So Cadillac says it’s great I’m looking for stocks in emerging foreign markets (China, Brazil, Russia, India) but all the stocks I've mentioned are well-known and therefore priced into the market. Potentially good investments still but how can an average investor try and do a little better?
I think back to Peter Lynch in “Beating the Street” taking that first bite of Taco Bell. That experience led Lynch to Taco Bell’s balance sheet and then to Taco Bell's miserly corporate headquarters. Taco Bell would become a mega-bagger for Lynch in his Fidelity Magellan days.
So where's my taco? Some ideas:
(1) Visit Brazil. Perhaps this summer. I’ve always wanted to go and I think it’d be fun to learn Portuguese. Better yet, I’d get a ground view of where newly discovered Brazilian wealth is being spent.
(2) As an engineer, I love to understand cutting edge technologies and generally have a sense of what makes them valuable. I especially like oil, cleantech/nanotech, and biosystems research. So what companies worldwide have the potential for a lasting competitive advantage in any of these areas? Do any of these prospective companies hold an intellectual property edge to restrain competition?
I’ve started some technology research online and I'm also looking at historical trend analyses. More on finding a better taco later. --Schlitz
Subscribe to:
Post Comments (Atom)
Posts
2 comments:
I agree with Cadillac's points completely and wanted to mention that you could take that one step farther too. Find out what American brands are staples in Brazil and if there are related up/down level brands that may benefit due to increased wealth or if the standard accepted brands have room to grow into acceptance with the masses. You might be completely surprised with what you find. Case in point, in China, GM's Buick division is considered the premier car and is sought by China's wealthiest citizens. Here in the U.S., most would say that Buick is fairly insignificant and is geared toward middle class American retirees. Smartly, GM has recognized this and actually offers a different, better Buick product line in China than is available in the U.S., has recently introduced Cadillac to China as the new ultra premium product line for the mega rich, and also introduced Chevrolet as a related, cheaper alternative to Buick for the Chinese masses. Despite their problems here in the U.S., GM has actually done quite well in China with this strategy. It is a shame that we can't invest in Buick China rather than GM as a whole, but this may not be the case for other companies take hold in emerging markets.
Great insights to consider. Thanks for sharing, Paul. I also have some historical trend analysis ideas to share with you after reading Ken Fisher's the Only Three Questions That Count. I have a really good feeling that we were on to something in the Player's Club Lounge that one day.
Get well soon. Jessica has been a rock star in your place...good management. Would you be interested in running Bank of America?
Post a Comment