A Value Investor's Dream (at Motley Fool)

By Nathan Parmelee July 26, 2008 Comments (1) In 2006, the Shanghai Composite index rose 130%. Its follow-up performance in 2007? The index nearly doubled. China was the growth story you couldn't get away from. With Chinese stocks down 47% so far this year and blowups in other markets (like our own) stealing the front pages, the constant clamor of news about hot Chinese stocks has diminished. But wasn't China the can't-miss growth story of the century? Surely everything didn't go down the toilet in six months, did it? The economy, inflation, and bears Peter Lynch is famous for saying that if you spend 13 minutes thinking about the economy, you've wasted 10 minutes. I think that's about right, but to understand how Chinese companies went from incredible growth and momentum stories to potential value plays requires spending a... [read full story]