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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Michael Burry who wrote (9104)	12/2/1999 10:25:00 AM
From: peter michaelson	Read Replies (1) \| Respond to of 78595

Mike, have you ever done business in Asia? It's not so much the particular accounting system or other particulars. Mainly, it's the culture which does not condemn slyly picking the pockets of strangers, so long as it is done intelligently. There often exist many inside deals using a strange tangle of corporate shrouds, etc. There are many ways to skin this cat. Having said that, the Deswell guys seem to me about the most trustworthy of any smaller Asian enterprise I've looked into. And I don't mean to appear prejudiced in some way, but Western investors hear warning bells whenever considering investment in Asia. FWIW peter

To: Michael Burry who wrote (9104)	12/2/1999 4:53:00 PM
From: Paul Senior	Respond to of 78595

Mike: I'm not changing the focus to a discussion of crooks in American business. What I am saying is-- based on what information I have: You put 1/3 of somebody's portfolio and 80% of another's into a Chinese micocap. A company that per Yahoo is an injection molding shop that does about 50M-60M in sales and has a four year public history. A company with a lot of cash on its books. You say from your knowledge of the management and business there's no or minimal risk. I'm saying, I don't care if you speak fluent Chinese and have a desk in the CEO's office. Or that there's a dollar in the till for each dollar of sales. In making this one investment such a substantial portion of somebody's stock portfolio the portfolio itself was put at risk. Maybe it was necessary to meet the requirement/goal of the portfolio. Maybe not. But there was risk. Sorry you don't see it. Contrawise -g-, sorry I didn't or couldn't see the positives in DSWL stock. Otherwise I would have bought. Paul