Hyper growth China stocks

one of the best performing rec at the MF has been Baidu. Certainly the stock as tempered its ascent these past couple of years. But the return is still about 20X. Tencent’s stock has done a 10X in less than a decade.

Not all Chinese companies are like you describe. You can find also find a bunch of US businesses that have swindled the shareholders. The general environment in China has improved greatly.
I think the traditional culture is not as relevant that one might think when we talk about the business environment in China which is quite dynamic and very innovative. Chinese businesses are flexible and adapt quickly. They have learned and are learning a great deal from Western practices. I would say that even more so in the areas of science and technology. I agree there is a governmental impact that many here do not like. But a lot of the talks are just political bull really. I believe we should separate the politics from investing somehow. You sound like a guy who had a bad experience with investing in a Chinese Company and I don’t blame your caution. But a lot of talks and arguments against are mixed with politics. If we can separate that from the economic opportunity then we can invest better in Chinese companies.

tj

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Enron, Cendant, WorldCom, Waste Management, Health South, MF Global, Fannie Mae, Health South, Tyco, Qwest Communications, Bernie Madoff, Washington Mutual, Lehman Brothers were also Chinese/Brazilian?

And how about all the US banks/Wall Street institutions who wilfully defrauded and trapped tens of millions of American families by issuing them Adjustable Rate Mortgages and Ninja Loans and worthless bonds before the housing bust? These people and companies weren’t American either?

Or how about Moody’s and Standard & Poor’s rating agencies (America’s watchdogs) which wilfully cheated millions of Americans by deliberately rating worthless mortgage bonds as “AAA” - just so they could make their billions in fees? These Americans didn’t rip off Americans on American soil?

Or how about Google which paid millions of undisclosed dollars to famous American professors so they would write favourable articles about 'internet security and why the internet shouldn’t be regulated?

So, this makes all American people and companies untrustworthy and unsuitable for investment?

Can somebody please remind me how many of the above Americans were held accountable and sent to jail?

Enough said.

GM

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Are you aware of the entrepreneur flight from China? Many (I don’t know how many, so what I read may be exaggerated - https://www.forbes.com/sites/gordonchang/2011/06/05/chinese-…).

According to a new study, almost 60% of China’s “high net worth individuals,” defined as those possessing more than 10 million yuan in investable assets, are either considering emigration through investment programs or are completing the emigration process. The survey, conducted by China Merchants Bank and Bain & Co., also reports that 27% of those with more than 100 million yuan in investable assets have already emigrated and 47% of them are thinking about leaving the Motherland.
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Almost all of the funds supporting emigration applications were spirited out of China in violation of Beijing’s strict rules. The country leads the world in illicit fund transfers, according to Global Financial Integrity, a nonprofit. The estimated total of China’s outbound flows from 2000 to 2008 was a staggering $2.18 trillion.

Do you think it’s possible that the folks leaving the country might know something you don’t?

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Almost all of the funds supporting emigration applications were spirited out of China in violation of Beijing’s strict rules. The country leads the world in illicit fund transfers, according to Global Financial Integrity, a nonprofit. The estimated total of China’s outbound flows from 2000 to 2008 was a staggering $2.18 trillion. – forbes article

Do you think it’s possible that the folks leaving the country might know something you don’t? – brittlerock

The Forbes quote brought a thought to mind.

If wealthy Chinese are moving cash out of the country, perhaps in preparation for emigration, where do you suppose they’d invest it? While I’m sure that some would end up in smaller countries and smaller markets, I would think a very large share of it would come to the US. Big liquid markets, world-leading companies in many areas, a fairly high degree of accountability and truth (best word I could come up with) regarding company finances. That would tend to have some positive effect on US markets.

And…I wouldn’t be surprised if the outflow continued beyond 2008 and may continue in our future.

That doesn’t change any investing thesis of mine, but it further reinforces the idea of tailwinds in US equity markets.

Rob
Rule Breaker / Market Pass Home Fool & STMP/MTH Maintenance Coverage Fool
He is no fool who gives what he cannot keep to gain what he cannot lose.

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From what I’ve read, I would tend to agree. But I also believe that the EU is seen as a very desirable landing. I don’t know for sure, but I would think Singapore might well be a destination as well due to Mandarin being an official language and their friendly business laws.