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).