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