New Money: The Greatest Wealth Creation Event in History (2019) – Full Documentary


(dramatic music)
– What if I told you
there’s a magical
but completely
misunderstood place,
where seemingly
all the smart money
in the world is
beginning to flow.
– You walk down the street,
you go to a different city,
and you say, my God,
last time I was here,
five years ago, none
of this was here.
– It’s a place where people
are getting wealthier
like never before.
Where more millionaires and
billionaires are being created
than anywhere else on earth.
– That transformation is
probably the most rapid
and significant, I think
in humankind, ever.
– It will probably
come as no surprise,
that the world’s richest and
most successful individuals
have already discovered
this miraculous place.
People like Warren Buffet,
Charlie Munger, Bill Gates,
George Soros, Elon Musk, Jeff
Bezos, Jim Rogers and more.
And the money being
made here is incredible.
I’ll share how one
man, for example,
even found a clever way
to turn $200 into a
$1 million payday.
– In my personal opinion,
I think this is once in a
million years opportunity.
– But here’s the irony, in
this land of vast new riches,
money no longer exists
in the traditional sense.
There’s never a line at the
few remaining ATM machines,
no one carries a wallet and
fewer still write checks
or carry dollar bills,
credit cards or coins.
Instead, there’s
a radical new type
of currency exchange used
to pay for everything.
– I don’t need to
carry a wallet at all.
I mean literally,
no cash at all.
– So you don’t carry any cash?
– No, no, I can
live like every day.
– No credit cards?
– No, no.
– You’re about to see
this place in person.
I’m going to take you there.
And as you’ll see, in many
ways it’s more advanced
than anything you’re
probably familiar with.
You’ll see stores
without employees,
buses that drive themselves,
facial recognition
security and a string
of other new
breakthroughs and trends
that are light years
ahead of where you live.
– This technology
and product hunger
is really unparalleled.
It’s not seen
anytime, anywhere else
in the world and in history.
– But what really sets this
place apart is the money.
Both the money pouring in
and the money being made.
– There is the greatest
wealth creation event
in the history of
the world, frankly,
happening right here, right now.
– Now to truly understand
and take advantage
of what’s happening here,
you really have to see
this place for yourself.
So I’m about to give
you that opportunity
as I take you there in person,
to show you the most
misunderstood place in the world
and the greatest money-making
opportunity of our lifetimes.
(dramatic music)
Hi, my name is Steve Sjuggerud,
I’m a former hedge fund manager
but I’m excited today
to play tour guide
and take you on this
incredible adventure.
Right now, I’m at
the Newark Airport,
I left my island home in
Florida early this morning
and now I’m about
to hop on a plane
and take you to this place
where so much money is flowing,
so much wealth is being created
and where you really can get
a glimpse into the future.
But before we go forward,
you need to first step back.
(dramatic music)
This is a journey that I
started more than 20 years ago
and have continued many
times in recent years.
Every time I come here,
I’m even more amazed.
What I’ve realized is there’s
never been a bigger distortion
between perception and reality
than I see in this place,
right here, right now.
What people think about this
place is nothing even close
to what it really is,
or what it’s becoming.
So what is this place that
I’ve been talking about?
(tense music)
Well as you can probably tell
from what you see behind me.
We are in China.
I’m standing on the
Great Wall of China
in a place called Mutianyu,
roughly 50 miles
north of Beijing.
This section of the
wall was built beginning
more than 600 years
ago, back in the 1300s.
Isn’t this place incredible?
On a clear day, you can
see for over 20 miles.
But here’s the incredible thing.
China is not only
radically different
from the place it
was 600 years ago.
It is also completely
different from the place
it was just a generation ago,
even from a political
point of view.
– They call
themselves communists,
but they are probably
the best capitalists
in the world in 2018/2019.
California is more
communist than China is,
Massachusetts is more
communist than China.
– And this incredible adaptation
of capitalism has
transformed the country
in just a single generation.
People who are my age,
in their 40s and 50s,
grew up in a very
different time.
In Beijing, I met with a
successful hedge fund manager
and the stories he told
me were incredible.
– When I was a kid,
when I read book,
we do not have
electricity, at the night,
I need to use candle.
– I heard the same
story again and again
as I met with some of China’s
most successful people.
– When I grew up, which
was, I was born in ’75,
and lived in China
til the age of 10,
in Guangdong Province
which is fairly poor.
The fact that everyone
was poor in China.
And we still had to
have rations, you know,
like coupons for meat, for eggs,
for material to
make clothing with
and you’re lucky if you had
one new outfit per year.
– Coupons.
– Yes, exactly.
(bright music)
– Fast forward 40 years
and here is a glimpse
of China today, after years
of lightening fast growth.
(upbeat music)
Investing legend Jim Rogers
has been here all along
and watched that explosive
growth happen firsthand.
– First came here in
1984, I was terrified,
because I’d been listening
to American propaganda,
the Chinese were evil, vicious,
dangerous, blood-thirsty people.
Didn’t take me long of
traveling around China
to find out they’re disciplined,
educated, ambitious,
hard working.
– Jim Rogers probably
knows China more deeply
than any other American today.
When he came here
in the early ’80s,
he traveled the entire
country by motorcycle,
not once but twice.
He’ll never forget what he saw.
– I mean, it was amazing,
everybody was up early,
working and they didn’t stop.
They worked all
day and all night,
they were saving, they
were recycling everything.
They weren’t doing it to to
be, to save the environment.
They were doing it to
make money in those days.
And I could just see,
it was everywhere,
I could see the
sense of education,
I could see the ambition,
I could see the sense
that our children should
have a better life.
I mean, it was just everywhere.
(gentle music)
– Peter Churchouse
is another person
who has seen China
like few others.
He’s a successful businessman
who arrived in Hong Kong
in 1980 and soon went on
to run Morgan Stanley’s
Asia division.
He was there long before the
explosive growth of China
and he’s seen it all
happen firsthand.
– I came to Hong Kong in 1980,
so I’ve been here
nearly 39 years now.
I came to help build a new town
in the new territories
in Hong Kong.
And at that time,
Shenzhen, which is the city
just north of Hong Kong,
that city was not a city,
it was a village of
about 300,000 people.
And you walked around that
village, there were people,
blacksmiths beating charcoal
implements in the street.
There were no buses,
no taxis, no cars.
(upbeat techno music)
Now it’s city of
11 million people,
it’s the center of the biggest
manufacturing conglomeration
in the planet.
That area now had a GDP
roughly the size of Russia.
– Wow.
– Slightly smaller than Spain.
And there was nothing, it
had nothing 38 years ago.
So that’s kind of–
– It’s home to potentially
the highest tech
company in the world.
– Oh, yes, I mean, so many
of the China and European
and American tech companies
have their operations based
in that area.
66 million people in
that area right now.
It has the biggest manufacturing
center in the world.
It has 400 million
air passengers flying
through that place.
– So why does so few
Americans know the truth
about what’s happening
in China today.
– Most Americans really
know what they know
about China through
the lens of the media.
