What Would Ben Graham Do Now?: A New Value Investing Playbook for a Global Age

4. Investing in Politicized Markets

Over the next 20 years, the international capitalism of the West will be increasingly joined by the state capitalism, “godfather” capitalism, and other politically infused forms of capitalism that are prevalent in many other countries. What the West calls crony capitalism, much of the world calls business. And as China, India, Brazil, and others become more potent forces in global finance, successful investors will learn to take advantage of the opportunities afforded by their forms of capitalism.

In these countries, companies cater to both customers and bureaucrats. Deals are combinations of commercial and government interests. Political power is often held by a privileged few, so economic opportunity is similarly ...