Richardcyoung.com

The Online Home of Author and Investor, Dick Young

  • Home
  • How We Are Different
  • About Us
    • Foundation Principles
    • Contributors
  • Investing
    • You’ve Read The Last Issue of Intelligence Report, Now What?
  • Your Survival Guy
  • The Great Reset
  • COVID-19
  • My Rifles
  • Concentrate on Dividend Record and Compounding
  • Your Security
  • The Swiss Way
  • Dick Young
  • Debbie Young
  • Key West
  • Paris
  • Dick’s R&B Top 100
  • Liberty & Freedom Map
  • Your Health
  • Ron Paul
  • Bank Credit & Money
  • Freedom Force
  • Dick Young’s Safe America
  • Bank for International Settlements

Here’s How Tiny Sweden Beat China

June 4, 2020 By Richard C. Young

By ruskpp @ Shutterstock.com

Tiny remote Sweden, partially sitting in the polar region, is home to only a little over 10 million souls. China, meanwhile, is a massive country, home to nearly 1.4 billion. You may not think Sweden would have the wherewithal to defeat China in any theater of competition, but in one growing industry, Sweden is prepared to dominate its Chinese rival.

In the race for 5G technology leadership, Sweden’s Ericsson may be about to best China’s Huawei. Or, more accurately, Huawei’s ties to China’s Communist Party government are about to blow the technology company’s chances of a worldwide 5G expansion.

Stu Woo reports for the Wall Street Journal:

The Trump administration’s increasingly aggressive effort to cripple China’s Huawei Technologies Co. has presented Ericsson AB the opportunity to lead the rollout of 5G technology around the world.

The Swedish company is emerging as the steadiest player in the $80-billion-a-year cellular-equipment industry, telecommunications executives and analysts say, because it makes a technically advanced product that one rival, Nokia Corp., was late to develop and that Huawei may not be able to make in the future because of recent U.S. measures.

While its competitors try to recover, Ericsson is moving forward after a costly years-long restructuring has returned it to profitability. “The first step is for sure accomplished,” Chief Executive Börje Ekholm said. “The next step is to find longer-term growth for the company.”

The question for Ericsson is figuring out which technologies of tomorrow to bet on. Ericsson is testing equipment in several fields that 5G’s superfast wireless speeds promise to unlock, such as driverless cars and remote-control mining machinery.

Washington is lobbying foreign countries to ban Huawei, saying Beijing could direct the company to spy on or sabotage communications.

I have followed Ericsson on and off for decades. I wrote in late 2011:

Sweden is a global telecommunications giant. EWD owns shares of Ericsson and TeliaSonera, both telecom powerhouses in their own right. Ericsson’s networks are the conduit for 40% of the world’s mobile traffic, serving over two billion subscriptions. Ericsson has built a technology portfolio of over 27,000 patents.

Today Ericsson has the largest portfolio of patents in the industry, with 54,000 granted patents. It is a global 5G competitor with or without sanctions on Huawei. But with the U.S. campaign against Huawei, Ericsson is set for much easier expansion.

I’m not suggesting you invest in Ericsson today, but I am suggesting that you pay attention to the geopolitical risks an investment in a company like Huawei might produce. Companies wrapped up in the affairs of their country’s government are often affected by the political dramas surrounding them. That’s why, in this case, Ericsson, from tiny, mostly neutral Sweden, can compete with Huawei, which hails from the world’s most populous and second-largest economy.

At Richard C. Young & Co., Ltd., my family-run investment counseling firm, preference is given to investments in companies from countries with free markets and governments that help business by getting out of the way, not by trying to control it.

If you would like to learn more about our investment philosophy, please sign up for our monthly client letter by clicking here or schedule a free no-obligation appointment with an investment specialist by clicking here. We look forward to speaking with you.

Related Posts

  • Here’s How You Should Approach Investing in China
  • Tiny Bubbles
  • India Clearly Outperforming China
  • Here’s the Investing Advice I’d Give a Professional Athlete
  • Author
  • Recent Posts
Richard C. Young
Richard C. Young is the editor of Young's World Money Forecast, and a contributing editor to both Richardcyoung.com and Youngresearch.com.
Latest posts by Richard C. Young (see all)
  • Biden’s Anti-Job Executive Orders Could Alienate Labor Forever - March 8, 2021
  • Can Trump Overcome His Biggest Failures and Win in 2024? - March 8, 2021
  • MAP: Track the States With No Mask Mandates - March 5, 2021

Dick Young’s Must Reads

  • “I’ve Got Guys Buying Guns/Ammo for Me All Through the Night.”
  • How S.D. Surged in Vaccination Inoculations
  • Yes! Money Can Bring You Happiness
  • What Do You Know About Rho-Kinase?
  • Protection While Traveling in France
  • The Simple, Elegant Power of the Retirement Compounders
  • My Battle-Hardened Stock Market Strategy for the Worst of Times
  • Marry Compound Interest, Divorce Market Timing
  • Robo-Advisors: When You Have a Lot More to Lose than Money
  • Government Should Be Small, Laws Unobtrusive, and Men Left Alone

Our Most Popular Posts

  • Do You Know About the Great Money Explosion?
  • What’s Responsible for the Global Decline in COVID Deaths?
  • Has Bill Gates Been Injected Yet?
  • Gov. Newsom Discovering the Power of the Pen
  • “God Bless America”
  • MAP: Track the States With No Mask Mandates
  • Is This Proof the COVID-19 Case Numbers are Fake?
  • Teaching A Family Investment: Warren Buffett’s Annual Letter and You
  • Here's What the Media Won't Tell You About Bill Gates
  • Richard C. Young: How About Joining Us in Key West

Disclosure

RSS Youngresearch.com

  • Your Retirement Life: Meet A Modern Day Ski Warrior
  • How Bull Bashes End
  • Your Social Life During the Pandemic and MORE
  • Good Timing? Virgin Galactic Shares Tumble After Chairman Sells Shares
  • Do You Remember When You Purchased Your First Home?
  • Which Fossil Fuel Wins in a Shift to Renewables?
  • Richard Young Reports: The Great Money Explosion and Disasters
  • Fidelity’s 26 Million Retail Accounts in 2020, Up 17%
  • You’re Rich When You Invest Like Croesus
  • Joel Kotkin: Economic Civil War

Biden’s Anti-Job Executive Orders Could Alienate Labor Forever

Biden, a Job Killing Machine

Your Retirement Life: Meet A Modern Day Ski Warrior

Can Trump Overcome His Biggest Failures and Win in 2024?

Joe Biden Is Intentionally Creating a Crisis at the Border

Senile? Democrats Want to Repeal Biden’s War Powers

Copyright © 2021 | Terms & Conditions | About Us | Dick Young | Archives