A reader from Norway made an interesting comment on Twitter in response to the article Two Crashing Stocks I’m Starting to Like. In that piece I discuss the buying opportunities Amazon and Apple are in the process of becoming, given their unison 30% drop. Dylan disagreed:

 

emergingvsdevelopedmarkets2

 

I responded that the emerging market companies he argue are better buys, are simply poor imitations of the developed market originals.

 

emergingvsdevelopedmarkets1

 

The objections¬†Dylan raised are important as retail investors now have the ability to hunt globally for the best returns. For the sake of argument then, I will look away from the fact that Xiaomi is still a privately held company and can’t be bought. Even if it were listed on either the Shanghai or Shenzen stock exchange, foreigners¬†are not allowed to buy mainland Chinese stocks.

Korea’s Samsung is a publicly listed company trading on the KOSPI.¬†Again, retail investors can’t access that country. The only alternative is buying a South Korean ETF (EWY) that trades on the NYSE¬†and is 20% made up of Samsung shares.

 

 

WHY APPLE IS A BETTER COMPANY THAN THE NEW APPLES XIAOMI AND SAMSUNG

I understand Dylan’s argument¬†that cheaper emerging market upstarts are the future and old western firms belongs to the past. But I disagree in the case of companies selling physical products as profit margins are more important than TO READ ON SUBSCRIBE AND BECOME A PATREON.

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