Analysis of Li Ka-shing Behind the myth and misunderstanding, Li Ka-shing not explain the concepts, methods and mentality ? http://hi.baidu.com/creditid/blog/item/65c77431fbd38f19ebc4afe8.html He has a pair of much of the pupil, but the eyes are not particularly sharp, but soft and explore, like children&#39;s curiosity as to flash with. Speak Mandarin and English, He spoke little, but loud and frustrated. Each say a few words, he will subconsciously smile, give people without a sense of sophistication. He also is not a happy show themselves in the business who has unusual insight. For most questions, he answered quickly and have a sense of jumping, not the logic of discourse and interpretation of strong feeling. He seems more willing to talk about themselves on the Chinese people think, act thinking habits, views on philanthropy and the memories of years ago. Some extremely simple analogy of thinking and dotted in the story, which helps make him more like an intention to educate future generations of elders. From time to time, he also warned: &quot;You do not understand ask me.&quot; If there is anything that I most want answered here from the Li Ka-shing, and that is why many entrepreneurs easily ruin a business, while Li Ka-shing is almost not touch the &quot;ceiling&quot;? He casually replied: &quot;In fact, very simple, my day more than 90% of the time not used to this thing, but to next year, five years later, things.&quot; People have tried to use the &quot;stock god&quot; Buffett&#39;s thinking framework to explain the Li. On the surface, they share many similarities: Both are very good at allocating capital, aversion to debt, strong cash flow business love, and will reshape the situation for the poor old company a &quot;value of the machine.&quot; But easier said than Buffett&#39;s methodology - through holding companies and get a lot of float, follow the teacher Graham&#39;s &quot;value investing&quot; theory, the intrinsic value of Buffett&#39;s investing in undervalued large company, allowing its own management, access to bonus - Li Ka-shing&#39;s style is difficult to be simply summarized. Li Ka-shing&#39;s reputation in the global business community, mostly from in some very imaginative investment and trade, which earned him a &quot;smart asset trader&quot; reputation. But one can not explain is that while the Lee has never been positioned as a Jack Welch-style distinguished managers, can be since 1979, Lee has been a successful and effective control of the diversified company. Moreover, as a &quot;empire-builders who&quot;, Lee&#39;s skills can be said, He&#39;ll, like, like a patient investor will be capital accumulation Yu De Mouyilingyu, Cheng Shou loss Yaliweichi some businesses will also create at the right time to Xinxing Industry The concept of high-profile and capital market integration, in order to finance an industry gradually proceeds to do by the virtual reality. He dared to risk large market policies bets, often to get out, and he was not optimistic about a number of early investment and will receive hundreds of millions in return. This unrestricted business growth strategy, under the effect of the use of the Li Ka Shing wonderful. In 1979 he entered the nearly 700 million Hong Kong dollars and Hutchison Whampoa, to 2005, profits reached 143 billion. In the early 1990s, more than 60-year-old Lee, in the past 16 years, still lead with its flagship company, Hutchison Whampoa, will rise by nearly 15 times. During this period, outside estimates, Lee personal wealth increased from 2.5 billion to 18.8 billion U.S. dollars, becoming the global Forbes list of the richest people on the ninth. But for those imitators, the values in the absence of clearer description, whether Lee&#39;s diversification strategy is a means to buy high and sell low, very easily be misinterpreted as opportunistic financial skills games. Although, as Lang had to sum up Lee&#39;s strategy for business diversification, globalization, sound financial policies and &quot;not the first,&quot; but these four in the tendency to avoid risks as the core but does not explain why Hutchison 3G services appear to invest in more than 25 billion U.S. dollars, to fight for the world&#39;s leading 3G operator business potential? Why and yellow to become one of the few Chinese companies to diversify and smooth international company? What really should learn to Li Ka-shing? &quot;Li Ka-shing has been change and improve their business model. You can not do anything to learn his business, doing what portfolio. Because these things with his background, goals, personal preferences, the company&#39;s foundation, the external environment are too more relevant. &quot;Guo Guangchang, chairman of Shanghai Fuxing High Technology Group on&quot; Global Entrepreneur &quot;said:&quot; We should think about is how his logic is formed? why he made this decision at this time? how he got to do this decision? his feelings that? he thought at that time is what? &quot; Kuo seems that he learned from the Li Ka-shing who has learned there are three: First, consolidate existing business, technology, management ability, not to refuse to find new opportunities. Second, do not do business in the desire to launch new type of assumptions, early assessment of whether the loser of yourself. 