Old Money
Kou Tak Tai started working in investment in Shanghai over 70 years ago. He moved to Hong Kong after World War II and established Victory Securities Company Limited in 1972. The 90-year-old CEO shares his wisdom with Jan Leung - and some stock tips, too.
HK Magazine: Tell us about your early days.
Kou Tak Tai: When I turned 19 I started working as a trainee in the Tianjin Bank. Every day we were thumbing abaci like crazy behind the counter. In the old days, trainees weren’t paid – the bank only provided us with meals and a place to stay. Later on, I moved to Shanghai and spent seven years there during the Japanese occupation between 1937 and 1945.
HK: What was Shanghai like back then?
KTT: Despite all the killing, many people were making big money in Shanghai. Everything was in short supply and prices skyrocketed – businesses, especially pharmacies, made a great deal out of it. The stock market prospered and prices rose as much as 40 percent in three months. Everyone was investing in bonds, gold and foreign currencies. Later on, the stock market crashed, and the currency depreciated so much that you had to carry around bags of money just to buy an orange. Life became so hard that I had to sell my coats on the streets for food. In 1950, I decided to leave my wife and children behind and come to Hong Kong.
HK: How was Hong Kong in the 50s?
KTT: There was no industry here at all in 1950. A lot of new immigrants from the mainland found themselves unemployed, and life was very hard. Luckily, a lot of wealthy Shanghainese also fled to Hong Kong. They opened up factories and played an important role in Hong Kong’s development. I rented a squatter hut and could only afford bread for meals. But luck will lend you a hand when you really need it: a friend asked me to start a business with him and eventually in 1972, I opened up my own firm.
HK: You’ve watched the Hong Kong stock market since the beginning. What can you tell us?
KTT: The market is always elusive. Knowledge, experience and the ability to think long-term are essential in investment. I’ve spent 70 years learning about the stock market and I read two newspapers everyday, but I still feel like I don’t know enough. Opportunists looking for quick cash earn a dollar today and lose twice as much tomorrow. Their winnings always make way for future losses. I’ve seen so many of them – the more ignorant they are, the more daring they act. Don’t mess with the stock market if you haven’t learned to read a balance sheet.
HK: Will the stock market crash soon?
KTT: I’m not sure. But if I were you, I would sell everything by the end of next Chinese New Year at the latest.
HK: Any other advice?
KTT: Two laws to remember. First, big fish always feed on small ones – major stockholders always control the stock market. Second, never claim that you’re a winner until you’ve quit the stock market. You can still lose everything in a blink of an eye.