In late January 1993, a number of listed companies in which Li Hualong held shares announced their 1972 financial reports, and all of these companies achieved outstanding results.

On January 31, the twenty-eighth day of the lunar month, on the evening of this day, Li Huawen came to Li Hualong's house for dinner after getting off work.

Before eating, Li Huawen took Li Hualong to the study, and the brothers talked about a lot of business topics.

Li Huawen asked with a smile: "I saw in the "Hong Kong Economic Times" that in recent days, the stock trading volume of the Global Shipping Group has been very large, so you will sell out the shares of this company in your hand, right?" ”

"Not sold out." Li Hualong replied with a smile, "Symbolically left 10 million shares." ”

"10 million shares, it's still symbolic, that is, you, have such a big breath." Li Huawen quipped.

"Compared with many listed companies, the share price of Global Shipping Group is really not expensive, with 10 million shares and a market value of less than 300 million." Li Hualong said lightly.

"How many shares did you hold when Global Shipping Group went public?" Li Huawen asked.

"450 million shares." Li Hualong took a sip of tea and continued, "Save you from asking, I'll say a little more." Sold 440 million shares and cashed out HK$1.056 billion, at an average price of HK$2.4 per share. ”

"I have a lot more questions here, and I still have to ask." Li Huawen smiled and asked again, "Now the share price of Global Shipping Group is more than 2.4 Hong Kong dollars. Do you feel that the price is too low? ”

"I think the Hong Kong stock market is at the peak of a bull market, and the inflection point is coming very quickly." Li Hualong smiled and said, "That's right." Big brother, you said to sell the shares of InterContinental Hotels Group, have you sold them out? ”

"Two days ago, it was sold out." Li Huawen said with a smile.

"In recent days, I have also sold a lot of IHG shares."

"How many shares are you going to keep?" Li Huawen asked.

"31.21 million shares."

"InterContinental Hotels Group has a total share capital of 62.4 million shares, and you hold more than 50% of the shares, and you are still the absolute controlling shareholder." Li Huawen smiled. "I remember you saying that when the share price of United Land was too high. Would you reduce your holdings of this company, did you sell it? ”

"The 120 million shares I personally held were sold out, and I cashed out more than 190 million. The average price is HK$1.6 per share. ”

Li Hualong took a sip of tea and suggested: "I remember that you personally hold 6 million shares of this company, and you said that you want to hold shares for a long time, I suggest that you sell it now and cash out." ”

Li Huawen was puzzled: "Ah Long, I can't figure it out, why are you so unoptimistic about the Hong Kong stock market?" ”

Li Hualong asked rhetorically: "Remember what I told you about value investing before, right?" ”

Li Huawen nodded and said, "Remember, look at the price-earnings ratio and look for undervalued stocks." ”

Li Hualong smiled: "In the long run, buy the shares of United Land at the current stock price. You can still get good returns, but I predict that in the next year or two. The Hong Kong stock market will fall sharply, and the stock prices of many listed companies will fall by more than 50%, and at that time, there will be many undervalued stocks, and the benefits of investing in these stocks will be greater than holding United Land for a long time. ”

"Since you say so, then I will sell my shares in United Land. I remember that Abba held 33 million shares of this company. Did you get him to sell the stock? ”

"All 33 million shares were sold out."

"No wonder, if you and Abba didn't sell this company's stock in large quantities. I estimate that the stock price has now exceeded HK$2 per share. ”

"Maybe."

"By the way, Ah Hu also holds shares of this company, like me, holding 6 million shares, what about him, did you tell him?"

"Two days ago, my younger siblings brought their children to my house for dinner, and I told her that she would sell it."

Li Huawen stared at Li Hualong for a moment and said with a smile: "Hearing you say this, I am not optimistic about the Hong Kong stock market, which makes me want to sell a lot of shares of listed companies such as Huawen Real Estate and Bank of East Asia." ”

"Sell it or not, you make up your own mind." Li Hualong smiled, "I think the company you want to control, even if the stock market is good now, don't sell it in large quantities." If you don't get it right, it will make shareholders lose trust in your holding company. ”

"You're not selling a lot of United Land shares, you don't want to lose a controlling stake in this company, do you?"

"It's different, I made a promise that in the future, if the stock price of this company does not perform well, I will buy the stock at the agreed price."

