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Collection: Charlie Munger - #62 'Depositary Shares'


Video Link: https://youtu.be/43OkV5M7VRU


In this episode, Charlie Munger was asked if he didn’t have access to the Chinese exchanges via Li Lu, would he feel comfortable investing in the American Depositary Shares of most Chinese companies?


In this episode, you’ll learn:

  • What is Charlie Munger's thoughts on Depositary Shares?

  • Will Charlie Munger invest in Depositary Shares?

To check out all Collection: Charlie Munger <click here>

 

[Transcript]

(Source: https://youtu.be/X1Oi3esiry8)

AUDIENCE MEMBER 00:08

Good morning, Charlie. If you didn’t have access to Li Lu and to the Chinese exchanges through him, like many Americans don’t, would you feel comfortable investing in the American Depositary Shares of most Chinese companies that are comprised of a V.I.E. Structure and offer shareholders few rights and minimal protections from the Chinese government?


CHARLIE MUNGER 00:30

I don’t know much about depositary shares. I tend to be suspicious of all investment products created by professionals. And I tend to go where nothing is being hawked aggressively or merchandise – sold aggressively.


So you’re talking about a world in which I don’t even enter. So I can’t help you. You’re talking about a territory I avoid.

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