– China is really going in
extremely dangerous directions.
– This is a country that is
ripping off the United States.
– The biggest threat,
obviously, is China.
– So you end up having sort
of a warped view on China,
that tends to have
more negative.
Not structural,
it’s not malicious
and so I think a lot of
Americans can be excused
for having certain
preconceptions about
what China’s like.
– What I tell Americans
about the negative press,
is I think the media
does a disservice.
There’s a lot of, you know,
misperceptions around China.
But what’s really
happening in China is
this is their moment.
They are now a global power.
They’re the second largest
economy in the world,
will be the largest.
– The first time I came to
China, it was in the early 1990s
and I was in Shanghai and I went
to the old Shanghai
Stock Exchange which,
I went in and they said,
“No pictures, no pictures.”
At first I thought it
was for security reasons,
they didn’t want any
pictures in the stock market.
But instead I realized,
they didn’t want people
to see how dingy the
Shanghai Stock Exchange was.
And a couple blocks
away, on the Bund I went
to a meeting with a company
called Shanghai Lujiazui Finance
and Trade Zone
Development Company.
They said, “This is what
Pudong is going to look like
“in a very short
period of time.”
There was nothing there.
So how you could go from
essentially nothing in Pudong
to Manhattan in 10 years,
I said, there’s no way.
This is impossible,
this would never happen.
(upbeat music)
And I’ve never been more
wrong about anything
in the investment
world in my life.
The changes that I saw
from the early ’90s,
over the next 10 years
were extraordinary
and the pace of change
has never stopped.
– One of the reasons why things
happen so much faster here
than what we’re
used to at home is
because China is
still in the midst
of what some economists describe
as they’re economic
take-off phase.
This is the process
in which the majority
of the working population
moves from agricultural jobs
to tech and industry and moves
from the countryside
to the cities.
Branden Ahern is a 20-year
Wall Street veteran
who left the largest
global asset manager
to help start a business
that makes it easier
for Americans to
invest in China.
Branden meets regularly
with government regulators,
banks, insurance
companies and businesses.
I don’t know anyone who
has a deeper understanding
of China’s financial
system than Branden.
I met with him in Beijing.
– China has urbanized in a
very, very big way in 1980
only 20% of the population
lived in cities.
Today it’s over 50% and
it’ll get up to 75%.
And that’s raised hundreds
of millions of people
out of poverty as they
move into these cities,
get access to proper housing,
electricity, sanitation,
air conditioning
but also services
like education and healthcare.
– So you’re going from
24% living in cities
to 56, 58% living in cities.
That’s gonna go to 75%
in the next 10 years.
So we’re gonna see another
130, 150 million people move
to the cities in China over
the next 10 or 12 years.
They need to be housed.
Who’s gonna do it.
They’re gonna want to
own their own housing.
So that’s a big growth sector.
– And get this, the big
movement towards cities
and manufacturing that has
taken place over 22 years
in China, took roughly
120 years in Britain
and 80 years in America.
Here, it’s basically all
happened in just one generation.
I know it’s probably no
surprise to you to learn
that China has advanced rapidly
over the last few decades
and millions of people
have moved out of poverty
into the middle class and
even into millionaire status.
But here’s the thing.
What Americans don’t
realize is this.
China is no longer
simply a nation
that produces cheap
t-shirts and knockoffs.
Wong Hau is the
head of Sigma China.
Sigma is the word’s
largest independent
camera lens manufacturer
headquartered in Japan.
– In the past, made in China,
this label means a low value,
low value added services,
low quality products
and some people just think
China is a assembly factory.
Because we did not have
any key technologies.
So the only weapon we could use
is the large population,
the low labor costs.
But now things are
quite different now.
So we are moving
forward, with the backup
of government I will say,
sometimes, moving forward,
to the upstream of
the value chain.
– My view about China
was 15 years out of date.
I expected to come to
China and see bicycles,
to see people just
crowded in the subways.
And I saw that, I mean,
there are many, many
different Chinas.
But I also saw a lot of
wealth, I saw a lot passion,
a lot of energy and just
a much more modern society
than I ever expected.
China eventually became my life.
– James Early is another
American who was quick
to recognize the
opportunity in China today.
He’s the former director
of research at one
of the world’s largest
independent financial
research firms.
– People are missing everything
that’s going on here,
how fast things are moving.
– In many ways, the country
has become more sophisticated
and advanced than anything
we’re used to in America.
Which is why China is
creating more millionaires
than anywhere else on earth.
And why so much
money is flooding in.
Let me show you one
example of what I mean.
One of the first things you
notice when you move about
in China is that almost no
one, including street vendors
and even homeless
beggars use cash anymore.
Regular money, as
most of us know it,
has simply disappeared.
– I almost forgot
how fast growing
of the mobile internet
and online payment,
roughly like two or three
years ago I have to, you know,
carry a big wallet
with a lot of changes.
So you have to pay cash or
credit cards whenever you go.
You have to withdraw
cash, you know,
when you have no cash available,
you have to find
the ATM machines.
But right now, for here, in
Beijing, not just in Beijing,
even my hometown, I don’t
need to carry a wallet at all.
I mean, literally
no cash at all.
– So you don’t carry any cash.
– No, no.
– Every day.
– I can live, like
every day, full.
– No credit cards.
– No, no, no credit
card, no cash,
even for a full year it’s, I
don’t need any cash at all.
The only thing concerns
me is the battery
of my mobile phone.
– That’s great.
– Yes.
– So if your battery dies
you don’t have any money.
– Oh yes, yes, that’s right.
– Bob van Dijk is
the CEO of Naspers,
one of the biggest technology
investors in the world.
Today, Naspers owns
a huge share of one
of China’s biggest tech firms
and they’ve helped
build tech companies
in more than 120 countries.
I met with Bob at his
office in Amsterdam.
– Where typically now
you check into a hotel,
you put your credit card down
and you go through
registration, like in China,
you show up with your
phone, they scan a QR code,
or code that’s on your phone
and they will have your
complete reservation there,
they’ll have your
credit card details
and your check-in
procedures done.
And interestingly,
it goes as far,
like if you travel in
parts of China now,
in Beijing for example, you
want to pay with a credit card,
they don’t accept
your credit card.
They insist on being
paid by mobile phone.
The other day I was in Beijing
and I was trying to
buy an ice cream,
she was a 19-year-old
lovely young woman,
and she couldn’t sell me an
ice cream ’cause I had money.
I had renminbi, she
couldn’t take money.
You have to do it on your phone.
Everything is on, I wish
I were buying a Mercedes,
’cause she gave me the
ice cream in the end.
– Oh really.
– She felt so sorry for
this poor foreigner,
who couldn’t, all
he had was money.
Now, there are many things in
China are ahead of the U.S.,
again, I don’t like saying
it, Steve, I’m an American,
my kids are American,
my wife is American,
but I have to face reality
and Tencent, Alibaba,
I mean, you know the
names as well as I do.
These are not from the guys
in the backyard somewhere,
these are major
gigantic powerhouses,
built on technology.
