When many people in Western nations think of the world’s top investors, names like Warren Buffett or Charlie Munger might come to mind. But in Hong Kong and across much of Asia, Li Ka-Shing holds a similar place in the investing world. However, his path to success and style of investing are uniquely his own.

Li's story is one of resilience, sharp timing, and long-term thinking . From humble beginnings, he built a sprawling global empire across industries like real estate, infrastructure, telecoms, and retail.

While he tends to avoid the spotlight, Li’s investment decisions speak volumes. His quiet discipline and eye for opportunity have made him one of the most admired business figures in the region, and a fascinating case study for investors everywhere.

In this article, we’re exploring Li Ka-Shing’s life story, breaking down his investing strategy into key principles, and looking at how his philosophy compares with Buffett’s.

Who is Li Ka-Shing?

Li Ka-Shing was born in 1928 in Chaozhou, a city in China’s Guangdong province. His early years were shaped by hardship. After his family fled to Hong Kong in 1940 to escape war, Li’s father died of tuberculosis, leaving him as the primary breadwinner at just 15 years old.

Forced to leave school, Li began working in a plastics factory where he laboured long hours to support his mother and siblings. By his early 20s, he had saved enough money and gained enough industry knowledge to start his own business. In 1950, he launched Cheung Kong Industries, which initially manufactured plastic flowers. But Li’s real fortune would come not from flowers, but from land.

By the late 1960s and early 1970s, Li had shifted his focus to real estate . Capitalising on political turmoil and low property prices in Hong Kong, he bought land aggressively while others hesitated. When the economy stabilised, those investments paid off handsomely.

Li’s defining moment came in 1979 when he acquired Hutchison Whampoa, a major British trading company. He then became the first Chinese businessman to take control of a colonial-era conglomerate in Hong Kong. This deal would mark the beginning of a new chapter, transforming Li into a global investor.

Through mergers and acquisitions, Li expanded his portfolio to include telecommunications, ports, infrastructure, retail, and energy. His business interests, managed through CK Hutchison Holdings and CK Asset Holdings, now span more than 50 countries. Though he stepped down from day-to-day operations in 2018, Li remains an influential figure, both as an investor and a philanthropist.

What is Li Ka-Shing’s investing strategy?

While Li Ka-Shing rarely gives detailed interviews about his investing philosophy, his actions over the decades provide a clear view of how he thinks. At the core of his strategy is a combination of discipline, diversification, patience, and pragmatism.

Let’s take a closer look at some of the principles that define his approach.

1. Buy when others are fearful – particularly in real estate

Li’s career was launched by his willingness to invest in property when everyone else was running for cover. In the 1960s and 1970s, political uncertainty in Hong Kong drove down property prices. Where others saw risk, Li saw value.

He bought land during times of instability, such as just after the 1967 riots and the years leading up to the 1997 handover of Hong Kong to China. Li knew that stability would eventually return and that the market would recover. While the approach can be risky, this counter-cyclical mindset is a hallmark of his investing style.

2. Diversify across sectors and geographies

One of the defining features of Li’s investment strategy is his extraordinary diversification . His businesses span infrastructure, telecommunications, retail, energy, ports, and property. They operate not only in Hong Kong and mainland China but across every single continent.

This broad exposure acts as a hedge. A slowdown in one sector or region is often offset by growth in another. Rather than rely on a single market, Li builds resilience into his portfolio through variety.

3. Be patient – but exit when the price is right

Li believes in long-term value creation, but he’s not sentimental about holding assets forever. While Warren Buffett often speaks about “forever” holdings, Li takes a more flexible view. If he believes an asset has reached peak value, he’ll sell it.

A good example is his decision to divest from Northumbrian Water, a UK utility company, after years of stable returns. By selling when valuations were high, he freed up capital to deploy into more promising areas. It’s a practical, disciplined approach: hold for the long run but always be willing to cash out if the return no longer justifies the risk.

4. Focus on essential industries

Li favours investing in industries that provide essential services – like water, electricity, ports, and telecommunications. These are “boring” businesses in the best possible sense. They generate consistent cash flow and are often insulated from economic cycles.

This focus on necessities also explains why so many of his companies are in regulated or infrastructure-heavy sectors. People need power, groceries, and internet access regardless of the market environment.

5. Practise frugality and capital efficiency

Despite his immense wealth, Li is famously frugal. He wears simple clothes and avoids extravagance. This mindset extends to how he runs his businesses. His companies are lean, efficient, and focused on generating high returns on capital.

Rather than pursue rapid expansion or flashy acquisitions, Li prefers investments that can compound steadily over time without excessive reinvestment.

6. Embrace innovation selectively

Li isn’t a tech mogul in the Silicon Valley mould, but he’s been surprisingly forward-thinking in backing disruptive technologies. Through his private venture arm, Horizons Ventures, he’s invested in early-stage companies like Facebook, Spotify, Siri (before it was acquired by Apple), and Zoom.

However, he approaches tech with the same discipline he applies elsewhere. He doesn’t invest based on hype. Instead, he looks for solid business models, strong teams, and technologies with practical applications.

How does Li Ka-Shing’s investing philosophy differ from other famed investors?

Li Ka-Shing is often compared to Warren Buffett, and with good reason. Both men are known for their patience, prudence, and focus on long-term value. But there are some clear differences between their strategies:

• Geographic focus : Buffett’s investments are mostly concentrated in the United States, whereas Li has built a truly global portfolio.
• Exit strategy : Buffett has historically been more likely to hold assets indefinitely, while Li is happy to exit when the value is maximised.
• Sector preference : Buffett has a strong preference for consumer brands and insurance companies. Li, by contrast, focuses more on infrastructure, utilities, and property.
• Conglomerate structure : While Berkshire Hathaway operates more as a holding company for independently run businesses, Li’s conglomerates are more integrated and operationally involved.
• Tech approach : Buffett avoided tech stocks for decades, whereas Li – while cautious – embraced innovation through venture capital.

In many ways, Li Ka-Shing is a more agile investor, willing to shift capital across sectors and borders to follow opportunity. His strategy is shaped as much by Asia’s rapid development and globalisation as by personal temperament.

Lessons from Li

Li Ka-Shing’s journey from factory worker to global investor is more than just a rags-to-riches story. It’s a case study in strategic thinking, calculated risk-taking, and extraordinary patience. His success wasn’t built on flashy bets or lucky breaks, but on a deep understanding of markets, timing, and human behaviour.

In a world increasingly obsessed with short-term wins, Li reminds us that real wealth is built slowly , quietly, and with purpose. Whether you’re investing $100 or $100 million, his approach may offer a useful perspective. His strategy – while risky – shows the potential benefits of buying when others are fearful, staying diversified, thinking long term... and being ready to act when opportunities arise.

Happy investing!