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Buffet Loves China |
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On Thursday Warren Buffet paid
up on his annual charity luncheon event. Attending was Zhao Danyang, a
Chinese Hedge Fund manager who donated $2.11 million to one of Mr. Buffet's
favorite charities in return for the privilege of inviting 7 friends and
relatives to lunch with the Oracle of Omaha at Smith and Wollensky in NYC.
Zhao, an astute and long term investor
in China through his $130 million hedge fund, has generated 600% returns
over the past 6 years. Zhao views Buffet as his teacher, and has credited
him with the inspiration required to be a successful investor. Perhaps
there's a lesson here for all of us- the longer term view might be the
way to generate real wealth, if we can take a cue for Mr. Buffet and Mr.
Zhao.
During the lunch, The Oracle commented
Mr. Zhao is lucky to be living in the "Era of Chinese Ascendancy". Buffet
stated he believes the next few decades in China will provide the same
kinds of opportunities the last few decades provided Mr. Buffet in the
United States.
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JP Morgan More Bullish |
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Yesterday, JP Morgan raised its estimate
for GDP growth in China this from 7.2% to 7.8%, and moved its 2010 estimate
to 9% from 8.5%. GDP growth came in at 6.1% in Q1. While this is far better
than the rest of the world, it's the slowest rate of GDP growth in China
in a decade.
On June 18th, the World Bank raised
its estimate for GDP Growth as well.
Basically, the Chinese Government
is simply hell bent to keep the economy growing at a steady pace, and the
world's markets and analysts are starting to believe they will be successful.
They have the resources, and the world investment community is signing
on.
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Video Live By Tomorrow |
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Here's some hard numbers for China's
Domestic Consumption:
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2007- 8.9 trillion RMB
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2008- 10.0 trillion RMB
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2009 (estimate): 13 trillion RMB
That's a lot of consumption, and it
simply blows away the outlook for the US consumer. Advertisers need to
get their message to those consumers, and they want to target the most
affluent for the least amount of money.
One small and relatively unknown
company has doubled in size since last year at this time,
and is riding a new advertising theme in China.
Here's how I am going to give you
the information on this idea. Tomorrow, if you simply visit the home page
at www.otcjournal.com, a
video will play automatically. Just go to the home page, and it will simply
start playing.
Monday morning I'll release a detailed
report. Check your inbox early. I believe there's a lot of money to be
made in this idea.
Home Page : www.otcjournal.com
Email Questions or Comments To:
editor@otcjournal.com
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