[sgbuffett]

The Nasdaq Dragon track Chinese tech stocks.

Most of the time both are correlated.
The reason is simple. If  demand for high tech products and services  goes up the US company stands to gain and so will the Chinese counterpart.  The megatrends of  growth digitalisation, cybersecurity, e commerce and cloud is the same for China and US. 

The last major  divergence was the reverse of this one in 2008-2009 when Chinese tech stocks surge up ahead of American peers the corrected sharply to converge again.

Today's divergence is massive relative to past history. Driven by a combination of China regulation, Trump's war on Chinese tech, and China economic slow down. 

While some.of the negatives will be around for sometime, the megatrends that drive demand is too strong to be derailed. A company whether in US or China will need cloud, cybersecurity AI etc. 

While others fear problems emerging in China, such as a sharp economic slowdown ( see soros recent remark on China), longer term texh trends will drive demand even if China slows.

I believe what we are looking at is a historic opportunity to buy at prices we would not see absent a crisis as largebas the 2008 financial.crisis. in fact the fall in China tech is so sharp and severe it  mirrors the historic collapse of Asian stocks.in 1997.  ..had one over come fear to buy the outcome would be life changing and once in a lifetime. Like the 1997 collapse, money was pulled indiscriminately from Asian stocks by global investors. 

I have taken the selloff to load up.....

Most are fearless at the peak when they are euphoric seeing the profits they made become careless and buy too much.

Most are too fearful at the bottom they see losses rather than opportunities they think the bad situation will last forever.

Charlie Munger who is 98 yrs old and has been through every collapse and crisis of the last 80yrs ...the collective experience of his successful investing led him to buy a Chinese tech stock last month. He could have chosen to invest in any stock in the world...in US Europe but he made this choice. Munger through his life must have evaluated thousands of companies
What does this tell you?
 

[winbig]

The Nasdaq Dragon track Chinese tech stocks.

Most of the time both are correlated.
The reason is simple. If  demand for high tech products and services  goes up the US company stands to gain and so will the Chinese counterpart.  The megatrends of  growth digitalisation, cybersecurity, e commerce and cloud is the same for China and US. 

The last major  divergence was the reverse of this one in 2008-2009 when Chinese tech stocks surge up ahead of American peers the corrected sharply to converge again.

Today's divergence is massive relative to past history. Driven by a combination of China regulation, Trump's war on Chinese tech, and China economic slow down. 

While some.of the negatives will be around for sometime, the megatrends that drive demand is too strong to be derailed. A company whether in US or China will need cloud, cybersecurity AI etc. 

While others fear problems emerging in China, such as a sharp economic slowdown ( see soros recent remark on China), longer term texh trends will drive demand even if China slows.

I believe what we are looking at is a historic opportunity to buy at prices we would not see absent a crisis as largebas the 2008 financial.crisis. in fact the fall in China tech is so sharp and severe it  mirrors the historic collapse of Asian stocks.in 1997.  ..had one over come fear to buy the outcome would be life changing and once in a lifetime. Like the 1997 collapse, money was pulled indiscriminately from Asian stocks by global investors. 

I have taken the selloff to load up.....

Most are fearless at the peak when they are euphoric seeing the profits they made become careless and buy too much.

Most are too fearful at the bottom they see losses rather than opportunities they think the bad situation will last forever.

Charlie Munger who is 98 yrs old and has been through every collapse and crisis of the last 80yrs ...the collective experience of his successful investing led him to buy a Chinese tech stock last month. He could have chosen to invest in any stock in the world...in US Europe but he made this choice. Munger through his life must have evaluated thousands of companies
What does this tell you?
 

Did Warren buffett follow Charlie munger?

[sgbuffett]

Did Warren buffett follow Charlie munger?

Berkshire has certain mandate to invest in  US and trust the US for growth.

Munger manages the Daily Journal find which as free hand to choose where to invest.