China companies might be the next big thing. How can investors tap on their growth?
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For the first time ever, China has surpassed the US in having more Chinese companies on the Fortune 500 list.
American companies have traditionally dominated this list, as history will show you. However, a total of 129 Chinese companies made it to the list this year, surpassing the 121 American companies which include the usual suspects, Apple and Google.
I’ve no doubt that China offers one of the biggest investment opportunities today. For those of us who missed out on investing in US giants (eg. Amazon) because we were just too young then, China might be our next chance.
And I’m not the only one who thinks so. Even Charlie Munger feel the same way, and has been pushing Warren Buffett to invest more in China. As told to CNBC, Charlie Munger said,
“The best companies in China are cheaper than the best companies in the United States.”
Munger also went on to say, “I don’t think it would be all that hard for any smart person to find 4 or 5 great companies in China to invest in.” He also revealed that his family is also “substantially invested” in China and begun buying stocks 14 years ago.
Of course, there are still barriers to investing in Chinese companies, as their numbers are not always fully transparent, and they are not governed with the same strict compliance or regulations as companies in the US, Singapore or even Hong Kong are.
Nonetheless, never say never. I’ve begun my research into top Chinese companies and stocks that would be worth investing in and will be dedicating a portion of my investment portfolio to it under the growth category. For those of you on my Patreon, you can expect a list of my shortlisted Chinese companies that I’ll be putting on my watchlist shortly. But to hedge my risks, this time I’ll be flying into China to do due diligence on the ground as well since the Internet can’t always be trusted when it comes to things you read and hear about China.
Till next time!
With love,
Budget Babe
