Recently, global coal prices have risen sharply, causing electricity prices to rise in many countries. The world's largest source of electricity is still coal. Electricity prices in the UK have recently risen sevenfold from the same period last year. Li Ka-shing thus became a big winner.
Because Li Ka-shing controls 25% of the UK electricity market. Li Ka-shing controls a number of British power companies. In fact, many people say that Li Ka-shing lost hundreds of billions of dollars in the UK, but in fact, it is simply impossible. Because in the first half of this year, Li Ka-shing's LongHe company's profit was as high as more than 17 billion. This year's full-year long and profit is expected to exceed 40 billion.
Li Ka-shing not only did not lose money, but he became a big winner in this round of electricity prices and energy shortages. Recently, boss Xu's company has gone wrong, and many people lament that these rich people in Hong Kong are still powerful.
Liu Luanxiong said that Hong Kong's rich are basically undervalued, so how much is Li Ka-shing undervalued? Li Ka-shing once admitted to himself that his assets were doubled. But Li Ka-shing is a very conservative person, he said that underestimating twice, it must be more than double.
Not counting Li Ka-shing's unlisted assets, just by looking at his listed assets, you can know how much Li Ka-shing's net worth is undervalued. The two most core listed companies under Li Ka Shing are Cheung Shing Group and ChangHe Group. One of the two companies is mainly engaged in real estate, and the other is mainly engaged in energy, electricity, telecommunications, ports, retail and so on.
In 2015, Li Ka-shing reorganized the former Cheung Kong Industrial and Hutchison Whampoa, and subsequently formed the current two companies. At present, the market value of Changshi Group is more than 1,000 yuan, while the market value of Changhe is less than 200 billion, which means that the market value of the two companies is only 300 billion.
Changhe controls the core listed companies such as electric energy industry and Yangtze River Infrastructure, forming Li Ka-shing's entire huge business empire. If you look at the earnings reports of Changshi and Changhe, you know how much these two companies are undervalued.
We have to look at the strength of a company, in fact, not to look at the market value, but to look at the company's net assets. For example, Boss Xu's company has a lot of total assets, but the liabilities are also very much. So to look at the strength of a company, you must look at the net worth.
Li Ka-shing's total assets of Changshi are 520.3 billion yuan, and its liabilities are 153.4 billion yuan, which means that the net assets are as high as more than 360 billion yuan. The total assets are as high as 1.2 trillion yuan, while the liabilities are 600 billion, that is to say, the net assets are as high as 600 billion.
That is to say, the combined net assets of Changshi and Changhe are as high as 1 trillion. The net worth of these two companies is as high as 1 trillion, but the market value is only 300 billion.
In non-epidemic years, the annual profits of the two companies totaled more than 70 billion. To put it bluntly, the company can buy itself after making four or five years of money.
Because the market value is greatly undervalued, Li Ka-shing has continuously increased his holdings of long and long shares in the past three years. In recent days, Li Ka-shing has increased his holdings again. In the past two years, Li Ka-shing has increased his stake hundreds of times. Today, Li Ka-shing's father and son have held more than 90% of Changshi's shares, and more than 70% of Changhe's shares. To put it bluntly, these two companies are almost equivalent to the private companies of Li Ka-shing's father and son.
If you calculate your net worth according to net worth, then Li Ka-shing's net worth of these two companies alone exceeds 700 billion, which is enough to make Li Ka-shing the world's top ten richest people.
In fact, Li Ka-shing has increased his holdings so intensively, it is estimated that sooner or later he will learn from Wu Guangzheng to privatize the company. At that time, trillions of net worth will be put into Li Ka-shing's pocket. The most important thing is that this is only part of Li Ka-shing's assets.
Li Ka-shing receives a dividend of one or two billion yuan per year from two companies. These dividends are cash that goes into Li Ka-shing's pockets. If you count from the listing of Li Ka-shing's Cheung Kong Industrial in 1972, Li Ka-shing has received a total dividend of at least 200 to 300 billion yuan. This cash Li Ka-shing has continued to invest in for many years. The benefits of investment continue to be invested and repeatedly invested, and these assets have increased at least 10 times.
Li Ka-shing once said that if you invested 1 yuan in Cheung Kong Industrial in 1972, then the stock price rose plus dividends, and now you can get at least 5,000 times the return. Of course, Li Ka-shing himself also received a 5,000-fold return. Suppose Li Ka-shing had 200 million shares at that time, then it has become 1 trillion now.
If you calculate it this way, Li Ka-shing's public assets, plus private unlisted assets, should be around $2 trillion, or about $200 billion. This data is enough to make Li Ka-shing comparable to Musk, Bezos and others.
The point is that the assets of Musk and others are all virtual, they are all stock assets, and they don't have much cash in their hands. In fact, the real richest people in the world today should be Bill Gates, Buffett and Li Ka-shing. These three are the real super-rich.
Musk and Bezos are stock billionaires who don't have much cash. Buffett's Berkshire Hathaway holds more than $200 billion in cash. Bill Gates received more than $58 billion in cash by reducing his stake in Microsoft. This cash is invested by Bill Gates in many traditional blue-chip stocks, and Bill Gates' annual dividend alone is a staggering number.
In fact, the biggest secret to accumulating wealth is the power of compound interest. Li Ka-shing has been in business for more than 60 years, and at the age of 30, he has already collected 10 million yuan in rent per year. This achievement is not comparable to the average mainland rich. Many mainland rich people have only made their fortunes for more than ten years, and there is simply not enough time. In another 30 years, perhaps there will be a rich man in the mainland who can truly surpass Li Ka-shing, at least not now.
Of course, in another 30 years, the Li Ka-shing family will definitely grow, so unless there is another big era, it is difficult to appear a rich man like Li Ka-shing, Ma Yun once said that there will be no more rich people like Li Ka-shing. Hong Kong of that era made Li Ka-shing, and such a historical opportunity will be repeated in the next 100 years.