Hong Kong billionaire Li Ka-Shing shares some of his money wisdom, outlining an inspirational five-year plan to improve one’s lot in life.
Suppose your monthly income is only RMB 2,000, you can live well. I can help you put money into five sets of funds.
The first $600, second $400, third $300, fourth $200, fifth $500.
1) The first set of funds is used for living expenses. It’s a simple way of living and you can only be assigned to less than twenty dollars a day. - A daily breakfast of vermicelli, an egg and a cup of milk. - For lunch just have a simple set lunch, a snack and a fruit. - For dinner go to your kitchen and cook your own meals that consist of two vegetables dishes and a glass of milk before bedtime. For one month the food cost is probably $500-$600. When you are young, the body will not have too many problems for a few years with this way of living.
2) Second set of funds: To make friends, expand your interpersonal circle. This will make you well off. Your phone bills can be budgeted at RMB 100.
3) Third set of funds: To learn. Monthly spend about RMB 50 to RMB 100 to buy books. Because you don’t have a lot of money, you should pay attention to learning. When you buy the books, read them carefully and learn the lessons and strategies that is being taught in the book.
4) Fourth set of funds: Use it for holidays overseas. Reward yourself by traveling at least once a year.
5) Fifth set of funds: Invest. Save the $500 in your bank and grow it as your initial startup capital. The capital can then be used to do a small business.
Well, after struggling for a year and if your second year salary is still RMB 2,000, then that means you have not grown as a person. You should be really ashamed of yourself. Do yourself a favour and go to the supermarket and buy the hardest tofu. Take it and smash it on your head because you deserve that.
Last Edit: Feb 19, 2014 22:52:51 GMT 7 by candy188
Reminded me of the soap opera of the long-lasting tussle between the father and son of Viz Branz before delisting at offer price of $0.815 . Viz Branz feud: Son acquires father's stake, gaining control Control of Viz Branz, which had been the subject of a father and son feud, has passed back to the son after he acquired his father's entire stake in the cereal and beverage maker.
Viz Branz managing director Ben Chng Beng Beng acquired his father Chng Khoon Peng's 38.25 per cent stake last Friday, taking his holding in the company to 58.09 per cent.
This has triggered a mandatory unconditional offer for the remaining shares of Viz Branz, which sells instant coffee brands like Gold Roast, that he does not already own under the Singapore Code on Take-overs and Mergers.
The offer is the latest twist in a long-running feud that was resolved only in June last year with the transfer of 15 per cent of the company's shares from son to father. The settlement resulted in Mr Chng Khoon Peng owning 38.25 per cent while the younger Chng was left holding 35.89 per cent of the company.
In October, Mr Ben Chng sold about 16 per cent of his stake, sparking talks that control of Viz Branz would fall into the hands of a third party. However, his emergence last Friday as the majority shareholder has put paid to such speculation for the time being. 李嘉诚名言鸡生蛋，也拉屎 Li Ka Shing's famous quote on Hen lays eggs & poo
Hen lay egg & poo. However, you will definitely consume the eggs but not the poo. We should treat egg like human beings.
Li is reportedly the richest person in Asia with a net worth well in excess of $30 billion, much of which he made being a shrewd property investor.
Li Ka-Shing was investing in mainland China back in the early 90s, way back before it became the trendy thing to do. Now, Li wants out of China. All of it.
Since August of last year, he’s dumped billions of dollars worth of his Chinese holdings. The latest is the $928 million sale of the Pacific Place shopping center in Beijing– this deal was inked just days ago.
Once the deal concludes, Li will no longer have any major property investments in mainland China.
This isn’t a person who became wealthy by being flippant and scared. So what does he see that nobody else seems to be paying much attention to?
Simple. China’s credit crunch.
After years of unprecedented monetary expansion that has put the economy in a precarious state, the Chinese government has been desperately trying to reign in credit growth.
The shadow banking system alone is now worth 84% of GDP according to an estimate by JP Morgan. The IMF pegs total private credit at 230% of GDP, jumping by 100% in the last few years.
Historically, growth rates of these proportions have nearly always been followed by severe financial crises. And Chinese leaders are doing their best to engineer a ‘soft landing’.
If they’re successful, the world will only see major drops in global growth, stocks, property, and commodity prices.
If they fail, the spillover could become pandemic.
This isn’t important just for Asian property tycoons like Li Ka-Shing. Even if you don’t know Guangzhou from Hangzhou from Quanzhou, there are implications for the entire world.
Here in Chile is a great example.
Chile is among the top copper producers worldwide, China among its top consumers. With a major slowdown in China, however, copper prices have dropped considerably.
Consequently, the Chilean economy has slowed. The peso is down nearly 10% against the US dollar in recent months, and the central bank is slashing rates trying to prop up growth.
There are similar situations playing out across the globe.
Not to mention, China could put the entire global financial system on its back just by dumping a portion of its Treasuries in order to defend the yuan.
