How Li Ka-shing became a billionaire
In 1939, during the Anti-Japanese War, Li Ka-shing fled to Hong Kong with his father from his hometown of Chao'an, Guangdong. At that time, Li Ka-shing was only 12 years old and had read two books. After his junior year, Hong Kong fell due to the Pacific War. His father died of a serious illness the following year. As the eldest son, Li Ka-shing had to drop out of school to shoulder the family burden. In 1945, he ended his odd-job career and worked as a salesman in a plastics factory, working more than 16 hours a day. After working for 3 years, he was promoted to general manager when he was 20 years old. Two years later, he used all his savings of 7,000 Hong Kong dollars to start a business and established a small plastic factory called "Cheung Kong Industrial Company", which is today. The predecessor of Cheung Kong Holdings, the largest group in Hong Kong.
How did Li Ka-shing, who didn’t even have a primary school education and relied solely on producing plastic flowers, take the first step to becoming the richest man? In 1958, because the landlord of the Changjiang Factory wanted to raise the rent, Li Ka-shing bought a piece of land in North Point and built his own factory. In the early 1960s, the plastic flower industry was in recession. In 1967, Hong Kong housing prices plummeted. Li Ka-shing took the opportunity to acquire land at low prices. In 1972, the Hong Kong stock market rose sharply. Cheung Kong Holdings went public and took the opportunity to absorb public funds to purchase land. In the 10 years since he built his first factory in 1958, the real estate area he held reached more than 594,000 square meters, increasing 50 times. The current total land area of ??Yangtze River is approximately 1.48 million square meters in terms of floor area. Li Ka-shing has been investing in real estate for 39 years, and his long-term investment has accumulated his super wealth.
Li Ka-shing, who has worked hard for 50 years and became rich and successful, has a unique view on success. He said: "Before the age of 20, career success is 100% achieved by hard work; between 20 and 30 years old In the past 10 years, my career has gained some foundation. 10% of the success in those 10 years was due to good luck, and 90% was still obtained by hard work. After the age of 30, the ratio of opportunities has gradually increased; now, luck accounts for almost 3 to 4 It’s done.”
The same is true for financial management. Before the age of 20, all money is earned through hard work. Between the ages of 20 and 30 is the time to work hard to make and save money. After the age of 30, The importance of investment and financial management gradually increases. In middle age, the money earned is no longer important. At this time, how to manage money is more important. Li Ka-shing has been striving for his wealth all his life. If he wants to become a rich man, he must have enough patience.
It takes a long time to see the effects of financial management
Many people who have listened to Li Ka-shing’s speeches often ask the same question: “You can become a billionaire by saving 14,000 yuan a year. It is true.” It’s impressive, but with your method you have to wait 40 years, which is really uninspiring!”; “It takes 40 years to become a billionaire, and you might already have a pile of bones, so what do you want to do with hundreds of millions of dollars? "Can you teach me some secrets on how to manage money quickly?"
Even Li Ka-shing himself felt that 40 years was too long. In response to repeated requests from the audience, Li Ka-shing had indeed spent a lot of effort on this issue. Dig deeper. The result of the research is: Financial management must take a long time, and the effect will not be seen in a short time. At the same time, if a person wants to use financial management to get rich quickly, it can be said that there is no hope at all.
If a person saves 14,000 yuan at the end of each year from now on, if the money he saves every year can be invested in stocks or real estate, and thus obtain an average annual return on investment of 20%, we already know , his wealth will grow to 102.81 million yuan in 40 years. Now how much wealth can he accumulate in 10 years? Most people think that the remuneration is so high because the time is short. After 10 years of work, it should be at least 5 million yuan. Some even guessed 10 million yuan, and the most conservative person guessed 1 million yuan.
Again, this is another amazing answer: 360,000 yuan!
The following is the calculation formula:
Also at a return rate of 20%, 14,000 yuan per year, the financial management result after 40 years is 102.81 million yuan; and after 10 years But it only accumulated 360,000, which is unbelievable! The difference between the two is more than 300 times!
Fortunately, this concept was brought to the readers at the right time. Otherwise, if a reader uses the method mentioned by Li Ka-shing to save 14,000 yuan every year and invest all of it in stocks, thinking that he can become a billionaire, how can he? After 10 years of hard work, the stocks invested have an average return rate of 20% every year. If you count it on your fingers, your wealth has only accumulated 360,000! At that time, you may think that you have been cheated. Otherwise, if you follow the mentioned method and endure it for 10 long years, you will not even be able to afford a car, let alone become a billionaire!
How long is 10 years? 10 years is 8 years of the war of resistance plus two years. After 10 years of struggle, there are only more than 300,000 people. How can it not be disappointing? This is exactly the helplessness you will inevitably encounter in the process of investing and managing money to get rich. Financial managers must understand that financial management activities are a "marathon" rather than a "100-meter sprint", and the competition is endurance rather than explosive power. If you want to get rich through investment and financial management, the prerequisite is time, and it takes a long time. You have to wait for a very long period of time before you can see the results.
If you invest very little money, you will not see results after 10 years.
Earning the second 10 million is much simpler than the first 1 million.
I save 14,000 yuan at the end of each year, with an average return on investment of 20%. Even after 20 years, my assets have only accumulated 2.61 million yuan. At this time, I am still an authentic shellless snail, with a distance of 100 million yuan. Wan is still quite far away. It will take 30 years to accumulate 16.55 million, barely becoming a multi-millionaire. Only by continuing to work hard for 40 years can you become a billionaire with 102.81 million yuan.
But Li Ka-shing also admitted that making the second 10 million is much simpler and easier than the first 1 million.