A good Chinese article on Value Investing

Buffett is in the news again yesterday. This time he is playing sidekick (financing) to help Mars to buy Wrigley (NYSE:WWY), the chewing gum company. One interesting Buffett comment I heard from CNBC is “I have doing taste testing of the Wrightly gum for 70 years”.

Fun aside, Buffett and value investing have also been very popular in China in recent years, thanks to the boom/bust of Chinese stock market. There are tons of books on Buffett and his investing strategy, either translated from English, or written by someone who really does not know value investing. I saw a guy (who admires Buffett and claims to be value investor) talked about how great PetroChina is, and encourage small investors to buy at CCTV-2. Now we all know how PetroChina (NYSE:PTR) A share (601857) did.

But I found this one (written by Jingzhou Lawyer, 锦州律师) to be different. I found he has a very good understanding of value investing, much better than many pros in China. So let me quote some:

任何人价值投资的理念是一个三合一的系统。缺少了任何一项都不是真正的价值投资。 价值投资就是：选择强势公司的股，以便宜的价格买入，不轻易交易。

Can value investing work in China market?

USA today has an interesting article regarding Chinese investors (speculator more precise) learning a tough lesson in the domestic stock market. The article used two example to explain:

(Picture source: USAtoday.com)

In October (2007), Wang, 45, invested $2,800 in a Beijing real estate firm, chosen, Wang explains, “because it’s called an ‘Olympic stock,’ and ought to do well.”
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But now Wang’s beginner’s portfolio is down almost $1,000, over three times her previous monthly salary.
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Example 2 (quote from the article) again:
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Everyone wants to be Buffett

Warren Buffett is a popular guy in China, although he has not visited China. But his book (more accurately the books about his investing philosophy) has been translated into Chinese. Such as this one, Buffett’s letters to shareholders, which is good. But there are many other knockoffs, such as this one, Lin Yuan the Chinese Buffett, I haven’t read the whole book, but read a piece of it. I think Lin Yuan is a sharp guy, but he is not Chinese Buffett.