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65 - Why I don't invest in Russia or China

The DIY Investing Podcast

Release Date: 03/01/2020

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The DIY Investing Podcast

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Call to Action:

  • For You: Write down a list of every country which you will exclude from investing for reasons such as this or similar. Stick to it.
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Mental Models discussed in this podcast:

  • Corruption
  • Property Rights
  • Government Ownership of Means of Production

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If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show's audience. 

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Twitter Handle: @TreyHenninger

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You can find out more information by listening to episode 11 of this podcast.

Show Outline

The full show notes for this episode are available at https://www.diyinvesting.org/Episode65

Two Key Characteristics Shared by Russia and China

  • High Government ownership of key businesses
    • Could lead to corruption
    • Businesses could be influenced to make uneconomic investments
  • I can't trust the numbers. (Due to the communist government)
    • Corporate frauds are more common
    • Both Russia and China have a critical lack of property rights.

Summary:

If you are going to make any investment you need to be sure that your principal is safe and a reasonable return on your investment is likely. Lack of strong property rights threatens my principal and government control of businesses threatens my reasonable rate of return.