Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
Will Biden’s Neo-Populist Economic Doctrine Support Gold? - 25th Sep 21
Markets Deflationary Winds Howling - 25th Sep 21
Crude Oil Price Piercing the Sky: Where Will We See the Black Gold by Xmas? - 25th Sep 21
Cryptocurrency policy choices and consequences - 25th Sep 21
The Next Emma Raducanu UK Tennis Star Pleasing the Crowds at Millhouses Park Sheffield - 25th Sep 21
Stock Market Rescued by the Fed Again? - 24th Sep 21
Are Amazon Best Cheap Memory Foam Mattresses Any good? Bedzonline £69 4ft Small Double ECO Example - 24th Sep 21
Evergrande not a Minsky Moment - 24th Sep 21
UK Energy Firms Scamming Customers Out of Their Best Fixed Rate Gas Tariffs - 23rd Sep 21
Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Should School Children be Jabbed with Pfizer Covid-19 Vaccine To Foster Herd Immunity? - UK - 23rd Sep 21
Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
Trading Crude Oil ETFs in Foreign Currencies: What to Focus On - 22nd Sep 21
URGENT - Crypto-trader event - 'Bitcoin... back to $65,000?' - 22nd Sep 21
Stock Market Time to Buy the Dip? - 22nd Sep 21
US Dollar Bears Are Fresh Out of Honey Pots - 22nd Sep 21
MetaTrader 5 Features Every Trader Should Know - 22nd Sep 21
Evergrande China's Lehman's Moment, Tip of the Ice Berg in Financial Crisis 2.0 - 21st Sep 21
The Fed Is Playing The Biggest Game Of Chicken In History - 21st Sep 21
Focus on Stock Market Short-term Cycle - 21st Sep 21
Lands End Cornwall In VR360 - UK Holidays, Staycations - 21st Sep 21
Stock Market FOMO Hits September CRASH Brick Wall - Dow Trend Forecast 2021 Review - 20th Sep 21
Two Huge, Overlooked Drains on Global Silver Supplies - 20th Sep 21
Gold gets hammered but Copper fails to seize the moment - 20th Sep 21
New arms race and nuclear risks could spell End to the Asian Century - 20th Sep 21
Stock Market FOMO Hits September Brick Wall - Dow Trend Forecast 2021 Review - 19th Sep 21
Dow Forecasting Neural Nets, Crossing the Rubicon With Three High Risk Chinese Tech Stocks - 18th Sep 21
If Post-1971 Monetary System Is Bad, Why Isn’t Gold Higher? - 18th Sep 21
Stock Market Shaking Off the Taper Blues - 18th Sep 21
So... This Happened! One Crypto Goes From "Little-Known" -to- "Top 10" in 6 Weeks - 18th Sep 21
Why a Financial Markets "Panic" May Be Just Around the Corner - 18th Sep 21
An Update on the End of College… and a New Way to Profit - 16th Sep 21
What Kind of Support and Services Can Your Accountant Provide? Your Main Questions Answered - 16th Sep 21
Consistent performance makes waste a good place to buy stocks - 16th Sep 21
Dow Stock Market Trend Forecasting Neural Nets Pattern Recognition - 15th Sep 21
Eurozone Impact on Gold: The ECB and the Phantom Taper - 15th Sep 21
Fed To Taper into Weakening Economy - 15th Sep 21
Gold Miners: Last of the Summer Wine - 15th Sep 21
How does product development affect a company’s market value? - 15th Sep 21
Types of Investment Property to Become Familiar with - 15th Sep 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

China Wins the Battle of the Brains

Politics / Social Issues Feb 25, 2010 - 08:00 AM GMT

By: Tony_Sagami


Best Financial Markets Analysis ArticleQuick, name the top American colleges. Most Americans would tick off names like Harvard, Stanford, M.I.T., Rice, Vassar, Duke, University of California at Berkley, and our fantastic military academies.

How about foreign colleges? Oxford, Cambridge, McGill, The Sorbonne, University of Tokyo, University of Copenhagen, University of Zurich, Hebrew University of Israel, and Peking University are considered some of the best in the world.

My apologies to graduates and faculty of other fine colleges that I left out, but there is one school that I doubt anybody — American or otherwise — would name: Shanghai Jiao Tong University in China.

Students from 103 of the world’s top universities gathered last week in Harbin, China to compete in the Battle of the Brains, which is hosted by the Association for Computing Machinery (ACM-ICPC) and sponsored by IBM.

