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28-05-2015, 04:59 PM
Notes From London Value Investor Conference 2015: Woodford, Ruffer, Brandes & More (LINK)
I was unfortunately unable to attends this years conference. Market Folly has done a write-up of the event. I was looking forward to hearing the presentation by Dato Cheah (Value Partners), and here’s an interesting comment by him:
An equity culture has not developed properly in China yet with the total number of stockbroker accounts only on par with Brazil. Chinese people are under-invested with only 6% of their wealth in the market. There is a general feeling of mistrust of stock markets because people have had their ‘fingers burnt.’
The recent dramatic rally in China stocks has further to go. The Hang Seng China trades on a forward PE of 9.8, 1.3x PB. There is an opportunity to invest in the ‘H’ shares as they trade at a 30% discount to the ‘A’ shares. It might be better to invest in larger companies as small-caps have already had a good run.”
He warned that ethical standards were low on the mainland. Investors have to do lots of due diligence but the market is inefficient so there are opportunities.
Comments:
I looked at a bunch of state owned enterprises (SOEs) somewhere around September 2014, but passed as I had difficutly getting comfortable with their leverage ratios. I eventually invested in some Hong Kong companies.
Now I know how people living in the dot-com era felt. I still feel a tinge of regret that I passed on it. Can’t win them all.
I was unfortunately unable to attends this years conference. Market Folly has done a write-up of the event. I was looking forward to hearing the presentation by Dato Cheah (Value Partners), and here’s an interesting comment by him:
An equity culture has not developed properly in China yet with the total number of stockbroker accounts only on par with Brazil. Chinese people are under-invested with only 6% of their wealth in the market. There is a general feeling of mistrust of stock markets because people have had their ‘fingers burnt.’
The recent dramatic rally in China stocks has further to go. The Hang Seng China trades on a forward PE of 9.8, 1.3x PB. There is an opportunity to invest in the ‘H’ shares as they trade at a 30% discount to the ‘A’ shares. It might be better to invest in larger companies as small-caps have already had a good run.”
He warned that ethical standards were low on the mainland. Investors have to do lots of due diligence but the market is inefficient so there are opportunities.
Comments:
I looked at a bunch of state owned enterprises (SOEs) somewhere around September 2014, but passed as I had difficutly getting comfortable with their leverage ratios. I eventually invested in some Hong Kong companies.
Now I know how people living in the dot-com era felt. I still feel a tinge of regret that I passed on it. Can’t win them all.
http://theasiareport.com - Reflections From Finding Value In Asia