3, can support the first two is the mentality. There is only one wise inner balance mechanisms in order to make him not only good offensive, challenges persist in looking for, but also has enough self-control, does not become a gambler. Lenovo Holdings president Liu Li Ka-shing is unique in that is two points: &quot;Li Ka-shing is obviously a very pragmatic person, he would not go to busy the company did not do charity, but when he wanted to do charity, it is a great are mine. In addition to practical, he was not confined to Hong Kong&#39;s real estate business, his vision has proved beyond many entrepreneurs peers. &quot; Essentially, these two arguments are beyond the basic methodology, but closer to an entrepreneurial training. This is Li Ka-shing was resolved less secret: a more than ten years and who worked with Lee as &quot;the Heart.&quot; Interview, Li Ka-shing made a gesture, the right palm was first gentle glide angle of 15 degrees, to a point, is about to become 50 degrees, make up like. The meaning is: 28 years old, he already knew the students can say goodbye with the poor, but happy to work the next work, this is done for 50 years. 【&quot;Heart, head and create stress,&quot;】 Li Ka-shing&#39;s style at the beginning of the study in more detail, we first tried to answer a more basic question: Li Ka-shing is the work? On their work habits, the most well-known details of the rest of his time: whether go to bed, some in the morning 5:59 to get up after the alarm rang. He then listen to the news, playing golf one and a half hour. Lee has not received professional training in golf, posture can not be considered standard, but the results are usually good. He believes that a focus on playing each ball is to remain calm, well-planned. Every morning, Lee received a desk all day in the global news list, according to topic, he chose his hope that the full reading of the article, translated by the Commissioner. Typically, these on the global economy, changes in industry reports, the entrance is instructive to think Li Ka-shing. &quot;He was a great sense of crisis people, let him balance a sense of crisis and the way to inner peace, ahead of the first to create a company in the heart of adversity&quot;, the people who know Lee said: &quot;He saw all kinds of reports, and ideas own company&#39;s situation, to find those loose parts, meeting to change. and so he was ready to have become the face of adversity comes opportunity. &quot; This is what Lee called &quot;90% of the time think about the future.&quot; He is not a favorite to access information through endless meetings to solve the problem of people, in Hutchison Whampoa and Cheung Kong&#39;s meeting, he heard reports of the time each no more than 15 minutes. More often, like Lee himself to read, analyze, judge. Although not received much professional education, but the Li Ka Shing love figures. Not only is its 3G mobile phone all day, all of which will receive the global 3G market and business data, he also loves to read annual reports extensively. He claimed to be on any one company within the Group in recent years the development of digital, precise data over a 90%: &quot;look can remember, because I put.&quot; He was fond of from 20 years of age in reading the annual reports of other companies, in addition to looking for investment opportunities, but also learn from other company&#39;s accounting treatment has the advantage and shortcomings, and the distribution of corporate resources. Such near-mysticism of the work to function effectively depends on a kind of Lee to: he will make a lot of complex information broken down into a few relatively simple questions. For example, in 1999, on &quot;how to keep the company in the mobile communications industry, the rapid development&quot; of such a problem, too many conditions and changes in the standard answer is very difficult to find. But Lee will be real problems disassembled into two categories: One is how to change what the market itself? The other is whether the Orange upgrade their capabilities through acquisitions? In the first issue, he obtained three judgments: voice business, too much competition, the rapid growth of data services, Internet boom have made the mobile communication company&#39;s market value to new heights. As for the wish to undertake M &amp; A management, he also made four relatively clear conditions: acquisition target steady cash flow needed to complete the debt ratio after the acquisition may not enhance the Orange, and Yellow on Orange needed to maintain a controlling stake of 35% obtained acquisition of the company&#39;s absolute control. A description of the problem before the imperative to respond to technological transformation, the latter problem is difficult to achieve in the four conditions, two integrated, Lee and Wong quickly in about 45% stake in Orange Shou Chu, received a 14.6 billion U.S. dollars net profit. Although the big deal triggered a continuing debate on the Lee - he is a dealer or a builder? - But people close to the view, &quot;for the construction and trading, and their assets do not fall in love, it is Mr. Lee did not own a manifestation of the limitations.