Guanshen Railway (GSH)

[Investorman]

The Investment Opportunity of a Lifetime
http://www.fool.com/investing/international/2010/01/14/the-investment-opportunity-of-a-lifetime.aspx

Ilan Moscovitz
January 14, 2010


If you've never followed George Soros, now is the time to reconsider.

See, Soros has spent nearly 50 years studying boom-bust cycles, including the international banking crisis, the collapse of the British pound sterling, and the Asian financial crisis. He's made billions both on the upside of those bubbles and during the panic on the downside.

In fact, he predicted that a housing crash following years of overspending would fuel a severe recession, and he emerged from retirement to earn a 32% gain in 2007 and a positive return in 2008.

Given the severity of the housing and credit bubbles that are now collapsing, and Soros' profit-making track record in crises like these, we would do well to ask him what opportunities he sees today.

The short answer: China
In his book The New Paradigm for Financial Markets, Soros reveals that during his visit to China in late 2005, he "saw greater opportunity than at any other time in my career." He called China -- with its rapid GDP growth and the potentially lucrative privatization of state-owned enterprises (SOEs) -- "the opportunity of a lifetime."

Last year's sell-off in emerging-market stocks hasn't changed his mind. In a recent speech at Shanghai's Fudan University, he said he believes "China has been recovering and its pace of recovery will be faster than the rest of the world."

And that means the opportunity to buy names like Huaneng Power (NYSE: HNP), Mindray Medical (NYSE: MR), American Dairy (NYSE: ADY), and Guangshen Railway (NYSE: GSH) at cheaper valuations than Soros was touting in 2006 won't last long.