Liu Xin is business TV
anchor for CGTN in China
and a former China
correspondent for CNBC.
No, I don’t see any money
changing hands here,
I just see these signs.
– Exactly, so convenient.
– So literally, is there any
money changing hands at all?
– Very little, I think.
You’d have to be living under
a rock to not have WeChat,
not have Alipay because
the blue is for Alipay
and the green is for WeChat
and there’s a constant battle
to see who has more market share
in the online or offline space.
Online, because of
Taobao, Alipay definitely
but offline because everyone
uses WeChat as social messaging
and just about everything else
WeChat pay has an advantage.
– WeChat, Alipay, Taoboa,
what are these names
that Liu’s talking about?
WeChat is the most powerful
social media platform
in China with over
a billion users.
It’s like Facebook
but on steroids.
You can use it not
only for communication
with friends and family
but for business dealings,
for setting up doctors
appointments or
dinner reservations,
for paying bills, even
for paying your taxes.
Taobao is the largest
e-commerce website in the world.
Bigger than Amazon.
And Alipay is another
mobile payment app,
which with WeChat Pay are the
two most popular apps in China
for paying for everything
with your mobile phone.
It’s amazing, every
time I come to China,
I see fewer coins and bills.
So I asked Liu Xin about
the virtual disappearance
of all types of physical money.
So how long has this been?
Because I was here
just a few years ago–
– And people still
had coins and notes.
– Yeah, as little as five
years ago, this didn’t exist.
– Well–
– I mean, it was–
– Five years is a
long time in China.
– Right and today, I mean,
do you use cash for anything?
– Very, very little, yeah.
– Do you carry cash.
– No, no, I mean, you know,
I’ve got my Pravda, you see,
I’ve got my sunglasses
and I’ve got my phone.
And this is why even pickpockets
are becoming unemployed
in China because they
can’t steal phones,
’cause everyone’s holding them.
They can’t steal money
anymore, nobody carries money.
– Right.
And that is what is leading
this new cashless society.
You can see it in
action everywhere
and many times it’s paired
with other really
interesting new technologies.
(upbeat music)
All right, it’s
lunchtime in Beijing
so I want to take you to one
of the most unique
places you’ve ever seen.
So here’s what’s unique
about this place,
there are no servers
at the tables.
All of your food travels
down all of these tracks,
goes right in front of you
at the individual table.
Let’s get started and
order us a burger.
This is the way it
goes, we’ll find,
the American burger there,
check out, continue to payment.
Select WeChat, hold up
the QR code right here.
Now we just wait for our burger.
There’s my burger.
– So I would say a great
example of technology
that we think is coming
to fruition everywhere
is using mobile phone
to sell used goods.
Think in America, Craigslist
is something everybody knows
and I think it’s
worked well in the past
but it’s something
that requires a bit
of work to sell your item.
Now we’ve come with
a business like LetGo
which we’re a big investor in,
to the point where you
basically just need
to point your mobile phone
camera at stuff you don’t want
to own anymore and just by
pushing a single button,
the phone will take a picture,
it will recognize what
it is you want to sell,
suggest a price for
what you want to sell
and it will immediately
post it on the web
which gives people
a huge audience
with absolutely zero effort
to sell their used goods.
– This trend, of course,
is proliferating worldwide.
But nowhere is it more
prevalent than in China.
Jonathan Crane is an
American entrepreneur
who got his start bringing
the world’s most
popular music acts,
like the Rolling
Stones, Whitney Houston
and Beyonce to China
roughly 20 years ago.
He explains the
incredible transformation
he saw take place
in just a few years.
– Doing business in China,
what you immediately see is
that things move very
quickly over there.
People are very
fast at innovation
and also adoption is
much faster in China
than anywhere else in the world.
An example is, we had
a ticketing company
and when we started that
ticketing company, we were,
it was probably 2004 and it
was a cash society still.
We then saw 2005, 2006,
people were starting
to use debit cards, okay.
So instead of having to
have lot of cash around,
you use the debit card
which was convenient.
And then within two
years from there,
we started doing
mobile ticketing.
So really within
four or five years,
we went from cash delivery
to mobile ticketing.
And the adoption was incredible
that was happening across China.
– This trend will soon
reshape America too.
This is all just a preview
of how it will play out.
Brian Takango has been traveling
across Asia to research
and invest in local
businesses since 1999.
He’s got a remarkable
track record
of finding future
blue chip companies
when they are just
still small firms.
I met with Brian
recently in Hong Kong.
– Companies like
Alibaba, like JD.com.
Companies like
BingoBox, for example,
that now have 300 cashless
convenience stores in China
and you just go in,
there’s no cashier there,
you just walk in and
you scan your app
and you get your stuff,
you scan it in this table
and then you just walk
out with your goods.
And it’s all being done through
artificial intelligence,
it’s all being done
through the internet
and these wireless
payment methods.
– I went to one of
these employee-less
stores in Shanghai.
– All right, Steve, we’re
coming out of the subway here
in suburban Shanghai, this
is a middle-class area,
this is not fancy, this
is not cutting edge,
this is just average China.
But you can do a lot of things,
including visit an unmanned
store just with your face.
(speaking in foreign language)
(upbeat music)
So inside it’s got really
the same stuff you’d find
in a 7-11, we’re the
only people in here,
you don’t need any
person to run this store.
And yet it’s also safer, Steve,
than you’d expect
because everything
in this store is
connected to my face,
which is connected
to my WeChat account,
which is connected to
my Chinese bank account.
So whatever damage I do here,
all comes back to me
at the end of the day.
Here you go sir.
I’m just gonna push this
button and we scoot right in.
All we do, we set this guy down.
I’m gonna show my face,
not proud of that
picture but it’ll work.
I’m gonna scan this QR
code with my WeChat app.
And simple as that.
– No employees.
– No employees, took just a few,
probably faster checkout
than if we had employees.
Here’s your Coke by the way.
– Thank you.
– So that’s the future,
right here in China.
– So one of the
things I think is
really transforming
people’s lives is
how people use WeChat in China.
For example when people
decide to meet some friends
for dinner, they typically
would invite them
via WeChat ’cause they’re
obviously in their contacts.
Then they would send, the
reservation would happen
through WeChat because
the restaurant they want
to go to is a contact as well
and they have their booking
system integrated in WeChat.
So then they show
up at the restaurant
at the same time the ordering,
actually the menu of the
restaurant will be embedded
in WeChat and they online order.
So there will be no
way to take an orders
but everybody orders
on their mobile phone.
In the end the check also
gets sent to the mobile phone
and people actually can choose
to pay with their
integrated tempe options.
So the waiter only
brings the food
and everything else
automatically gets done
through the WeChat app.
– These technologies
have even changed
the way people buy cars.
Get this, you can now reserve
a test car on your phone,
then pick it up, at
what is essentially
a giant vending machine for
new cars by BMW, Ford and Volvo
and then drive it around
all you want, test it
for the next three
days for less than $50.