&quot; In addition to experience and intuition, such discretion can also be interpreted as, he is those endless questions. Even in a secondary school student to the Sao Paulo exchange, he will also issue asked: Do you sit down and play every day, 23 hours of computer games, have not thought about the development of the entire game industry is like? What is the procedure behind the game running? Most of the time, Lee six day work, home, in addition to dial an overseas phone call, he still has two compulsory homework: English language programs along with subtitles read aloud, and reading at night. In addition to novels, he broad range of books, and set a theme for each stage (most recently the theme of religion). Both work means one thing: his greatest fear is missing witness the changes in the world. Day of Peace, Lee on the clothes, food demand is very low, he said he&#39;s in good condition mainly because of simple and a good night rest. &quot;I Mei Tian Du sleep well at night, because on the name, I Xingshi cautious, people my name by Bu Rong Yi, Li Fang Mian, Quan Bucong right path 而来.&quot; Li said. Have ownership Person seems familiar, so that Li Ka-shing peace of mind, in addition to heart indifferent to fame and fortune, there is a more basic reason: He&#39;s the business have good cash flow. Lee on the cash flow high care, rich famous. He often said that the sentence is: &quot;a company even if profitable, can bankrupt a company&#39;s cash flow is positive, then it is not easy to close down.&quot; And to ensure cash flow, he also worked to balance the rate control to a lows: &quot;Since 1956, I have no debt and a private company, even if there are &#39;false loans&#39;, for example, relations of any debt due to the tax, but we have a sum of cash immediately into similar assets in the bank So experience is not afraid of any storm. &quot; In addition, he always used a very conservative accounting methods, such as acquisition of Husky Energy Inc. at the beginning, he asked extraction wells, even if not started, there will also reimburse expenses - this although the accounting concepts for finance in the short term report does not look good, but to allow managers have a stronger sense of concern for the company&#39;s weak link. Hidden behind the numbers is such a logic: the threat of no cash flow, debt depends on its own, let most of the problems is not a passive decision, Lee would have the greatest possible autonomy of the business. In cooperation with the Li Ka-shing who seems very much, &quot;take ownership&quot; is the core idea of his. This seems contrary to Li Ka-shing familiar with the outside world: only from the results look like a never dare Huozhongquli Lee transactions udarnik, nothing can prevent him from ambitious expansion ever - 50 years ago, Li Ka-shing as now many domestic manufacturing firms as entrepreneurs, operating with a plastic flower factory. Follow the trend of accumulation in the manufacturing sector to the pot of gold, he explosive growth of population in Hong Kong for 70 years to seize the real estate opportunities. Since the mid-1980s, and the yellow oil fields in the communications and to seek the layout, in 1990 the launching of the global port expansion. In 1991, Simon Murray, managing director of Hutchison Whampoa&#39;s external said: &quot;For us, a little, we began to think and hit a wall.&quot; Department of Cheung Kong was 80% of the profits from its operations in Hong Kong. After long-term adjustment and upgrading, 20 years later, and Huang have input on building a portfolio spirit of the times: 3G communication services, real estate in China, related infrastructure construction, oil exploration and refining, and the port. Now, only the Hong Kong operations to the company&#39;s overall revenue by 20%. But in actuality, Li Ka-shing is extremely risk-averse person. A minor: 70 layers in the Yangtze River Center conference room, someone placed a wooden portrait gift Li Ka-shing. The Chinese old accountant to dress in her hand, hold a jade of this scale, but for fear of being broken, Lee Yu-scales will be put away altogether, leaving only the portrait. Although Lee does not begrudge the external repeat explain their methodology: &quot;Do