Leap into China stocks
Updated: 2007-12-17 10:22
Q: The language that spells success?
A: Chinese.
Take it from Jim Rogers, a hugely successful investor, who has studied China ever since he traveled there 23 years ago.
Rogers, co-founder of Quantum Fund, is a plainspoken investor who amassed a fortune through shrewd foreign investing in publicly traded companies and commodities.
He doesn't reveal what stocks he holds personally or tell us hot tips. But he does write about his belief in the vast investment potential of China -- energy companies, transportation, agriculture.
He explains, in detail, the mechanics of purchasing shares in China's "ever-increasing legion of listed companies." Good thing, because "on the surface, China's numerous exchanges and multilayered regulations can appear daunting," he writes.
He tells investors to proceed with caution but forge ahead nonetheless.
"A bubble may loom in certain sectors and we may see a dramatic correction … we need to prepare ourselves for long-term opportunities, of which there will be many," he writes. Rogers prudently likens this to "a time for preparing your nets … to learn as much as you can about the Chinese market." Investors should ask the same questions they do when researching any stock purchase: Does the company have too much debt? Good profit margins? Strong competition? Or is it a dominant player? Worth exploring:
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