”The market is down, I’m more excited. “In August this year on a Thursday morning, my Crystal in Hung Hom, Hong Kong, Hong Kong, 9/f Hong Kong stocks seen 18 year history when Charles, he was in a rare” excitement “period.
This week, shares suffered Black Monday and black Tuesday, in a row. Index on Monday fell 8.5%, continued to tumble on Tuesday 7.63%, lost 3,000 points. Charles dedicated hard years of h-shares (registered in mainland stocks listed in Hong Kong. H implement “T+0” transactions, no price limit) Similarly bleak, the Hang Seng Index dropped 2800多 points a month ago.
The panic quickly spread to Wall Street, China. On August 24, the Dow opened down 1100 points. The day I met with Charles Bloomberg website free airing of news headlines: the next great depression will come from China?.
But fear has nothing to do with Charles. In the gloom of a week in his Office, Hung Hom, indifferent to buy tens of other Hong Kong-listed shares. “People fear when I was greedy. “Wearing glasses, dressed in sneakers and shorts, soft-spoken Charles laughs like an intellectual version of” old boy “.
”The reason everyone knows, but it is not so easy to do. “He added.
Hung Hom is the transportation hub of Hong Kong, the cultural powerhouse. Charles Office walk hundreds of meters, or the Hung Hom Station, trains to and from Guangzhou, Beijing and Shanghai, a day. Across the street from Charles, the Hong Kong Science Museum and Hong Kong Museum of history. Within walking distance, there are the famous Hong Kong Coliseum. One more step, to the famous Avenue of stars. Here is a beautiful skyline best financial hinterland of Hong Kong address.
From Sichuan to Hong Kong since 1993, Charles had been working and living in near Hung Hom. He likes the convenience and quiet. Hung Hom and almost all the benefits of Hong Kong: ocean view with a sea view, to bustling downtown, to the quiet tranquility, you can even eat all of Hong Kong’s most authentic Sichuan cuisine – all within walking distance.
We met a few days ago, waterfront in Hung Hom, Charles bought a 100 square meters, total price of HK $ 27 million apartment, that was developed by the Li Ka-shing’s companies a new property development.
The price of “luxury” for “three bed” as a lifelong pursuit of the ordinary people of Hong Kong, it is absolutely impossible. For Charles, but is a very low-key home. He said he bought the apartment from “sewn” (the Chengdu dialect: gap) look at the sea.
”Ever thought of buying a mansion to live to hundreds of millions of lives?” I just ask.
”Not necessarily afford, even if affordable, would not buy. “Charles said with a smile,” I slapped a big place is enough. ”
Wealth has not changed my
There are two kinds of people in the world, a person will be wealth changes, another person will not.
Charles, wearing a simple, not the pursuit of brand-name, flew economy class only, not open car, like public transportation – the Honda Odyssey 7 years more than 10,000 miles, decades eating breakfast OK convenience store peanut-flavored Switzerland volume. Walking on the street, you won’t see him in the eye.
In fact, even if it had provided food, financial freedom, Charles still remember going hungry for days.
He remembers picking “carbon flowers” (the Chengdu dialect: coal slag) childhood. Age 7 years, “three years of natural disasters”, just after the six siblings are not getting enough to eat dinner at home. Together with three elder brothers Charles and walk more than more than 10 miles every morning (1 Li = 500 m), BA Li Zhuang coal field to Chengdu to pick “carbon flowers” for sale. Two brothers and a clear division of Labor: the three elder brothers and his students in charge to rush to transport coal steam train spilled down carbon residue, Charles is responsible for the loading of carbon residue baskets and packages. After daybreak, the two convince car (Chengdu dialect: cart) to help them sell snack bar boss carbon sediment transport into the city.
Pick “carbon flowers” business half stole half of Rob, to long, finally has a brother is caught and confiscated “modus operandi” tool-a military rucksack. Was fed by six siblings, Charles’s mother and came up with a trick, is do it yourself Guo Kui (Chengdu snacks: a type of pancake), and third brother Charles sold near North Station, take the tram to the train.
Young Charles and his brother had to learn to greet customers and deal with potential famine victims, protecting himself and Guo Kui – from the heist.
