A few random thoughts

Investors, and even entire economies, can often do surprisingly well under even the most spectacularly incompetent and/or authoritarian governments, at least for very much longer than you might expect. It's kind of a depressing observation, but historically true. So, to a large extent, the day to day business might do just fine for everyday purchases--people will still want a treat, and be able to afford it.

Under an authoritarian government, the firms (and investors) most likely to do well are those that are both (a) large and (b) perceived to be supportive of the regime. Stuff still has to get done, so big projects and money are often funnelled to those perceived as "friends", often with no concern about whether the firm in question is actually in the relevant business. Supportive conglomerates arise and prosper.

So, the main cynically strategic choices would be to invest in things that stay under the radar with non-strategic day-to-date type businesses (observation 1), or those that are aligned with the government (observation 2). Or move your capital elsewhere, of course.

Jim

Berkshire Hathaway FAQ

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