Investing in Chinese Companies: Fool’s Gold or Prosperity?

Investing in BYD or any other Chinese company that tempts investors with promises of prosperity and capital returns is the same as finding fool’s gold and thinking you’ve struck it rich (“This Stock Is a Better Electric-Vehicle Bet Than Tesla. Buy It Now,” Dec. 22). Chinese companies aren’t subject to the same rules and regulations as U.S.-listed companies. They make no secret about not wanting to disclose the necessary information to become listed. “Trust me” isn’t a wise investment strategy. While I’m not Elon Musk’s biggest fan, at least Tesla has to provide the information necessary for investors to properly do their investment homework.

Dividend Payers

The shortlist of juicy dividend payers in The Trader column omitted British American Tobacco, which yielded 9.54% on Christmas Eve (“7 Dividend Stocks to Buy as Bond Yields Fall,” Dec. 18). Its vape business grows 30% to 40% a year and will turn black in 2024 after six years of investment to build the No. 1 share worldwide. While waiting for those vape profits and cash inflow to emerge, you are getting roughly three times the U.S. 10-year Treasury’s yield, and growing. That alone beats what most money managers return, or would in an economic or stock market downturn.

# Howard Flinker ## New York

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