SIR JOHN TEMPLETON’S INTERVIEW
and Our Comments

Please also see previous Sir John Templeton Interview

OUR COMMENTS ON THIS SIR JOHN TEMPLETON INTERVIEW

On “Bargain Stock Pick: KIA Is a Future GM” Sir John Templeton’s comment did not inspire us to buy the shares of KIA, but rather its products. (Jim Rogers once stated that South Korea is one of the closed countries he has ever visited. He plays the South Korean market only when it’s dirt cheap). When the KIA hybrid model comes out next year, it will be a hit on the car market.

On “Another Bargain in China” When we researched insider-trading activities on Chinese domestic stocks, Value Partners’s name occurred frequently, especially on top 10 shareholders of B share stocks. Value Partners’ selection of stocks is very professional, however, due to its current size, it may be limited for future growth if it limits itself to domestic Chinese stocks.

On “Problems with China” We agree. Good and quality companies think that they don’t need finances, and they don’t want outsiders to have control of their companies. Poor quality companies are the ones that need finance, and they finance it through China’s domestic market with the government’s support.

Another reason is that quality companies, once become a public entity, would not be able to “semi-legally evade taxes”. However, this is likely to change in the future.

A few quality companies can be found in Hong Kong and Singapore. Those listed in the US are overvalued.

On “Bearish on Gold” We agree. Central banks around the world still have a lot of reserves on Gold. Once they sell them (in which they have been doing so lately), the market will suffer.

On “Housing Prices” Contact us if anyone is interested in purchasing beachfront houses in China. However, we believe beachfront houses in Thailand are equally attractive, especially after the Tsunami of last year.