(upbeat music)
The thing you need to
understand is that it’s not just
about making payments
on your phone
or getting rid of physical cash.
This development creates
hundreds and hundreds
of new business ideas.
This is the future
for us in America
but it’s all unfolding right
now in realtime here in China.
Kevin Lui studied at
Cornell University.
Today he’s an equity
strategist at CICC,
the largest investment
bank in China.
Kevin is part of what
is widely considered
to be the best equity
research team in the country.
And we met up in Beijing.
– Back to 2006 is roughly just
over something
like 1% in China–
– That’s unbelievable.
– With regard to
mobile penetration.
– In 2006, 1% of Chinese
people had mobile internet.
Today it’s at least 50%.
– At least, yes, at least.
– At least, yes.
– My life is kind of, very
closely tied with my phone.
(dramatic music)
– Today the amount of
money the Chinese spend
on e-commerce is 42%
of the world’s total.
That means the value of China’s
e-commerce transactions is
now larger than the value of
the e-commerce transactions
from France, Germany, the
UK and the U.S. combined.
This is why the money
is flowing to China
and why more millionaires
are being created here
than anywhere else in the world.
Everyone, everywhere
uses their mobile phone
to pay for everything.
Food, train tickets, plane
tickets, tolls, clothing,
fast food, everything
with their mobile phone.
In fact, on our
most recent trip,
we tried to spend a few hundred
dollars buying souvenirs
at a Shanghai bookstore
but they no longer
accepted credit cards.
– What we often look at is,
what is the size of the
potential user group we have.
And for example the
number of internet users
in China is rapidly
approaching a billion.
And those are numbers that even
for a huge market like the U.S.,
they dwarf the very
impressive numbers of the U.S.
and I think that in time
as these populations become
connected, wealthier,
presents a fantastic
investment opportunity.
– Things have changed
so fast in China
over the last 30
years from nothing,
from a very backwards country,
now people are living
lives that a lot of people,
even in the U.S.,
couldn’t even imagine.
– Okay, so from a
cashless society,
to unmanned stores and
waiterless restaurants,
to mobile commerce
beyond our imagination,
clearly this is not how most
Americans perceive China.
And these are not stories
you typically see reported
in the mainstream press.
However this is the
reality in China today.
But hold on, you might
be saying to yourself,
I thought this was
a communist country.
This doesn’t sound
like communism to me.
Well as Jim Rogers said earlier,
California and
Massachusetts are probably
more communist than China.
And the truth is,
while the Chinese call
themselves communists,
they are actually among the
best capitalists on earth
and this is part of what’s
caused such a radical distortion
between between perception
and reality in China today.
– China isn’t a communist
country anymore.
It’s not a Marxist
communist regime
like it was under Moa Tse-tung.
It has advanced much more
into what you might call a
form of autocratic capitalism.
It’s still a dictatorship,
it’s still an autocracy,
it’s not a true democracy by
any means, but think about it,
most of the economy is now run
by private sector interests,
by private companies who
are doing their own thing,
investing, doing
what they want to do.
Families can pretty much live
where they choose these days,
they can get educated
the way they want,
they can own their own home,
they can invest
in stock markets,
invest in all sorts of products.
Still a lot of restrictions,
nowhere near as free as
it is in the West perhaps,
but it’s certainly not a
communist country in the way
that Marxism says that all
resources be owned by the state.
That is not the case
in China anymore.
(upbeat music)
– I mean, this is a country
where, since 1978, 1980,
when Deng Xiaoping started
the Open Door Policy,
a country where GDP
growth has skyrocketed.
Where life expectancy
has skyrocketed.
Where quality of
life skyrocketed.
Everything has gone up, up, up.
This an economic miracle.
You know, those are
measurable facts,
in a communist country,
brought about by capitalism.
– It’s almost ridiculous to
call China a communism country
because the government
is the biggest capitalist
in the world.
– I never look at China
as a communist nation.
I don’t even ever use the word.
You know, China is very
capitalistic, okay.
There’s a middle class
forming there, you have hope,
I go back to the word hope
that you can be, you know,
you can be low income
and become a billionaire.
– The truth is the government
in China works very differently
than most Americans think.
In short, they are doing
everything they can
to foster innovation,
entrepreneurship,
and personal wealth.
Here’s a great example
of how the Chinese
government has worked
with private businesses
to develop something
that is light years ahead
of what we have in America.
We’re getting on the
high-speed train to Shanghai.
(upbeat music)
So here we are
experiencing another
of the wonders of Chinese
technology and innovation.
We’re traveling on
the bullet train
going 350 kilometers
an hour right now.
That’s 250 miles an hour
and one of the common things
I hear from Americans
is, oh well,
China makes inferior goods,
their technology’s inferior
but meanwhile everyone’s using
their Chinese made iPhone.
And I think it’s fair
to have American pride,
which I do myself, but
I think we also need
to be honest about the reality.
I mean, here we are, again
traveling 250 miles an hour,
using our Chinese technology
and this is reality
in China today.
China’s high-speed
train system is
a government private
sector collaboration
that was built in
about 1/3 the time
it could have been
built in America, Europe
or anywhere else in the world.
Jerry Liu spent
more than a decade
at Morgan Stanley and
Templeton Asset Management.
Today he’s the founding
partner of Everpine Capital,
a private equity firm
that helps companies
with cutting edge
technologies take advantage
of the Chinese markets.
We met with Jerry in Shanghai.
– Once again, if you look at
the high-speed rail network
in China, I mean,
even, you roll back
by 15 years it
literally did not exist.
They built everything
from scratch,
from scratch into
the longest, fastest,
most extensive logistics
infrastructure in
the whole world.
– I think the high-speed rail
network is really changed
that country in allowing
people to move, you know,
in and out of cities
quickly but also be able
to have access to
major cities to work
but be allowed to live in
second and third tier cities
for more affordable housing.
– If you go to the Hongqiao
Station, in Shanghai,
at 6:30 in the morning, you
will have difficulty getting in.
It’s so packed in and out.
We’re talking about tens
of thousands of people,
traveling into that station,
dismissing themselves
to everywhere else
in the country,
starting their business
on Monday morning.
This is how charged
China is today.
You don’t see that in
Grand Central Station,
you don’t see that
anywhere else in the world.
This is how driven China is.
– And it’s like, the interstate
highway back in the ’50s.
I mean, can you imagine America
without the interstate
highway system.
Can you imagine
the inland states,
what would they be right now.
That’s what’s happening
in China right now
with the roll out of
the infrastructure
from zero expressways
30 years ago,
they now have 116,000
kilometers of expressways.
260,000 kilometers of highways,
from 99 airports they now
have almost 300 airports
and they’re building
dozens more.
– And when you come
to China and see,
you fly into these
brand new airports,
you ride these bullet trains
going 250 miles an hour,
you pay for things
just using your phone,
you don’t carry cash
or even credit cards,
you know, you
really do understand
what’s happening
here is different
and it’s potentially
only in its infancy
and is only gonna
get even bigger.
