Not barring a lack of opportunities in the market due to the recent rallies in the market. I begin to think hypothetically into the future. Something many investment managers all mentioned.
"Prospects" is the key word. Think long term, think beyond 10 years, 20 years. IF you had to hold a company forever, what's it going to be. Buffett mentioned a 20x punch card, so its about holding your horses, picking the right one and boldly executing.
Which comes to the point.
Where seems to be the best places to invest your money? Clearly, something with a minimal downside and a high upside is the best place to look. A few things come to mind. They are
1) Myanmar theme stocks
2) Crisis hit countries / companies - Spain, Greece, Portugal (or companies with proxies to this markets)
3) BRIC
4) Resources - Indonesia (in particular)
Let's start with Myanmar. The golden land. A country with great potential. Intrigue by the news recently, I made a field trip post-graduation to check out the landscape in Myanmar. I was pretty amazed by what I saw.
- The country looked somewhat like Singapore in the mid 60-70s. Notwithstanding, shopping malls, quality housing and other things were being built at a rapid rate.
- A recent report showed that the office rental was higher even than that of Manhattan. The potential for Grade A offices were huge.
- Rental of a 1 room flat could go as high as USD1k/mth. That could be the annual salary of a low wage worker there.
- The wages there were the lowest in the region, you could see many retail shops with a few sales staff simply because they are cheap.
- Anything starting at a low base offers the best opportunities
- Jim Rogers is excited, so am I
- There used to be black market exchange there for local currency - kyat. Today, proper agents at the airport offer relatively good rates. USD, Euros and even Singapore dollars may be exchanged. This speaks testimony of the 3 key business partners, USA, Europe and Singapore.
- The big 4 accounting firms have opened up branches there.
I highly recommend a trip there, if you are interested, you could send a request through the following link http://www.goldenexpresstours.com.
My junior college friend and business partner is running a tour agency there, they can customize different packages suiting your needs. Some of his customers come from as far as Europe, he is a reliable friend.
Do note that you would have to apply for an entry visa as well as book your own flights there.
Some notable companies with exposure to Myanmar
1. Yoma Strategic Holdings
2. Tiong Seng Holdings
3. Woh Hup
4. Keppel Land
5. WE holdings
6. Interra Resources
7. Neratel
8. Yongnam
If you would like me to write on any of them, do drop a comment. Cheers!
Sunday, November 17, 2013
Wednesday, November 13, 2013
Investment themes for the next 10 years
Interestingly, there are many investment themes, flavors of the months and such in everything from retail to ice cream to degrees and stocks.
1. Inflation
Constantly feeding into the economic system, the asset market and biting into income spending power, inflation is the one trend that continues to bump up asset prices, hard assets appreciate, commodities get more expensive etc.
Why is this important? Holding purely cash is a bad idea. Holding a basket of assets may be a better solution in the long run.
Property, Gold and a functioning business to name a few.
2. The increasing aging population
With better healthcare, quality of food, fruits and simply better standards of living. People are expected to live well beyond the age of 80 as the number of centurions keep rising.
Why this matters? Healthcare is a beautiful business model, but not just that - quality healthcare, simplified housing with safety features, special aids equipment, organic and healthy food are all areas that can target the elderly.
IHH, Raffles Medical, Cordlife, Capitaland
3. Digital technology in different fields
Managing data centres, designing a better interface for users, creating applications, simplifying thinking and using a framework to help make better decisions from oil and gas to financial programs to deciding to do an oil and gas drilling.
- Keppel T&T, Neratel, Silverlake Axis, Rex International
1. Inflation
Constantly feeding into the economic system, the asset market and biting into income spending power, inflation is the one trend that continues to bump up asset prices, hard assets appreciate, commodities get more expensive etc.
Why is this important? Holding purely cash is a bad idea. Holding a basket of assets may be a better solution in the long run.
Property, Gold and a functioning business to name a few.
2. The increasing aging population
With better healthcare, quality of food, fruits and simply better standards of living. People are expected to live well beyond the age of 80 as the number of centurions keep rising.
Why this matters? Healthcare is a beautiful business model, but not just that - quality healthcare, simplified housing with safety features, special aids equipment, organic and healthy food are all areas that can target the elderly.
IHH, Raffles Medical, Cordlife, Capitaland
3. Digital technology in different fields
Managing data centres, designing a better interface for users, creating applications, simplifying thinking and using a framework to help make better decisions from oil and gas to financial programs to deciding to do an oil and gas drilling.
- Keppel T&T, Neratel, Silverlake Axis, Rex International
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