Lessons from Li Ka-Shing

Li Ka-Shing, a revered Hong Kong business magnate, investor, and philanthropist, is renowned for his remarkable journey from humble beginnings to becoming one of the most influential entrepreneurs in Asia. His business acumen and life philosophy have been a source of inspiration for many.

Business and Investment Philosophy

On Reputation: "A good reputation for yourself and your company is an invaluable asset not reflected in the balance sheets." [1][2]
On Stability and Growth: "I never forget to maintain stability while advancing, and I never forget to advance while maintaining stability. Stability and advancement must always be in balance." [1][3]
On Long-Term Vision: "Vision is perhaps our greatest strength... it has kept us alive to the power and continuity of thought through the centuries, it makes us peer into the future and lends shape to the unknown." [1][4]
On Adaptability: "Businessmen must move with the times...the correlation between knowledge and business as the key to success is closer than ever." [1][5]
On Cash Flow: "It's my habit that I'm always careful with my cash flow. That means I have the extra capital to get into another industry whenever I want to." [6] Li Ka-shing believes that maintaining a healthy cash reserve is vital for withstanding business challenges and seizing new opportunities. [7]
On Prudent Investment: "Buying land is not like buying antique. It is not the only deal available." [1][2]
On Real Estate Investment: "As people seek to improve their living environment, there will be continuous demand for residential property. Investment in real estate market should have reasonable prospects in the long run." [1][2]
On Starting Small: "The first year, I didn't have much capital so I did everything myself. I had to keep my overhead low by learning everything about running a business, from accounting to fixing the gears of my equipment. I really started from scratch." [1][2]
On Systems and Checks: "I rely on a system. Important issues have to be approved by Hong Kong. So things have worked fine for years. We rely on a system, checks and balances and regular meetings." [8]
On Innovation: Li Ka-Shing has always been a strong proponent of innovation and staying ahead of the curve, recognizing it as essential for growth in a rapidly changing world. [9] He has made significant investments in technology, including companies like Facebook and Zoom. [10]
On Knowing Your Business: "If you want to be successful, it's just this simple: know what you are doing. Love what you are doing. And believe in what you are doing." [9]
On Strategic Expansion: Despite early success, he advocated for a cautious approach to expansion, preferring to strike when the right opportunity presents itself rather than expanding for the sake of it. [6]

On Success and Hard Work

On Fate and Self-Improvement: "You can believe in Fung Shui if you want, but ultimately people control their own fate. The most important thing is to improve yourself and give it your best. Then many things previously thought to be impossible will become possible." [1][2]
On Luck: When asked about the role of luck in his success, he responded, "No, I wasn't lucky. I worked hard to achieve the goals I set for myself." [3][11]
On Preparation: "If you think, then you will be prepared. If you are prepared, then you will have no worries." [8][11]
On Continuous Growth: "I will never be satisfied, like the Olympics." [1][2] Even after becoming wealthy enough for his family not to have to work, he continued to grow his businesses for decades. [12]
On Humility in Success: "When I was young, I appeared humble but was inwardly very arrogant." [8] He emphasizes the need to remain humble regardless of success. [12]
On Lifelong Learning: A commitment to lifelong learning and a growth mindset are cornerstones of his philosophy. He believes continuous learning is key to adapting and excelling. [7]
On Overcoming Adversity: Li faced numerous challenges, including the death of his father and a fire that destroyed his factory, but his resilience and ability to learn from mistakes were key to his success. [9]
On Hard Work Compensating for Weaknesses: "I also have some strengths. First, I have a thirst for knowledge. Second, I work hard, which can compensate for some of the weaknesses. Most importantly, I know what's right from wrong." [8]
On Doing Your Homework: Having to work 16 to 20 hours a day in a plastics factory from a young age gave him a masterclass in the business before he started his own company. [6]