Eat these bitter childhood, everything was later by Charles “cherish”.
The “cultural revolution”, Charles witnessed the Kuomintang to Taiwan’s father suffered physically and mentally grueling, saw the ugly side of human nature. Up to now he is still “fear”. During this time, he pleaded illness, citing “passing the buck” in the city, playing a variety of temporary workers. Over the years dig what great letv executives
”I have done construction site of brickwork, plastering, concrete workers, steel workers, and so on, but most of the time or doing site coolies, cooks, assistants, excavation work and other miscellaneous works. Then went to the hydropower construction company, doing sheet-metalworking, bench. Once on the drill when drilling, hand rolled in, almost lead to a disaster. “I see he held out his left hand, index finger and middle finger are still not completely normal activities.
Also during the “cultural revolution” period, Charles developed a reading habit. He read the selected works of Mao Zedong, read much fiction in the former Soviet Union and in other European countries, read his dictation of the ancient poems–until today, he still be able to recite verbatim BAI Ju-Yi’s long narrative poems song of eternal.
In 1977, China due to “cultural revolution” and 10 years of the college entrance examination. Charles’s chance came. In 1978, he designed to fine arts, results are unsuccessful. With her mother’s encouragement and prodding Charles exams the next year again. In preparation for the test, the subject is back, he wrote on the card, card on the bike on top of the faucet while biking, recite.
Rote Charles is not afraid. Math is difficult for him. In 1979, Charles mathematics just got 15 points (out of 100). Even so, his score he successfully entered the Sichuan Institute of finance and Economics (now the Southwestern University of Finance).
”This is a great turning point of my life. “Charles said.
I have Warren Buffett buys lower
After graduating from the Sichuan Institute of finance, Charles entered the banking system. Through the ups and downs of adolescent, his life into “plain sailing”.
”My (work) a year as Chief, three years as Director and it was sent to the Wanxian City Deputy Mayor. “Charles said.
The information I was really surprised, because of Charles, both looks, temperament and the conversation, and the most I ever worked with “leaders”, it is quite different.
In early 1993, Charles came to Hong Kong. At first, he do the imports of electronic components business: importing parts from overseas, back-packing and selling to the Mainland. That was made by Charles the first pot of gold.
In 1997, the Asian financial crisis hit. Charles began to invest in Hong Kong stocks, he confessed that it was his “wealth”.
”I was lucky, just money. “Charles went into the 1998 when the Hang Seng index was 6000来 points. He remembers the Government’s intervention is 8000多.
To combat speculators, represented George Soros’s Quantum Fund, stable financial markets in Hong Kong, the Hong Kong Government through the Exchange into the stock market in 1998, eventually invested about HK $ 120 billion to buy Hong Kong stocks.
Charles’s investment focus is on State-owned enterprises listed in Hong Kong stock. In 1993, the first State-owned enterprise stock “Tsingtao beer (33.55,-0.57,-1.67%),” listed in Hong Kong. As of July 31, 2015, the h shares listed on the main Board of the stock exchange in Hong Kong a total of 188, the gem has 24.
In the Mainland grew up and worked in a Bank and grass-roots, which makes Charles mainland enterprises, culture, operating rules and background are more familiar with it. Unit is just getting started in State-owned enterprises listed in Hong Kong, many people still do not dare to touch when Charles and State-owned enterprises on the Mainland to understand, giving him tremendous investment opportunities.
”Such as PetroChina, I have Warren Buffett to buy low. “He said.
According to Buffett’s letter to shareholders disclosure, since April 2003, Buffett for about 1.6 to 1.7 per share price bought PetroChina h shares at HK $ 2.34 billion shares. 4 years later he series 7 times, average price of HK $ 13.47 short positions in all the holdings of PetroChina shares, earning HK $ 27.7 billion.
Charles said he listed oil from 2000 ($ 1.28) have been bought, now holds. PetroChina last Friday (August 28) h-shares closed at HK $ 6.49.
Charles impressed another “not to be seen” shares are Hong Kong-listed State-owned enterprises (based in deyang, Sichuan), Dongfang electrical machinery.
