Li Ka-shing — A Difficult Beginning Marked by Challenges, Hardship, and Misfortune

However, tuberculosis did not spare Li from its ravages. He was quarantined for a time until he recovered, a very difficult period for him. Then, his father suddenly died, and Li contracted the disease.

He contracted a serious illness and was quarantined, eventually forcing him to leave school and go to work—even though his father was a teacher and later a school principal who

instilled in him a love of reading and learning, and a desire to keep up with everything new in the world. This led Li to enjoy learning and reading so much that he bought used books to learn

more. When he had finished reading them, he would sell or trade them for more used books. Why used books? Because he didn’t have enough money to buy

new ones. But poverty did not stop him from learning; it simply led him to find alternative ways to do so.

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First Job – 16 Hours of Work, Followed by a Second Job

At first, Li Ka-shing found a job at a plastics factory where he worked 16 hours a day. Even after those long hours, he still had to work

في بيع ساعات اليد في محل عمه من أجل المزيد من الدخل، ذلك أن الفقر بلغ such a desperate level that they had to sell his father’s clothes as soon as he died to buy

a few small meals to stave off their hunger. On top of that, Li shaved his head completely, only to have to shave it again three months later to save money.

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The Birth of Cheung Kong Industries

Over time, Li Ka-shing made a name for himself in sales at his uncle’s shop. He also gained extensive experience in the plastics industry, which helped him advance and take on

more responsibilities at the factory. He continued this way until he was 22, saving money and learning more about the plastics industry, before borrowing

He then pooled money from relatives and acquaintances with his own savings to establish his company, which specialized in making plastic toys, combs, and soap boxes.

He named it Cheung Kong Industries, after China’s longest river, also known as the Yangtze.

How much total capital did he raise to establish the company? The equivalent of US$6,500 at the time (or HK$50,000). In

the first year after founding the company, Li did everything himself. He taught himself accounting and bookkeeping, and even repaired the gears in

the factory’s machines when they broke down.

 

The first apartment I bought for myself was when I was 28, and I was incredibly happy with it.

— Li Ka-shing (he still lives in this apartment today, with some modifications)

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Knowledge and Keeping Up with Global Developments Are Essential

Because his father had always taught him to read business newspapers and magazines, Li continued to follow what they were writing in the period after the end of World War II,

and it was there that Li noticed a demand in Italy for artificial flowers made of plastic. He then traveled to Western European countries to learn

the best ways to blend colors when making plastic, so the artificial flowers would look as natural as possible.

 

“Whenever I entered an industry, I bought books and specialist magazines about it. When I founded my plastics factory, I read Modern

Plastics, the American monthly magazine, and learned a great deal about the industry and its market from it.”

– لي كا شينج

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After returning to his factory, Li decided to switch from making plastic toys to producing premium artificial flowers that looked just like the real thing, but cost far less. After he secured

a large purchase order from a foreign buyer, Li began expanding and hiring skilled workers. His business flourished, and he eventually became the largest supplier of artificial flowers.

في كل آسيا.

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A Snapshot – Business Relationships Matter More Than Losing a Deal

In a television program about his life, Li Ka-sheng recalled how one day a customer canceled an order for plastic toys. Li agreed to cancel

the order without asking for compensation or an explanation. He believed that building strong business relationships was more important than losing a little money, especially since he was confident

there would be demand for the products and that he could sell them without difficulty.

Years went by. One day, an American customer came to Li and told him he had been referred by a senior executive at a trading company. This executive

He spoke very highly of Lee, saying he was trustworthy and owned the best plastics factory in Hong Kong. This prompted an American customer to come to him

and ask to buy from him—which he did.

The American customer was such a major buyer that Lee’s factory produced exclusively for him for six months. The question is: who was the person praising

Lee and recommending that people work with him? It was one of the employees at the company that had previously canceled its purchase order with Lee.

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Li Ka-shing’s Word Carries More Weight Than Legal Contracts

In another story, a customer asked Lee to manufacture a product, and Lee’s profit on the deal was 20% of the manufacturing cost. After they reached a verbal agreement, another trader

approached Lee and offered to buy the same product at a 30% profit, but Lee refused because he had given his word to the first customer.

Not wanting to let him down, Li asked the second customer to wait nine months while he finished building his new, larger second factory, which would enable him to manufacture more products.

Somehow, the first buyer learned what had happened between Li and the second buyer. He was deeply impressed that Li had stood by his word and had not even asked him to pay more.

The first buyer remained a customer of Li’s, perhaps even to this day. Li’s word is worth more than anything else, and he is well known in the market

for honoring his commitments.

This strong reputation is one of the reasons for Li’s success. It extends beyond his dealings with customers: Li is also known for treating his employees well,

which has given his companies the lowest rate of senior-management turnover in all of Hong Kong.

By the age of 30, I had enough wealth for my family and me to never need to work again. – Li Ka-shing

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Entering the World of Real Estate and Land

Within a few years, Li Ka-shing had become the largest artificial-flower supplier in all of Asia. In 1958, when he was unable to renew the lease on his company’s premises,

because the landlord had raised the rent too much, Li bought a plot of land and built his factory on it. It was an unplanned move, but it had a profound impact, leading him to

enter the business of buying, building and developing properties, land and factories in 1960. He became known as a shrewd buyer who carefully considered his next move in the world of

real estate. This was especially true during the unrest that swept Hong Kong in 1967, when many people rushed to sell their properties at rock-bottom prices,

fleeing to protect their lives and money. This mass sell-off sent Hong Kong property prices plunging, but Li knew that the mass exodus was only temporary, and that

The protests will stop and things will return to normal, so Li took the opportunity to buy good properties at low prices.

I didn’t find happiness when I became extremely wealthy, and I learned that money can neither bring nor guarantee happiness. That’s why I’m donating one-third of my assets and wealth

to my charitable foundation. — Li Ka-shing

(In fact, Li Ka-shing has donated more than $1.6 billion to charity, most of it to education.)

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To the world and beyond

In 1971, Li Ka-shing founded Cheung Kong Industries. Eight years later, he expanded further by acquiring Hutchison Whampoa

(then a famous British company), Hongkong Electric Holdings Limited, and others. This brought Li into the shipping and port-management industries, and today he has become

His companies control nearly 13% of the global shipping container industry, and their shares account for nearly 15% of trading on the Hong Kong Stock Exchange.

In 1979, Li was Hong Kong’s largest landowner. He invests in many promising ventures. In 2005, he invested in Skype, which was sold

the following year for $2.5 billion. He also invested in Siri before Apple acquired it, and invested $120 million in Facebook in 2007 in exchange for a stake

of 0.8%, now worth nearly $900 million.

My current watch costs about $400. It’s very practical and lightweight, and it has run for three years without a battery change. It’s water-resistant and suits me

well, so I don’t have to worry about it during the day. It is also set 30 minutes ahead of the current time, since I need 30 minutes to get anywhere in Hong Kong,

And I like to arrive before my appointment time.

— Li Ka-shing (Before this time, Li used to boast that his Seiko watch cost no more than $50.)