– What I think you
have to understand is
that the leaders
here are not trying
to establish a communist
system where everyone is equal,
this is not at all like
Russia or North Korea.
Instead, they are trying
to design the most
effective capitalist
and entrepreneurial
system in the world.
And they’ve proven pretty
darn good at it so far.
There’s no better example of
the radical transformation
that has taken place here,
with the government’s help,
than the amazing place
I showed you earlier,
the city of Shenzhen.
As we told you, in 1979, only
300,000 people lived here.
But Shenzhen became China’s
first special economic zone.
It’s gone from a
backwater village
to the most important
tech manufacturing center
on the planet with a population
that’s about the same size as
America’s two biggest cities,
L.A. and New York put together.
– It’s home to 1,500 research
scientific institutions.
It’s not just making
t-shirts and training shoes,
it’s some of the highest
tech companies in the world.
Shenzhen is one of the big
reasons why in mid 2018,
for the first time ever,
Chinese companies attracted
more venture capital
than American companies.
And although the mainstream
press almost never tells
this story, the money is
clearly flowing to China.
When you take a quick
look at what’s happening
in Shenzhen, it’s
easy to see why.
Today, just this
one Chinese city,
which most Americans
have never even heard of
and basically didn’t even
exist 40 years ago is home
to the world’s third
biggest internet company,
it’s bigger than
Facebook or Netflix,
the world’s biggest
maker of drones, DJI,
the world’s biggest maker
of plug-in electric cars,
not it’s not Tesla, it’s BYD
and the world’s biggest
telecom equipment company,
it’s Huawei which is
three times bigger
than Sweden’s Ericsson.
Many, including The Wall
Street Journal have referred
to Shenzhen as Silicon
Valley of the East.
But in many ways, it’s
actually much more advanced
and more sophisticated.
Shenzhen has the world’s
largest metro line
and the world’s first
all electric bus fleet.
Incredibly, it’s 16,000
buses are all electric
and make no noise or pollution.
This single city has
built more skyscrapers
in a single year than
the entire United States
during that same time.
And this is the critical point.
Today in Shenzhen,
it’s not a place
where businesses simply
copy ideas and products,
it’s a new reality where
China is quickly becoming
one of the most innovative
economies on the planet.
Kaiser Kuo knows both
America and China intimately.
He’s a former director
at Baidu China’s largest
internet search engine.
He’s also former member
of the Tang Dynasty,
China’s first heavy
metal rock band
which formed 30 years ago.
Today Kaiser lives in America,
where he helps run a
China focused media firm.
I met up with Kaiser in Beijing.
– Yeah, it was a joke
even among people
who worked in the industry.
We said C to C which
of course in America,
in English means, you
know, consumer to consumer.
C to C to means copy to China.
There certainly were
a lot of companies
that were simple clones
of American counterparts.
What’s really
interesting though,
is how quickly that
whole merit has shifted.
– Shenzhen, the city
that had blacksmiths
beating charcoal
implements in the streets
less that 40 years ago
is now the electronics
and hardware capital
of the world.
It’s the most sophisticated
and advanced place on earth
when it comes to building
new electronics and hardware.
While Silicon Valley
has chosen to focus
on software, Shenzhen
has a major advantage
in all of the world’s
actually equipment.
That’s why Apple has set up
its latest R&D center here.
IBM is here.
So is Oracle, Cisco and
Videa, Emerson Electronics,
Amazon, Samsung, Microsoft,
Intel, Qualcomm, Tesla,
DuPont, Whirlpool,
Mattel, Phillips Lighting,
Radio Shack, Texas
Instruments, 3M, Broadcom,
BLACK + DECKER, Toshiba, GoPro
and dozens more of the
world’s top technology firms.
They’ve chosen to open
up shop in Shenzhen.
Airbus, the word’s
largest plane maker,
just chose Shenzhen for
an innovation center.
– General Motors
makes more in China
than it makes in America.
Apple makes more in China
than it makes in America.
Many major American
companies, they know.
– Right.
– General Motors knows that
China’s is gigantic market
for high-quality products.
– The reason these
companies are here is
because they have access
to the world’s most
advanced supply chain
for manufacturing
and distribution.
You can get everything
from raw materials
to computer components
right here in Shenzhen.
– It has become
really the epicenter
for all global
high-tech manufacturing.
It is where the
supply chains sit.
I’m not in Palo Alto,
calling across time zones,
using online translation,
trying to talk through
these things, that you know,
where the back and
forth is taking weeks.
– Right.
– It’s an immediacy that
is of tremendous advantage.
And when the United States
stopped manufacturing things,
I think it surrendered a lot
of its advantage in that way.
– Edith Yeung is
a general partner
of venture capital firm
called 500 Startups.
When asked how to explain
Shenzhen to Americans, she says,
“I would tell them it’s a
Silicon Valley for hardware.”
She says, “Americans have no
idea what’s going on in China.
“There are so many areas
“where China already
exceeds the U.S.”
Right now and for the
foreseeable future,
many of the world’s biggest
and most important
breakthroughs are going
to be coming out of this city
that most American’s have
still never heard of.
One of the most successful
of Shenzhen’s recent start-ups
is a company called DJI,
which makes affordable
commercial drones.
The company has a
1,500 person research
and development team.
Today they have 70% of
the global drone market.
They’ll be going public soon
but Americans have
never heard of them.
All they know is GoPro.
But DJI’s drones
are far superior
to GoPro’s in almost every way.
The tech site
Gizmodo for example,
recently compared the
two and concluded,
it’s practically a
landslide in DJI’s favor.
When you look at
the amazing list
of new technology
companies in Shenzhen,
it’s simply astonishing.
There’s a company called
Beijing Genomics
Institute, for example.
The scientific journal, Nature,
called it a DNA superpower
after the company bought
so many genomic
sequencing machines
that it quickly owned more
than half of the world’s total.
China used to be known for
being the best supplier
of cheap pharmaceutical
ingredients and knockoff pills
but today China has the
second largest number
of clinical trials involving
biologic treatments
after the United States.
This is why Merck
and Johnson & Johnson
have innovation centers in China
and why companies like Eli Lilly
and many others are selling
Chinese discovered
drugs overseas.
But again, almost no one
in America knows this.
It’s a story that’s
hardly ever reported
in the mainstream press.
Then there’s the
biggest electronic
automaker in the world.
It’s not Tesla but a
Chinese company based
in Shenzhen called BYD.
This company has the
biggest battery factory
in the world and
it already sells
more electric cars
every year than Tesla.
BYD also has something
Tesla doesn’t,
the backing of the
world’s best investor.
Charlie Munger and Warren Buffet
of Berkshire Hathaway
own nearly 10% of BYD.
Charlie Munger is one of the
word’s leading proponents
of investing in China.
He said in a recent interview,
American investors are
missing out on China.
It just looks too
hard, sitting in Omaha,
but it’s where they
should be looking.
And keep in mind,
all these companies
and all these innovations are
all located in just one city.
