Misha

BYD: Positioning Berkshire for the 'Chinese Century'

I have my doubts about “Chinese century.” Essentially what we view as positive is the command element on the Chinese economy that allows them to “plan for a rainy day” by saving during good time, investing during the downturn, control the currency, etc. The same people who are concerned with the government involvement in the US are getting breathless when talking about China. Remember the Soviet Union and its march across the globe in 60s and 70s and into early 80’s? I do recognize that Chinese economy is a hybrid between market driven and command economy, which is better than what we saw in the Soviet Union. However, the command component, responsible for a “superior” stimulus plan and other components I just listed, gives me a pause. For now and for my money, the United States is still the place to invest and bet on despite all the current problems.