Luke

I did tell you exactly what the differences are. Shareholders are place number 1 in the US, understood? Thats a clear difference I pointed out. But I also told you that that doesn't necessarily mean good things for the overall economy, people's well-being, achieving a higher level of civilization, etc. 70% of people in the US are overweight or obese. But nobody regulates or does anything. There are many more examples of this.

This economist has a point and Xi starts a common prosperity program-->Market--> CHINA BAD

I cant believe that you are convinced of "separation of powers" within the US. Reality is that the US is completely dominated by business interests and the pendulum is way reversed compared to china. Yes, that's good for shareholders but the US consumer isn't looking particularly bright either where 45% earn below 29k USD a month and concentrated markets with lacking competition will bring their own ills to an economy over time.

I disagree, if you look at what Li Qian recently said, its exactly these talking points. They are aware of the problem and obviously working on it. So many people make China look like its this "nothing can change its over" economy while they regularly publish writings that tackle all of the critical points...its a very dynamic economy as you can see by the past 20 years of success. Your article says: Xu highlights the profoundly obstructed channel of income transfer from the corporate to the household sector as the primary reason behind this distinctive consumption pattern. The extensive presence of state-owned enterprises (SOEs) in China, whose profits and dividends primarily flow to the state rather than households, diminishes the wealth effect that might otherwise stimulate household consumption. Nor is the highly concentrated ownership of many Chinese private enterprises doing much to increase the wealth or consumption of the wider population. I don't see why people working at SOEs couldn't get an income increase ordered by the government which will boost consumption. They did the same at JD where wages was forced up, which is smart. Privately owned enterprise need to pay their workers more so consumption increases, the CCP already regulates it quite heavily: https://www.reuters.com/technology/jdcom-cut-senior-executives-salaries-by-10-20-2022-11-22/ Ironically THATS then seen as "BAD" by the market. While they do exactly what is good for the overall economy. Furthermore, Xu points to the absence of an efficient market mechanism (again, a result of the disconnect between the corporate and household sectors) to balance the distribution of national income between consumption and investment. This shortfall means the household sector is unable to influence corporate dividend policies, resulting in excessive corporate savings and overinvestment. What they are trying to say is that consumers are too weak and corporations don't want to reinvest because they lack demand. Time for enterprises to increase wages...if they don't the CCP will do its job and regulate the economy.

Nice call.

https://www.scmp.com/news/hong-kong/education/article/3258541/hong-kong-universities-rise-newly-published-global-subject-rankings-driven-positive-employer?module=top_story&pgtype=homepage More than 50 per cent of subjects offered moved up the rankings in a newly published global league by Britain-based education information firm Quacquarelli Symonds City’s four public universities included in league table for data science and artificial intelligence programmes, with Hong Kong University of Science and Technology in top 10

Owning military stocks is the best play here probably if you think it will escalate in the next 5 years. With that you will outperform everyone.

If you think the odds of a china cut off are so high @Sweet, then you need to reposition your portfolio way different than just buying "good companies at reasonable prices", because those will get fucked when China leaves. So if you are so short China and long war, then you cant be long QARP stocks at the same time.

An investment in China is an investment alongside the people of China and their Government. An investment in the US is an investment alongside the people of the US and their Government. Both are the same thing so whats important is to understand how do the people and the government see your business? If you study CCP releases, Xis speeches, what public officials say, all lights are on green. Nobody wants to take your business away, nobody wants communism and a Stalinist economy, China will remain a partly private partly public economy just like other economies in the west. What is different is that china can regulate the bad parts in their markets and will do so, same should be true for the US but I don't know whats going on inside congress and their plans against mag 7. Alibaba will remain a private business for the coming decades and nothing will change in that regard with a 98% probability. 30% of the worlds manufacturing and industry is in China, ALL incentives are there to cooperate with China and not increase confrontations. If there is war, its over and I will probably be sent to fight in WW3 too so my portfolio will become irrelevant. If you think its thinkable that the same happens with China what happened with Russia then you are wrong, those are two completely different economies, the effect of China cut off would be 20x worse and lead to a hard depression for 5-10 years and global growth will probably stagnate for way way longer, I can afford to lose 25% of my PF in that case. Innovation in China is not to be underestimated, we already see how far they are and Tencent/Alibaba can easily compete with US tech.

Just look at Alibaba/Tencent. Huge buyback programs and 3x the buyback size of MAG 7 while shareprice flat for 10 years. I think its pretty obvious which stock will perform better from here...

So let me get this straight. As a Value Investor, you are looking at the fundamentals (which are good and growing) but then see that the share price has not grown with the fundamentals (dislocation of valuation) and then proceed to not buy it because there can not be dislocation in order for you to buy? In fact, quite the opposite of what a value investor would do.

https://letmegooglethat.com/?q=How+to+invest+into+chinese+stocks%3F+

How can he be SO stubborn, even if there would be overstating of book value, the fundamentals are so great that it's unshortable...pfff

"you cant produce more because consumers are not allowed good prices and business cant have too much competition because the wealthy will loose money of which they have too little and consumers have to much goods and excess wealth"

So funny seeing Yellen ranting about "excess capacity" https://www.reuters.com/world/yellen-meets-with-chinas-central-bank-chief-presses-case-excess-capacity-2024-04-08/ I thought we were in a "free market"? Why don't they just remove the tariffs and US consumers buy it all....;-)?

Ukraine ‘will lose the war’ if US fails to approve aid, says Zelensky https://edition.cnn.com/2024/04/08/europe/ukraine-lose-war-us-congress-zelensky-intl/index.html Republicans blocking the funding...

Thank you for the kind words John and all the best to you!

I enjoyed this. Share your most valued documentaries that enrich our minds!

Point taken. Russia is a good ally to China and basically fully dependent on them now, which is good for China and Chinese investments. More natural resources for cheap and independent from the west.

Will be very interesting what will happen with trump as a president, probably more real talk and not as much double language as now. Id also guess that the US withdraws some of its arms globally which is a net positive. Thats also why trump is hated by the establishment.

Putin regularly pushes that they want to open communications for settlements, China also open to be a mediator but the west and Zelensky is not willing to negotiate anything, not even exclusion of nato membership which is probably key for russia. So ukraine has to sacrifice all of its men/ and now also women, until no one is left, Ukraine totally capitulates and russia is quite weakened and pushed into chinas sphere of influence.

HAHAHA, him now using these memes even to make a case, is incredible.

Would be an interesting question for the annual meeting, considering the huge valuation discrepancy if they see any value in China and/or are willing to allocate some cash there the coming years or if India/West still has enough ideas for them to invest 10b.

High returns on invested capital and easy allocation of larger chunks of cash. I think the investment team certainly has some Asia expertise and these companies have very high earnings yields and IMO a lot more upside than downside. I'd prefer them buying chinese technology stocks than cheap mining stocks right now but that's me. I also don't think you need particular geographic expertise with the well-known large caps.