Market-Beating Investor Compares China To Korea and Taiwan Two Or Three Decades Ago
The Times of London recently posted an excellent interview with former Fidelity fund manager Anthony Bolton, who recently announced he was canceling his retirement to launch a new China investment fund. From a recent profile in the Wall Street Journal:
Mr. Bolton, 59 years old and well-regarded as a market-beating investor based in London, said his move is a reflection of the shifting center of gravity in the world economy.
China is on the cusp of a major transformation in its economy thanks to rising incomes, Mr. Bolton said. He points to studies that show consumers in emerging economies launch into a new phase of purchasing when per-capita gross domestic product hits $4,000 to $5,000. He compares China to Korea and Taiwan two or three decades ago.
“That offers huge potential for a number of areas of the economy,” he said.
According to forecasts from the International Monetary Fund, China’s per-capita GDP will be $3,565 this year and $4,336 in 2011.
The stock picker said investing in China isn’t just about individual company performance.
“Long term, you’ll make a currency gain as well as stock gains,” he said. China eventually may allow its currency, the yuan, to strengthen against developed currencies, a factor that would boost results for overseas investors.
“China is the opportunity of a generation, and I’ll only be able to play a bit of a part of that because I’m not going to do it forever. I said I’d do it for at least the next two years,” he said.
Click here to download the Times interview (MP3, length 4:20).