”When the entire market value of more than 30 million, shares of San Mao. I know good stock and bought some, and later increased to more than 60. “He said. Dongfang electrical machinery, later renamed the “Dongfang electric (13.04,-0.29,-2.18%)”, in Hong Kong stock market capitalization of 3.1 billion as of end of August 2015.
”There was a strange, people don’t agree for Chinese shares, Buffett bought (CNPC) by some investors after the irony, many people say that Buffett has been very ill, but how to buy Chinese shares?”
After years of investing career, Charles has maintained its own independent judgment. He never listens to insider information–“that shouldn’t I make money,” he does not listen to the so-called “stock-master” analysis, he does not predict economic, market or share price. They “don’t understand” stocks, such as technology stocks, nor does he touch, even if it meant missing some good ones.
”Tencent’s 3 bucks, I got some, rose several times to sell, because he does not understand. “Charles said he does not regret this,” once we lose, I won’t look back “. Tencent after stock split, 2015 years highest point so far is HK $ 170 Yuan per share.
In addition to not read the industry, Charles said he had tried to avoid private shares. He believes that because the State-owned shares, they have greater incentive to make false accounts.
Charles focused on companies ‘ fundamentals, research report, read a lot about the company and industry news and information, on the basis of their own judgment.
”There’s something wrong, I think. Shares rose 10 times, I wouldn’t be embarrassed. All of the risks, are my own. “Charles said.
Charles University students, the current West China futures limited liability company Chairman Hu Xiaoquan believes that Charles’s success with his “strict, rational” personality are inseparable.
”He don’t understand stock will not buy, buy only what he thinks, and has a strong power to hold. “Hu Xiaoquan believes that young Charles” meanders almost hit bottom “, so he had experienced the worst condition, calm in the face of market volatility, not too much worry about the mental.
”He’s not our first group of students to do portfolio investments, but is one of the most successful. “Hu Xiaoquan said.
Hong Kong is my ATM machine
The “cultural revolution” period to develop reading habits, to allow Charles to independently research they want investment company, gets the information he needs.
Charles ‘ daughter Teresa was born in Chengdu, studying in United Kingdom after return to Hong Kong. Teresa told me that father every day, “rain or shine”, get up in the morning to go to the clubhouse for an hour in the building’s newspaper; seven or eight o’clock in the evening after dinner, he will read again to Club and has since seen closes at 10. Even more so over the weekend.
”Inside the Club more than 10 kinds of newspapers, magazines, my Dad can’t see, even the gossip magazines are not spared. “Teresa said.
Charles had a daughter the ability to admire complete prostration: “if I have seen the ABCDE, you asked me the next day, I can tell you I saw the ABCDE. But after my dad saw ABCDE, you can string them together into a picture, and then he will be able to know, Oh, this company is like this. ”
Teresa said, father had a strong optimism about China’s future. When I asked Charles, thinks “there is no value” it. He told me that, with China’s economic development, China’s stock market will eventually market growth for the investment market from gamblers. As a value Investor Warren Buffett and his investing style is “buy and hold”.
This investment philosophy determines the very low rate of change cartridge. Charles told me that he now holds not more than 25 stocks and some bonds, annual turnover does not exceed 20%. “Securities firms is the least liked person like me. “He said with a smile.
Charles, skilled in the use of leverage financing. His mortgage stock and bonds, to borrow money from banks and securities firms in Hong Kong. Banks often rely on the liquidity of the stock to determine mortgage rates. “Mortgage rates ranging from 0 to 70%, high liquidity stocks higher mortgage rates. “Charles said his financing costs are around 1 point (interest rate).
Charles started to invest some earnings stability in recent years preferred stock and high yield bond. Buying bonds is also at risk, also stepped on mines. Charles bought Kaisa bonds this year, “100 dollars, and is now down to 50”. But he said he was a basket so the risk as a whole can be controlled.
”My investments are calm, to outsiders, even dull. “But for Charles personally, value investing is very consistent with his” personality, life and ability “thing. “I had no idea there is so for me things in the world. ”
Charles’s role in investment is both a trader and holders, analysts or the risk control Division. He man not only get things done from start to finish, is also doing a good job. He disclosed that since 1997, his return has more than Buffett’s 28%.
”Sometimes our (stock) is my ATM machine, I knew it would give me the madness of return on investment. “He said.
