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Investing Shanghai Composite

Danbin on TV

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Dan Bin (但斌, blog) is the founder, CEO of Shenzhen based Eastern Bay Asset Management Co. He admires Buffett and is value minded, although I don’t agree with everything he says “such as buy China Ping’an blindly” (remembers me of Cramer). He was on Shanghai First CaiJing TV interview recently. The interview is in Chinese lasts about an hour, and the videos are in 2 parts.

Interview part 1:

财富人生:东方港湾资产管理 但斌_上(Use this link if embed player does not work)


Interview part 2:

财富人生:东方港湾资产管理 但斌_下
I will talk more about fund management, the fees and the value they create later on.

2 replies on “Danbin on TV”

To be honest, I think these people either do not understand real Buffett or pretend they do not understand.

One big difference between Buffett and these Chinese Buffetts is that Buffett mainly buy companys and they buy stocks.

Company may worth a lot but its stocks may worth much less, or even nothing.

Yes Buffett has GEICO. But remeber, he has GEICO COMPANY. While DanBin and his fellows have PingAn STOCK. As a result, GEICO wouldn’t do something that harms Buffett’s value but what PingAn do is out of DanBin’s control.

And one obvious fact is that Buffett has insure company to provide him capital to invest. But what DanBin and his fellows have is PingAn stocks to occupy their capital, their only hope is stocks going up.

In my opinion, there are too much of fake Buffett’s way in China. Which is not healthy. Buy good stock and hold long period is an valid invest approach but it is not like what DanBins advertised.

They made money, but they misled lots of amateur investors in China.

Buffett’s success came from buying company, not buying stock.

Reminds me an older post I wrote last year:

http://www.stlplace.com/2007/08/20/everyone-wants-to-be-buffett/

Yes, I agree Danbin is NO Chinese buffett. Although he has decent record in last 4 years (2004 to 2007, not verified)

据称,东方港湾2004年、2005年、2006年、2007年1~8月的收益率分别是44.5、38%、233.35%、104.15%,而同期上证综指分别为-15.4%、-8.34%、130.43%、83.34%。

http://www.hdzxw.com/news/2007/11-12/FD_U_Article292365.html

BTW, I plan to write about the business model of hedge fund for a while. Stay tuned.

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