The Next Silicon Valley is China


#21

Really, well I’m missing the “T” in bat and the “A” in fang; I hope these 2 companies don’t end up cannibalizing the rest… :slight_smile:


#22

It is undeniable that the tech there is growing fast and furiously but at what point will it be constrained or capped by the political system that is in place? Our Fearless Leader mentioned the fundamental roadblock, that he couldn’t get online and get all the wonders of the internet when he was back there. We all know a Tienanmen Square 2.0 is coming some day. Will the same outcome unfortunately happen?


#23

Ohhhh…nice to read you comrades support the Communist regime in China. :rofl:


#24

My mortgage broker Tracie just got back from a 3 week vacation there. One thing she mentioned was the corruption and how widespread it was. It must have been a big story on the news there because she mentioned it to me in detail. Apparently, there was a local administrator who literally had money stashed everywhere in his house. I mean a lot of money from taking bribes. He couldn’t spend it there or on his family without raising suspicion that he was on the take. Come on, everyone knows what his salary grade is, so where did the Lambo come from right? And must we even talk about the lack of oversight on the food quality? Let’s call China a work in progress ok???


#25

People cry about the evils of capitalism and corporate greed. However, nothing compares to the greed and corruption that happens when the government runs things. Government ownership leads to corruption, and the only recourse people have is revolution. Just look at the mess in Brazil and Venezuela.

There’s a reason the most advanced societies with the greatest wealth are capitalist. Socialism and communism always result in everyone being equally poor. China didn’t start to grow until they started to adopt some capitalist policies. That change created a huge acceleration of GDP growth, higher median incomes, and is creating a middle class.


#26

Yeah, that evil government in bed with corporations…

From the CBO analysis of the national budget. Yes, that’s Twhitler’s budget.

and shifting air traffic control functions to a
private entity (reducing revenues by $10 billion). (Four
of those six proposals would also affect outlays for direct
spending programs, as discussed earlier.)


#27

Go to the top of the thread and spend 24 minutes watching the a16z presentation. Trust me. The best 24 minutes you’ll spend this year.

I adjusted my investment after watching. I now realized I need to cover the live streaming space. I already started buying Alibaba and JD.com this week. Now I will add MoMo to take care of live streaming.

So my Chinese portfolio will look like this: Tencent, Alibaba, JD and MoMo. I will increase the weight to 1/3 of my portfolio at least, if not more.

Even if you have no interests in buying Chinese tech shares, it’s still highly educational to see what they have done so you have a feeling where we are headed. No doubt there are teams in Facebook studying WeChat and MoMo to steal ideas. Now I wonder if Bezos has teams in China to study the O2O space. Watch that clip where Jack Ma went shopping.


#28

Sure about that? I am waiting for that husband booth in the mall with that sweet hostess to entertain me for 24 minutes… (oh, what dear? yes, that blouse looks great on you…)


#29

Spend 24 minutes to watch that video will make you rich. Spend 24 minutes with some iffy woman will make you broke.

Your choice. Choose wisely. :wink:


#30

I thought your portfolio was FAAT. So where does JD and Momo fit in? Are you adding anything else or just these 6 stocks?


#31

Also added MPW and OHI two healthcare REIT to get some income.

My portfolio is not simple anymore…


#32

http://www.cnbc.com/2017/07/17/half-of-chinas-rich-plan-to-move-overseas.html?recirc=taboolainternal

This makes me wonder about the title of this thread. If half the rich leave China, they are going to be contributing to the economic growth somewhere else.


#33

Damn, @marcus335, you brilliant!!!:grinning:


#34

These rich people have been wanting to leave forever, but they can’t leave. Also, it’s not the multi-millionaires that drive the economy. If only millionaires shop at Amazon, its market cap will be 1B instead of closing in on 500B. It’s the middle class we need to keep an eye on.


#35

Ok, must we go back to Investing 1?

#1 (real estate anyway): Location, location, location…and then, more location

#2 (this goes for ANY kind of investing): Follow The Smart Money! That will tell you where to go…


#36

That is true. The rich already made their money so they are immigrating overseas to retire and enjoy life. The young and still money hungry people are stuck in China. They don’t have the luxury of retiring overseas, so they have no choice but to keep innovating and keep China’s engines humming.


#37

You can think of China as your workplace and America as your home. You invest in China to allow that country’s talent to help you grow your money. But you stay here in America to enjoy the fabulous American lifestyle :slight_smile:


#38

When smart and rich people want to leave the party and they are taking their toys (money) it is best to grab your coat too…

Not saying the host (China) couldn’t throw a banging party later (with Capitalism!!!)… but I am saying the Father of the house (the old guard that is in control) is not exactly thrilled with the noise…


#39

Yes there’s no way to tell for sure which way it’s going to go. But given the way things have gone it’s best to hedge against both countries just in case…


#40

Yes, but it takes the billionaire visionary to create and grow the company. That’s what creates wealth for investors and the middle class jobs.