Donāt you see that the political risk in China will always present a danger to their growth (greater than in western countries)?
Opposite to western countries, with more permissive and a laissez-faire approach (comparing to China), when the companies become to big, presenting an outside power that could change the status quo (political, economic, financial, shadow debt, financial stability, competition, information/data, leadership), the CCP will trim the potential growth like a bonsai tree, so the Chinese companies wouldnāt become too large/relevant. The CCP could influence their business strategy, change their leadership, restrain financing, condition their operations, force them to give their data to the Government and public institutions. The courts in China are aligned with the Government, there isnāt a separation of powers, the same with PBOC.
Sure, but there is always some form of risk. The positives outweigh this risk for me personally.
As for Baillie Gifford; there are far more knowledgeable folks working there than I. Iām assuming they are continuing to do their homework as well as having their private investment channels.
I donāt have massive Chinese exposure but the exposure I do have, I am happy with.
Yep, for high risk investments an outside and dedicated expert management is better. As they would have more knowledge and time to follow that kind of investments than the usual investor.
Does anyone have a clue what it is about the Edinburgh Worldwide trust from BG and why it has performed so ā ā ā ā this year compared to some other funds?
Thanks for sharing, I am not a BG investor but respect and keep and eye on them, interesting they are still bullish on BABA but want to hold the HK shares.
Thanks, this is interesting as I hold Baillie Giffordās long-term global growth fund. Iām glad to see them trim exposure to China a little by selling NTES, TAL and some BILI.
Got ya. Not too concerned about BILI but itās good to see the other two cut adrift. Iām also glad they seem to be maintaining or adding to positions in the bigger Chinese names.
If anything, the past six months have given me more confidence in SMT. Itās down about 4-5% for the period, which is not too bad considering its exposure to China through BABA, NIO, PDD etc and the wider rotation away from growth/tech. By comparison, ARKKās down some 28% or so.
Sometimes I think I should just liquidate and go $bomn + #smt those combined gives me all the diversification I really need. What stops me is the fomo on missing the next Tesla and not having enough exposure in SMT hence I double down on some of their positions - Ginko, Lilium etc and hold Palantir and Ionq
Yeah, similarly, the core of my portfolioās simply SMT + VWRL. Ginkgoās an interesting one: itās now in SMTās top 10 at about 3%, so BG must have a lot of confidence in its long-term prospects.
I donāt suppose this thread is gaining traction today based on Motley Foolās todays article on SMT. My experience with Fool is to read their articles with a pinch of salt or learn the hard way like i did.
The paid-for partās meant to be decent, but the free stuffās often clickbait. They churn out articles on SMT because itās popular: one week the trustās a āno-brainer buyā, the next itās the opposite.
