Every investor loves to believe that he is the second coming of Warren Buffet so I’m never surprised to hear allusions to Buffet’s methods and sayings. At least that was true until I met Richard Ji, a nice, well-intentioned equity analyst at Morgan Stanley. Ji, however, frequently refers to Buffet concepts in his writings covering the CHINESE INTERNET sector. There are many places in which it makes sense to apply ideas like margin of safety but I promise you that the Chinese internet is not one of them. Last time I checked, Buffet didn’t buy tech companies let alone those trading at 4-8x book value.
Mr. Ji helpfully provides a chart explaining the stunningly complex mood swings of Mr. Market.
Ji also points out the wild variance in Mr. Market’s willingness to pay 30x at some times for Chinese Internet companies and only 25x at other times.
You may want to read some of Mr. Ji’s other work. Here are the actual headlines from some of his most recent reports:
- “Netease.com: A 3-in-1 Gourmet Combo Offered by Mr. Market”
- “Focus Media: ‘Blue Ocean’ Innovator in the Advertising Universe”
- “Ctrip.com: 1Q06: The Second Stress Test for Level 5 Leadership”
- “Tencent: 1Q06: Firing Up All the Cylinders”
- “Sohu.com Inc: 1Q06: Gaining Content Edges in a Harmonious Society”
If you know what any of these titles mean, please email us and let us know.Related Reseach:
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