Major Business Failure

Wang Jing is self made Chinese businessman. He is Chairman and CEO of Beijing Xinwei, a Chinese telecoms company. Among his major interests is the HKND Group that manages the Nicaraguan Canal and Development Project to build the Nicaragua canal.

 In June 2015, he had $10.2 billions was one of the first 200 richest people in the world. In November 2015, his wealth reduced to $1.1 billions due to sharp slide in Chinese stock market. The major factors of failure is too much rely on local market for investment. Local markets are considered safe by majority of millionaires because its easy access to information and many contacts in the local market. Currency risks, geopolitical risks, and credit risks make foreign investment more unattractive for investors.

But despite of all drawbacks, it is more wise to make investment in different market after evaluating the risk and reward scenarios of each country. Like U.S. is known worldwide for its safe-haven investments, like Treasury bonds and blue-chip companies. Nigeria is known for its risky offshore oil, Chile is famous for its rare minerals, Canada is known for its gold and oil sands, and the Middle East is popular for its oil and gas opportunities.

Small investors should learn from the mistake of ultra-rich people. It become less costly to have assets all over the world like Exchange Trading Funds.

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