not forget the development of healthy, stable development of Sino-forget&quot;, but because it sounds simple, almost empty, and the Li Ka Shing too many people too much emphasis on &quot;development&quot; aspect of the experience to ignore the balance between the two - who often think of diversified business portfolio and the international market with full resistance to risks and yellow, but less than the asking: What started in support of Lee endless expansion? Why is diversity so that other companies are usually cash flow tight, and Huang was able to make some great market scale cultivation? And Huang in 2001, business started to invest in the 3G (Worldwide, a subsidiary of Hutchison&#39;s 3G called the &quot;3&quot;), Li Ka-shing is a fresh sample into the new business: Although Hutchison has never announced its total investment , but the market is estimated at 25 billion U.S. dollars. It&#39;s easy to be seen as a gamble, and yellow for the case, but called a very patient and well-prepared action. Li Ka-shing therefore sell its 2G business (Orange in Europe and the United States Voicestream), rather than its implementation and updating of the existing user base, a main concern is: Since this is a technological change, opportunities, and new technology rise is not known what specific time, if the retained business, it may appear for the old and new business investment options in the wandering embarrassment. High in the market to sell 2G business, not only was a very sufficient cash, but also a determination to leave no burden of the move. After two months out of Orange, and yellow on the acquired business in the UK 3G license. Launch 3G services in the same time, is Lee the preparation of financial levels. When he determined to devote the company&#39;s financial strength in the 3G business, he may have been a few years the number of expected losses, and accordingly asked real estate, ports, infrastructure construction, such as a few Husky Energy business will increase profit margins, debt ratio will be reduced to a level of risk is relatively small: in 2001, the Husky and the yellow energy as a profit contribution of 900 million Hong Kong dollars, but by 2005 had risen to 3.5 billion, the same period, profits had remained at a stable range port operations and infrastructure of the profits of the Yangtze River were turned into 3.9 billion from 2.7 billion and 2.2 billion into 3.4 billion. Even if the huge investment in 3G, but when the end of June 2006, and the yellow of cash and liquid investments are still 130 billion Hong Kong dollars. Investment in recent years in this largest and the slowest return new generation of global technology, the difficulty faced by far more than anyone could have imagined. Hutchison&#39;s 3G business has just launched, has been suffering from shortage of mobile phones and other technical difficulties, until 2004, was able to overcome all the difficulties, together with sections of the fashion phones one after another, the whole business has been significant progress. In the development process, and Huang understand that although no single product as the killer of their ripped market products, but the core competitiveness of 3G is there: its speed can be smoothly upgraded to connect to any website, phone on more than is a terminal for the call, but a small computer. While other wireless carriers are also trying to get users to mobile Internet access, but an invisible barrier that is: operators want to lock in their users within the wireless gateway, while using a mobile phone visit other websites are slow. Only to break this deadlock, the user can be happy to use mobile phones on the information value. Along this line, and the yellow first, and Yahoo, Skype and other Internet companies, made the first move. In fact, even the world&#39;s largest mobile service operator, also did not do better than that, and yellow. Although there are steps Vodafone 3G business expansion, but failed in the competition in Japan and eventually quit, and the company had acquired German Mannesman damage costs (impairment charge) up to 23 billion to 28 billion pounds, which is allowed since 2005 Since no longer glory days: its to March 31, 2006 financial reported net loss of Vodafone 23 billion pounds - because of Hutchison has multiple business and support each other, can still be maintained over the past few years, billions of dollar profits. Instead, and yellow with a patient and sustained improvement of access to more results: to August 2006, the global 3G subscribers reached 13.5 million, the world&#39;s largest 3G business operators. Over the past six months, active users of ARPU (average revenue per user) rose to 44.66 euros from 42.2 euros, rather than the telephone business as a percentage of revenue share from 25% to 28%, development costs for each customer (customer acquisition costs ) decreased from 293 euros to 262 euros. ?