Chinese Growth Stocks
Investing in fast-growing companies, like these Chinese growth stocks, has long been one of the best ways to build incredible wealth. For most of my career I invested in growth stocks. However, the adage that you must take on high risk to earn higher returns should be recognized when investing in high growth stocks. Because of their growth, fast-growing companies tend to sell at much higher multiples of earnings and cash flows than traditional stodgy old companies do. But again, “no risk no return.”
Another attribute of high growth is that it can even value out imprudent buy decisions. Due to the power of compounding, fast growth can cover up the mistake of overpaying. On the other hand, the incredible benefits of investing in growth stocks at attractive valuations is most profound. This is commonly referred to as GARP (growth at a reasonable price).
With this video I will be covering what I consider to be the top 4 Chinese growth stocks. Due to concerns of antitrust findings and assessments by the Chinese government, these stocks have been very weak lately. However, I do not believe the underlying fundamentals are in jeopardy, and therefore, these top 4 Chinese growth stocks are worthy of your further research and due diligence.
In the following video, I will go over these 4 Chinese growth stocks: Vipshop Holdings (VIPS), JD Com (JD), Alibaba (BABA), and Tencent Holdings (TCEHY).
FAST Graphs Analyze Out Loud Video:
Disclosure: No positions.
Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.