U.S. stocks are lower in late morning trading on Friday, with the Dow Jones Industrial Average and the S&P 500 down 1.46% and down 1.52%, respectively, at noon EST.
Caixin Online, the portal of the top English language magazine on business and finance in China, reported yesterday that China's top private sector conglomerate, Fosun Group , has been unable to reach its chairman, Guo Guangchang, since midday yesterday.
In August, a Shanghai court found Guo had inappropriate relations with a businessman who was convicted of misuse of funds at state-backed enterprises.
While this matter is obviously of concern (not least to Guo's family), I want to look the comparison between Guo and Warren Buffet -- which he himself entertains, referring to himself a "Chinese disciple" of the Berkshire Hathaway Inc CEO -- based on some of his quotes (for more of the same, see this interview with Leaders Magazine ).
Beginnings in business
Both men showed early entrepreneurial aspirations: Just as Buffett built a thriving franchise delivering newspapers when he was a high school student in Washington, D.C. (among other business ventures), Guo sold bread door to door twice a week at his college dormitory at Fudan University.
Guo was driven out of necessity, however; he told Bloomberg: "I had a government subsidy then, but living costs were high." He was earning about 30 yuan a month ($4.80) in 1987. By comparison, Buffett was far ahead of him, earning $175 a month from his delivery route alone in 1946 dollars , "at a time when a grown man felt well paid if he made $3,000 a year for full-time work," according to Buffett's biography, The Snowball .
Focused on the bottom line No one doubts Buffett's credentials as a hard-driving capitalist. Here's Guo:
Still, it's not all about the Benjamins:
On the role of insurance at Fosun
Just as insurance has played a critical role in the construction of Berkshire Hathaway (with GEICO , in particular), Guo places it at the heart of Fosun's strategy:
On the sources of Buffett's success
But there are more than personal qualities behind Buffett's success:
That second point is sometimes overlooked. Buffett is the first to say that he is phenomenally lucky to have been born in the United States, and that he has been able to ride (with exceptional skill) the country's extraordinary post-war expansion.
On China's long-term potential
Guo is also lucky to have been born in China at the time that he was, and just as Buffett was (and is) bullish on America, Guo is extremely optimistic about the prospects for China:
On the greatest areas of opportunity in China
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The article Who Is "China's Warren Buffett"? originally appeared on Fool.com.
Alex Dumortier, CFA , has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
