Started reading that Investment Biker book. I found this paragraph pretty interesting (he's discussing Austria in the 90s):"My attitude is, if you believe in a country, you should buy shares of every decent stock on its exchange. If you've got the right concept going for you, they're all going to move up together. I bought shares in everything that had a solid balance sheet - a home building construction company, finance and manufacturing companies, banks, and other construction first, and a big machinery company."I guess if I had to pick one country for this it would be Brazil (or maybe China). Any thoughts?
Any thoughts? He adds an addendum to that maxim later in the book, which is every decent stock with a good balance sheet to give some downside protection. Ultimately, I think he's using this strategy to avoid execution risk since he can't be in-country watching the investments and since he's rolling around the world on a motorcycle, can't even pay too close attention.I'd be careful, though, about applying this to China or Brazil today since there are so many public companies in these countries. I think Rogers is talking about buying up every decent stock in truly, emerging economies where the only public stuff are going to be foundational type stocks such as utilites, telcoms, and banks. For example, most of the African countries, the former Soviet satellites, SE Asia, etc. One of the great things about being an investor today v. being an investor 20 years ago is that Rogers was probably one of the few Americans in the world who had the money and the access to employ such a strategy. Today, using Internet brokerages and ETFs, we can all employ something like this provided we do the reserch to determine why we like one region/country over another.Tim
I opt for China before Brazil.
I think Rogers is talking about buying up every decent stock in truly, emerging economies where the only public stuff are going to be foundational type stocks such as utilites, telcoms, and banks. For example, most of the African countries, the former Soviet satellites, SE Asia, etc. Ah yea, I think you are correct with that interpretation... I'm thinking about starting a position in that African index fund (AFK).
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