Not so! That’s like saying only 2 American companies worth buying, AMZN and FB.
I need liquidity. Not big enough is not good. Btw, I’m not WB, he only buy mega size because he needs to invest at least $1B
And they are sending their spies disguised as high techies…
Oh, wait, that’s the Chinese…no, wait! The Koreans! No, I rectify it, the…never mind!
I like tencent way more than alibaba. Jack talks too much. The other Ma is wiser. Less talk more dough. By the way his English name is pony ma. So two horses better than jacks one.
I thought about the question why Chinese internet companies can’t go global. I think part of it is because china doesn’t have the global diversity in its population. In Silicon Valley we can find people of pretty much any and all ethnicities. For example the chief of Amazons Indian operation is an Indian American who has worked in Amazon for many years.
Another reason I think is China’s internet censorship. Mainland Chinese just don’t have the connection and understanding of the world at large.
Conclusion: China’s internet companies will never be global monsters like ours. They will forever be second fiddles.
Boy, I can think of at least 10 reasons to rebut those claims just off the top of my head…
Despite all the negative press about censorship and the “great firewall”, the Chinese government actually did a fantastic job blocking out competition and allowing home companies to grow. Talk about the ultimate form of protectionism. Blatant but effective. There is no other country in the world that can rival America’s internet juggernaut today besides China. Every other nation has succumbed to America’s dominance.
On top of that, China has 1.3 billion people. The developed nations combined (US, Western Europe, Japan) have way less. So Chinese internet companies does not need global dominance to be just as effective. They just need to dominate their own market. When Chinese living standards eventually rise on par with the West (and that will happen), these companies will achieve greater market cap than their western rivals, even if they strictly remain domestic.
Also, the argument that Chinese companies can’t go global because its employee base is not ethnically diversified is completely speculative and baseless. Japanese companies have never been diverse yet they achieved global dominance in many sectors. Chinese companies are not global now because (1) their growth trajectory is much later than western counterparts and (2) they have a huge domestic population to satisfy growth demands so it isn’t necessary to go global.
Moral: now is a good time to be buying Chinese internet stocks.
There are plenty of references in WSJ about this protection and government run organized growth. Trump understands this and trying to apply protection, border tax, to US Companies and US people !
However he should’ve done it in a way to minimize the damage to America’s soft power. For example, instead of blatantly pulling out of the climate agreement, he should’ve just remained in there while also allowing the miners to mine more coal.
Trump does this for his publicity and vote bank so that he gets elected next time ! The message reaches every corner of US households !
What sectors do Japanese companies dominate?
Automotive. There was a time when they dominated TVs, cameras, hard drives, and flash memory.
I won’t say Japanese “dominate” automative. They don’t dominate either pricing, market share or innovation. Japanese car companies are well aware of their insular Japanese culture. They make efforts to hire foreigners in their management rank and for Honda, even uses English as official language
Remember, Tencent >> Alibaba.
Someone once told me baidu >> baba. But now looking like baba >> bidu.
Baidu is always crap. It’s not even in the same league as Alibaba and Tencent.
$BABA is more well known in the US because it’s listed in NY and Jack’s big mouth. Jack talks too much.