In June 1995, students from one of the world’s top law schools (USC Gould School of Law) gathered together. They all came to listen to Charlie Munger.
Munger is probably the most rational man you’ll ever come across. He’s Warren Buffett’s right hand man. Many times in fact, Buffett will defer to Munger.
Mohnish Pabrai, one of the best investors of his generation, even has a bust of Munger in his office.
Safe to say Mr. Munger has his fans.
During his hour long speech, Munger talked about the case of human misjudgement. But before beginning, he decided to point out an observation.
‘The sacrifice and the wisdom and the value transfer that comes from one generation to the next can never be underrated. And that gives me enormous pleasure as I look at this sea of Asian faces to my left.
‘All my life I’ve admired Confucius. I like the idea of filial piety, the idea that there are values that are taught and duties that come naturally and all that should be passed on to the next generation.
‘You people who don’t think there’s anything in this idea, please note how fast these Asian faces are rising in American life. I think they have something.
Imagine a 77 hour work week
If you can remember the days of high school, or you have kids in school right now, you’ll know how stressful and impactful Year 12 can be.
Students put hours into studies, trying to remember vast amounts of information for any possible number of questions on the final exam.
I remember studying for hours after getting home from school. I would create notes and summaries. Then re-write and read over those same pages. There would never be enough practice exams to do. And still I felt nervous going into the examination hall at the end of the year.
If I had to think about it today, I’d say I studied more than the average student during Year 12. Yet had I been compared to Chinese students, it would have looked like I was on holiday.
Imparting knowledge to the younger generation in China is a core principle. There is also no substitute for hard work. As such, Chinese students put in 65-77 hours of study during the work week.
Even their weekends aren’t free. Along with sports and computer games, students usually study for an additional six hours. Kind of makes our 40 hour week look cushy.
Along with hours of study, Chinese schools are making important changes to their curriculum. Chinese students are getting far more exposure to technology than ever before.
This is just one more way China plans to become the tech superpower of tomorrow.
South China Morning Post wrote yesterday:
‘China has published its first artificial intelligence (AI) textbook for high school students as the country looks to an even younger generation than its huge pool of college graduates to close the gap in the global AI talent war.
‘The textbook, released in April and named “Fundamentals of Artificial Intelligence”, comes around six months after China’s State Council called for the inclusion of AI-related courses in primary and secondary education.’
In short order, you’ll probably see far more tech subjects added to the curriculum.
‘Global business value derived from AI is expected to hit US$3.9 trillion by 2022, according to a forecast by research house Gartner in April this year,’ SCMP continues.
‘…About 40 high schools across China, mainly in developed mega cities such as Beijing and Shanghai, have teamed up with SenseTime to become the first participants in the AI high school education pilot programme.
‘A recent check on JD.com, one of China’s largest online shopping sites, showed that the book – a collaboration between SenseTime and the Mooc Center of East China Normal University with input from teachers of six middle schools in Shanghai – is currently sold out.’
What I find exciting is that we probably won’t have to wait a whole generation to see China’s tech scene blossom. Those wheels are already in motion.
Tech cities all over the place
Had you travelled to Shenzhen a few years ago, you wouldn’t have thought much. Just a dreary fishing village with not much going on.
Today, venturing into Shenzhen is like stepping into the future. The city has been dubbed one of the ‘Silicon Valley’s of China’. And I do mean Valley’s, as there’s more than one.
There are 17 tech hubs throughout China’s major cities. The most famous being Shenzhen, Beijing and Shanghai. It’s where some of the most powerful, dominant tech companies reside. And it’s pulling more tech professionals to China’s shores each year.
I’m sure you’ve guessed the opportunity here.
China’s flourishing tech industry will give rise to some of the most innovative and profitable companies in the world.
And what I want to do is help you be a part of it. It’s why I’ve set up a brand new advisory service to take advantage of opportunities just like this.
The service is called Wealth Eruption.
Like the name suggests, I want to show you investments that could significantly alter your wealth. I’ve already found five ASX listed stocks that could rise significantly higher on the back of China.
One stock in particular could end up being a 20-bagger. Meaning there’s a potential 2,000% return on the table here.
To find out the names of these stocks and more, click here.
Editor, Money Morning