This life is most proud of three things
9:30 A.M. on Friday, the day after chatting with Charles, I again came to his Office in Hung Hom around 90 square metres. Here is the founder of Charles “Sichuan” friends of the Association’s base. Office has two rooms, a small compartment on copier, the rest is sitting area.
When I walked into the Office, 15 young people from Charles–his alma mater, Southwestern University of Finance has been around the reception area of the white table and sat down. They are “friends of the Sichuan”, at the invitation of a 5-day visit to Hong Kong and Exchange. Today is the last day students in Hong Kong. According to schedule, they share their experience here.
Childishness is written on his face, the first time in Hong Kong’s students to “Pearl of the Orient” praise continually. Just a five-day stay to their surprise and shock. Of Queuing in Hong Kong culture, diverse, fast-paced, prosperous, beautiful in Central Avenue, as well as their independent thinking and optimism of Hong Kong, make you feel fresh. Several students gearing up, and expressed the wish to study in Hong Kong in the future.
”Those people in the financial sector in Central, really handsome, full of temperament of the elite as a whole!” One of the male students of the Department of finance said, “really wanted to have the opportunity to be one of them!”
”So many cars on the road, nobody honks. “Another said,” If in Chengdu, Horn had broken. ”
There is a girl said, “Hong Kong University students ‘ Union, could have so much power, can tell the teacher about it, too shocked. ”
Students begin by Charles pulled out a brown-red notebook, record each student’s speech in real earnest. Each student finish, Charles will make a brief comment. When everyone has finished speaking, as parents like Charles, ordered everybody again this afternoon, where the collection, Octopus card where should return, and where can I buy duty-free goods. After Charles finished his speech, students like a star, have gathered pictures asked for him.
”Charles is very low-key, to do something very focused. Every time a student, his hands-on, take them around the school, and also participates in every forum. “Sichuan neijiang, Advanced Institute of science and technology education in Hong Kong now teach Zhong Dan said.
Zhong Dan is passionate about Hong Kong stock investors often communicate with Charles. In order to share with fellow Sichuan investment in Hong Kong stocks experience, Charles built a special “Sichuan people’s Hong Kong stock lines” micro-groups.
This group several are believed to be in Hong Kong to study or work after the. They are all as good friends Charles, from love to job seekers to plan problems will find him.
Starting from 2011, Charles doing the “Sichuan” friends of the Association has received from more than 55 colleges and universities total more than 1300 students in Sichuan. Meanwhile, they also organized 48 approved a total of 867 students in Sichuan Hong Kong exchanges.
In recent years, land relationship tensions in Hong Kong, made Charles feel heavy burdens on the shoulders. “Between Hong Kong and the Mainland should be filled with positive interactions. “Charles said. He hoped to “make young people influence young people”, established a positive interactions.
Charles said: “I am most proud of three things in this life: one is the layman to do international trade, two finger typing made the wealth of life and the third is to use very little resources founded” Yangtze River “and” Sichuan “friends of the Association, expand the unlimited space”.
Charles Hong Kong stock investment strategy
Basic strategy: in Hong Kong and the Mainland-listed companies shares in h-shares are cheaper than shares; bought in Hong Kong; long term (10 years).
Weighted stock positions should meet: the PE<10, the smaller cheaper; PB 10%; dividends each year three; the large-cap stock (worth more than 60 billion) accounted for 70% positions.
PE, PE ratio, ratio of each stock price and earnings per share of common stock
PB, average rate, price/book value. Book value = total assets-intangible assets-liabilities-preferred stock equity
I’ll sell stocks only three cases:
Need cash to make investments outside the stock market turn to I don’t know the, as in 2007 the mainland stock market, which once ran, ran and never came back until one has investment value; I like a stock, but have no money to buy, need to sell stocks to buy tickets – this does not happen very often.
VS value investing trend strategy
I’m a value investor, I pick up cheap stocks to buy. I will avoid doing business with prices already high, but may also be growth stocks.
On the State-owned shares
State-owned enterprises there may be corruption, inefficiency, I admit. But Chinese shares still are worth the investment. I think that means a lot of government regulation of the economy in China, space is still very great. Government will make every effort to ensure that State-owned operation of the machine.