The Rising Influence of Rising Affluence

[captainccs]

[OT]

The guy who turned me on to this goes by the handle DewDiligence0 (on his rare visits to MF-land) and DewDiligence (on the InvestorsHub boards). On InvestorsHub he has his own board* dedicated to The Global Demographic Tailwind, the financial opportunities that the amazing world-wide growth of the middle-class presents.

http://boards.fool.com/generics-are-a-low-margin-business-you-are-31294843.aspx

I happen to agree that most money is to be made where there are large markets, and there are many more poor people than rich which is why McDonald's and Walmart are such great investments. But America is a saturated market which China is not.

The numbers in China are outrageous. A 2013 article says there were 300 million middle class and the author expected that number to climb to 700 or 800 million, 50% of the Chinese population. Say the middle class doubles in 25 years to 600 million, that would mean one million new middle class each month for 25 years. If one in ten buys a new car that would be 100,000 cars a month. The numbers are staggering.

These are the markets that generate "S" curves, my favorite kind of investment

https://www.google.com/search?q=%22S%22+curves&num=100&newwindow=1&client=safari&rls=en&tbm=isch&tbo=u&source=univ&sa=X&ei=4Y7bU4DxIde_sQTw94CQDA&ved=0CBsQsAQ&biw=1036&bih=554