I have talked about investing in China many times in this blog. Recently a good friend of my wife asked this question: how to protect her parents retirement (life style) now that they are near retirement?
I think this is a very good question, also a very common one. Recently I read Charlie Munger’s book Poor Charile’s Almanac, and he said three stocks are enought (diversified) if they are good stocks and the person trully understands it. I agree.
So, let me apply this three stocks approach and run a hypertheoritical portfolio for my wife’s friend (‘s parents 🙂
The first stock comes to mind is 601628.SS, China Life Insurance (NYSE: LFC; HKSE: 2628.HK). I talked China Life couple times, during its Shanghai IPO (secondary offering to be precise), and “Got Yuan” post. I believe China Life is uniquely positioned to take advantage of weakened competitors (China Ping’An and AIG China subsidiary), and this down market.
The second stock is 601398.SS, ICBC (Industrial and Commercial Bank of China) (1398.HK). To be continued…
Reference: AH share difference