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A good Chinese article on Value Investing

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Buffett is in the news again yesterday. This time he is playing sidekick (financing) to help Mars to buy Wrigley (NYSE:WWY), the chewing gum company. One interesting Buffett comment I heard from CNBC is “I have doing taste testing of the Wrightly gum for 70 years”.

Fun aside, Buffett and value investing have also been very popular in China in recent years, thanks to the boom/bust of Chinese stock market. There are tons of books on Buffett and his investing strategy, either translated from English, or written by someone who really does not know value investing. I saw a guy (who admires Buffett and claims to be value investor) talked about how great PetroChina is, and encourage small investors to buy at CCTV-2. Now we all know how PetroChina (NYSE:PTR) A share (601857) did.

But I found this one (written by Jingzhou Lawyer, 锦州律师) to be different. I found he has a very good understanding of value investing, much better than many pros in China. So let me quote some:

任何人价值投资的理念是一个三合一的系统。缺少了任何一项都不是真正的价值投资。 价值投资就是:选择强势公司的股,以便宜的价格买入,不轻易交易。

美国牛市最大的涨幅才2.5倍。而我国这轮行情上涨了6倍多。一轮大行情,巴菲特手中股票如果高估了一倍,他认为不必抛售,而我们一轮涨6倍多,高估至此,还不抛售?巴菲特是可口可乐的第二大股东,他持有的数量之巨大使他无法在一个稳定的价格上抛售完毕,而我国的小散要硬学巴菲特未免有些教条了吧。

中国经济高增长怎么了?中国经济高增长就什么公司都赚了大钱吗?看看家电业的长虹、TCL、春兰。中国经济在一起向前发展啊。中国经济的增长速度有两个,一个是GDP、一个是GNP,前者是中国境内外资内资企业总合在一起的生产总值。后者不包括外资企业的生产产值。是更为纯粹和真实的中国人创造的产值。发达国家早就为了环境与劳工待遇的问题把低附加值的制造业转移到了发展中国家。细看欧美跨国大公司的业绩仍然增长很快,只是于境外的产值没有计入本国的 GDP数据而已。所以说单纯地用中美两国的GDP增长速度比较就得出,中国股市整体估值应当比美国贵一倍是荒唐的。
……
By the way, a question just for fun, now the Mars offers $80 for the Wrigley, why the stock still trades at $76.90 🙂

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