A Billion People…

by Mr Juggles

I get it. China is big. There are a lot of people there and they are increasingly buying stuff. So when you present an investment to me, it’s not useful to tell me how many people there are in China. You see, I know that already. That’s why I own some Chinese companies already, before you came in here. So when I ask you why I should pay 50x earnings for this company, it’s singularly unhelpful to start off by saying: “Did you know there are A BILLION PEOPLE IN CHINA?” It doesn’t make me want to buy the stock, it makes me want to punch you in the mouth or “decouple” your head from your torso.

I’ll tell you what China also has. A BILLION POOR PEOPLE. A whole billion of them (heck there may even be a TRILLION, why not give them credit and round up) all looking to buy no things with their no money. Stick that in your model and regress it.

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POSTED: 02/1/08 2:50 PM
Comment (8)


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Comments

  1. Arbitrageur
    February 1st, 2008 | 3:39 pm

    Hope you actually said something close to that on the pitch (and not just on the blog), Juggles.

  2. born to lose
    February 1st, 2008 | 4:21 pm

    Long dirt cookies

    http://www.freep.com/apps/pbcs.dll/article?AID=/20080130/NEWS07/801300423/1009/NEWS07

  3. Toro
    February 1st, 2008 | 4:35 pm

    There’s a billion Chinese in Toronto, for heaven’s sakes.

  4. Mr Juggles
    February 1st, 2008 | 4:39 pm

    I think I have felt too sad about Haiti to work something around the dirt cookies.

  5. Anal_yst
    February 1st, 2008 | 4:55 pm

    “…all looking to buy no things with their no money…”

    priceless Juggles, priceless

  6. born to lose
    February 1st, 2008 | 5:01 pm

    “I think I have felt too sad about Haiti to work something around the dirt cookies.”

    Never trade emotion, LONG DIRT COOKIES!

  7. Aspiring Mini-Baller
    February 1st, 2008 | 8:07 pm

    Since I’m long puppy mills I might as well be long dirt cookies too.

  8. nick gogerty
    February 5th, 2008 | 11:27 pm

    even if you are “one in a million”, there are 1,300 chinese just like you.