Everyone knows that China is an economic powerhouse. But which companies are the
best to invest in? That's what I hope to answer in the next
one to two months. What's up everyone my name is Ben and welcome to rareliquid a
channel where I draw from my experience as a former JP Morgan investment banking
analyst to cover videos about tech investing and
career advice As a friendly reminder, I post videos
about tech investing on the weekdays and career advice related videos on the
weekends. You can think of this as an introductory video where I'll be
explaining why I decided to look into China and what companies I'll be
covering in the future With that said, today's agenda looks like
this first I'll be explaining what i mean by Initiation of Coverage,
I'll then talk about the bullish case for China, and lastly I'll show you the
companies I'll be covering and the posting schedule for the videos
Now before I begin I do have one quick announcement I started a twitch channel
and is it called the twitch channel? I don't really know but it's under the
handle rareliquidx because rareliquid was
taken and I'll be creating models and analyzing stocks and I thought you know
might as well since I'm going to be building these models anyway
try to show people from scratch how I build them and it'll also be a good
way to kind of interact with all of you guys
I wanted to keep my streams separate from YouTube because sometimes I feel
like if you see a super long video on a channel you're not really
prone to clicking on it but on twitch you know it's built for streaming so I
wanted to kind of separate these two things out
and you can feel free to follow any of my social media channels if you're not
following the twitch channel because I'll be announcing from time to
time when I do plan to stream Okay, so first up let me explain what I
mean by Initiation of Coverage I've kind of been feeling that the
diligence I've been doing on stocks have kind of been all over the place you know
sometimes I'll do a video about Palantir for
example which is in the data analytics space and then I did one about Coinbase
which is in the crypto space and I did one about Digital Turbine which is in
the ad tech space so really like all over the place and I
wanted to be a lot more focused and focus on one industry at a time,
compare all the competitors, really do deep dives into all of them,
see which one really stands out, and try to invest into the ones that have the
best qualitative and quantitative stories
and so that's why I really decided to just focus on one industry at a time and
that's kind of what I mean by Initiating Coverage. Hopefully what this
means for you is that if you follow along my videos then
you'll be able to kind of see who the key dominant players are in each of the
industries that I cover and I plan to cover different industries
like cyber security, fintech, ad tech, social media I'll kind of see
what piques my interest later on but basically you'll be able to
kind of watch these videos and hopefully make better investment decisions
yourself Now you may be wondering why I chose
China first and let me help explain that As you probably know China's economy has
been growing extremely rapidly for the past few decades and is expected to
overtake the US economy in terms of GDP by 2026 to 2028. So
investing in China of course seems like a no-brainer but of course the issue has
a lot to do with politics First of all, China as you know is a
communist country and so the political party there has an
outsized influence in the business world Recently when Jack Ma spoke out against
the CCP's leader Xi Jinping, the communist party's suspended and
financials IPO and Jack Ma reportedly went into hiding or at least
stayed low for a few weeks This is a pretty crazy example of the
CCP's influence because Jack Ma not only is he worth something like 60 billion
dollars, he's also just one of the most loved and
respected leaders in the business world across the entire
planet really not just in China The second political issue with china
involves external factors It seems long ago but trade wars between
the US and china dominated market headlines for
months before Covid-19 and in addition to this China has
recently fallen out of favor with a lot of countries
especially due to its handling of the Covid-19 crisis
As a result, a lot of the largest Chinese companies have fallen significantly off
their all-time highs and to me this represents a potential opportunity
Now of course, there's things like regulatory risk and there's
probably a lot more that I haven't digged into yet that may be a reason for
these chinese companies to have fallen out of favor so much by investors but
basically what I'm trying to say is that there is a potential opportunity here
where some really dominant businesses in China that are going to just keep
growing really exponentially over the next few
years or decades are currently potentially undervalued and so
that's really the best of both worlds and
why I decided to really focus in on this industry or I guess country
So next up, let me go into the companies I'll be covering and the posting
schedule here's a list of the eight companies I
think are pretty interesting and I may not cover all of them but I plan to post
deep dive analysis videos on about four to six of them
As you can see, many of these companies are trading around sixty to eighty
percent of their all-time highs while growing revenues at 20 to 40
percent and with healthy EBITDA margins in the double digits
With their growth and margins these companies are also trading at reasonable
multiples and I'll discuss valuation on all of this a lot more in future
videos. But as I kind of explained previously my hunch right now is that
let's say these chinese companies were actually US companies- based in the US
operating in the US and had these kinds of financials
I would expect them to be trading at much higher multiples and
eventually I think as time goes on investors may not be able
to ignore the really attractive financials that these
companies are able to consistently kind of deliver quarter
after quarter and so that's what really I'll be digging into
Here is the posting schedule for the companies I plan to cover
and it might change a bit here and there but basically at least
for next week I will be covering Tencent and Alibaba
and the dates will also be a bit tentative but I plan to try to post
every tuesday and thursday around 8 or 9 a.m
pacific time and I'll be aiming to post two deep dive analysis videos per week
As I mentioned earlier on in the video, I do plan to build out some of these
models and live stream on twitch so feel free to check out my twitch
channel if you're interested or my other social media channels where I'll
be announcing when I stream and if you think that I missed some
really interesting Chinese companies that you think I should add to the list
or you think I should take some of the ones I showed you out, then please
let me know in the comments down below I also wanted to let you know that I'll
be giving away five percent of my June 2021 youtube earnings
through instagram on a giveaway, so check out this picture of Warren Buffett and
you can follow the instructions there it's really easy
and I'm also giving away another five percent through a small scholarship
you can check that out if you're a high school student or a college student
in the description down below As I've mentioned in previous videos, I
also give away ten dollars to the first commenter and another ten dollars to a
random comment, so these are our winners today if that's
you just dm me on instagram and you can also get ten dollars a free
bitcoin if you sign up through Coinbase or Gemini with the
links down below in my description and you can also get some free stocks if you
sign up using Weeble or Moomoo and sign up accounts
there. And so with that said, appreciate you as always for sticking
around and watching the video hope to catch you in the next one thanks
so much and peace out [Music]