Bill Mann, at the Motley Fool, has written an article saying that Taiwan is the place to be investing in stocks. I’ve been following Bill’s articles for years and have immense respect for both his analytical skills and his ability to dig up diamonds in the rough. The fact that his Global Gains selections have been absolutely crushing the major indexes only adds to that respect. This is what he had to say:
But people don’t seem to understand that the world’s high-tech industry is almost totally dependent on Taiwan, and on companies such as AU Optronics (NYSE: AUO). Taiwanese companies also have invested more money in China than companies from any other nation in the world.
Think they’re going to get eaten up by China? Heck, no! China runs on Taiwanese capital, and Taiwanese companies are uniquely culturally adept in dodging the difficulties of the Chinese market. Formerly a manufacturing center, Taiwan is now a country that uses its capital and intellectual property, so it’s not spending capital to build high-cost plants in Taiwan.
Yet investors are falling over themselves to invest in China, and no one is looking at Taiwan. Strange.
There’s a lot of truth there. There are a lot more genuinely spectacular businesses here that western investors just don’t know about than you could find in the BRIC countries. I’ve invested in a couple of them myself.
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