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Buffett still loves China

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The greatest investor of all time has some encouraging thoughts on emerging markets. In fact, Warren Buffett says China in particular is a proposition even a third-grader can understand. China's resource demand is certainly easy to grasp.

As he told the press at a photo opportunity in southern China, China is a big economy -- already the world's second-largest -- and is getting bigger at a fast rate. And with big opportunities in that high-growth market going largely uncovered by Western analysts, Buffett naturally sees China as a "logical" place for him to put his money to work.

Buffett is touring China looking for investments to bring into the Berkshire Hathaway portfolio. So far, Buffett has made two notable deals in the country over the years. The first, a 3% stake in Petrochina (PTR, quote), was sold off in 2007 at roughly a 600% profit; since then, the global recession knocked 35% out of the stock's value.

More recently, Buffett grabbed a 10% share of electric car battery maker BYD (BYDDF, quote) for about $231 million in October 2008, at the peak of the post-Lehman gloom. Since then, that stake has rebounded to be worth over $1.8 billion, handing Buffett another 600%-plus profit.

If Buffett loves China, there are probably worse things the everyday investor can do than to bet on broad China portfolios like FXI (quote) for the long haul.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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