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24-09-2024, 09:11 PM
(24-09-2024, 06:41 AM)weijian Wrote: I reckon it is hard not to get rich when you have the best of both worlds - some sort of state protection (against foreign giants) with a huge local economy, but yet able to get your stock listed elsewhere for "better valuations".
But I disagree it is dangerous for those "founders". These founders are VIP partners to the CCP. An extract from Howard Marks' latest memo "Shall We Repel the Laws of Economics" as below:
China’s private sector is often summed up with a combination of four numbers: 60/70/80/90. Private firms contribute 60% of China’s GDP, 70% of its innovative capacity, 80% of its urban employment and 90% of new jobs.
But nonetheless, it is still dangerous - pretty risky for the folks who invest together with these "founders", since the "structure" doesn't look aligned here.
Interesting. What are your views on the huge slowdown/drawdowns in their top companies (with huge private/foreign ownerships) in recent years, and the "retirement"/"disappearance" of renown founders from these companies (say Zhang Yiming from Bytedance, Jack Ma etc), seemingly all at the same time when the government is pushing for "common prosperity"?
Just a temporary setback or a sea change?
“If you buy a business just because it’s undervalued, then you have to worry about selling it when it reaches its intrinsic value. That’s hard. But if you can buy a few great companies, then you can sit on your ass. That’s a good thing.” - Charlie Munger