65 - Why I don't invest in Russia or China

Call to Action: For You: Write down a list of every country which you will exclude from investing for reasons such as this or similar. Stick to it. Support the Podcast: The best support you can give me right now is simply to give this podcast a rating and review in your podcast player.  Mental Models discussed in this podcast: Corruption Property Rights Government Ownership of Means of Production Please review and rate the podcast If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show's audience.  Follow me on Twitter and YouTube Twitter Handle: @TreyHenninger YouTube Channel: DIY Investing Support the Podcast on Patreon This is a podcast supported by listeners like you. If you'd like to support this podcast and help me to continue creating great investing content, please consider becoming a Patron at DIYInvesting.org/Patron. You can find out more information by listening to episode 11 of this podcast. Show Outline The full show notes for this episode are available at https://www.diyinvesting.org/Episode65 Two Key Characteristics Shared by Russia and China High Government ownership of key businesses Could lead to corruption Businesses could be influenced to make uneconomic investments I can't trust the numbers. (Due to the communist government) Corporate frauds are more common Both Russia and China have a critical lack of property rights. Summary: If you are going to make any investment you need to be sure that your principal is safe and a reasonable return on your investment is likely. Lack of strong property rights threatens my principal and government control of businesses threatens my reasonable rate of return.