CK Hutchison Holdings (0001.HK)

[swakoo]

yes 3 years from now we will probably see the sale was +/- 6 months to peak Agree it gives face to all the parties involved and good deal for CK

What Warren Buffett and Li Ka-shing hoarding cash tells us

Both have a long history of cashing out at the right time.
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Li’s sense of when to sell is also a marvel.
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The much-politicised Hutchison port deal, for one thing, is curious. Only the two Panama ports were in geopolitical crosshairs, so why is CK selling all of its operations outside Hong Kong and mainland China?

Further, Beijing has shown displeasure, going as far as reportedly telling its state-owned firms to hold off on any business collaboration with the Li family. Yet the 96-year-old, who is no longer involved in day-to-day operations but participated in the negotiations, is stubbornly going ahead with this deal.

Is it because he expects ports around the world to suffer a structural downturn now that Donald Trump is back in the White House? 

For now, the port operations are seeing bumper profits. Earnings before interest and taxes jumped 24 per cent last year.

In addition, this business could reap in higher margins with more automation kicking in. Given Li’s track record, it’s not unreasonable to suspect that he’s selling when the financials still look pretty. 
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By comparison, Li’s determination to sell CK’s ports division at a time when economists are still debating whether global trade is over or simply being re-mapped, is worrisome. What does he see?

For investors, it’s time to exercise caution. As for US President Donald Trump, he shouldn’t gloat over the sale of the Panama ports; Li is the real dealmaker here.