Charlie Munger Discussed More About China And Lee Kuan Yew

I am at Omaha, Nebraska for the weekend. I am here to attend the Berkshire Hathaway’s annual general meeting. Berkshire Hathaway is the conglomerate run by the Oracle of Omaha, Warren Buffett.

There have been some very interesting discussion going on during the 6-hour question and answer session with Warren Buffett and Charlie Munger, who is his Vice-Chairman. The discussion spread across a wide range of issue such as the market condition, rising cost of living, tax planning, China and even Singapore.

Charlie Munger in particular praised the late Mr. Lee Kuan Yew for his transformation of Singapore. Here is what has been discussed.

Question: China is undergoing structural changes. When you take the pulse of the Chinese economy, what do you read?

Buffett commented that he thinks China is going to do fine over time. However, it was Charlie Munger that really commented that China is currently doing great in their reforming process, by learning from the late Mr. Lee Kuan Yew.

Munger said that a key reason for Singapore’s success was because Lee Kuan Yew was able to crack down on corruption, in particularly by paying all the civil servant well, so that there is little incentive to be corrupt.

Buffett went on to compliment China’s growth, calling it “amazing” that the country has grown so fast within the last 20 years. He said that in 1790, the U.S. had a population of 4 million, while China had 290 million. Over the next 200 years, the U.S. became 25% of the world’s GDP.

However, now over the course of 40 years, China found a system that unleashed human potential. He is so amazed that the economy can do nothing for centuries, and then it just explodes.

Foolish Summary

Both Charlie and Buffett showed their optimism for China in the future. Luckily for Singapore investors, there are multiple companies that are linked to the economy. Investors interested in the growth of China can consider commodity trader like Wilmar International Limited (SGX: F34) and logistic provider Global Logistic Properties Ltd (SGX: MC0) which has a huge presence in China.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim owns Wilmar International Ltd.