This is why The Atlantic
magazine recently wrote,
it’s now becoming clear
that in many respects,
China has distinct advantages
over Silicon Valley
as it hopes to become the
next nexus for innovation.
– Well, I think the current
perception in America
of China right now is one
of very archaic perception,
that China is this
massive sweatshop
that’s just constantly throwing
cheap goods into America.
But the reality is China is one
of the most dynamic
economies in the world.
– Okay, but what about all
these impressive numbers.
One of the objections to
China I hear constantly is
that China’s economic
numbers are manipulated.
So I put the question to one
of the most knowledgeable
people on the subject.
– I don’t trust any
government numbers,
America, Germany, anybody.
We’ve all been caught
lying about our numbers
and I’m sure that
the Chinese numbers,
or some of them,
are made up too.
But it doesn’t matter
’cause I’ve been coming here
for 34 years, you
walk down the street,
you go to a different
city and you say,
my God, last time I was
here five years ago,
none of this was here.
And it all happened, and it
happens very quickly in China,
partly because it’s
a one party state,
therefore they get it done.
In America it takes you years
just to build a new church
or a new hospital or
a new school even.
– Jim, as you heard earlier,
is the only man in the world
who’s crossed China on
land three different times.
Twice by motorcycle
and once by car.
And he also has what is probably
the best investing
track record of all time
for the work that he
did during the ’70s.
His Quantum Fund
delivered a 4,200% return
to his investors during a
time when stocks did nothing.
– That does not mean there
won’t be problems in China.
America became the greatest
country of the 20th century,
along the way we had 15
depressions, with a d,
we had a horrible civil war,
we had massacres in the streets,
we had very little rule of
law, you could buy and sell,
you could still buy
and sell congressman,
but in the 19th century
they were cheap,
you could buy four of five
for the price of one now.
America has many
problems along the way.
But we became an
astonishing success,
the most successful country
in the 20th century.
– For me, as we look at China
and this potential opportunity,
I think it’s crucial
for us to consider
what we can see
with our own eyes.
Has China grown like crazy?
And is there more wealth
being created right here,
right now than any
place on earth?
The answers to both
of those questions are
unequivocally, yes.
Remember, here’s what
Shanghai looked like in 1987.
And here we are cruising
around on a private yacht
in the same spot today.
Here’s what Shenzhen
looked like 30 years ago,
and here’s what Shenzhen
looks like today.
– This is really the greatest
wealth creation event
in the history of
the world in my view.
If you look at the scale we see,
this is 1.4 maybe even
1.5 billion people
because of under
counting who are going
from literally third-world
conditions in 1978
when Deng Xiaoping began
the Open Door Policy
to now you’ve got this mix
of the third world still,
if you go to rural China,
definitely in the third world,
second world and
increasingly first world,
more and more and more.
And that’s why
everybody’s trying to come
to the Chinese cities,
that’s why we’re in
one of the fanciest hotels
I’ve ever stayed at,
that’s why, you know, you
look at when you see Bentleys
in the parking lot here,
Ferraris, Porsches,
that’s real wealth and
it’s growing day by day.
– Sure, the government
has a heavy hand
in directing this economy,
but one amazing
thing is very clear.
The Chinese government can get
enormous initiatives completed
in a fraction of the time
it would take to accomplish
these anywhere else.
I showed you the most
amazing bullet train system
in the world already.
But that’s just the beginning.
Right now the Chinese
government is forcing
the big telecom companies
to spend $180 billion
over seven years to
build the infrastructure
for the world’s largest
5G mobile network.
Meanwhile in America,
50 different states are
all trying to plot
their own course.
Do you really want
to bet against China
with this type of
infrastructure initiative?
I sure don’t.
– Most of the rural areas,
they’ve skipped the landlines.
Now they, and my suspicion is
that they’re gonna
make the next leap
into the 5G faster than
anywhere else in the world.
– Another example, in Beijing,
I met with the man who designed
Beijing’s tallest building
and helped design an area
called Beijing Fun Town.
This is an ultramodern
environmentally friendly area
where nearly all of the
businesses are venture capital,
hedge funds, private
banks, asset managers,
and other types of
investment funds.
This is what’s possible here
in this communist country.
– China is an example of
a country that has gone
from the Stone Ages
into the 21st century
over the space of 30 years.
So it’s really a fundamental
transformation of a society
and an economy, the likes
of which I’ve never seen.
I don’t think anybody’s seen
this kind of transformation
in this kind of time frame,
anywhere in the world.
Not least a country
with 1.3 billion people.
– The way I look at it is, yes,
China has a thousand
challenges on its hands.
But so does nearly ever
other country in the world.
And there can be
absolutely no denying
that the opportunities
in China are far bigger
than anywhere else on earth.
Folks who are
getting in early on
these trends are
making a fortune.
You might be familiar with
FANG, the acronym in the U.S.
for Facebook, Amazon,
Apple, Netflix and Google.
Well in China, there’s
something similar.
– BAT is an acronym that stands
for Baidu, Alibaba, Tencent.
These are three major
technology companies in China.
Baidu search company, I think
a lot of people draw analogies
to Google because, of course,
like Google in
the United States,
it’s the dominant search
engine here in China.
Similar business
model and everything.
Alibaba is a massive
e-commerce company.
It really dominates e-commerce.
Tencent is a company that
doesn’t have a close analogy
in the United States.
It actually draws
most of its revenue
from gaming and
things like that,
but it’s most famous
product is a sort
of all in one
communications platform,
kind of a Swiss Army knife
of an app called WeChat.
And it’s sort of
WhatsApp, Facebook,
all these things sort
of rolled all into one.
You can pretty much do
anything you need to do
from buying things,
from hailing taxis.
– They have WeChat account not
because they’re required to,
but because it’s just so
convenient for them now.
I mean, their entire
lives are online.
They have their bank
statements there,
they can send money to relatives
halfway across the country
in just a few seconds, I mean,
it’s a huge benefit to them,
that’s why they’re all online.
– We have the
incredible opportunity
to have meetings in two
of Tencent’s locations.
First in Beijing and
then also in Shenzhen,
their amazing new headquarters.
Well that was amazing,
we just left Tencent,
and we weren’t allowed
to bring you inside
because of high
security and everything
but really James and I got
to see the future
right here at Tencent.
– Yeah, just the place is
tighter than Fort Knox,
they’ve got high tech,
cool stuff but the thing,
Steve, that you just said
that struck me a minute ago is
that this could
have been Google,
this could have been
in Silicon Valley.
We walked in, we were
greeted by an AI robot,
we have AI facial recognition
to get into the elevators,
that’s also in use by the
Chinese government they said,
and these are people
working 15 hours a day.
– Yeah, they want
you to stay there,
so their working 15 hours a day.
But just like Google, you know,
James and I played ping pong,
James also climbed the
climbing wall inside there.
So we weren’t working
hard inside there
but everyone else was.
– We were the only
ones playing actually,
yeah, but it was fun.
– I told you about how
tech companies like Tencent
and Baidu are up as much
as 50,000% since 2004.
But it’s not just the tech
firms that are soaring.
