Great article. Given the challenges around investing in China, it is certainly not a beginner topic. However, since China has the 2nd largest economy (by GDP) or the largest economy (purchasing power parity adjusted GDP), it is certainly something serious investors should take the time to get familiar with or risk missing potential great opportunities.
Your article nailed it about how China’s fierce competition breeds some of the strongest companies. As an investor, that’s a game-changer for me. It’s got me rethinking how I evaluate opportunities there.
Surprised that you didn’t touch on all this excessive competition still having higher profitability than US companies. Surprised that you didn’t touch on the risk in the US markets with the best businesses trading at unreasonable multiples. Without much of an edge it can e safely assumed that going from a p/e of 10 to a p/e of 15 is more likely than going from 35 to 40. Furthermore it can’t be ignored that the US financial system sits on a house of cards that could crumble any moment. What confidence should an investor have in an economy that can’t keep its government running from collections. Forget the insane debt!! And lastly, is everyone ignore the electrification of planet earth driven by China’s ambitions to break away from its energy dependence. For anyone who has doubts in China, I suggest you think again if you want abnormal profits!
You make some valid points, but I was mainly focusing on Chinese companies. I didn’t address whether I’m looking to invest in U.S. companies at the moment.
Hello, feel like I should have mentioned before my verbose that your piece was well written and factual! I guess my gung-ho China Bull came off strong. I think you will enjoy this research by Gavekal. Thank you for your posts and look forward to more! https://research.gavekal.com/article/prejudice-and-china/
Great article. Given the challenges around investing in China, it is certainly not a beginner topic. However, since China has the 2nd largest economy (by GDP) or the largest economy (purchasing power parity adjusted GDP), it is certainly something serious investors should take the time to get familiar with or risk missing potential great opportunities.
Well said about being aware of our investing edge. We need to constantly sharpen it too 🚀
Your article nailed it about how China’s fierce competition breeds some of the strongest companies. As an investor, that’s a game-changer for me. It’s got me rethinking how I evaluate opportunities there.
great work
One of the best posts on the "is china investible" question I've read. Good stuff.
well written
Of course it is!
Surprised that you didn’t touch on all this excessive competition still having higher profitability than US companies. Surprised that you didn’t touch on the risk in the US markets with the best businesses trading at unreasonable multiples. Without much of an edge it can e safely assumed that going from a p/e of 10 to a p/e of 15 is more likely than going from 35 to 40. Furthermore it can’t be ignored that the US financial system sits on a house of cards that could crumble any moment. What confidence should an investor have in an economy that can’t keep its government running from collections. Forget the insane debt!! And lastly, is everyone ignore the electrification of planet earth driven by China’s ambitions to break away from its energy dependence. For anyone who has doubts in China, I suggest you think again if you want abnormal profits!
You make some valid points, but I was mainly focusing on Chinese companies. I didn’t address whether I’m looking to invest in U.S. companies at the moment.
Hello, feel like I should have mentioned before my verbose that your piece was well written and factual! I guess my gung-ho China Bull came off strong. I think you will enjoy this research by Gavekal. Thank you for your posts and look forward to more! https://research.gavekal.com/article/prejudice-and-china/
America is investible, provoking wars everywhere.
China does not provoke wars everywhere.