HSBC breaks new highs, don't hastily say to sell; Tsang Yuen-chang reveals bad habits of retail investors

Senior investor Zeng Yuancang is a well-known "long-term shareholder" of HSBC (005). The stock has recently reached new highs, peaking at HKD 138.8 earlier. He admitted, "HSBC is no longer something I dare to recommend, as it has reached a historical high. When any stock reaches a historical high, we don't know how high it can go." Therefore, he advises retail investors holding shares not to rush to sell. Moreover, after the relaxation of the crab stocks over the past few years, there are no more crab stocks to push prices up, making it easy for the stock price to be speculated again. "I have friends who bought HSBC at HKD 100 many years ago and felt very sad watching it drop. Years later, when it rose back to HKD 100, they immediately sold it. This is a very bad habit for many small investors." Speaking of HSBC, Zeng Yuancang specifically used it to illustrate the timing for long-term accumulation. In 1990, HSBC proposed to acquire Midland Bank to enter the international market, but the market did not buy it, and the stock price plummeted. However, Zeng Yuancang made a large purchase at a price of only HKD 4 (unadjusted). He stated that the best time to build a long-term stock portfolio is during a market crash or when the public is pessimistic. He admitted that such opportunities are now rare, and if the stock price is in a correction phase, as mentioned with Tencent and Alibaba, it is also a good time for long-term investment. However, if the goal is short-term trading, it is better to wait until the correction phase is confirmed to be over before buying. He used Tencent as an example, which peaked at HKD 683 in September last year and then fell to a low of HKD 592 in December. When the stock price rises back to half of the correction (about HKD 45), which is around HKD 630, it confirms the end of the correction phase, and the stock price may reach new highs, making it suitable for short-term traders to enter. Traveling the World, Photography for Fun Describing Zeng Yuancang as an expert in both stocks and real estate is certainly not an exaggeration. He has 40 years of experience in stock investment and proposed the "Zeng's Channel" to capture bull and bear markets. In the real estate sector, he was involved in founding the Centaline Property Price Index. He left City University early in 2013 before reaching retirement age to become a part-time professor, and his columns are still widely published in major newspapers, attracting many readers. On the day of the interview, our photographer arranged for Zeng Yuancang to take outdoor photos, and passersby exclaimed "stock god" upon recognizing him, while some young fans approached to greet him and request photos. It turns out that "successfully capturing" Zeng Yuancang is not easy. He mentioned that he often travels, coordinating with his children's holidays, and frequently takes short trips on weekends. During long holidays, he leaves Asia; at the end of last year, he went to Iceland with his children for a "free travel" New Year celebration. Besides enjoying the Northern Lights, he said there are many things to do in Iceland, such as hot springs, volcanoes, and Christmas markets, which made the photography-loving Zeng Yuancang very happy. I believe Zeng Yuancang's "old fans" also know that he is not only a financial expert but also a photography enthusiast. He won local photography awards while studying in the UK in 1967. He shared with reporters his works taken in Iceland, including beautiful shots of the Northern Lights, sunsets, and countryside cottages. And don't think these were taken with professional cameras; he pointed to his smartphone: "Now you don't need to carry a big camera; you can just take pictures with an iPhone." Reporter: Ye Chuo Wei Related article: If you had HKD 1 million today, what would you buy? Zeng Yuancang: You should go all in on dividend stocks｜Million Dollar Portfolio