One of the best places to be as an investor today is China. China I think has incredible advantages.
One of the hottest sectors to be in today is software. And what people like about it is that if you have a good software company like Microsoft, or even some of the smaller ones, you don’t really have a whole lot of costs. And there is no better business than a business without a whole lot of costs. The costs a software company really has are the engineers. Software engineering salaries today — for a good software programmer — are as high as what network engineers made 10 or 20 years ago, which is measured in seven and not six figures. I think this is where China is about to break out. And I’ll give you the example of two stocks. Zoom at its core is a telecoms company. It allows people to communicate with each other over the telecom network.
The other company is Agora. And in my opinion they’re capitalising on two trends: the first one is that what they allow is for people to talk to each other over a virtual telecom network, unlike AT&T. And the costs of telecom, which are the same for everyone, goes down over time. Their other cost is software engineering, and they’ve got that based in China. So I think they’re going to beat any of their Western competitors.
If you can find a software business today, where the costs are in China, I think you’ve got a winner.