TIP384: Evergrande, Alibaba, and the Collapse w/ David Stein

We Study Billionaires - The Investor’s Podcast Network

Stig Brodersen

Education, Investing, Business

4.6 • 3.6K Ratings

🗓️ 3 October 2021

⏱️ 64 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

On today’s show, Stig Brodersen has invited back David Stein. David is a former chief investment strategist for Fund Evaluation Group, a $70 billion investment advisory firm. In this episode, David will break down what is going on in China and whether we as investors should be concerned about a stock market collapse.

IN THIS EPISODE, YOU’LL LEARN:

(01:07) How are Chinese stocks valued historically?
(05:37) How to think about stock market valuations in the US vs. China.
(09:04) Why are some investors like Charlie Munger, bull on Chinese equities?.
(13:36) Why are some investors bear on Chinese equities?
(17:50) What is the true debt situation in China?
(24:31) Can Evergrande lead to a stock market collapse?
(28:03) What happens to investors’ ADRs if they get delisted in the US?
(33:03 ) What is happening in the tech sector from an investing and regulatory perspective?
(37:11) What is the intention behind common prosperity?
(44:23) What are the known knowns and known unknowns when investing in China?
(48:03) What are the implications of the new Chinese currency?
(53:20) How to position yourself when investing in China.

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES:

Listen to David Stein’s podcast, Money For the Rest of Us.
Visit David Stein’s Website.
Visit David Stein’s YouTube channel.
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Transcript

Click on a timestamp to play from that location

0:00.0	You're listening to TIP.
0:30.0	You're listening to the Investors podcast.
0:35.0	Where we study the financial markets and read the books that influence self-made billionaires
0:39.7	the most.
0:40.7	We keep you informed and prepared for the unexpected.
0:52.3	Welcome to the Investors podcast.
0:53.3	I'm your host, Dick Brodison.
0:55.5	And today I'm really happy to have invited you, David, back on the show.
0:59.8	To educate us on what is going on in China right now.
1:03.6	It's great to be here.
1:04.8	Thanks for having me, Dick.
1:06.8	So David, let's set the scene for this conversation.
1:10.5	So the Chinese equity market this year, especially tech stocks, have just tanked.
1:16.7	And it might start to look cheap for a lot of investors, especially whenever we compare
1:20.6	to the S&P 500 that already looked somewhat expensive and so far in 2021, it's up another
1:27.9	20%.
1:29.2	So let's try and sum up for 2021 and say, is this Chinese stock market cheap historically?
1:36.3	Well, first before we do that, let's think about how Chinese stocks have performed.
1:40.7	And when you talk about Chinese stocks, there's many different markets.
1:43.5	There's the big tech stock that make up, you know, or some of the top 10 companies in
1:48.8	the world, like Tencent or Alibaba.
1:51.4	But we also have stocks like the A shares, which are just local companies that trade in
	...

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