Feeding a Hungry Dragon

Not long ago, President Hu (sounds like ‘Who’) of China met with Saudi King Abdullah to discuss China’s growing appetite.

In the end, they signed a pact that would boost China’s investment in Saudi crude, gas and refining capability.

It was a win/win/lose situation. Washington, that’s us, was left out of the loop.

Is it a good deal?

Well, I have never invested in a company. I have never had enough money left over to trust someone else to lose it for me. But, I do know who Warren Buffett is. And I love the super Chinese Buffets we have here…no relation. Anyway…

Buffet started buying into PetroChina back in 2002 and now owns 1.3% of the company.

It cost him just $488 to buy in and his portion is now worth $1,918…that’s miillons of dollars….and a 300% increase.

It sure was a good deal for him.

What do you think?  Who’s going to win out in this Saudi/China deal?