Reduce potential risk by aligning with founder-led companies that have strong fundamentals and benefit from a growing middle class
Transcript
| Danton Goei: | And in terms of separating opportunity from the risk, you know, we think of one just the basic fundamental analysis you know, it's worth reiterating sort of the modes around the business, the quality of the management, certainly the valuation you want to start with that. But also we focus on consumer driven companies, the the company, the industry overall and certainly the government has supported that the consumer area. And so we think that long term, the middle class growth there is a high probability. And so we want to have companies that are domestically focused in China and that are going to benefit from the growth of the middle class overall. So we have as a whole, if you look at our Chinese holdings, have companies that are exposed to that. And then finally I would say we we have a big bias and a tendency towards founder, lead companies where where the founders are still very heavily involved lead in the company. So one is, I mean, they're, of course you love the intensity, they still bring there to their baby. So you know that someone is there at the wheel. But secondly also there are alignment in terms of they own a lot of the stock since they started the company. And our alignment, our, our aligned. And so that's a real positive to be basically in the same boat, owning the same stock as they do. That's a big advantage. And so if you think about, you know, 10 cent, that's the case or made to on or jd.com. And even a ping-an insurance, for example there, the founder, Peter Moss, the chairman over there. So, you know, we're looking for founder-led companies in the consumer area, overall and then we're the fundamentals of very positive. |
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