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Buffett'S "Counter Current" Sees More Logic Behind China'S Economy

2016/5/5 21:35:00 26

Stock GodBuffettChina'S Economy

For the global capital market, the recent Central American city of Omaha is a pilgrimage site.

In April 30th, Buffett's shareholders' meeting was held here.

At the shareholders' meeting, Buffett also talked about his views on China's economic trend.

He says he is still optimistic about China's economic development, which has been the "multi - head" of Buffett's fourth consecutive year of China's economy.

Over the years, the voice of China has been heard.

But thanks to the asymmetry of information and the lack of guidance from Soros, the bearish Chinese economy has been influential in the international opinion market.

Of course, listening to the light and listening to the facts and listening to the empty voice can help us understand the shortcomings and risks of economic development, so as to help the economy develop more smoothly and healthier.

However, if too much superstition and empty investment guidance, I am afraid will be caught in paranoid erroneous zone.

Not only that, Buffett also told the media that he had seen a Chinese project last year, although it did not indicate the name or industry of the company, but from his investment trajectory, he could see that the stock company's statement was "bull".

At the same time, Soros, a capital predator who insisted on singing China for many years, said in a recent commentary in New York that "China's domestic debt problem is worrying. Last year, China's economy has broken through the breach, which is mainly reflected in credit".

In this regard, Buffett believes that "Soros is worried too much" and believes that the Chinese government has more experience and knowledge in dealing with economic pformation and reform.

Of course, for

China's economy

Whether they are bulls, such as Buffett or empty, such as Soros, they all have the basis of their judgement, and wit, like them, is also hard to get rid of the psychological limitations of "just looking at what they want to see".

But when we look back at the track of Buffett and Soros's capital market operation, we can identify whose views are more trustworthy.

Buffett, a stock god, has always been famous for his value investment. Soros, the great predator, has always been famous for speculation.

Judging from Buffett's past investment skills, his choice is to use shareholders as a shareholder to invest in enterprises and get a stable value return. Therefore, he pays more attention to long-term development rather than immediate gains and losses.

Unlike Soros, he is more like the role of fund manager by investing in royalty and management fees.

In this mode of investment, the more unstable the market is, the more likely he will be able to make profits.

Therefore, when these two are judging the economic situation of a country, we can see their differences from their starting points.

This is actually Buffett can get the "stock god", and Soros more is just called the "big crocodile" reason.

For the economy, it has long-term development direction and stability.

Investment

The return enterprise is the backbone of the healthy development of the whole economy.

Speculation like Soros is not about the economic direction of a country, but whether it can guide the capital market through the empty economy.

Speculative returns

If Soros's viewpoint is superstitious but he does not understand his short selling skills and purposes, I am afraid it will only become the cannon of the capital market.

Of course, there is more than Soros in the international opinion market.

For example, although China's first quarter economic data just released recently showed that the economy is heading for a warmer year, many foreign media are still pessimistic. The old British government and economic media believe that the rebound of the economy is mainly caused by the continuous lending boom and a series of real estate stimulation.

But in fact, in addition to the full recovery of PMI to the withered line, the index of "GDP index", which has been approved and evaluated for the growth of China's PMI, is indeed reversing.

One of the most critical data industries is the trend of electricity consumption.

Data show that in the first quarter, the total electricity consumption of the whole society was about 13524 billion kwh, an increase of 3.2% over the same period last year, and the growth rate was 2.4 percentage points year-on-year.

This is why even though the first quarter data have been questioned in the international market, there are more and more reasons for investment companies to "turn around".

Even in the five year old bank of America, Merrill Lynch, in a recent report, it finally gave up its position of looking at emerging markets for many years.

The view of the Chinese market has also changed from "many uncertainties" to "recommending the global market" not to resist the general trend of China.


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