Now, you’d think that a major credit crunch with far-reaching consequences in the world’s second largest economy, its largest manufacturer, and its largest holder of US dollar reserves, would be constant front-page news.
But it’s not.
Most traditional investors are unaware that what’s happening in China will likely have far greater implications to their investment portfolios than the policies of Janet Yellen and Barack Obama combined. At least for now.
And folks who don’t see this coming and keep buying at the all-time high may see their portfolios turned upside down. Quickly.
At the same time, some investors who are conservative and cashed up may realize a real ‘blood in the streets’ moment.
Again, using Chile as an example, I’m starting to see over-leveraged property owners coming to the market in droves ready to make a deal. This is great news because my shareholders and I are able to buy far more property with US dollars than we could even just six months ago.
I expect this trend to hold given that China is just at the beginning of its process.
It’s said that the Chinese word for “crisis” is a combination of “danger” and “opportunity”.
This isn’t entirely accurate. ‘Weiji’ can have several meanings, but is probably best translated as ‘dangerous’ and ‘crucial point’.
We may certainly be at that crucial point, and now might be a good time to take another look at your finances and consider selling before a major crash. The richest man in Asia certainly thinks so.
Li Ka-shing is cutting his last corporate ties with Hong Kong and, as always, making a killing.
The final episode of his well-planned exit from the city came this week with a proposal by Cheung Kong Infrastructure (CKI) to take over Power Assets Holdings (PAH).
PAH, the electricity giant with colonial roots, is the last Hong Kong-incorporated listed entity in Li's empire following the major restructuring early this year of his companies.
If taken over by the Cayman-island incorporated CKI, all of the pieces in the Li empire's chess board would effectively be foreign.
The proposed takeover plus the restructuring in the past years will allow the Li family much greater control over PAH, a major cash cow within the empire. The company's cash level currently stands at HK$67 billion.
The cashing-out began in late 2013. Within months of the swearing in of Chief Executive Leung Chun-ying, PAH announced the spin-off of Hong Kong Electric, which supplies power to the island. However, the way the company spun the move, it was basically a 51 per cent liquidation of one of Li's major assets in the city.
It is no secret that the new leadership in Beijing and Hong Kong are much less "tycoon-friendly" compared with their predecessors and Li has of late been disposing of assets in both Hong Kong and the mainland.
The spin-off brought in HK$56 billion in cash and HK$19 billion in profit. Contrary to shareholders' expectations, PAH declared no special dividend, insisting that the money was needed for expansion. It makes every sense for Li to sit on the money. Back then, his indirect control - through layers of companies in between - in the power giant was only 6.3 per cent. The layers were there to shield his empire from hostile takeovers and debt disclosure, which was much needed during his buying spree.
The hunter is patient. In June, Li restructured his empire into property and non-property arms. From that, his family has not only got a direct ownership in the non-estate arm - Cheung Kong Holdings, which is a much internationalised growth engine - but also boosted its stake from 22 per cent to over 30 per cent.
The latest takeover proposal puts the final touches to this agenda.
CKI maintains the marriage with PAH will strengthen its financials and increase public float. That is true. What it did not say is that by raising CKI's stake in PAH from 39 per cent to 100 per cent, the indirect control of Cheung Kong Holdings in the power giant will grow from 29 per cent to 49 per cent.
Therefore, the Li family's stakes in the cash cow will more than double from 6.3 per cent to 14.7 per cent. That, at a time when many of PAH projects are mature enough to be milked.
No wonder, Li is now promising a special dividend of HK$5 per share, totalling HK$19 billion, and a higher 2015-2016 dividend to all CKI and PAH shareholders should the deal go through.
He needs the sweeteners to convince PAH shareholders to vote for the takeover. After all, this is a deal that will cut the shareholders' entitlement to the cash pile. He also needs a more generous dividend policy to put the milk somewhere else. These explain the timing of the takeover.
It comes at a time when PAH is significantly underperforming CKI. In the past 12 months, PAH has seen a negative return of 7 per cent while CKI's has increased 16 per cent.
The reality is CKI is offering to acquire PAH with a share swap instead of cash. Therefore, the wider the gap, the lower the swap ratio and the higher Li's indirect control over the cash pile.
The result is hardly a generous deal. PAH shareholders were offered 1.04 CKI shares for every share they own in the power giant. That is the market price, with no premium.
Analysts called it cheap, suggesting 1.21 CKI shares would reflect the cash pile better. But that will bring indirect control of Cheung Kong Holdings and the Li family in the cash cow to 41 per cent and 12.5 per cent respectively.
There is little chance that the superman, known for his knack for buying low and selling high, will compromise.
The fact is, a higher dividend is a good lure to PAH shareholders, including many pension funds.
Yes, this is a case of wooing kids with their own candies, but this is not the first time Li has worked such magic.