Chinese stocks an undervalued opportunity, says Charlie Munger disciple

Shares in Chinese companies present better opportunities today than at other times, a disciple of legendary investor Charlie Munger said in a rare reflection on the world’s second-largest economy amid tensions with the US and the ongoing artificial intelligence race.

The comments by Li Lu, Chinese-American founder and chairman of Seattle-based value investment firm Himalaya Capital, came amid divergence between the markets on opposite sides of the Pacific. While stock markets in China and Hong Kong have been struggling despite China’s economic growth, supply chain dominance and fast technology advances, US stocks have defied high inflation, government debt concerns and two-decade-high Treasuries yields to hit new highs.

“If you are rational investors and look at the whole picture, you might take a different perspective,” said Li, who was close to Munger, the late partner of Warren Buffett in Berkshire Hathaway. “In today’s market, you probably find better opportunities than you would find in different times.”