Asia's Tech Edge
You also have a holding in Baidu (BIDU). What do you like about it?
Baidu is the leading online Chinese search company through specialized Chinese search. It has been gaining more market share recently. I think the online-search industry is very competitive in China and competition will probably get fiercer in coming years, but the online-search industry in China is still relatively small compared to the U.S. So I think all the companies [in this sector] will benefit, but the company with the leading position will probably benefit the most as the industry expands.
You're overweight Indian equities, but they still only account for 9% of your portfolio, compared with 17% for China. Why the gap? Is the pool of Indian stocks just shallower than China?
There's a smaller population of companies in India, and it's hard to find high-quality companies there. The industries are very narrow, [though] you could find some pharmaceutical and services companies. In China it's very broad, ranging from the Internet to telecoms to the manufacturing sector. But we're seeing more and more companies coming out of India, especially some of the telecom and Internet segments.What are some technology trends that began in Asia that you think could migrate to the U.S.? Wireless-telecom services might be a good example of technology trends that have emerged in Asia migrating to the U.S. For example, music on demand is becoming popular in the U.S., and it's been very popular in Korea and Japan for some time. The mobile-music segment is much bigger than the PC download segment. In the U.S., I believe the opposite is the case, but mobile music is taking off here. The company behind that service in Korea, WiderThan, is now providing music-on-demand services to some of the U.S. telecom companies. (WiderThan, which Oh held going into the third quarter, is now being acquired by RealNetworks (RNWK), the U.S. Internet media firm.)
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