Look at some of these real
estate and construction firms
that are making people
simply extraordinary gains.
China Fortune Land
Developments soared more
than 8,000% beginning in 2003.
China Overseas
Land and Investment
also soared roughly 8,000%
beginning in the year 2000.
China Resources Land soared more
than 6,500% beginning
in the year 2000.
Country Garden Holdings soared
1,400% beginning in 2008.
The list goes on and on and on.
– People now talk about
a new crop of companies
that are coming
up, many of them,
not all of them yet listed.
TMD is the new acronym that
you’ll be hearing a lot about.
Toutiao which is an AI driven
news site which is massive.
The actual company
is called ByteDance
but they’re flagship
product is Toutiao.
Meituan is another one
which is a sort of
online services platform.
O2O as it’s called in Chinese,
where you can do anything from
book seats in restaurants,
order takeout or buy
movie theater tickets
or get discounts on things,
group buying, it’s enormous.
And finally, D, stands
for Didi Chuxing
which is like the Uber
of China but on steroids.
– Yeah.
Kaiser mentioned a
business called Meituan.
It’s the biggest food delivery
platform in the world.
You can order from
thousands of restaurants,
on your phone and have food
delivered to your door.
Get this, Meituan is
worth more than twice
its American counterparts, Yelp,
Groupon and Grubhub combined.
– China has really
come to the stage.
It’s technology and product
hunger is really unparalleled.
It’s not seen
anytime anywhere else
in the world and in history.
So, we’re talking about really
more than a billion people,
upgrading their lifestyle,
pretty much catching up
to U.S. and European style
but in a very dramatic manner.
– China has seen technology
develop very much
in lockstep with its really
rapid environmental growth.
There’s a kind of
faith in the ability
of technology to
deliver better lives.
Compare that to the
United States right now
where there’s a lot of
anxiety about technology.
– This will be a rising economy.
I’m not seeing the market
degrading itself anytime soon.
I think it’s still
going full steam ahead.
China is the second
largest economy today
and I think it will
probably keep growing
and become the biggest
consumer market in the world.
It will be there with
or without your capital.
So it’s really your call.
(dramatic music)
– There’s a saying in
the financial world
that money flows to
where it’s treated best.
And right now the
best place to build
and grow wealth is
unquestionably in China.
Which is why the smart
money is moving here.
The money being made here is
like nothing we have ever
seen in human history.
What’s crazy to
me is that despite
all the evidence I’ve shown you,
the mainstream media
in America still loves
to hate on China.
Look at some of these
recent book covers.
(dramatic music)
But here’s the truth.
Already the best
investors from America,
including our most famous
and successful investor,
Warren Buffet, and his business
partner Charlie Munger,
are here in a big way.
So are Bill and Melinda Gates,
the Yale and Harvard
pension funds,
Goldman Sachs, Bill Gross.
And by the way, speaking of
millionaires and billionaires,
according to the BBC
and the latest figures,
China is producing two new
billionaires every week.
That’s twice as
many as were created
in America over the
same period of time.
And get this, the
country recently created
a million new millionaires
in a single year.
That’s more millionaires
in a single year
than the total that exists
in the wealthy nation
of Switzerland.
But it’s not just individuals
making huge money.
There are many success stories
for small businesses too.
– So I give you one
example we invested in,
it’s a French company,
it’s called EyeTechCare.
So this is a company, with
a cutting edge technology
that could cure glaucoma using
the ultrasonic technology.
It’s the only
company in the world
that is capable of doing that.
But it was a local company,
it was a French
company based in Lyon.
Today we took this company
to the China market
and it’s already in more
than 30 cities in China
and it’s doing
business really well.
– Jerry told us the
money they’re making
in some of these individual
Chinese cities is
as much as they were
making in all of France.
And there are others making
extraordinary gains as well.
America’s number one
venture capital firm,
Sequoia Capital, has even
set up a division in China.
They recently made
more than 1,000% return
worth millions of dollars
on one of their investments.
And the most
profitable investment
in the history of the
world was made here.
A 500,000% gain in
roughly 17 years.
Bloomberg called it
the deal of the century
and for good reason.
That type of gain turns
every $200 invested
into more than $1 million.
That investment was made
by a man named Koos Bekker
and his company, an investment
firm called Naspers.
What they did was
invest in Tencent,
even though most Americans
had never heard of it.
Again, the smart money
is moving to China,
simply because this
is the best place
to turn a small investment
into a sizable fortune
in the years to come.
– And I left the U.S. for
China, where I am right now,
because frankly, in all
my life I had never seen
such wealth creation
happening in the size
and with the speed that
is happening right here,
right now in China.
– But I moved to Asia
because of China,
I want my children to
grow up speaking Mandarin,
and in their lifetime
China will be
the most important country.
– As an American investor,
I think this is the,
in my personal opinion,
I think this is once
in a many years
opportunity to dive in.
– You’ve seen the
incredible new technologies
and innovations
coming out of China
that almost no one in
America knows about yet.
I’ve told you about the
huge economic tailwind
of this market, how another
300 million people migrating
to cities and moving into
the middle class will create
the biggest consumer
market in history.
And I’ve told you
about how so much
of the smart money
is already in China.
But there’s a huge
part of this story
that I haven’t
even mentioned yet,
in fact it’s what
got me so interested
in China just a few years ago
and might be the
most important part
of this incredible story.
(gentle music)
In short, there are two
enormous piles of money,
I’m talking over a
trillion total dollars
that are about to get pushed
into the Chinese stock market.
This new money is absolutely
100% coming to Chinese stocks.
And nothing like this
has ever happened before
in the history of the financial
markets, not on this scale.
Here’s the deal.
A group called
MSCI, which stands
for Morgan Stanley
Capital International,
controls where huge portion
of international
money is invested.
And for the first time ever,
MSCI is forcing hundreds
of billions of dollars
from the world’s biggest
mutual funds, pensions
and insurance companies
to be invested in
local Chinese stocks.
– There’s gonna be a
sea change around China,
because it’s the
largest asset managers,
it’s the largest
pension plans globally,
they’re gonna be coming
here for the very first time
because they have
to own these stocks,
these bonds that we hold today.
– This process started
in June of 2018,
the next waves of
money are scheduled
to go into Chinese stocks
in May and August of 2019 with
even bigger moves after that.
We’re talking hundreds of
billions of dollars in total.
Never in my career
have I seen a way
to legally front run many
of the worlds biggest
money managers.
But that’s what you can do today
by buying the exact same
stocks they’re going
to be soon forced to own.
This development has
been barely been reported
in the mainstream press.
But the few folks
who have picked up on it
understand the consequences.
As the BBC reported, this is
definitely a game changer.
But this secret boost
to the Chinese stock market
won’t remain a secret forever.
Once these big American
institutions have
their money invested there,
you will begin to
hear them talking
about the great new companies
in China every chance they get.
So that’s one big pile of money
that will soon be
forced into China.
The second big pile coming
here could even be bigger.
