Economist Lam Bun-li Recommends 7 Stable HK Stocks for Retirees, Portfolio Gains 20% in 7 Months
SingTao · 1 SOURCESabout 1 hour ago6 MIN
Summary
Renowned economist Lam Bun-li (林本利), founder of Well Done Education Centre, has revealed that his mock stock portfolio designed for students has delivered impressive returns in 2026, significantly outperforming the Hang Seng Index. The portfolio of 18 Hong Kong stocks and 5 U.S. stocks generated a total return of 10.5% including dividends by July 31, outpacing the Hang Seng Index's mere 1% gain by 9 percentage points. A streamlined version focusing on just 7 stable Hong Kong-listed stocks achieved an even more remarkable 20.3% gain in share price appreciation alone, before dividends.
Key Points
- In January 2026, Lam selected 18 Hong Kong stocks and 5 U.S. stocks for a mock investment portfolio using HK$600,000 in hypothetical capital
- The full 18-stock portfolio returned 10.5% including dividends by July 31, beating the Hang Seng Index by 9 percentage points
- A condensed 7-stock version (HSBC, BOCHK, Swire A, Tencent, China Mobile, CNOOC, CCB) gained 20.3% in share price alone by July
- Among the top performers, Swire A surged over 58%, while HSBC and BOCHK each rose more than 30%
- Tencent was the only loser among the 7 stocks, declining over 20%
- Lam advised students to reinvest all dividends received by end of June into buying more Xiaomi and Alibaba on dips
- The 10-stock simplified version includes 3 U.S. ETFs (VOO, QQQ, BRK.B) alongside 7 Hong Kong stocks
- For the tech allocation, Lam recommended treating the three volatile stocks Xiaomi, Trip.com, and NetEase as a single investment unit, buying only one-third the regular amount for each
- Tencent, Alibaba, and HSBC together account for 24% of the Hong Kong stock allocation, matching their combined weighting in the Hang Seng Index
- Lam emphasized his investment strategy focuses first on securing 3-4% dividend yields for defense, then employing "buy low, sell high" tactics
- He noted some retired students have attended his classes for years but remain too afraid to take the first step into stock investing
- Lam encouraged hesitant investors by stating he himself invests in these same stocks
Why It Matters
This performance record provides a timely template for Hong Kong's growing retiree population seeking income-generating investments amid persistently low deposit rates. As the Hang Seng Index has essentially flatlined in 2026, Lam's dividend-focused, defensive strategy demonstrates that steady returns remain achievable for conservative investors willing to overcome psychological barriers to equity participation .
This performance record provides a timely template for Hong Kong's growing retiree population seeking income-generating investments amid persistently low deposit rates. As the Hang Seng Index has essentially flatlined in 2026, Lam's dividend-focused, defensive strategy demonstrates that steady returns remain achievable for conservative investors willing to overcome psychological barriers to equity participation .