How to know how to advance and retreat and how to change?

Since ancient times, it has been difficult for anyone to achieve great things. Those who can bear the burden of humiliation, preserve their strength and keep pace with the times are real heroes.

Han Xin was humiliated by his crotch, but in the end he helped Liu Bang lay a solid foundation. Gou Jian was humiliated by the king of Wu, but he finally got revenge.

Most rich people understand this truth: if you want to achieve great things, you must wait when you lose power; If you gain power, you should be able to hide; You must be able to "endure" humiliation in order to achieve great things.

During the period of 1958, Changjiang Industrial Company in Li Ka-shing rose suddenly in the plastic industry and made remarkable achievements. Li Ka-shing also got the reputation of "the king of plastic flowers".

Many people think that he should go all out in this industry, continue to carry forward this reputation and strive to be the world's leading plastic industry.

Li Ka-shing doesn't think so. Does the blueprint in his mind contain plastic flowers? Producing plastic flowers is just a means for him to make money and accumulate funds. His ultimate goal is to fully show the value of life and see how much energy a person has. How far did you run?

The success of plastic flowers has strengthened his ambition to build great achievements. Of course, he will not give up the plastic surgery industry hastily. In the following 10 years, he continued to be in the leading position in the field of plastics and accumulated tens of millions of yuan for his innovation.

Li Ka-shing has no ambition. He always keeps his feet on the ground and moves forward with a set goal. He won't make a move, and every major move will go through a long period of deliberation and careful investigation-unless time waits for no one.

He set foot in real estate for several months, and plastic flowers made him earn the first bucket of gold in his life before turning his idea into reality.

Today, 90% of billionaires are real estate developers or businessmen who run real estate concurrently. But that was not the case at that time. Monopoly is scattered in many industries, such as finance, shipping, real estate, trade, retail, energy, industry and so on. And real estate developers are not prominent in the rich family-which also means that real estate is not an industry that everyone is optimistic about.

Li Ka-shing has unique views on the huge potential and broad prospects of real estate.

The most obvious phenomenon is the increase of population and economic development. 195 1 year, the population of Hong Kong is only 2 million, and in the late 1950s, it was nearly 3 million. The increase in population is not only an increase in the demand for housing, but also an urgent need for a large number of office buildings, commercial shops and industrial plants due to the sustained development of the local economy. There is a long-term shortage of houses in Hong Kong, and the increase of houses always fails to keep up with the demand.

Hong Kong is a tiny place, not only small, but also mountainous. Limited land and unlimited demand, coupled with the high land price policy adopted by the Hong Kong government, land is precious and houses are luxurious.

As the head of the industry, Li Ka-shing has racked his brains for the factory many times. How difficult is it to find a factory with convenient transportation and suitable rent? Several times to expand the scale of production, are in the existing factory layout. In the workshop, the equipment, personnel and products are all packed.

The process of industrialization in Hong Kong has developed unexpectedly fast, and property owners are laughing and want to raise rents. Many property developers are only willing to sign short-term leases, and when users renew their leases, the owners raise their rents substantially. Users are miserable, and so is Li Ka-shing.

Li Ka-shing has imagined many times: I wish I had my own factory, so I wouldn't be at the mercy of real estate developers. His idea, after a long period of brewing, was further clarified: Why can't I be a real estate developer? 1958, Li Ka-shing purchased land in the prosperous industrial zone-North Point and built a 12-storey industrial building. 1960 Construction of industrial building in Chai Wan, northeast corner of Hong Kong Island. The area of the two buildings is 120000 square feet.

Although Li Ka-shing is convinced of the optimistic prospect of real estate, he still adopts the policy of cautiously entering the market and developing steadily. Instead of taking a shortcut-pre-selling uncompleted residential flats, he used them as rental properties.

Undeniably, the sale of uncompleted residential flats can accelerate the sale of real estate, accelerate the recovery of funds and make up for the lack of funds of real estate developers. The sale of uncompleted residential flats was initiated by Henry Fok in 1954. As soon as he objected to the practice of real estate developers selling or renting the whole building, he pre-sold it in layers and units before the building was built, and got the advance payment, so he could start construction. The seller uses the buyer's money to Gai Lou, and the real estate developer can also take the land and uncompleted residential flats to the bank for mortgage (mortgage loan), which can be described as killing two birds with one stone.

After Henry Fok, many real estate developers followed suit and sold flowers. The bank's mortgage system has been further improved and has become a common practice. Users can mortgage the purchased building to the bank as long as they can afford the down payment of 10% or 20% of the property price. The bank accepts the building as collateral, pays the remaining unpaid property price to the real estate developer, and then collects the loan principal and interest repaid by the buyer to the bank on a monthly basis in the next few years.

Li Ka-shing carefully studied uncompleted residential flats and mortgages. The interests of real estate developers are closely related to banks, and the rise and fall of the real estate industry directly affects banks. Relying too much on banks is not necessarily a good thing.

Li Ka-shing appreciates the conservative practice of British-owned Land Company, the largest real estate developer in Hong Kong, which mainly rents out properties. After more than half a century's development, land has always been the "land king" in the central area, with a large number of real estate projects. As long as property exists, it is a cornucopia of permanent interests.

No matter how tight the funds are, Li Ka-shing would rather build fewer buildings than sell uncompleted residential flats to speed up the construction. He tries not to mortgage the loan to the bank, or provide mortgage to users with the bank.

He built a rent-collecting property, and the funds were slowly recovered. But he is optimistic about the general trend of soaring land prices, real estate prices and rents. Although renting real estate can't make huge profits like developing real estate (building or selling real estate), there is a stable rental income, and the value of real estate will increase. The longer it takes, the more it will be reflected.