Teams of three students worked together with a single computer to tackle 11 real-world problems, such as creating software systems to do things such as breaking password codes. The contest was to solve as many problems as possible in five hours. The contest has been described as cramming a whole semester’s work into one day.

Who won this year’s Battle of the Brains? Yup, Shanghai Jiao Tong University.

Hey, this isn’t any fluke, either. This is the third victory for a Chinese college following wins in 2002 and 2005.

The students at Shanghai Jiao Tong University are just the top of the computer nerd iceberg in China. I say that because China is creating world class computer nerds at an amazing pace and some of the top computer minds in the world live there.

Even the students at China’s vocational schools (these are the kids that didn’t get into China’s top colleges) are amazing. Example: The students at Lanxiang Vocational School in Shandong Province have been identified as the source of the cyber attack on Google in order to steal software and hack into email accounts of suspected dissidents.

Chinese students are some of the most motivated in the world.
Chinese students are some of the most motivated in the world.

A bunch of VOCATIONAL SCHOOL students were able to penetrate the security of one of the world’s most sophisticated technology giants. A VOCATIONAL SCHOOL!!!

All this academic success isn’t an accident, either. Chinese (and all other Asians for that matter) place a great emphasis on education. Believe me, I know!

In 1957, my parents got divorced, and my 20-year-old Japanese mother suddenly found herself living in a strange country with no family, friends, money, food, or place to live. Yet instead of returning to Japan where her family and friends were, she scratched, rummaged, and scavenged enough to make a new life for us in America. Why?

I was about a year old at the time, and my mother knew that a half-Japanese, half-American child had limited opportunities in Japan. It wasn’t like it is today — the wounds from World War II were too fresh. I would have never gone to a top university or landed a top job.

Even though my mother barely spoke English and seldom had more than two nickels to rub together, she held fiercely to the idea of the American dream. “In America, anybody can get rich if they work hard,” she told me.

My mother ordered me to sit in the front row right in front of the teacher’s desk, gave me almost daily lectures of the importance of education, and punished me severely if I brought home anything less than an A. My parents were firm believers in corporal punishment!

There is a way to profit — PROFIT HANDSOMELY — from the Asian obsession with education: A Chinese company called New Oriental Education (NYSE:EDU).

New Oriental Education was started by a former English professor at Beijing University that helps Chinese students for college entrance exams. And get this — EDU has a government authorized monopoly on the administration of that entrance exam.

Talk about an economic moat!

Now, the test prep and test administration is a great business by itself, but what really excites me is EDU’s English language courses.

Asians Are Flocking To America’s Shores

The number of Asians living in the United States has reached 14 million, according to the latest U.S. Census Bureau estimates.

Millions of Asians are flocking to the U.S. in search of the American Dream.
Millions of Asians are flocking to the U.S. in search of the American Dream.

Why are they coming to the U.S.? They grew up watching Lifestyles of the Rich and Famous … have seen Yao Ming play for the Houston Rockets … and heard about other family members landing jobs with U.S. firms. In short, they want the same thing my mother wanted for me: A piece of the American dream.

Interestingly, a significant number of the Asians coming over here already have a great head start — almost half hold at least a bachelor’s degree. And a particularly large number have science and engineering backgrounds.

In fact, a quarter of all college-educated workers in the science and engineering fields — and 40% of those with doctorates — were born overseas. Among all doctorate holders that live in America, a majority in computer science (57%), electrical engineering (57%), civil engineering (54%), and mechanical engineering (52%) come from abroad.

However, there’s still one big barrier to entry that even highly-educated Asians have to hurdle: Before they can enroll in U.S. colleges or take high-paying jobs with American companies, they need to speak English and they need to pass the TOEFL (Test of English as a Foreign Language test).

Sample TOEFL Questions

Yup, EDU offers those English classes, test preparation classes, and has the monopoly to administer the TOEFL in China.

That is why I consider New Oriental Education to be my number one, table-pounding top stock pick in the world. In fact, I think it is the best stock that I’ve ever found in my almost 30-year investment career.

That doesn’t mean you should rush out and buy New Oriental Education today. Like life … timing is everything and you should wait until it goes on sale before you buy, but EDU is definitely a stock that I believe belongs in everyone’s portfolio.

Best wishes,


This investment news is brought to you by Uncommon Wisdom. Uncommon Wisdom is a free daily investment newsletter from Weiss Research analysts offering the latest investing news and financial insights for the stock market, precious metals, natural resources, Asian and South American markets. From time to time, the authors of Uncommon Wisdom also cover other topics they feel can contribute to making you healthy, wealthy and wise. To view archives or subscribe, visit

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in