Not too creative in the title. It responds to today's news at WSB in SA.
*
So is Hong Kong with China as their parents. Glad it is over and
Central Square does not turn into Tienamen Square. Will check whether
I've bought EWH.
* Bet H-P printer is not as
profitable as before. The time of selling you a $50 printer but charging
you a $30 cartridge is close to be gone if not already gone. I still
like H-P laptops with quality keyboards which my grand child cannot
destroy by his big foot.
* In many cases, only one
company in one industry wins and the rest are losers. As a Chinese
saying, you cannot have two tigers in one mountain (unless they're part
of the family :)). Turbo Tax is the winner.
*
High-tech companies need to plow back a good percent of the profit to
research / development to build the next mouse trap. Examples abound.
That's why Buffett stays away from the companies without moats. That's
why he missed all these companies such as Apple, Microsoft, Google...
For the last 5 years, his crown is gone and his myths are debunked as I
outlined them.
I'm either very smart or very
stupid to argue with the best investor in our generation. However, I
have reasons to avoid some of his ideas that are not applicable to
retail investors.
* The GM problem will not be ended before the fat lady sings. Same for the banks.
Sometimes just 'do it' is better than spending all the time arguing and ensuring political correctness.
China is heading to be more democratic. If you do not believe me, just compare China today and China 30 years ago. Democracy needs educated citizens. China is there for the big cities, but not for rural areas. When we have too much democracy too fast, there will be chaos.
Does our generous welfare cause a lot of social ills? If you do not work, you die. Simple! If you do not work due to certain problems, the society should provide a safety net. China is working on that slowly. Hong Kong did that already.
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China is not communist as Dorothy said. Communism ensures everyone gets the same share no matter how hard you work. It encourages folks to be lazy. It is extreme capitalist governed by a party of a handful of 'dictators'.
Wall Street Breakfast: Argentina Held In Contempt By NY Judge [View article]
Even a child can tell you it does not work after spending several hours on both machines under the same OS. Where are all the QC folks?
Wall Street Breakfast: Argentina Held In Contempt By NY Judge [View article]
I need Office and subscription that uses the browser. Chrome is quite good and if you do not need Office, you should have it. Tablet OS concentrate on handling frequent interrupts. Phone software is another one. When you put all 3 into one, it will not work. Microsoft management, wake up from your afternoon laps dreaming how to use the bonus money and hire back all those QC folks you must let go long ago.
Wall Street Breakfast: Argentina Held In Contempt By NY Judge [View article]
Wall Street Breakfast: Argentina Held In Contempt By NY Judge [View article]
Initially during the late 40s, Chinese from Shanghai made good money by forming textile factories in Hong Kong. They bought their expertise in management, money and skills. They exploited the cheap labor of the desperate refugees escaping from the communists. Many of these products were exported to the US (to provide cheap stuffs for the poor).
After the takeover, Hong Kongese moved the factories to Southern China under Deng's special economical zone policy. From then on, most big money are made in real estate in Hong Kong, a supply and demand reality.
The Brits made good money by governing HK. The London street sweepers could get high official jobs in HK, plus many 'loots' were returned to Britain. All the big projects including the new airport hired British firms to make big money. There is a general misunderstanding why the slave's GDP per capita passed the master as written by the Stanford professor. It is not the colonial government but the proximity to China.
Americans never made big money in HK except the Hollywood movies initially; it provided vacation destination for the army during the Vietnam War (remember Suzy Wong). However, it is the HK connection (and Taiwan too) to make China the global factory for American companies and now the middle class is making Americans rich and saved some American companies such as GM.
China benefits a lot. However, the status of HK will decrease when SH takes over.