The Chinese government recently
announced they’re going
to pour enormous sums,
as much as $1 trillion
in the years to come, into
their public pension funds
to make sure there’s
enough money for retirees.
And as the Financial
Times reported,
this will send a flood of cash
into domestic Chinese equities.
– We’re about to see, over
the next two to three,
four to five, and
especially 10 years,
a new era in Chinese investing.
And it’s gonna be powerful.
– In total, these two new
big piles of money going
into the Chinese stock
market will total
at least $1 trillion and
what’s incredible is,
you can get your
money there first.
I’m sure I don’t have to
tell you what’s gonna happen
when you essentially double
the pile of money chasing
the same big local
Chinese stocks.
The value of these businesses
in the market will have
only one way to go in the
longterm and that’s up, up, up.
Again, almost no one
in the mainstream press is
reporting on this story.
But that’s great
news for you and me.
I’ve simply never seen
a bigger difference
between perception and reality
than what we see in China today.
It’s both the biggest
in dollar terms
but also just in
those emotional terms,
I come home from China and I
try to explain to Americans,
to my wife, to my mother-in-law
what I’ve experienced
and when I explain the
reality of what’s going on
on the ground, they
still are not willing
to change their extreme
perception of what they think.
My wife and kids never
really understood China
until I took them
there in person.
And that’s the whole
reason I created this film,
so you could hopefully
understand this
amazing opportunity
without having to
go there in person.
(upbeat music)
Look, while it’s going
to get harder and harder
to make money in America,
in the years to come,
the money that will be
made in China is going
to dwarf everything
else on the planet.
I think we’ll see a time
in the next few years
where the entire Chinese
stock market at least doubles
in value in as
little as 18 months.
And that’s just
in the short term.
Over the long term,
this entire market is
going to soar 500% or more.
And the best companies
in China are going
to return thousands
of percent gains.
Investing in China’s best
businesses today is very much
like investing in
Microsoft, Apple, Amazon
and Google before they
became household names.
These are truly life-changing
investment opportunities
which are extraordinarily
cheap to purchase today,
especially compared
to similar investments
in the United States.
– The U.S. is making
all-time highs.
Chinese market is down 60%.
Now, I don’t know if
they told you at school,
but you’re supposed to
buy low and sell high.
– Right, right.
– So for me, something
that’s down 60%,
might be more attractive
than something making
all-time highs.
(dramatic music)
– Investing in China is an
incredible deal right now.
Very few investors
are paying attention
plus the growth potential
in China is radically
bigger and China has some
of the most innovative
companies in the world.
Also, more than $1
trillion will be forced
into Chinese stocks
in the next few years
because of the MSCI decision
and the national
pension catch-ups.
Anyone of these factors
would be reason enough
to invest a significant sum
in China in the years to come.
But when you add all
these factors together,
it’s a perfect storm
for making new money.
– I am extremely bullish
on where China is
going to be going.
I think there all
right a lot of things,
a lot of very strong
tailwinds that we still see.
– Warren Buffet
is the most famous
and one of the most
successful investors
in America over
the past 60 years.
One of my favorite
Buffet quotes is
from his 1996 shareholder letter
because it summarizes
the opportunity
before us in China
today, perfectly.
Buffet says, your goal as
an investor should simply be
to purchase at a rational price,
a part interest in an easily
understandable business
who’s earnings are
virtually certain
to be materially higher, five,
10 and 20 years from now.
Over time, you will find
only a few companies
that meet these standards.
So when you see
one that qualifies,
you should buy a
meaningful amount of stock.
I never thought we’d
see a moment like this
in my entire career,
we have a moment
where China is the world’s
second largest economy
and it’s battling with Japan
to be the world’s second
largest stock market,
but meanwhile, nobody is
invested in Chinese stocks.
And when I say nobody,
I mean American institutional
investors, global investors,
even the local Chinese
are not really invested
in Chinese stocks.
– I think China has huge
investment potential.
– As I tell my
customers all the time,
there are always plenty of
reasons not to invest somewhere.
Yes, there are many reasons
not to invest in China today.
But think about this,
there were many reasons not
to invest in U.S.
stocks back in 2009,
in fact back then the reasons
were way more compelling
than they are to not
invest in China today.
But the U.S. market
tripled back then
while most people simply
sat on the sidelines.
The same thing is
going to happen
over the next few
years with China.
There are plenty of reasons not
to invest but the
big picture is clear.
– China has lifted 600
million people out of poverty
over the last 20 years or so
and they’ve been brought
into middle income status.
And in the next 20 years,
China will become a
high-income status country.
So that transformation is
probably the most rapid
and significant I think,
in humankind ever.
You’ve seen other
little countries
when they get an oil
rush, the Middle East,
you’ll get oil comes through
and oil prices jump up
and suddenly they’re
very wealthy.
But it’s 10, 20 million people.
This is over a billion people
and it’s not stopping here.
There’s still a long way to go.
– You know how people today
are kicking themselves
for missing out on Amazon,
Google, Facebook and more?
Well in five years or so,
most of those same people
are gonna look back
and say, man, how
could I have not seen
this huge opportunity in China
in the fastest growing
economy in the world
with many of the best
and fastest growing
businesses on the planet.
– At this point, Steve,
I’ve essentially gone all
in on China in my career.
I’ve invested not just my money,
but my entire career
in this country.
– I think you’d be
crazy not to participate
in it even in a small way.
You don’t need to
jump in boots and all,
but I think this
is a growth story
that’s gonna run for at
least another 10 or 20 years.
– Imagine if you had
not invested in the U.S.
in the last 30 years, what
would you have missed out on.
That’s exactly what
you will miss out
if you don’t invest
in China today.
(dramatic music)
– I hope you enjoyed this
journey through China
and a look at the
incredible opportunities
that it presents us today.
You know, I’m sure that some
people are gonna be very angry
at me for making this film
and encouraging people
to learn more about China
and to ultimately take an
investment stake there too.
In fact, I’m sure some people
will call me un-American.
But I hope that you’re
open-minded enough
to see what’s really going on.
The truth is, China and America
are the future together.
It’s not going to be
and it doesn’t have
to just be just
one or the other.
And the simple reality is,
many places in China
are more advanced
and more sophisticated
than anyplace in America.
But many of America’s
biggest breakthroughs
in trends of tomorrow,
are taking place
in China right before
out eyes, today.
Plus China’s economy is likely
to double in size
in the years to come
and that’s not likely gonna
happen anytime soon in America.
Yes, there are a
thousand reasons
not to invest in China today,
but I think anyone who takes
an unbiased look will see
that the positives far
outweigh the negatives.
There’s no doubt in my
mind, the massive difference
between perception and reality
in China today has created
the greatest money-making
opportunity of our lifetimes.
But this story won’t
remain a secret for long.
I hope you take advantage of it
before the rest of
the world catches on.
To learn more about the specific steps you can take today to
have the opportunity to cash in on what
Dr. Steve Sjuggerud describes as the
best money-making opportunity of our
lifetimes go to www. new money movie .com
slash invest
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[Music]

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