BEIJING, February 21 (TMTPOST) — Charlie Munger, a renowned American investor and longtime business partner of Warren Buffer, expressed his confidence in Chinese stocks at the annual shareholder meeting of Daily Journal Corp.
Munger said that China has strong economic growth, competitive companies and strong entrepreneurship that are currently undervalued when explaining his confidence in investing in China.
When asked about why he would want to invest in Chinese stocks when e-commerce giant Amazon’s share price is three times higher than that of its Chinese counterpart Alibaba, Munger said that he prefers making investments that make him feel comfortable. Investing in China is a comfortable decision, he said. Munger also praised Alibaba for its competitiveness when compared with other major international e-commerce players.
Munger believed that every penny invested in Chinese companies is worthwhile because they invested in companies that are stronger than their competitors in the market while their share prices were lower. Alibaba is one of the companies that Daily Journal holds a big stake in.
Munger pointed out at the shareholder meeting that China is a modern country with a massive population. He said that Daily Journal invested in many Chinese companies because they could get higher returns since some Chinese companies have a higher intrinsic value than their American counterparts.
It is worth noting that Munger called cryptocurrency a “venereal disease” at the annual address and praised China for banning it.
An increasing number of international investors are investing in Chinese companies and Chinese stock markets. Equity funds in China saw net inflows of US$16.6 billion in January, which was the fourth time since the pandemic that monthly inflows have exceeded 10 billion dollars, a report from EPFR Global said.
"Investor interest in China has actually strengthened coming into the fourth quarter of last year," Cameron Brandt, director of research at EPFR said.
Latest statistics from the Ministry of Commerce of China show that China’s actual use of foreign investment reached 102.28 billion yuan, registering year-on-year growth of 11.6%.
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