China Investing: Like a Kid in a Toy Store

Editor's note: This is the second article in a series on investing in China. The previous topic was How Not to Invest in China.

Put on your ear muffs. Thirty-five years ago, Warren Buffett mentioned that he felt like an oversexed guy in a brothel. Ear muffs off. Three and a half months ago, I felt like a kid left alone in a Toys 'R Us store after dark.

Granted, Buffett's track record over the last 35 years is greater than mine over the past few months, but triple-digit gains are undeniably "above average." In March, I was offering to pay people if they gave me money and I lost it. I guess that's how market-bottoming can affect you.

Now, I'm optimistically cautious. There are still a lot of things that could go wrong. There are multiple problems still floating in the air in Eastern Europe, not to mention the great potential for commercial mortgage-backed securities to crash the boards harder and longer than the subprimes. That said, I still can't control myself when I see opportunities that make me feel like I did when I opened my 12-year old Christmas present, a Tyco 6 wheeling remote-control car that I proceeded to drive up and down the hotel hallways to my parents' dismay and embarrassment. ...