt is Li Ka-shing in this time of crisis, Air Jordan 4 can Genuine Nike Air Force 1 Mens Blue Yellow Shoes avoid the risk, the key to continue the stable operation of the I will take four kings in Hong Kong (Li Ka-shing. , Lee Shau-kee, Cheng Yu-tung, Walter), for example, four kings in Hong Kong are doing real estate, these entrepreneurs and the biggest difference is what we have the Mainland? Mainland entrepreneur is not experienced the Great Depression, but they have experienced Our entrepreneurs only individual hard struggle, the lack of the Great Depression of baptism, so he very aggressive, very impetuous I will take a simple data – Case Study of Listed Companies gearing ratio New Nike Kids Jordan 1 Black Yellow Sneakers (debt divided by capital) be a description, we will understand. Our capital debt ratio of listed companies on average between 100% to 300%, very high. four kings in Hong Kong and we have the Mainland entrepreneurs, he also has Nike Air Max 97 a personal history of struggle hard, but different is that they all have experienced many times of the Great Depression. You see them lived through the Great Depression of the four kings, his debt ratio capital? 20% of it. And you look at the volume of Hong Kong are these four kings large, many of which are listed companies on our times. And the construction of Hong Kong’s legal system more perfect credit system is relatively sound. You see, the child was so large, the rule of law or, Ye Hao credit system, but such a low debt ratio. And I know that Li Ka-shing’s Hutchison Whampoa, the corporate debt ratio is only 15%, which was even lower so that low is in the first, a lot of cash storage; secondly, low gearing ratio; third, complementary industry choice. This is once lived through the Great Depression, their mentality, they are very conservative. So I think in their reckoning, a remarkable entrepreneur, not that you are not the richest man, not to say how much money you earn, but you are one of the best risk managers only the best risk managers to be able to let you sustainable forever Source: New Century Weekly