China Growth Stocks

[ratobranco]

Yes, exactly. Very poor risk management, and more importantly, very poor evolution. His approach failed to evolve to match the information that he was receiving in terms of fraud developments. His investments were proven to be frauds over and over, even as he vigorously defended them. After being wrong multiple times, he should have recognized that he did not have the ability to reliably distinguish between fraud and non-fraud in China, and therefore he should have left the space, or at least reduced exposure. What he did was the opposite: "double down" on the leftovers, much to his peril.