Li Ka-shing's prediction is correct. According to the statistics released by the government, the average price of urban land auctioned by the government is1959; Industrial land per square meter 104.85 yuan; Commercial buildings, office buildings, entertainment places and other non-industrial land 1668.44 yuan; Residential land 164.75 yuan. By 1980, the land prices of these three types of auctions soared to 29,549.03 yuan,123,379.06 yuan and13,728.30 yuan respectively. They increased by 280.8 times, 73.5 times and 82.2 times respectively.

Land is expensive, and Li Ka-shing "enjoys the success". He owns a lot of real estate and reserves a lot of land, and gradually becomes the largest landlord in Hong Kong.

Indeed, many people in the real estate industry thought that Li Ka-shing's style was too conservative.

However, facts have proved Li Ka-shing's wise decision.

In June, 196 1, Liuposhan Chaozhou banker Liao Venture Bank experienced a run. Liu Baoshan is the "King of West Side Real Estate". He bought a lot of sites to build buildings in the West District, and built the Liao Venture Bank Building in Debao Road West, Central. Liu Baoshan's real estate development funds, almost all depositors' deposits, have been hollowed out, causing depositors to squeeze.

This rush led to Liu Poshan's death from cerebral hemorrhage. Liao, a successful businessman, won the respect of Li Ka-shing, a new business star. From Liubaoshan, Li Ka-shing further realized the risks of real estate and banking.

The run-off of Liaoning Venture Bank has not attracted enough attention from the real estate banking sector.

1962 the hong kong government revised and promulgated the building ordinance, which was implemented in 1966. Land owners should build houses before 1966 in order to avoid losses after the implementation of the new regulations. This construction boom was set off with the active support of banks, which not only provided mortgage loans, but also directly invested in real estate itself.

Speculation is unprecedentedly hot, and professional speculators came into being. They look at the deformed and prosperous market where land prices rise during the day and rise at night, which is small and wide. As long as they can afford the down payment, they can speculate and sell when the land price is high. Big customers speculate on land, while small customers speculate on buildings (flowers). Most of the big customers are real estate developers and even bankers; Small customers are mostly scalpers who speculate in gold.

In this blustery speculation, Li Ka-shing always kept a clear head. Short selling is a taboo in business. Real estate speculation is like stock speculation. Behind "getting rich overnight" is often "a bankruptcy".

Li Ka-shing firmly appears in the real estate industry as a long-term investor, and at the same time he is a conservative among long-term investors. As always, he searched for land and built factories in the old and new industrial areas of Hong Kong Island and the New Territories. He relies as little as possible on bank loans, and some industrial buildings are built entirely by self-financing. The plastics department under the company is in good operating condition and has considerable profits; The real estate sector has changed from pure investment at the beginning to investment benefit period. With the continuous completion and lease of new factories, rents keep coming in in geometric figures.

1In June, 965, the local small bank Mingde Bank was crushed and declared bankrupt. The reason is "participating in real estate speculation, making it illiquid and insolvent". The bankruptcy of Mingde Bank aggravated the panic of depositors, and a run broke out, which quickly spread to a series of banks. When Guangdong Trust Commercial Bank closed down, even the powerful Hang Seng Bank was in crisis and had to sell its equity to HSBC to avoid bankruptcy.

The Hong Kong government took urgent measures to curb this upsurge, but the banking crisis lasted for more than a year. Although many banks have failed to close down, they can only "linger". Under the violent oscillation of the banking crisis, the booming real estate industry plummeted and was wiped out. Land and property prices plummeted, and speculators who got away slowly lost their arms and wings. Real estate developers and builders supported by bank blood transfusion went bankrupt one after another.

In this crisis, the loss of the Yangtze River is minimal, let alone shake its foundation.

Those developers who are desperate will either "hold on" (go bankrupt) or wait and see. "Conservative" Li Ka-shing is still expanding steadily in the low tide of real estate.

1966 At the end of the year, the sluggish real estate in Hong Kong began to show a glimmer of light, and land prices and property prices began to pick up. After more than a year of "recuperation", the bank gradually recovered its vitality and was able to provide funds for the real estate industry again. Real estate developers are eager to try and prepare for a big fight.

Just then, the "May Storm" broke out.

No one is in charge of the newly completed real estate, and the whole real estate market sells more and buys less, and there is no market at a price. Real estate and builders are at a loss.

Li Ka-shing, who owns several sites and properties, is worried. He listens to the radio and reads newspapers from time to time, keeping a close eye on the development of the situation.

After careful consideration, Li Ka-shing resolutely took an amazing move, people abandoned me and took it, and sucked low.

Li Ka-shing, contrary to his peers' trip, accumulated profits from plastic and property income, and captured the information of selling houses and land through various channels. He renovated the old house he bought and rented it out. He took advantage of the low real estate tide and low construction cost to successfully build a property in the market.

Many friends are worried about Li Ka-shing's "adventure", while some peer real estate developers are waiting for Li See Li Ka-shing's jokes.

1970, all walks of life in Hong Kong revived and the real estate market flourished. Some people say that Li Ka-shing is a casino tycoon who put all his eggs in one basket and won by luck. Only Li Ka-shing knows whether his amazing behavior contains gambling. He is the big winner of this real estate disaster, but he is by no means a speculator.

In the early 1970s, the rental property owned by Li Ka-shing increased from the initial 6.5438+0.2 million square feet to 350,000 square feet, with an annual rental income of HK$ 3.9 million.

From Li Ka-shing's experience, we can easily see that the rich have an obvious personality charm: they have an adventurous spirit, a steady work style, and a strategic vision to maintain upward vitality.