"Seems to be the same." Li Huawen smiled slightly, "You have absolute control over the Gemdale Group, Intercontinental Hotels Group, and Hang Seng Bank that you control." In addition to these three companies, there are also Global Shipping and United Land, and what shares do you still hold in Hong Kong-listed companies now? ”

Li Hualong said with a smile: "To tell you the truth, in addition to these five companies, I also hold 2 million shares of Chinese Land Company, and I no longer hold shares of other companies." ”

Li Huawen was slightly surprised: "You sold all the shares of Li's Mining Company?" ”

Li Hualong smiled: "I told you before, one day, I will sell out the shares of this company...... You can't blame me, do you? ”

"What do I have to blame you?" Li Huawen smiled, thought for a moment, and then asked, "Recently, Abba has also sold a lot of stocks?" ”

"Yes."

"Evergrande has no debts?"

"Yes, but now the debt ratio is very low. Also, Abba invested in buying a lot of gold. Big brother, if you are interested in investing in gold, you can also buy some. ”

"I'll consider buying some." Li Huawen smiled slightly, "Ah Long, listening to you say this, I feel a little empty in my heart." ”

"I don't have to do that, I don't have a lot of shares in my hands."

"Also, you now hold more market value of shares in listed companies than you can sell your shares and cash out. The market value of the shares I hold in listed companies is far from the stock in your hand. Li Huawen said with a smile, "Ah Long, do you plan to become the absolute controlling shareholder of Chinese Real Estate Company in the future?" ”

"Depending on the situation, if the company's stock price plummets in the future, and I think the actual value of the company's stock is much higher than the stock price, I will increase my holdings of the company's stock significantly."

"You didn't say anything about a company, Wharf Company, you hold 1 million shares." Li Huawen said with a smile.

"I have already sold the shares of Wharf, and the shares obtained from the sale of Xingguang Xing are tradable shares, and I can buy them and sell them for cash."

"That's right." Li Huawen paused, glanced at Li Hualong a few times, and asked with a smile, "Are you interested in acquiring the company Wharf?" ”

"What do you think?" Li Hualong asked with a smile.

"You must have this idea, or you wouldn't have to sell Starlight to Wharf, and you're selling this property in a very particular way, with some of the shares discounted and some of the convertible bonds...... I think you must think that in two years, the market value of 1 million shares of Wharf will definitely be less than the amount of money you can exchange, how much money will you have to exchange? ”

"HK$7,840."

"It's like Wharf sells properties and land, and you have the right of first refusal, right?"

"That's right!"

"You're too calculating." Li Huawen praised with a smile, "If the stock market is not good and the property price has fallen again, Wharf is investing in the construction of a building in Tsim Sha Tsui, which requires a lot of funds, and when the time is up, you will have to cash out the bonds in your hand...... Various factors have caused Wharf's stock price to plummet, and when the time comes, you can easily acquire Wharf, hehe, you are really Zhuge Liang's reincarnation! ”

"It's not as exaggerated as you say. If the Hong Kong stock market and property market continue to rise sharply in the next two years, then I will sell a lot of stocks and sell Xingguang Hong to Wharf, which is a joke. Li Hualong smiled faintly, raised his hand, looked at his watch, and said, "It's almost dinner, let's go out first." ”

Li Huawen stood up and sighed: "Ah Long, I found that your vision is very far-sighted, just like playing Go, and you have the awareness of the overall layout. When you first set up Centaline Real Estate Agency, I couldn't understand why you would think of setting up an agency, but then in 1967, when Hong Kong rioted and housing prices plummeted, with this agency, you bought a lot of old buildings. Also, the securities company, it was not until 1971 that you registered and established Hualong Securities Company, and at that time, you thought of preparing for a large number of stock sales, right? ”

"It is very difficult to maintain confidentiality by selling stocks through other securities companies, especially in large quantities. In fact, a person like me, as long as his IQ is normal, will definitely think of setting up a securities company on his own. ”

"Are you trying to say that I don't have enough IQ?" Li Huawen joked.

"That's what you said, I didn't say it." Li Hualong said with a smile.

"With such a wonderful brother as you as my staff officer, I don't need to be too smart!" Li Huawen smiled heartily.

"Stop thinking about making money, it's time to go to dinner!" Li Hualong and Li Huawen walked out of the study side by side. (To be continued)