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China’s Other Warren Buffetts In Waiting

August 13, 2010 | About:
I found this interesting article about Li Lu on Forbes. The author basically states that there are many other investors in China who would be a possible replacement for Buffett. This thought also entered my mind recently. After all we are talking about a country with over a billion people, and a stock market that has surged over the past decade or so. There are bound to be quite a number of people who have a spectacular investment record.

Here is a quote from the article followed by the link to the rest.

Li Lu, a native of China, basked in the international spotlight at the end of last month following a report that Warren Buffett’s Berkshire Hathaway planned to hire him to manage part of its investment portfolio and that Li might one day replace Buffett himself. Li helped to broker Berkshire Hathaway’s hugely profitable investment in Chinese electric carmaker BYD, the report said.

Yet Li, for all of his success, may not be such a rarity among Chinese. After years of rapid economic growth and stock market reform, the mainland has spawned a large fund management industry and a flock of home-grown fund managers that might also make suitable candidates for Buffett if Berkshire Hathaway is looking for China expertise.

http://blogs.forbes.com/russellflannery/2010/08/12/chinas-other-warren-buffetts-in-waiting/

Disclosure: None

About the author:

Jacob Wolinsky
My investment ideas have been inspired by many of value investors including Benjamin Graham, Charles Royce, John Neff, Joel Greenblatt, Peter Lynch, Seth Klarman,Martin Whitman and Bruce Greenwald. .I live with my wife and daughter in Monsey, NY. I can be contacted jacobwolinsky(AT)gmail.com and my blog is www.valuewalk.com

Visit Jacob Wolinsky's Website


Rating: 3.4/5 (13 votes)

Comments

the Spark
The Spark - 3 years ago


I seriously doubt Buffett is looking for Chinese mangers. Li Lu has apparently done quite well investing in China, but has done well in the U.S. also. Buffett is looking for someone, like Li Lu, with global financial expertise, not someone who has a good record in a strong market. I doubt there are many ideas in China that would interest Buffett given his risk aversion and the sky-high multiples prevailing in the Chinese market.
augustabound
Augustabound - 3 years ago




Buffett is looking for someone, like Li Lu, with global financial expertise, not someone who has a good record in a strong market.
Isn't he also a one hit wonder with BYD? I thought I read somewhere (I can't remember where for the life of me), that without the BYD home run, his returns are mediocre at best.

There's also something to be said about Munger investing with him though, even if it's small potatoes for Charlie. Munger seems to take every investment very seriously, so there's got to me something more to it than BYD. I just don't know what it is.
traderatwork
Traderatwork - 3 years ago
Just for the sake of argument , if you take away the top 10 Buffett and Munger's best ideas of the last 50 years they will be mediocre too. Concentration of investment should see as a strength not weakness.

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