Advice for Youth

The Five-Fund Strategy: Li advises young people to divide their income into five funds: for living expenses (30%), making friends and expanding your network (20%), learning (15%), traveling (10%), and investing (25%). [10][13]
On Networking: "Always remember to buy lunch for people who are more knowledgeable than you, richer than you or people who have helped you in your career. Make sure you do that every month." [14][15]
On Investing in Yourself: "There is nothing wrong with being young. You don't need to be afraid of being poor. You need to know how to invest in yourself and increase your wisdom and stature." [14][15]
On Frugality When Young: "Live simply. Eat a basic breakfast, a basic lunch, and a basic dinner. While you are young, you are still strong and adaptable—your body will not suffer too much with a basic diet." [10]
On Gaining Sales Experience: He suggests that young people should look for part-time jobs in sales to develop crucial life skills in communication and understanding market sentiments. [2][10]
On Continuous Improvement: "After grinding for a year and if our salary hasn't improved, then we haven't grown as people and should feel a bit ashamed." [10]
On Planning Your Life: "Life can be designed. Careers can be planned. Happiness can be prepared. You should start planning now." [10][14]
On Where to Spend Your Time: "When you are poor, spend less time at home and more time outside. When you are rich, stay at home more and less outside. This is the art of living." [14]
On Spending Priorities: "When you are poor, spend money on others. When you're rich, spend money on yourself. Many people are doing the opposite." [14]
On Being Useful: "When you are poor, you have to throw yourself out in the open and let people make good use of you. When you are rich, you have to conserve yourself well and not let people easily make use of you." [14]

On Life and Character

On Having a Big Heart: "It doesn't matter how strong or capable you are; if you don't have a big heart, you will not succeed." [1][2]
On Setting High Goals: "Set your goals high; make friends with different kinds of people; enjoy simple pleasures. Stand on high ground; sit on level ground; walk on expansive ground." [1][8]
On Humility and Frugality: Known for his modest lifestyle, including wearing an inexpensive watch, he believes in the importance of humility and frugality. [6]
On Integrity: Li Ka-shing emphasizes the importance of integrity, transparency, and ethical decision-making in business and life. [7]
On Facing Life Early: "I was facing life for the first time. I was 12 years old, but I felt like a 20 year old. I knew then what life was." [1][2]
On Cherishing What You Have: "The fruit that you eat will never taste as beautiful as the fruit that I ate during the turmoil of war. You will never cherish it as much as I do." [1][2]
On Criticism: "If it is something that is right for human beings, then I don't care if other people criticize. You cannot please everyone in the world." [1]
On the Dynamic Nature of the World: "We are living in a dynamic age with multiple ideas and beliefs of correctness; this world is not deterministic and not still." [1][2]
On Optimism and Hope: Despite losing his schooling at a young age and facing hardship, he remained optimistic about the future. [3]
On Knowledge and Vision: "We are approaching a new age of synthesis. Knowledge cannot be merely a degree or a skill... it demands a broader vision, capabilities in critical thinking and logical deduction without which we cannot have constructive progress." [4]
On Not Squandering Money: He once explained why he would pick up a coin from the street: if he didn't, it would be lost forever, but if he gave a larger sum to someone in need, it would be used productively. "Money may be spent but never squandered." [8]

Philanthropy and Legacy

On the Future Being in People: "The future may be made up of many factors but where it truly lies is in the hearts and minds of men." [1][2]
On Dedication to Humanity: "Your dedication should not be confined for your own gain, but unleashes your passion for our beloved country as well as for the integrity and humanity of mankind." [1][2]
On Giving Back: He has pledged to donate one-third of his wealth to charity, stating that "as long as I have more than enough money, I will give." [9]
On Meaningful Deeds: "I would like to do more meaningful deeds. I don't care how much money or how much energy it takes. I have very simple needs." [8]
On Populism and Wealth Gap: "The widening wealth gap is a growing global social problem and it is a very thorny issue for governments everywhere. If a government set policies through the emotive lens of populist sentiments, it might make you feel better, but not necessarily fare better." [16]
On His Foundation's Focus: The Li Ka Shing Foundation focuses on education and medical research, driven by his personal experiences with poverty and his father's death from tuberculosis. [8][9]
On Technology Unlocking Time: "Information and communications technology unlocks the value of time, allowing and enabling multi-tasking, multi-channels, multi-this and multi-that." [1][2] This reflects his forward-thinking approach that extends to his philanthropic investments in technology and education.
On His Legacy: Through his extensive philanthropic work and his business empire, Li Ka-Shing has left an indelible mark, emphasizing that true success involves giving back to society. [9] His foundation's website, lksf.org, serves as a repository of his interviews and speeches, offering direct insight into his philosophy. [17][18]

Learn more:

Lessons from Li Ka-Shing

Business and Investment Philosophy

On Success and Hard Work

Advice for Youth

On Life and Character

Philanthropy and Legacy

Written by Antoine Buteau

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