Charlie Munger : Why He is Bullish on Chinese tech giant Ali Baba stock & US China tensions.

다듬은 글

※ 자동 자막 원문(다듬기 전)

01. in january jeff gundlach was quoted china is uninvestable in my opinion at this point i've never invested in china long or short why is that i don't trust the data i don't trust the relationship between the united states and china anymore i think that investments in china could be confiscated i think there's a risk of that end quote obviously with a significant percentage of the daily journals marketable securities invested in byd and alibaba you feel differently please explain why you are right well of course only the future knows who's going to be right but china is a big modern nation it's got this huge population and this huge modernity has come in the last 30 years and we invested some money in china because we could get more value in terms of the strength of the enterprise and the price of the security than we could get in the united states other people including sequoia the leading venture capital firm in the united states have made the same decision we have but i'm sympathetic to gun language if he's nervous he doesn't have to join us different different folks have different opinions i feel about russia the way he feels about china i don't invest in russia so i i can't criticize gun law's point of view it's just i reached a different conclusion this question comes in from bill roberts and he says charlie you and warren have been making concentrated investments since the 1950s many of these investments have led to gains but even more impressively none of them have led to significant losses as far as i can tell neither one of you has lost more than a few percentage points of equity on any single investment daily journal has recently been a large amount of its capital on alibaba and foreign traded stock it's also taken on an additional 40 million dollars in margin debt to make these investments what makes you so sure that these investments won't lead to a substantial impairment of daily journals equity capital which would impact the company's ability to reinvest the resources needed to develop the company's software operating business well of course if you invest in marketable securities you have the risk that they'll go down you'll lose money instead of make it but if you hold a depreciating currency that's losing purchasing power on balance we prefer the risks we have to those who are avoiding and we don't mind a tiny little bit of margin debt i got lots and lots of questions on alibaba that was the one question that i received more than any other so i'll dig a little deeper through some of these someone named vishal patel from toronto wrote in and said that as a daily journal owner do we own local shares of alibaba does that actually give us legal ownership of that business or do we have a variable interest and is that the same net net what do we own and i did get a series of questions related to that same uh sort of sort of thought when you buy alibaba you do get a sort of a derivative but assuming there's a reasonable honor among civilized nations that risk doesn't seem all that big to me got a lot of questions just about the investing in china risks and i'll ask this one from ravi metta he's interested in your take on china and chinese stock exposure for the long term he says it's becoming quite evident that chinese companies could be banned from doing business in the western world or maybe some of the eastern countries too because of the number of the following reasons one the security threat issues two the potential conflict over taiwan three inability to meet western accounting standards and number four human rights issues considering all of the risks mentioned above why would anyone as smart as munger or buffett consider investing in china or any of the chinese companies well we did a very very simple reason we got more strength per dollar invested in china this the companies we invest in are stronger relative to their competition and priced lower that's why we're in china uh this one came in from waseem he said although the financials seem strong do the political pressures from the chinese government worry you at all well chinese government is worrying all the capitalists in the world way more than it used to and of course we don't like that and we wish that china and the united states got along better and if you stop to think about it think about massively stupid both china and the united states have been to allow the existing tensions to arise what bad is ever going to happen that china or the united states if if we too are close if we make good friends out of the chinese and vice versa who in the hell is ever going to bother us of course we should make friends with china and of course we should learn to get along with people who have a different system of government it we like our government because we're used to it and it has advantages of personal freedom china could never have handled its life with a government like ours they wouldn't it wouldn't be in the position they've they're in they had to prevent 500 million or 600 million people from be born in china they just measured the women's menstrual periods when they came to work and aborted those who weren't allowed to have children you can't do that in the united states and it really needed doing in china and so they did what they had to do using their methods and i don't think we should be criticizing china which which has terrible problems because they're not just like the united states they do some things better than we do they should like us and we should like them so i'm i'm totally i think nothing is crazier than people who foment resentments on either side of that one